Energy Exchange

Coming Soon: Solutions for Finding Methane Leaks Faster

porter-ranch-aliso-canyon-methane-gas-leak-3-1020x610After more than four months of spewing potent methane pollution, the massive Aliso Canyon gas leak has finally been plugged. But now the state of California and the utility that owns the site, SoCalGas, are left with the responsibility of ensuring a disaster like this doesn’t happen again.

While Aliso Canyon has captured the attention of the nation, it’s important to remember that there are smaller—and far more prevalent—leaks happening throughout the country’s oil and gas supply chain every day. In fact, those emissions add up to more than 7 million metric tons of methane pollution every year.  That equals over $1 billion worth of wasted natural gas at 2015 prices. Read More »

Also posted in General, Methane, Natural Gas / Comments are closed

After the Aliso Disaster: Less Gas Storage, More Clean Energy Through Increased Market Efficiency

By: Mark Brownstein & Tim O’Connor4157619250_29ac89191b_o

The nearly four-month disaster at the Aliso Canyon storage facility owned by Southern California Gas Company has spurred widespread calls to close the sprawling underground reservoir, and cast intense scrutiny on the 13 other similar facilities around California. But others, including Governor Jerry Brown and key state agencies, say the facilities may be needed to keep the electric grid running reliably.

Ironically, one reason for dependence on this fossil fuel is California’s renewable energy boom.

As things currently stand, there aren’t enough responsive resources on the grid to simultaneously manage the large daily swings in consumer electricity demand typical in California and swings in renewable energy output due to variations in time of day and weather.

A more robust grid in combination with innovative energy storage and energy management technology will eventually reduce these swings, but may take decades to fully deploy.  Until then, fast-acting gas-fired generation is necessary for balancing system operations. This has become a rallying cry for SoCalGas and the rest of California’s oil and gas industry in the wake of Aliso Canyon. Read More »

Also posted in California, General, Methane, Natural Gas / Read 2 Responses

Preventing Future Aliso Canyon-Sized Gas Leaks – the Importance of Well Integrity

AlisoCanyon4Southern California is now in month three of one of the country’s worst environmental disasters. In October 2015, a natural gas storage well operated by SoCal Gas sprung a massive leak hundreds of feet underground, releasing nearly 1,400 tons of gas into the air each day at its peak. Thousands of local residents impacted by noxious fumes and oily mist have been evacuated from the communities around the Aliso Canyon storage field. Because the leak is so large and technically complex, SoCal Gas has been working for months to fix it – so far without success.

In January, California Governor Jerry Brown declared a State of Emergency because of the ongoing leak. In addition to addressing the immediate disaster at Aliso Canyon, Gov. Brown ordered emergency regulations for the state’s natural gas storage industry and has directed several state agencies and commissions to prepare and submit reports and propose how to prevent similar leaks at similar sites across the state. Read More »

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The California Gas Disaster: What Comes Next and Where Else Could it Happen?

storage_2013The ongoing leak at the Aliso Canyon natural gas facility owned by Southern California Gas has driven more than 2,000 families from their homes in the Porter Ranch area of Los Angeles and prompted Gov. Brown to declare a state of emergency. It’s dumped an estimated 83 thousand metric tons of methane into the atmosphere so far (see our leak counter here), with no clear end in sight.

But what are the next steps from here? What are the wider implications of this continuing disaster; and where else could something like this happen? What do we do to prevent another Aliso, and how will Southern California make up for the environmental damages once the leak stops?

The troubling fact is that Aliso Canyon is just the tip of a very big iceberg, reflecting both the industry’s widespread methane problem, and the potential local risks of over 400 other storage facilities nationwide. It spotlights a longstanding, largely invisible problem, promising to shift political dynamics around solutions. And the penalty phase, when it comes, will hopefully codify important principles that will also have a big effect on industry behavior. Read More »

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Methane Emissions are Risky Business for Investors

No one likes uncertainty, least of all investors. From changes in interest rates, to supply chain disruptions, the list of risks investors must monitor is long and growing. Good, actionable information is investors’ most important tool for risk management and integral to successful investing. Without proper data, investors are flying blind.

A new report published by EDF this week  throws the spotlight on a growing risk for investors—methane emissions from the oil and gas sector. As so clearly demonstrated by the ongoing and massive leak at Aliso Canyon, methane emissions pose a multitude of expanding risks, with both short and long-term consequences.Three key risks from oil & gas methane

At 84 times more powerful than carbon dioxide in the short-term, methane emissions represent a potent and fast-emerging form of carbon risk. In a world looking to reduce carbon pollution, methane emissions pose regulatory, reputational and economic risks. Preparedness to comply with forthcoming rules varies across the industry, methane undercuts natural gas’ ability to play a role in a carbon-constrained world, and emissions of methane are lost product amounting to $30 billion a year globally. Read More »

Also posted in Methane, Natural Gas / Comments are closed

Infrared Camera Reveals Huge, Wafting Cloud of Methane over California’s Aliso Canyon

Methane pollution from the oil and gas industry is a serious problem for our climate and communities, but it’s one most people aren’t even aware of. That’s because, while methane is a powerful pollutant, it is colorless, odorless and invisible to the naked eye.

But residents of Southern California’s Porter Ranch neighborhood had their eyes opened wide to the methane problem when a natural gas storage well in nearby Aliso Canyon ruptured and created a massive leak right next to their homes – an incident detected by residents in October from the putrid smell of mercaptan, an additive utilities use to more easily detect natural gas leaks.

Natural gas is made mostly of methane, and when it is released unburned, it has a warming power over 84 times that of carbon dioxide over 20 years. So, leaking or intentionally emitting unburned natural gas – which happens not just through malfunctions but often during routine production and transportation of oil and gas – can do major climate damage. The California Air Resources Board estimates that Aliso Canyon is pumping out methane at about 50,000 kg per hour, or about 62 million standard cubic feet, per day – that’s the same 20-year greenhouse gas impact as the daily emissions from 7 million cars.

Now, on day 48 in a very uncertain timeline of the one of the largest U.S. natural gas leaks ever recorded, infrared cameras are giving us a true glimpse at the size of this man-made methane volcano. Looking at side-by-side images of Aliso Canyon taken on Dec. 9 using an everyday camera and one equipped with infrared technology reveals just how blind we are to this kind of pollution:

Aliso canyon 2 Read More »

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