Since 2017, ExxonMobil has expanded its U.S. methane leak detection program, committed to its first global methane target, supported methane monitoring technology innovation and encouraged the U.S. Environmental Protection Agency (EPA) to regulate methane emissions at new and existing sources. Although Environmental Defense Fund (EDF) and ExxonMobil are not always aligned on certain important issues, the organizations are working together to understand and reduce methane emissions. Ben Ratner, senior director with EDF+Business, sat down with Matt Kolesar, regulatory manager at ExxonMobil’s XTO Energy affiliate, to discuss the company’s perspective on why methane is such a key issue for the industry and how technology and regulation can accelerate industry’s progress.
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EDF and ExxonMobil discuss technology and regulation to reduce methane emissions
Fixing regulatory pitfalls could reduce methane emissions
A version of this piece originally ran in Scientific American.
Methane has long been recognized as a potent greenhouse gas, but preventing its escape from industrial facilities has only recently become a prominent goal. The oil and gas industry, for example, is a large emitter, and research (including some by scientists at the Environmental Defense Fund) has documented that far more methane seeps out of wells, pipelines, valves and other points in the supply chain than energy companies and official emissions inventories report.
This revelation has people worried—people like me, who are concerned about the health and future of humanity. And people like the CEOs of global oil and gas companies, including BP and ExxonMobil, who have voluntarily pledged to reduce methane emissions. Increasingly, investors, public officials and neighbors living near oil and gas infrastructure have become worried, too.
API attacks on methane safeguards contradict science and drag the industry backwards
Methane is a powerful pollutant responsible for more than 25 percent of climate change we experience today—and the oil and gas sector is the largest industrial source of methane emissions. Recent scientific evidence only underscores the importance of addressing methane emissions from the oil and gas industry.
Unfortunately, at the request of the American Petroleum Institute (API) and others in industry, the Trump administration has issued a proposal to dramatically weaken common sense standards that address oil and gas emissions, allowing for an increase in pollution. In addition, reports suggest that EPA is moving forward with a second proposal that could entirely remove the direct regulation of methane in the oil and gas sector, which would fly in the face of the well-established scientific record documenting the harms of this powerful pollutant and would disregard the substantial amount of pollution emitted from oil and gas sources.
Satellites become valuable new tool for governments, industry to cut emissions
For years, people used satellites to observe the Earth’s climate. Now, orbital sensing offers a crucial new way to protect it, by giving us new abilities to identify, measure, and ultimately verify cuts in emissions of methane – a highly potent greenhouse gas.
Two new pieces of research led by EDF scientists demonstrate the growing potential of space-based monitoring tools, and offer a preview of things to come when EDF launches its own dedicated methane satellite in 2021.
Offshore Flaring in Mexico
First is a paper published this week in Geophysical Research Letters, explaining how researchers used space-based readings to calculate the enormous volume of natural gas being burned off (or “flared”) by oil and gas platforms in the Southern Gulf of Mexico. From 2005 and 2017, data from NASA’s Aura satellite show that operators flared as much as 710 billion cubic feet of gas per year.
No time to waste: What lies ahead in New Mexico on methane policy?
The Cabinet Room was buzzing with (clean) energy on Tuesday as New Mexico Gov. Michelle Lujan Grisham was joined by her Energy Minerals and Natural Resources (EMNRD) Secretary Sarah Cottrell Propst and Environment Secretary Jim Kenney to sign one of the strongest climate executive orders in the nation.
Crucially, the order also directs New Mexico’s state agencies to move expeditiously and develop comprehensive, statewide methane regulations to cut energy wasted from the oil and gas industry and improve air quality.
Now the question becomes, “what next?”
Governor Lujan Grisham made her wishes for a speedy methane rule development clear in the executive order, directing her EMNRD and Environment Department to enact rules “as soon as practicable.”
And she set a high bar for the strength and inclusiveness of the methane rules when she said that, “Our goal is to eclipse states that are successfully doing this work.”
The oilfield digitalization opportunity executives can’t afford to miss
At the Baker Hughes GE Annual Meeting this week in Florence, Italy, a CEO began his presentation with this bold adage: “Digital strategy equals business strategy.” Executives on nearly every panel pointed to the digital opportunity.
As the oil and gas industry invests in the digital transformation to improve competitiveness, companies should seize the opportunity to integrate methane emissions management into their broader digital agendas, as a key way to maximize value and stay competitive in the low carbon energy transition.
Leveraging the transformation to tackle methane
The oil and gas industry is embarking on a holistic digital transformation, one that is disrupting virtually every facet of the business. Digitalization of the oilfield , which includes innovations such as automated asset management, predictive maintenance, and industrial internet of things (IIoT), has the potential to unlock tremendous value – up to $1.6 trillion.