Energy Exchange

It’s time for the Texas Railroad Commission to curb flaring to prevent waste, protect property rights

By Scott Anderson / Published: April 22, 2020

This piece originally appeared in the Houston Chronicle

The Texas Railroad Commission has a unique chance to save the state’s oil and gas industry from one of its own worst habits — setting fire to over 100 billion cubic feet of natural gas each year, transforming a valuable asset into waste and pollution with zero benefit to anyone. Now, as commissioners eye production cuts in response to collapsing oil prices, they also have an opportunity to stem the profligate practice known as flaring.

The measure under consideration is called proration. Last used in the 1970s, it allows the commission to set a monthly production ceiling equal to market demand, with shares allocated among the state’s producers based on a variety of factors. Often described as a way to raise prices by limiting supply, authority for proration actually comes from the commission’s statutory obligation to prevent the waste of natural resources and protect property rights.

Flaring, of course, is the very definition of waste. Since 2013, operators in Texas have burned off roughly a trillion cubic feet of natural gas — enough to meet the yearly needs of every Texas home three times over. In 2019, Permian operators alone flared almost 300 billion cubic feet of gas, sending over a million dollars a day up in smoke.

Also posted in Methane, Methane regulatons, Natural Gas, Texas / Comments are closed

New data finds alarming levels of methane emissions in the Permian, posing long-term risk for oil and gas portfolios

By Dominic Watson / Published: April 21, 2020

Investors managing oil and gas portfolios are contending with major disruption as two interrelated crises play out: the global COVID-19 pandemic and extreme volatility in the price of oil. Yet even before these events, cracks were showing in the sector’s financial footing. Pressure has been rising on industry to improve returns, while demand to deliver on Environmental Societal Governance initiatives has never been higher.

Into this mix comes new data from scientists working with EDF’s PermianMAP initiative showing that methane emissions in the Permian Basin, the world’s largest oil field, is nearly three times the rate reported in Environmental Protection Agency’s nationwide statistics.

The 3.5% loss rate estimated in the data area is roughly 15 times higher than reduction targets set by leading producers, and significantly higher than many companies have reported. It translates to 1.4 million tons of wasted gas each year, enough to meet the annual natural gas needs of every home in Dallas and Houston combined.

The findings surface a material risk to oil and gas investors and to the future of natural gas from the Permian Basin. At current emissions rates from the basin, burning Permian natural gas for electricity does more near-term climate damage than coal.

A year from now, the U.S. oil and gas sector may look very different for many of the independent operators who make up a large portion of Permian producers. Withstanding this period of economic turbulence will require companies to make tough decisions. Yet even in this time of crisis, operators must keep an eye on future market demands, operational excellence and climate performance.

Permian study findings

The Permian sprawls across West Texas and New Mexico and has more than 100,000 operating well sites. Between October 2019 and March 2020, EDF scientists collaborated with academic institutions to collect data using tower-based monitors, ground-based mobile sensors, helicopters and fixed wing aircraft across a 10,000-square-kilometer study area responsible for 40% of Permian production.

The estimated 3.5% leak rate reflected in the new data stands in stark contrast to the .20% leakage rate agreed to by the 13 of the world’s largest operators in the Oil and Gas Climate Initiative, representing 30% of global oil and gas production. Furthermore, the emissions rate seen in the Permian is more than 10 times the methane intensity of 0.29% that OGCI has been reporting for 2018.

Also posted in Methane, Methane regulatons, PermianMAP, Texas / Tagged New Mexico | Comments are closed

Now more than ever, it’s time for strong EU standards on methane emissions

By Ben Ratner / Published: April 16, 2020

As European Union leaders begin the transition from COVID-19 rescue to economic recovery, the need to build back better is taking center stage. Already, national governments representing over 65% of the EU’s population have insisted that leaders stick with the European Green Deal. Their resolve underscores the importance of leadership, resilience and science-based decision making in the face of the gravest health emergency of our time.

These national governments know that the EGD will help usher in a thriving, sustainable European economy that creates good jobs for working people. And they understand the tragic lesson of the COVID-19 crisis: that all nations must heed scientific warnings about public health and security. The scientific community’s clarion call on climate change, and the role of methane pollution in driving near-term warning, should be at the top of the agenda.

For the oil and gas industry, this means that a key component of the post-COVID recovery is the establishment of stringent standards to certify very low methane emissions for all gas used in the EU. Without such standards, the case for “cleaner-burning” natural gas evaporates; over the first 20 years, methane is 80 times more potent than CO2 in driving planetary warming. That’s why the European Commission’s forthcoming methane proposal presents a window that energy companies must take — and an ESG opportunity that investors cannot afford to ignore.

Also posted in Climate, Europe, Methane, Methane regulatons, Natural Gas / Comments are closed

EDF issues new framework to help make oil and gas wells safer

By Adam Peltz / Published: March 20, 2020

The United States onshore oil and gas industry operates nearly one million production wells across 30 states. To protect our health and environment, these wells must be designed, constructed, operated, maintained and closed in a way that prevents leaks and explosions.

To help regulators keep current on leading practices for protecting our environment from the risks associated with oil and gas production, EDF teamed up with Southwestern Energy and dozens of experts in industry, government, academia and advocacy to develop a Model Regulatory Framework for Hydraulically Fractured Hydrocarbon Production Wells in 2014. The framework has been used by states around the country as they have developed or updated well integrity regulations — notably, when Texas adopted several dozen ideas from the framework, blowouts fell 40% (and injuries from blowouts 50%) the next year.

EDF recently launched a new edition of the framework, which contains around 60 improvements based on the latest research and recommendations from oil and gas industry’s technical societies.

Here are some of the key changes in this new edition.

Also posted in Natural Gas / Tagged produced water, Water | Comments are closed

These 4 trends prove electric trucks and buses are revving up

By Jason Mathers / Published: February 10, 2020

To avoid the worst impacts of climate change, we’ll need to accelerate electrification of the fastest growing source of greenhouse gases in the world: medium- and heavy-duty vehicles. These include vehicles from big semitrucks and delivery vans, to city buses and garbage trucks.

Fortunately, this sector looks poised to grow through 2020 and beyond, good news for the climate and the millions of people who live in cities, where trucks and buses are leading contributors to local air pollution.

Here are four trends that I’ll be monitoring in the year ahead.

Also posted in Electric Vehicles, New York / Comments are closed

New electric buses are a holiday gift for New York City

By Andy Darrell / Published: December 23, 2019

Early Sunday morning last week I stood on a windy rooftop in the Hell’s Kitchen neighborhood of Manhattan next to a strikingly modern, blue electric bus. It’s the biggest one I’ve ever seen. It is a 60-foot-long articulated bus that bends in the middle and is fully outfitted with state-of-the-art technology and accessories — from USB chargers to heat.

As a climate-solutions advocate, I haven’t been feeling great about the holidays. The news out of Washington, DC isn’t exactly uplifting. The United Nations’ climate talks in Madrid were not easy either and it took too much effort for world leaders to come through with an agreement. Not exactly my idea of holiday cheer.

Also posted in Congestion pricing, Electric Vehicles, New York / Comments are closed