Energy Exchange

Stopping the self-deal: Preventing pipeline investors from offloading risk on ratepayers

By Natalie Karas / Published: October 4, 2017

A recent report published by Oil Change International highlights the failure of regulators to protect ratepayers against utility affiliate-backed contracts for new pipeline capacity -in other words, when a regulated utility acts as both the developer and customer for a new pipeline.  It’s a widespread and growing issue. Case in point: Con Ed’s investment in the proposed Mountain Valley Pipeline in West Virginia and Virginia, hundreds of miles from Con Ed’s New York service territory.

Con Ed claims that signing up for transportation service on the pipeline will result in cost savings for customers. But the day Con Ed signed up as a pipeline customer, the company also formed a new “midstream” entity to invest in the pipeline. The new unregulated entity shares the same corporate parent as the regulated utility, but operates under significantly different rules and legal obligations. This transactional structure means that Con Ed’s ratepayers would be  on the hook for paying for the project, while Con Ed’s midstream arm will enjoy a return in excess of risk. From the company standpoint, it’s heads-I-win, tails-you-lose. Read More »

Also posted in Gas to Clean, General / Comments are closed

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 Methane / 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, Methane / 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, Methane / Comments are closed

Experts weigh in: we need to learn about chemicals in oilfield wastewater before reusing it outside the oilfield

By Dan Mueller / Published: September 29, 2017

Oil and gas companies are looking for new ways to reuse salty, toxic wastewater — including crop irrigation.

A recent publication of the Air and Waste Management Association (AMWA) contained a number of articles by academia and industry experts about the many challenges of managing the nearly 900 billion gallons of wastewater (also called produced water) generated every year by oil and gas production. This wastewater is not only very salty but also contains a number of chemicals (many toxic) and potentially radioactive material.

The majority of this wastewater is disposed in deep underground wells to minimize the risks of it coming into contact with humans or the environment (though leaks and spills at the surface are still a big concern). But in hope of lowering costs, in recent years industry has been trending toward finding other ways to either dispose of or recycle this waste – in part because demand for water resources is increasing in drought prone areas and because disposal wells have been linked to a rise in earthquakes.

The articles in AWMA’s magazine suggest that recycling oilfield wastewater to complete new wells is the most viable alternative to traditional disposal methods. Definitely more viable than reusing this water in other ways outside oil and gas operations. Read More »

Posted in Natural Gas / Tagged | 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, Methane / Tagged | Comments are closed