Energy Exchange

Paying Attention to “Orphan” Wells Pays Off

By David Lyon and Adam Peltzabandoned well

There are at more than 1.5 million inactive oil and gas wells in the U.S. that remain uncapped and, in some cases, unsafe. Some are temporarily dormant, while others are fully depleted but not yet properly sealed, continuing to emit residual pollution from the days when they were active. Many are what the industry calls “orphans,” with no financially solvent owner in sight to take the responsibility for them. Long seen as a water protection issue, a new study in the journal Geophysical Research Letters now shows that properly plugging unused wells can also reduce emissions of the potent greenhouse gas methane.

The study looks at orphaned and plugged wells in four oil and gas producing regions of the country – Colorado’s Denver-Julesburg Basin; Ohio’s Appalachian Basin; Wyoming’s Powder River Basin; and Utah’s Uinta Basin. It is part of a series of 16 major studies organized by Environmental Defense Fund to better understand the scale and scope of oil and gas methane emissions. Read More »

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Moving Up: New Accounting Shows Full Scale of Aliso Canyon and U.S. Methane Leaks

rp_AlisoCanyon4-300x209.jpgA paper today in the journal Science, estimating emissions from the massive methane leak at Aliso Canyon, indicates that nearly 100,000 metric tons of methane escaped into the atmosphere over Southern California – more than previous estimates. The new findings come days after the Environmental Protection Agency released draft results of their updated accounting of methane emissions from the nation’s oil and gas supply chain that shows that emissions are up 27% above the agency’s early estimate.

The more we know about methane emissions, the higher they get. The new findings show not just the massive scale of the oil and gas industry’s methane problem, but also how critical it is to get the science right to both understand this source of a potent climate pollutant and reduce it. We know that cutting methane is one of the fastest, most cost effective ways to curb today’s warming, and when combined with critical efforts to reduce carbon dioxide pollution, substantial climate progress can be made. Read More »

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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 »

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You Can’t Argue With Math: BLM’s Methane Rules Enjoy Strong and Diverse Support

BLMsupportThese numbers don’t lie. They represent the strong support new methane waste and pollution reduction rules from the Department of Interior’s Bureau of Land Management enjoy across the west. Methane is a potent climate pollutant and the main constituent of natural gas, so when oil and gas companies on public land allow  methane to be leaked, burned or vented to the atmosphere, it not only impacts air quality and our climate, it also represents an economic loss to taxpayers.

Here’s how this math adds up to a win for taxpayers, public health and the climate. Read More »

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EPA Draft Says Oil & Gas Methane Emissions Are 27 Percent Higher than Earlier Estimates

2014EPAInventory2Methane emissions from the oil and gas industry are significantly higher than previous official estimates, according to draft revisions of the U.S. greenhouse gas emissions inventory released Monday by the Environmental Protection Agency. At 9.3 million metric tons, revised estimates of 2013 emissions are 27% percent higher than the previous tally. Over a 20-year timeframe, those emissions have the same climate impact as over 200 coal-fired power plants. The lost gas is worth $1.4 billion at 2015 prices.

The big jump makes it crystal clear that there can be no more excuses for ignoring this huge challenge – not only controlling methane emissions from future sources, as proposed new EPA rules will do, but also controlling emissions from the tens of thousands of leaking facilities already operating now. Existing systems account for all of today’s emissions, and will generate the lion’s share of pollution for many years to come, yet federal rules so far don’t apply to them. Read More »

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Houston: We Have Another Problem

nervous_investor2-300x205As oil and gas leaders converge on Houston for the year’s largest industry conference, CERA Week, falling oil and gas prices are understandably top of mind and a cause for concern for the industry. But there is another decline story underway in industry, one that poses a risk to the future of hydrocarbons in a carbon constrained world – a story of falling trust.

While today’s $30 oil price is disruptive in the short-term, new information on the very low level of public trust in the oil and gas industry should prompt concern from executives and investors about possible longer-term disruption to companies’ social license to operate.

The Industry’s Public Trust Problem

Recent polling conducted by KRC Research for EDF found that a mere 29 percent of Americans trust oil and gas companies to operate responsibly. Strikingly, even among Republicans, the trust rate is under 40 percent.

Digging deeper into the numbers, just 15 percent of Americans trust the oil and gas industry to be accurate in disclosing how much pollution they cause.

So what do these results mean? Read More »

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