Selected tag(s): global methane

Whether you love or hate natural gas, stopping methane emissions now is crucial

The International Energy Agency’s new 2017 World Energy Outlook contains the agency’s strongest language yet about the urgent need to reduce methane emissions from the oil and gas sector, and the huge opportunities that exist to do so.

Some have taken issue with IEA projections on the overall role of natural gas, suggesting they are beyond what is environmentally sustainable. Others think IEA is underestimating growth potential. Whatever you believe the trajectory for gas is — or should be — the benefits of reducing methane emissions are both enormous and irrefutable.

The good news: IEA estimates the industry can reduce their worldwide emissions by 75 percent – and that up to two thirds of those reductions can be realized at zero net cost. “These emissions are not the only anthropogenic emissions of methane,” says the report, “but they are likely to be among the cheapest to abate." Read More »

Posted in General, Methane, Natural Gas| Tagged | Comments are closed

Oil & gas CEOs up their methane pledge: Here’s what to watch for as promises turn to action

This post was co-authored by Drew Nelson

The CEOs of ten leading oil and gas companies today announced intentions to move toward “near-zero” methane emissions, pledging to set a quantitative reduction target by this time next year. At first blush, it might sound like a modest step – a promise to make a promise. In fact, the CEOs announcement constitutes an important and welcome recognition that oil and gas methane emissions impact the climate, are too high, and must be reduced. The new pledge comes just days after the International Energy Agency previewed its analysis showing that methane is a “critical issue for the long term natural gas outlook” and steep emission reductions are possible with today’s technology, and enormously cost effective.

From Social Issue to Business Issue

The 10 companies, which together are responsible for 20 percent of global production, joined forces three years ago to form the Oil and Gas Climate Initiative. Last year, they invested $1 billion to accelerate commercial deployment of low carbon energy technologies. The new pledge is the next important step on the road to decarbonizing their operations, with methane playing a central role. Read More »

Posted in Climate, Methane, Natural Gas| Tagged | Comments are closed

Investor sees methane management as self-help for oil and gas companies

Q&A with Tim Goodman, Hermes Investment Management

When burned, natural gas produces half the carbon as coal, so it is often touted as a “bridge” fuel to a cleaner energy future. But the carbon advantage of natural gas may be lost if too much of it escapes across its value chain.

Natural gas is mostly methane, which, unburned, is a highly potent greenhouse gas accounting for roughly a quarter of today’s global warming. Worldwide, oil and gas companies leak and vent an estimated $30 billion of methane each year into the atmosphere.

EDF’s Sean Wright sat down with Tim Goodman, Director of Engagement at London-based Hermes Investment Management. Goodman, who views methane management as practical self-help for the industry to pursue, engages with oil and gas companies on strategies to manage their methane emissions. This is the first of a two-part conversation with Hermes, a global investment firm, whose stewardship service Hermes EOS, advises $330.4 billion in assets.  Read More »

Posted in Methane, Natural Gas| Tagged | Comments are closed

Shell becomes latest oil and gas company to test smart methane sensors

This week, the oil and gas giant Shell took a positive step toward addressing methane emissions. The company announced a new technology trial at a wellsite in Alberta, Canada, where it is piloting a specially designed laser to continuously monitor emissions of methane, a powerful pollutant known to leak from oil and gas equipment.

The move by Shell is a glimpse into the future and demonstrates growing market interest in smart, sensor-based methane detection technology. Shell’s project joins a similar field test already underway in Texas, operated by the Norwegian producer Statoil, and a California utility pilot run by Pacific Gas and Electric Company.

Each of these deployments is promising, but the ultimate test will be broad-scale adoption of innovations that generate actual methane reductions. Read More »

Posted in Gas to Clean, Methane, Natural Gas| Tagged | Comments are closed

Shell Canada launches methane technology pilot, and its timing is perfect.

This week, oil and gas giant Shell announced the launch of a technology pilot at one of its shale gas facilities in Canada that will continuously monitor methane levels and provide real-time leak detection to facility operators. This is a big deal and shows what can happen when companies, environmental groups and innovators work together to find solutions.

The pilot is a product of the Methane Detectors Challenge (MDC), a partnership involving EDF, eight oil and gas operators, technology developers and other experts that aims to spur next-generation solutions that can help the oil and gas industry find methane leaks more efficiently and effectively.

Shell is not alone. Other MDC participants include Statoil, which launched a pilot in Texas early this year, and Pacific Gas & Electric Company, which began a pilot in California in 2016. But the Shell project at Rocky Mountain House is the first MDC technology to be deployed in Canada, where the federal and key provincial governments are both developing regulations that will reduce oil and gas methane emissions.

The timing of this test in Alberta couldn’t be better. Read More »

Posted in Gas to Clean, Methane, Natural Gas| Also tagged , | Comments are closed

Global investor touts methane opportunity with oil & gas industry

Institutional investors worldwide are increasingly encouraging oil and gas companies to improve and disclose their management strategies to minimize methane risk.

Methane – an invisible, odorless gas and main ingredient in natural gas – is routinely emitted by the global oil and gas industry, posing a reputational and economic threat to portfolios.

Natural gas is widely marketed as a low-carbon fuel because it burns roughly 50 percent cleaner than coal. But this ignores a major problem: methane. Natural gas is almost pure methane, a powerful pollutant that speeds up Earth’s warming when it escapes into the atmosphere. Read More »

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