Selected tags: Natural Gas

North Dakota Steps Up to Curtail Wasteful Flaring, But Will it be Enough?

rp_NatlGasFlares_142558250_Photos-RF-300x197.jpgEveryone agrees that burning off as much as a third of the natural gas produced in North Dakota is a terrible waste of an important natural resource. The flaring problem arises out of the fact that energy companies are primarily drilling for oil in North Dakota.  A lot of natural gas comes out of those very same wells, though; and since the infrastructure isn’t in place to take that gas to market, companies end up flaring gas as a “waste” byproduct of oil production.

This isn’t a problem that can be fixed overnight.  Building the gathering systems, processing capacity and transmission pipelines to get this gas to market requires major planning and investment.  But we also have to recognize that in a capital-constrained world, the incentive is for companies to put their next dollar toward the next oil well – not toward lower-return (but still lucrative) investments in gas infrastructure.  If a company’s bottom line was all that mattered, that might be fine.  But we have other issues at play here.

Flaring natural gas undermines national energy security, has negative impacts on the region’s air quality, results in unnecessary greenhouse gas emissions and represents millions of dollars of lost revenue for the state, local governments, schools and mineral estate owners. In fact, in 2012 alone, flaring resulted in the waste of around $1 billion in fuel – or enough gas to heat more than a million homes.

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Posted in General, Natural Gas | Also tagged , | 1 Response, comments now closed

Financial Sector Focuses on Risks from Methane

By: Sean Wright, Senior Analyst, Corporate Partnerships

Source: Ash Waechter

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.

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Posted in Energy Financing, Methane, Natural Gas | Also tagged , | 4 Responses, comments now closed

Clearing the Air: Environmental Groups Push for Clean Air Standards for Oil and Gas Industry

OilRefinery_36492520_Shutterstock.com_RFThis post was co-authored by Peter Zalzal, EDF Attorney, and Brian Korpics, EDF Legal Fellow

 

On May 13, EDF—along with a coalition of 64 local, state, and national public interest groups—submitted a petition asking the Environmental Protection Agency to address toxic air pollution emitted from oil and natural gas operations in population centers around the country.

Earthjustice crafted the petition which focuses on a provision of the Clean Air Act. It authorizes EPA to establish standards for toxic pollution from oil and natural gas wells if those wells are in major metropolitan areas (areas with a population greater than 1 million), and if the agency finds the emissions “present more than a negligible risk of adverse effects to public health.”

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Posted in Air Quality | Also tagged , , , | 1 Response, comments now closed

Recruiting Tech Innovators to Find Climate Solutions

54097_Circuit Earth.JPGAmerica is in the midst of two booms: one in sensor technology and another in natural gas. Recent innovations—specifically advancements in drilling and hydraulic fracturing technologies—have dramatically increased the nation’s access to reserves of natural gas. While this influx of new technology has altered the energy industry, the resulting large-scale development has brought with it some real environmental and climate risks. Now is the time for the same ingenuity that transformed America’s energy landscape to help identify solutions to reduce the impacts caused by increasing supplies of natural gas.

Just this last month, two innovator programs were announced – one led by Environmental Defense Fund (EDF) and another from the U.S. Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E) – both are focused on developing new technologies capable of minimizing methane emissions from the natural gas supply chain. The programs are different but complementary and together signal there is  momentum building to engage the best and brightest innovators to help address a consequential component of the climate issue. Read More »

Posted in Climate, Methane, Natural Gas | Also tagged , , , | 2 Responses, comments now closed

EDF Calls on BLM to Minimize Waste of Natural Gas on Federal Lands

This post was co-authored by Tomás Carbonell, EDF Attorney, and Brian Korpics, EDF Legal Fellow

NatlGasRigWetland_93178419_Photos-RF

Last Thursday, the Department of the Interior’s Bureau of Land Management (BLM) hosted a public forum in Washington, D.C. on venting and flaring of natural gas from oil and gas operations occurring on federal lands. This was the third in a series in which BLM received public comments on various options aimed at addressing the extensive and unnecessary loss of gas from onshore federal oil and gas leases. EDF is encouraged to see BLM taking on this vital issue, and we delivered testimony urging BLM to take strong and timely action to uphold its responsibility to minimize waste of our nation’s natural resources and ensure oil and gas development minimizes impacts to our climate and public health.

Reducing waste of natural gas on federal lands is a core element of the President’s strategy to reduce methane emissions, and for good reason. BLM is tasked with managing 700 million acres of federal lands – making it the largest single land management agency in the federal government – and it has broad responsibilities for the significant oil and gas resources located on those lands. Almost 40 million acres of BLM lands have already been leased for oil and gas production, accounting for approximately 14 percent of all onshore natural gas production and 8.5 percent of all onshore oil production in the United States.

Despite the scale of oil and gas production on federal lands, BLM’s policies covering venting, flaring, and other losses of natural gas are over three decades old. These obsolete regulations allow producers to waste significant amounts of natural gas that could be cost-effectively captured using today’s technology. The Government Accountability Office (GAO) found in 2010 that between 4.2 and 5 percent of all natural gas produced onshore on federal lands was vented, flared, or lost in fugitive emissions — enough gas to heat about 1.7 million homes each year.  A more recent study by the Western Values Project found that vented and flared methane could cost taxpayers nearly $800 million in coming years.

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Critical Decision Expected Tomorrow in Colorado on Clean Air Rule

Day 4 of the ongoing hearings on a groundbreaking proposal to reduce air and climate pollution from oil and gas operations in Colorado saw Team EDF pushing back on claims opposition groups have made to try to weaken the proposal.

Leading companies Noble, Anadarko, Encana and DCP also put on strong cases, using their own operational data to show the proposal is cost effective. They should be lauded for their leadership, as should local governments and conservation groups that brought strong analytics to the hearings.

If the proposal is adopted without being weakened, it will eliminate more than 90,000 tons of smog-forming VOCs annually (the same amount produced by all the cars and trucks in Colorado) and more than 100,000 tons of methane, a highly potent greenhouse gas.

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Posted in Air Quality, Climate, Colorado, General, Methane, Natural Gas | Also tagged , , , , , | 3 Responses, comments now closed

Coloradans Overwhelmingly Voice Support for Proposed Air Regulations

Colorado is the quintessential swing state – with voters split about evenly between Republicans, Democrats and Independents.  That can make for some fractious politics at times, but our diversity is part of what makes us great.

What makes us even better is our unity – and that’s what we saw today when, by a margin of almost 10-to-1, Coloradans of all stripes called on the state’s Air Quality Control Commission (AQCC) to adopt new rules that would slash air and climate pollution coming from oil and gas development activities.

The AQCC opened its hearings on the proposed rules with a full day of citizen input, with people traveling from around the state (one drove six hours) to make their voices heard.  Residents from rural communities, including many from the Western Slope, stood up, one after another, to tell the AQCC Commissioners that the proposed rules should apply statewide and that the handful of local officials opposing the rules are out of step with the citizens they’re supposed to serve.  In response to those local officials, one citizen from Ridgway implored the Commission to protect all Colorado families and not “turn the West Slope into an air quality sacrifice zone.”

EDF couldn’t agree more.  Air quality in western parts of Colorado is trending in a bad direction, teetering on the edge of violating federal health standards.  The state health department issued nine ozone advisories last winter for Western Slope counties where oil and gas development is prevalent, meaning the air wasn’t healthy for kids, the elderly, active adults and people with respiratory illness.

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Posted in Air Quality, Climate, Colorado, General, Methane, Natural Gas | Also tagged , , , | Comments closed

Colorado’s Proposal Shows What it Takes to Make Progress on Climate

morberg /flickr

morberg /flickr

This commentary originally appeared on our EDF Voices: People on the Planet blog.

At a time when partisan rancor is the order of the day, this week’s news out of Colorado is a tribute to the power of partnership. On Monday, Governor John Hickenlooper of Colorado proposed new regulations for oil and gas operations that, if adopted, will cut both conventional air pollution and climate pollution – by making Colorado the first state in the nation to tackle the problem of methane emissions. The big announcement showed that industry leaders, state officials and an environmental group like Environmental Defense Fund can sit down together to negotiate a plan to deliver cleaner, safer air. And just in time. As EDF’s Rocky Mountain Regional Director Dan Grossman told NPR this week, “the fundamental question [is] whether or not citizens will tolerate oil and gas development.”

On Election Day, four Colorado communities voted to ban hydraulic fracturing. State officials and industry leaders are getting the message: public trust has been badly damaged, and the only way to restore it is by putting in place strong rules to protect air, water, and communities. Not every community is going to ban oil and gas development, obviously, so we need to protect the many places where it is happening.

While the new Colorado proposal doesn’t address all the issues surrounding oil and gas development, the governor and the state’s regulators should be applauded for their efforts in bringing forward these commonsense air pollution measures, which were agreed to and supported by EDF, Anadarko Petroleum, Encana, and Noble Energy. And we’re not the only ones who think so. Newspapers from Los Angeles to Denver to New York wrote in support of the new rules. New York Times columnist Joe Nocera praised both the proposed legislation and Environmental Defense Fund’s collaborative approach in an op-ed published MondayRead More »

Posted in Colorado, Natural Gas | Also tagged , | 1 Response, comments now closed

Wyoming Raises the Bar on Air Quality for Oil & Gas

Source: Evolving ITSM

When it comes to willingness to show leadership in the critical field of air quality, Wyoming is once again first out of the gate with important new requirements to reduce harmful emissions from leaking oil and gas equipment — a major source of air pollution that can create serious air quality problems.

A Wyoming program finalized last week requires operators that are requesting permits for new and modified sources, such as wells or tanks, in the state’s most active oil and gas fields to find and fix leaking equipment under required Leak Detection and Repair (LDAR) programs.  Companies are required to inspect their operations quarterly utilizing reliable, technologically-precise detection methods at those sites most likely to leak.

This sort of leadership is not new to the Cowboy State. Wyoming has a tradition of being a first mover on air pollution reduction requirements, including pioneering the so-called "green completion" rules to reduce emissions from new wells that have since become the federal standard.

Wyoming’s LDAR program is a smart step forward on sensible, effective air quality regulations for the oil and gas industry. Tightening systems so that leaks are plugged will both protect the air we breathe and reduce the waste of a precious natural resource. In fact, strong LDAR programs may be the best, most cost-effective way to fix leaks and minimize pollution.

EDF, the Wyoming Outdoor Council (WOC) and Citizens United for Responsible Energy Development (CURED) offered their strong support for the state’s proposed LDAR program in joint comments, while also suggesting key improvements – chiefly, that the state  ensure these programs use readily-available, cost-effective technologies (like infrared cameras) to detect pollution.

We are pleased that this improvement was included in the final requirements and it shows the state’s willingness to work collaboratively in addressing Wyoming’s air issues.

Next up, the state should consider making these strong requirements apply to existing sources, such as previously drilled wells already in production, and on a statewide basis. But in the meantime, other states, including Colorado, should take note. On protecting the air we breathe, Wyoming just raised the bar.

 

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A New Study Measures Methane Leaks In The Natural Gas Industry

This commentary originally appeared on our EDF Voices blog.

Source: Penn State Outreach/flickr

Earlier this week, a prestigious scientific journal, the Proceedings of the National Academy of Sciences (PNAS) published “Measurements of methane emissions at natural gas production sites in the United States.”  This study is the first in a comprehensive research initiative that Environmental Defense Fund is helping to produce with more than 90 partner universities, scientists, research facilities and natural gas industry companies. This effort, the largest scientific undertaking in EDF’s history, is an unprecedented attempt to measure where and how much methane is being released across the entire natural gas supply chain.

By the time the work is finished, around the end of 2014, scientists working with EDF will have completed sixteen studies characterizing methane emissions in five key areas of the natural gas system: production, gathering and processing,transmission and storagelocal distribution and use in operating and fueling heavy and medium weight trucks.

The study that published Monday was led by Dr. David Allen of the University of Texas at Austin (UT) and is based on some of the first-ever direct measurements of methane emissions from shale gas wells that use hydraulic fracturing, or “fracking.”

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