Energy Exchange

Methane standards are the law of the land; it’s time to stop litigation and start complying

Let me first make this important point: I’ve met and worked with a lot of folks in the oil and gas industry who are truly dedicated to making their operations as safe and clean as possible – people who care about the communities they live and work in and who take pride in the reputation of the companies they work for.

That said, I’ve always rolled my eyes a little when I see companies boast in sustainability reports that they comply with all applicable federal and state laws.  Really?  Not breaking the law is the high bar you’re shooting for?

But , as it turns out, one of the nation’s largest oil and gas trade associations is now saying that not only does it oppose common-sense laws requiring companies to reduce their emissions of methane and other harmful air pollution, it’s casting doubt on the extent to which companies should even comply.

The courts have repeatedly struck down efforts by the Trump administration and industry lobbyists to suspend these pollution standards.  And these rules are now in full legal effect. Read More »

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Be prepared: Why the smart oil and gas producers are leaning in despite uncertainty

Be Prepared. It’s not just the Boy Scout motto, it’s also the way most smart businesses try to operate. Better to anticipate future compliance issues today and bake them into your forward planning, than to be caught flatfooted tomorrow.

That is a big part of the reason major multinational oil and gas producers like ExxonMobil and Shell have said they are already following methane pollution rules finalized by the U.S. Environmental Protection Agency last year. Despite EPA Administrator Scott Pruitt’s best efforts to delay implementation of these rules, the courts have repeatedly ruled in favor of their speedy and complete implementation.

Most recently the DC Circuit last week rejected the latest attempt to undermine methane pollution limits for sources in the oil and gas sector and put those standards into full force and effect. It’s a decision that shows the wisdom of ExxonMobil’s and Shell’s strategy to lean in on regulatory compliance (and highlights the danger for other oil and gas producers that seem to be content dragging their feet and exposing their investors to compliance risk). Read More »

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Shell becomes latest oil and gas company to test smart methane sensors

This week, the oil and gas giant Shell took a positive step toward addressing methane emissions. The company announced a new technology trial at a wellsite in Alberta, Canada, where it is piloting a specially designed laser to continuously monitor emissions of methane, a powerful pollutant known to leak from oil and gas equipment.

The move by Shell is a glimpse into the future and demonstrates growing market interest in smart, sensor-based methane detection technology. Shell’s project joins a similar field test already underway in Texas, operated by the Norwegian producer Statoil, and a California utility pilot run by Pacific Gas and Electric Company.

Each of these deployments is promising, but the ultimate test will be broad-scale adoption of innovations that generate actual methane reductions. Read More »

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Shell Canada launches methane technology pilot, and its timing is perfect.

This week, oil and gas giant Shell announced the launch of a technology pilot at one of its shale gas facilities in Canada that will continuously monitor methane levels and provide real-time leak detection to facility operators. This is a big deal and shows what can happen when companies, environmental groups and innovators work together to find solutions.

The pilot is a product of the Methane Detectors Challenge (MDC), a partnership involving EDF, eight oil and gas operators, technology developers and other experts that aims to spur next-generation solutions that can help the oil and gas industry find methane leaks more efficiently and effectively.

Shell is not alone. Other MDC participants include Statoil, which launched a pilot in Texas early this year, and Pacific Gas & Electric Company, which began a pilot in California in 2016. But the Shell project at Rocky Mountain House is the first MDC technology to be deployed in Canada, where the federal and key provincial governments are both developing regulations that will reduce oil and gas methane emissions.

The timing of this test in Alberta couldn’t be better. Read More »

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These charts show why communities are demanding common sense standards to protect them from oil and gas pollution

EPA Administrator Scott Pruitt has been trying every trick in the book to suspend rules that require oil and gas companies to limit pollution from their operations as they look to expand drilling across the country. His attempted delay tactics follows a cozy relationship he’s had with the worst elements of the oil and gas industry in his prior role as Attorney General of Oklahoma, where he sued to block these very rules on the behalf of his oil and gas allies.

Following a historic court decision and subsequent mandate, EPA’s New Source Performance Standards (which set first-ever national methane pollution limits for the industry) are now in effect. However, Administrator Pruitt continues to push to delay these standards with a proposed two-year suspension. The impact of this action is sweeping: Hundreds of thousands of Americans live near the 21,000 oil and gas wells that should be covered by these rules.

The senseless delays of common sense pollution standards have major implications for the health and welfare of communities living downwind of oil and gas development in the U.S. Here’s why:

There is a lot of oil and gas drilling happening. Read More »

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Four opportunities to strengthen Canada’s draft methane regulations

Canada’s move to reduce methane emissions from its oil and gas sector passed another milestone this week, as the deadline passed for stakeholders to submit comments about the proposed regulations to Environment and Climate Change Canada (ECCC). EDF issued extensive comments commending ECCC for moving forward, but urging decision makers to address some critical weaknesses of the draft rules.

EDF is not alone in this thinking. A group of investors from Canada, US, and Europe, which together represent $89 billion CAD in investments, released a synopsis of their comments. Many leading Canadian NGOs, including the David Suzuki Foundation, the Pembina Institute, Environmental Defence (no relation to this EDF), Equiterre, and the Blue Green Alliance, also issued a press release urging ECCC to improve and strengthen the draft regulations.

As Canada’s effort to regulate this potent greenhouse pollutant continues, EDF is focused on ensuring Canada takes advantage of low-cost reduction opportunities, which have the added benefit of improving air quality, eliminating waste, stimulating innovation, and creating jobs. For that to happen, the country’s draft methane regulations need to be strengthened. Read More »

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