Energy Exchange

As nations sign on to end routine flaring, Biden admin must act

By Jon Goldstein / Published: July 15, 2022

The last two months have seen encouraging momentum in the effort to tackle emissions of methane — a greenhouse gas that drives over a quarter of current warming — and the practice of flaring, which is a major source of energy waste and methane pollution.

Starting with last month’s Major Economies Forum, one of the last major climate gatherings before COP 27 in Egypt, signatories to the Global Methane Pledge introduced a new goal to end routine flaring as soon as possible, and by 2030 at the latest.

Then, just this week, the U.S. and Mexico announced a commitment to cooperate and help Mexico develop a plan to eliminate routine flaring in alignment with the Global Methane Pledge.

Fast action to end routine flaring is critical for reducing emissions of methane, protecting human health and the climate, and stopping needless waste of energy resources as the world faces an energy crisis spurred by Russia’s invasion of Ukraine.

Now, the U.S. has work to do to ensure domestic policies can live up to our own global commitments. Fortunately, both the Bureau of Land Management and the Environmental Protection Agency have the authority and obligation to implement strong rules that end routine flaring.

Also posted in Air Quality, BLM Methane, Colorado, Natural Gas, PermianMAP / Tagged New Mexico | Comments are closed

In wake of Supreme Court ruling, we must go full steam ahead to reduce methane pollution

By Rosalie Winn / Published: July 14, 2022

The U.S. Supreme Court’s recent climate change ruling has unfortunately restricted the tools available to EPA in its effort to address climate pollution from power plants. However, it’s also important to recognize that the ruling in no way changed EPA’s longstanding authority and duty to address climate pollution under the Clean Air Act to address climate pollution itself — including from new cars and freight trucks, industrial sources, new and existing power plants, and oil and gas development. And with respect to oil and gas pollution, this decision in no way impedes the agency’s ongoing and important efforts to reduce oil and gas methane pollution.

It remains critical that the EPA exercise its clear authority and obligation to move forward with protective climate standards, including its proposed rules to curb methane pollution from the oil and gas sector, which emits roughly 16 million tons of methane annually. Globally, methane from human sources is responsible for over a quarter of the warming we are experiencing today.

EPA’s authority to tackle methane pollution was reaffirmed by bipartisan majorities in Congress just last year, and the agency has commonsense, cost-effective tools at hand to address the health harms posed by oil and gas methane pollution, which in the U.S. alone has the near-term climate impact every year of 294 million passenger vehicles. Read More »

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

Big bright spot in a disappointing season for shareholder climate resolutions

By EDF Blogs / Published: May 26, 2022

By Andrew Howell, CFA

It’s annual general meeting season in the U.S. — when shareholders hold companies to account and press management to do better.

A record 71 climate-related resolutions will be presented this year at public companies, more than double the number last year. But with a more ambitious suite of resolutions, fewer are being approved: just 21% of climate resolutions have passed so far this year, compared with 33% last year.

So it is big news that yesterday brought the passage of the first two climate resolutions in the oil and gas sector at ExxonMobil and Chevron. And while the successful Exxon resolution, requiring reporting on the financial impacts of a net zero by 2050 world, received more attention, the Chevron resolution is equally noteworthy. Chevron’s shareholders voted overwhelmingly in favor of a resolution filed by Mercy Investment Services pushing the company to improve its reporting on methane emissions.

Methane is a critically important issue to mitigate climate emissions and improve energy security. Having reliable, quality data is the key to rapidly address both imperatives now.

The Chevron methane resolution was backed by a whopping 98% of shareholders and was supported by the company’s board — one of the first times a climate resolution has achieved this status.

Also posted in Methane, Natural Gas / Comments are closed

Differentiated gas: Nothing but hot air without these five criteria

By EDF Blogs / Published: May 19, 2022

By Dan Grossman and Maureen Lackner

Getting a comprehensive and accurate picture of the extent of methane emissions from the oil and gas industry is hard.

Our scientists have spent much of the last decade detailing deficiencies and inaccuracies in the way companies — and even regulators — estimate emissions, which result in dangerous understatements of the methane problem.

And that is precisely why efforts by oil and gas companies and their consultants to differentiate some natural gas as “responsibly sourced” or “low emission” is problematic.

Also posted in Methane, Natural Gas / Comments are closed

New Rystad cost analysis makes case for EPA to end routine flaring in final methane rule

By EDF Blogs / Published: February 28, 2022

By Jon Goldstein and Grace Weatherall

Reducing the amount of methane emitted from oil and gas infrastructure is among the cheapest and simplest solutions we have to reduce global warming quickly while protecting public health. The Environmental Protection Agency is in the midst of developing rules to curb these emissions from oil and gas producers across the country.

A new analysis commissioned by EDF and conducted by Rystad Energy makes it clear that eliminating routine flaring — a major source of rogue emissions — should be part of EPA’s methane rulemaking.

Though there are valid safety reasons for some minimal flaring, most of it occurs via routine flaring — when oil producers simply don’t have a place to put the natural gas that emerges from the ground during oil production and simply burn it off. More than $1 billion of natural gas is wasted at flares every year, driving unnecessary and harmful climate and local air pollution — including methane, an extremely potent greenhouse gas — when natural gas is not fully burned.

Rystad’s report includes two key findings that should inform EPA’s rulemaking.

Also posted in Air Quality, Colorado, Methane, Natural Gas, Texas / Tagged New Mexico | Comments are closed

Round one of EPA methane comment period draws record engagement; Here’s how companies and investors can step up in round two

By Dominic Watson / Published: February 28, 2022

The public comment period for the Environmental Protection Agency’s proposed oil and gas methane rules generated more than 400,000 individual submissions, including many from energy and financial companies that support Biden administration efforts to reduce emissions of this powerful greenhouse gas.

However, our analysis of comments from energy and investment companies shows a troubling divide between those that support strong rules and others trying actively to weaken them before they even take effect. When EPA’s next comment period opens this spring, it will be critical for supporters to weigh in on the overall goal, as well as on specific provisions — including elimination of routine flaring, transitioning away from polluting pneumatic equipment, and ensuring comprehensive leak detection, including at smaller wells.

A broad collection of investors representing trillions of dollars in capital has urged oil and gas companies to demonstrate genuine effort to reduce their emissions. Yet despite increasing numbers of targets from industry in recent years, U.S. methane emissions remain sky high — suggesting voluntary efforts will not be enough to meet this challenge.

If responsible operators already taking action do not take advantage of this unique policy opportunity, the worst actors will continue to bring down the reputation of the industry as a whole for years to come.

Also posted in Methane, Natural Gas / Comments are closed