Energy Exchange

Methane leadership is a competitive advantage, says global investor

By Sean Wright / Published: October 4, 2017

Early oil and gas industry adopters of methane management strategies and technologies are starting to see these reductions as an opportunity to gain a competitive edge.

Just last week, ExxonMobil announced  a new methane reduction program for its XTO Energy subsidiary, underscoring that the industry is paying close attention to the issue.

Methane, the main ingredient in natural gas, is leaked and vented across the oil and gas supply chain every day as the world energy mix shifts towards greater natural gas usage, according to the International Energy Agency. The oil and gas industry wastes billions of dollars a year of methane that simultaneously acts as a climate change accelerator, harming the brand of natural gas as a cheap and clean fuel source. Methane is 84 times more powerful as a heat-trapper than carbon in its first 20 years in the atmosphere.

In the second part of Environmental Defense Fund’s recent interview with Tim Goodman, Director of Engagement at London-based Hermes Investment Management, Goodman shares his views on why oil and gas companies addressing methane emissions are gaining a competitive edge, and how investors are paving the path for more companies to follow suit. (You can find the first part of the interview here.) Read More »

Also posted in Natural Gas / Comments are closed

NASA helped locate over 300 methane hot spots across California

By Tim O'Connor / Published: October 2, 2017

Last week the California Air Resources Board (CARB) and California Energy Commission (CEC) released interim results from a NASA study that offers the most clear-eyed assessment yet of California’s largest individual sources of methane pollution.

Methane – a potent greenhouse gas responsible for about a quarter of global warming – is emitted from several different sources, including refineries, landfills, dairy farms, and oil and gas facilities. This new study identifies 329 of the largest pollution sources and offers insights to policy makers about opportunities for reducing these emissions.

Here are four key takeaways from the latest research.

California must focus on super emitters to cut pollution

Previous studies in other regions have shown that when it comes to methane, a small set of high-emitting sites, known as “super emitters” tend to be responsible for a significant amount of total emissions. The new CARB study suggests the same is likely occurring in California (measurements of actual amounts of the methane will be released in the second phase of the project next year).  Many times these super emitters occur randomly, such as when a major piece of equipment breaks and releases a large amount of pollution. Other times, as this study shows, these sites can be landfills, dairy farms, and refineries that simply release a lot of pollution.  Read More »

Also posted in Air Quality, California, Natural Gas / Comments are closed

In tackling methane, Exxon signals commitment to maximize opportunity for New Mexico

By Jon Goldstein / Published: October 2, 2017

An announcement last week from one of the country’s largest natural gas producers may have a major positive impact on revenue and clean air in New Mexico. XTO Energy, a subsidiary of ExxonMobil that made a $6 billion investment in acreage in New Mexico’s Permian Basin earlier this year, has now announced a set of commitments to “continually reduce methane emissions” from its production and midstream operations nationwide.

In making the announcement, XTO CEO Sara Ortwein made special note of the methane actions’ impact in the Permian, stating, “In particular, we’re looking forward to applying this approach to our planned expansion in the Permian Basin in New Mexico and West Texas.”

The XTO methane mitigation commitment includes a plan to find and fix methane leaks through inspections using technologies at both existing and new facilities. Further, building on a successful technology pilot project in the nearby Midland Basin, XTO will also focus on emission prevention, moving toward the use of new, less polluting devices for tank batteries and other facilities. Read More »

Also posted in Air Quality, General, Natural Gas / Comments are closed

Massive Pennsylvania gas leak proves industry requires more oversight

By Andrew Williams / Published: September 28, 2017

Yet again, another energy company is serving up tangible proof that some in the industry fail to take steps to operate responsibly and protect public health from oil and gas pollution.

According to a September 24 Associated Press article, a malfunction at a natural gas compressor station in Northeastern Pennsylvania resulted in a massive gas leak that — in just a few hours — produced more air pollution than most facilities emit in an entire year.

Most Pennsylvanians never know about these types of malfunctions. In fact, if it were not for the AP story, you might not have heard about this leak in part because DTE Energy – the out-of-state energy company that owns the facility – failed to immediately notify the Susquehanna County Emergency Management Agency. Instead, they waited over a week to report the problem to the county and downplayed the magnitude of the episode, referring to it as a merely a “minor” leak. Read More »

Also posted in Air Quality, Natural Gas / Tagged | Comments are closed

Leading methane commitment from Exxon’s U.S. driller: Why it matters

By Ben Ratner / Published: September 25, 2017

The degree to which the oil and gas industry can be trusted to play a constructive role in a low carbon future depends in no small measure on whether and how it reduces climate pollution today. That’s why company insiders, investors, and policy makers should take careful note of the sensible and innovative commitments announced by XTO Energy, the ExxonMobil subsidiary that leads the United States in natural gas production.

The industry’s many outside stakeholders both in the U.S. and around the world are increasingly calling for emission reductions and greater commitment to cleaner production. Companies that heed those calls, and advance new technologies, will be much better positioned to answer society demands for responsibility.

Political Pendulum

Unfortunately, the current picture for much of the rest of the industry is less bright. Oil and gas trade associations—of which companies like Chevron, BP, ExxonMobil and many others are members—have  egged on a Trump administration ideologically bent on eliminating national methane safeguards. Read More »

Also posted in Natural Gas / Comments are closed

Investor sees methane management as self-help for oil and gas companies

By Sean Wright / Published: September 13, 2017

Q&A with Tim Goodman, Hermes Investment Management

When burned, natural gas produces half the carbon as coal, so it is often touted as a “bridge” fuel to a cleaner energy future. But the carbon advantage of natural gas may be lost if too much of it escapes across its value chain.

Natural gas is mostly methane, which, unburned, is a highly potent greenhouse gas accounting for roughly a quarter of today’s global warming. Worldwide, oil and gas companies leak and vent an estimated $30 billion of methane each year into the atmosphere.

EDF’s Sean Wright sat down with Tim Goodman, Director of Engagement at London-based Hermes Investment Management. Goodman, who views methane management as practical self-help for the industry to pursue, engages with oil and gas companies on strategies to manage their methane emissions. This is the first of a two-part conversation with Hermes, a global investment firm, whose stewardship service Hermes EOS, advises $330.4 billion in assets.  Read More »

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