Energy Exchange

How virtual reality can help the oil and gas industry confront its invisible challenge: methane

By Isabel Mogstad / Published: June 22, 2018

I’m a certified oil and gas tech nerd, and I’ve never been so excited about my job. I love data, the insights that come with it, and especially the ways of applying those insights to catalyze continuous improvement. There are few decisions I make without an Excel spreadsheet – and after spending several years working for an oilfield services company, I’m passionate about solving one of the biggest environmental problems of our time: methane emissions.

Methane is the main ingredient in natural gas and a common byproduct of oil production. Unburned, it’s also a powerful greenhouse gas. Worldwide, about 75 million metric tons of methane escape each year from oil and gas operations through leaks, venting and flaring – making the industry one of the largest sources of man-made methane emissions.

As methane risk draws increasing attention from public officials, major investors and industry leaders, tech solutions are increasingly relevant and “digitization of the oilfield” is becoming industry’s hottest new term.

Also posted in Fourth Wave, Natural Gas / Comments are closed

Oilfield digitization advancing solutions to meet an environmental challenge

By Mark Brownstein / Published: June 22, 2018

Two global trends are converging in the energy industry, and the result could spur the biggest environmental advancement in a generation.

Known by some as the “digitization of the oilfield,” it’s the new wave of technologies linked with big data that is transforming an established industry. For the world’s oil and gas industry, this push toward digitization is emerging as a central part of strategic planning, as the energy landscape is reshaped by increasing competition from renewables and electrification. But competitiveness means more than bringing new efficiencies online, it also means improving environmental performance.

Also posted in Fourth Wave, General, Natural Gas / Comments are closed

What the heck is an environmental group doing at the World Gas Conference?

By Ben Ratner / Published: June 20, 2018

The simple answer is this. Environmental Defense Fund (EDF) approaches challenges pragmatically. If we want to rid the planet of harmful climate pollution, our efforts must include working with the industries that can make the biggest difference.

That means I spend a lot of my time working with leaders from the oil and gas industry. While we don’t always agree, we forge solutions wherever we can.

Also posted in Natural Gas / Comments are closed

As Permian drilling booms, will the Texas Railroad Commission stand against wasted gas?

By Colin Leyden / Published: June 19, 2018

This piece originally appeared as an op-ed in the Midland Reporter-Telegram

The West Texas Permian oilfield is poised for rapid development in the next decade; the Energy Information Administration projects oil production in the Permian could grow 60 percent by the year 2030. But oil wells in Texas’ Permian Basin don’t just pump oil, they also produce large amounts of natural gas – which many companies aren’t equipped to handle.

That is posing a problem for Texas, as producers run out of capacity to move associated gas to market. Without reasonable action from the state’s oil and gas regulator, the Texas Railroad Commission (RRC), producers could resort to simply burning away excess gas – something we’ve seen in other oil fields where gas is not the primary production target.

This process, also known as flaring, is a recipe for widespread waste and pollution.

Also posted in Natural Gas, Texas / Comments are closed

In Permian, company leadership and state standards are critical for reducing oil and gas methane emissions

By EDF Blogs / Published: June 12, 2018

By Jon Goldstein and Colin Leyden

This May, ExxonMobil, the world’s largest publicly traded oil and gas company, announced targets to limit methane waste from its global operations. We’ve also seen commitments to cut methane from a range of leading companies like BP and others.

But as more companies step forward with methane targets, it begs the question: Is voluntary action from companies enough to move the needle on methane? A look at what could become the world’s largest oil field points to the answer being a solid no. Read More »

Also posted in Climate, Natural Gas, Texas / Tagged New Mexico | Comments are closed

Chevron shareholders made methane a key priority at annual general meeting

By Kate Gaumond / Published: June 1, 2018

Yesterday morning at Chevron’s annual general meeting, a shareholder resolution calling on the company to improve its methane management and disclosure received a 45% vote. This strong vote follows a majority vote at Range Resources, where 50.3% of voting shareholders supported a similar methane disclosure resolution (up from just 20% in 2013). Oil and gas industry shareholders are sending a powerful message– methane is a material risk that companies must manage to compete in a capital- and climate-constrained world.

Such resolutions are effective at driving change, even for non-majority votes like the 38% of shareholders at Kinder Morgan who supported a methane resolution. For example, last year ExxonMobil’s methane resolution received a 39% vote, and the company responded with a new methane emissions production program, which now includes a quantitative methane reduction target.

Investors will be waiting to see if these companies follow ExxonMobil’s example, as well as deliver results once these programs are implemented. With investors tilting their portfolios towards companies who proactively manage climate risk, they will be closely watching how these companies respond to the clear market demand for improved methane management and disclosure.

Also posted in Natural Gas / Comments are closed