Energy Exchange

What Biden’s methane focus means for energy industry, its investors

By Ben Ratner / Published: January 21, 2021

A journey of miles starts with a single step, and for the U.S. oil and gas industry and its financiers, supporting strong and swift methane regulation by the incoming Biden administration is a big step on the road to climate progress.

Cutting methane emissions from the oil and gas sector is the single fastest thing we can do to limit the rate at which our climate is warming. There is no more impactful way to make up for lost time than finally instituting stringent standards to slash methane emissions from all sources across industry.

That’s because the emissions problem is egregious, the technology solutions abundant and cost effective, and the policy routes straightforward.

The old voluntary versus regulatory debate is behind us. Now, with the Biden administration firmly committed to reducing oil and gas methane emissions, a new era has begun.

Also posted in Methane, Methane regulatons / Comments are closed

To fix flaring, Railroad Commission must tackle the incentive problem

By EDF Blogs / Published: May 29, 2020

Previously published in Shale Magazine

By Colin Leyden and Scott Anderson

A remarkable thing happened at the Texas Railroad Commission these past few weeks. Throughout the contentious debate over proration, a growing chorus of voices on both sides was calling on the commissioners to address flaring — an incredibly wasteful, environmentally damaging practice that has been giving producers a black eye for years.

During the epic 10-hour proration hearing on April 14, it wasn’t just environmental and health groups banging the drum on flaring. Large and small producers (both for and against proration), mineral rights groups and investors all called for action on flaring. So while proration may be off the agenda for now, the need and desire to address flaring lives on.

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

A zero flaring policy is long overdue, and investors can help make it reality

By Ben Ratner / Published: May 27, 2020

As investors take a hard look at the U.S. energy sector during this time of volatility, natural gas flaring is one of the most important and immediate risks to manage.

The eyesore of the oilfield, flaring natural gas destroys shareholder value and creates environmental, social and governance risk — exactly the kind of problem that an increasing number of asset managers, investment banks, and even private equity firms have promised to address.

Routine flaring is damaging the environment in several ways. In addition to the CO2 emissions from combusted gas, flares can release significant amounts of methane into the atmosphere. EDF’s recent helicopter survey found that more than one in every 10 flares at oil and gas sites across the Permian Basin was either unlit — venting uncombusted methane straight to the atmosphere — or only partially burning the gas they were releasing. In fact, the survey suggests that flaring could be among the region’s largest sources of fugitive methane and a troublesome contributor to local air pollution.

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

A bright future for continuous methane detection

By Ben Ratner / Published: May 20, 2020

Over the last decade, a trove of scientific studies has established that not only are methane emissions from oil and gas operations a major contributor to climate change, but also that they are severely underestimated and underreported.

EDF has been at the forefront of research to detect and quantify the magnitude of oil and gas methane emissions. And we’ve also helped develop solutions that make large-scale emission reductions easier, faster and cheaper. A new initiative led by The University of Texas at Austin called Project ASTRA is a promising, multi-year experiment with the potential to build on and complement other efforts aimed at scaling global reductions of oil and gas methane emissions.

Also posted in Methane / Comments are closed

However you measure it, Permian oil and gas operations have highest emissions ever measured in a U.S. oilfield

By David Lyon / Published: May 11, 2020

Two fundamentally different methods EDF is using to measure and understand methane emissions in the Permian Basin are producing strikingly similar results. The mutually reinforcing sets of data — one gathered using aircraft, the other by satellite — each show that oil and gas operators in the region are releasing more than 3.5% of the natural gas they extract from the ground into the atmosphere as methane pollution.

That’s roughly twice the average rate found in 11 other major U.S. oil and gas basins. The wasted gas in the Permian is enough to supply 2 million American homes for a year.

The first of these efforts is EDF’s year-long PermianMAP, which tracks emissions from the ground and in the air, and takes the unprecedented step of publishing data online in near-real time to help industry and officials reduce those emissions, while letting the public see the results. The other is the first peer-reviewed scientific study to take direct measurement of Permian emissions, using the European Space Agency’s TROPOMI instrument.

Also posted in Air Quality, Climate, Methane, Methane regulatons, Texas / Tagged New Mexico | Comments are closed

Big step back: Changes in new EPA Greenhouse Gas Inventory mask methane emissions

By David Lyon / Published: April 28, 2020

For years, experts have urged the U.S. Environmental Protection Agency to improve the way it estimates methane emissions from the oil and gas sector to reflect major advances in the peer-reviewed scientific understanding of how much methane is escaping from each link in the industry’s complex supply chain. Bringing agency methods into line with this science would yeild better, more accurate accounting, and it would almost certainly show that actual emissions are much higher than previously indicated.

Instead, EPA has gone in the exact opposite direction, making a million metric tons of methane pollution disappear from the books with the stroke of a methodological pen.

The EPA’s latest inventory released this month, incorporated data from a new study for the gathering segment, but this study uses “bottom-up” measurements that scientists say are likely to systematically underestimate emissions rather than incorporate “top-down” approaches that rely on atmospheric science, and which extensive research has shown to be far more accurate.

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