A great thing happened today for the environment and people of California. On the very day we released new maps measuring methane leaking from natural gas lines under Los Angeles-area streets, the Southern California Gas Company (SoCalGas) announced they would begin publishing their own maps showing the locations of leaks they find on their system.
It is a positive move that brings the company a big step closer to complying with the California law requiring them to publish not only the whereabouts of known leaks, but also the amount of methane escaping (which their newly announced maps do not). The public has a right to know where and how much harmful air pollution is being emitted by SoCalGas and any other company in California.
In the summer of 2013, researchers aboard a four-engine P-3 Orion aircraft – a variant of the plane used by the U.S. Navy to track submarines – flew over three of the nation’s biggest shale gas regions, taking measurements that would allow them to estimate the amount of methane leaking from the production fields below.
The team from University of Colorado’s Cooperative Institute for Research in Environmental Sciences (CIRES) and NOAA Earth System Research Laboratory published their findings this week in the Journal of Geophysical Research: Atmospheres, adding new depth to our understanding of methane leaks, but also underscoring important questions.
Comparing their readings to production figures for the region, they estimated a total leak rate of 0.18 to 2.8 percent, which is at the low end of the range of findings in other research. For some, this may be cause for celebration.
But don’t pop the champagne corks just yet. Read More
After months of anticipation, the Obama Administration this month released its new methane emissions strategy – a plan that opens up new opportunities for industry writ large, and especially for operators that want to cut waste and get ahead.
The centerpiece of the strategy are imminent rules that will help us meet a new national goal to reduce harmful methane pollution from oil and natural gas operations by 45 percent by 2025.
But the rules also bring direct industry benefits. Here are four reasons the new methane emissions strategy is a boon, rather than bane, for America’s $1.2-trillion oil and gas sector:
1. It tackles $1.8 billion in annual waste and adds market certainty
Leaky infrastructure and unnecessary venting across the oil and gas value chain cost an estimated $1.8 billion in wasted product and lost revenue annually.
The new rules require companies to include up-to-date controls as they build out new and modified infrastructure, keeping gas in the pipeline while making new facilities more efficient. Read More
When credibility is your stock in trade, it’s important to have your facts straight. On Monday, the Wall Street Journal blew it.
In an unsigned opinion piece dubbed “Meth Heads in the White House,” the paper dismisses plans expected to be announced by the Obama administration in the next few weeks that would start to tackle the huge amount of methane leaking from America’s oil & gas production facilities.
The question is a significant one, because – as the article notes in passing – methane is an extremely potent greenhouse gas (in point of fact, packing more than 80 times the warming power of carbon dioxide over a 20 year time frame). According to EPA data, oil & gas operations emit roughly 8 million metric tons of unburned methane annually, enough gas to heat nearly 6 million homes. Read More
Source: Dan Lurie
At first glance, the Environmental Protection Agency’s Sept. 30 press release looked like a winner: Methane emissions from the oil and gas sector dropped by 12 percent in 2013, with a whopping 73-percent decline from hydraulically fractured natural gas wells making up the largest share of reductions.
The drop in methane emissions shows how effective regulation is in reducing air pollution from oil and gas production. It was led by an early phase of EPA’s air pollution rules, enacted in October 2012, with full implementation expected by January 2015. (Although this regulation targets emissions of volatile organic compounds, it has also reduced methane as a co-benefit.)
Except, the 73- percent decline is not the whole story. It only accounts for 2.3 percent of the total methane emissions reported to EPA’s Greenhouse Gas Reporting Program, leaving a large amount of tons on the table addressed.
By: Sean Wright, Senior Analyst, Corporate Partnerships
Source: Ash Waechter
Environmental concerns about methane emissions continue to grow as more people understand the negative climate implications of this incredibly potent greenhouse gas. Now the financial community is taking note of not only the environmental risks but the impact of methane emissions on the oil and gas industry’s bottom line. Methane leaks not only pollute the atmosphere, but every thousand cubic feet lost represents actual dollars being leaked into thin air—bad business any way you look at it.
Last week the Sustainability Accounting Standards Board (SASB)—a collaborative effort aimed at improving corporate performance on environmental, social and government issues—released their provisional accounting standards for the non-renewable resources sector, which includes oil and gas production.
These accounting standards guide companies on how to measure and disclose environmental, social, and governance (ESG) risks that impact a company’s financial performance. Their work highlights the growing demand amongst investors and stakeholders for companies to report information beyond mere financial metrics in order to provide a more holistic view of a company’s position.