Energy Exchange

As Oil and Gas Industry Goes Big in the Permian, Efforts to Tackle Emissions Will Be Telling

By EDF Blogs / Published: April 13, 2017

By Jon Goldstein and Ben Ratner

Much ink has been spilled recently about big new oil and gas investments in the Permian Basin across West Texas and Southeastern New Mexico. What some are dubbing “Permania” includes a more than $6 billion investment by ExxonMobil in New Mexico acreage and an almost $3 billion one by Noble Energy across the border in Texas, among others. But a large question remains: will these types of big bets also come with the needed investments to limit methane emissions?

It’s not just an academic question. The answer will go a long way toward revealing if industry actors plan to operate in a way that serves the best interest of local communities and taxpayers. Unfortunately, New Mexico is currently the worst in the nation for waste of natural gas resources from federal lands (such as those that are found in large parts of the state’s Permian Basin). Largely avoidable venting, flaring and leaks of natural gas from these sites also puts a big hole in taxpayers’ wallets, robbing New Mexico taxpayers of $100 million worth of their natural gas resources every year and depriving the state budget of millions more in royalty revenue that could be invested in urgent state needs like education. Read More »

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How Polluting Less Can Help Pennsylvania Employ More

By EDF Blogs / Published: April 11, 2017

By Andrew Williams and Isabel Mogstad

For decades, the polluter lobby has argued that environmental regulations are too costly and kill jobs. A new report out today is calling their bluff.

The report, from international consulting firm Datu Research, looks at a sector of the economy that focuses on finding and fixing oil and gas leaks – which contribute to climate change, waste energy, and damage local air quality. A growing number of states  have been requiring companies to reduce emissions by regularly checking their equipment for leaks. In those regions, companies that provide pollution control services have grown up to 30%.

This could mean big things for Pennsylvania – which has committed to implementing its own oil and gas pollution protections targeted at cutting methane from new and existing natural gas infrastructure. Read More »

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Trump Undermining Jobs That Conserve Natural Gas, But States Should Create Them

By Ben Ratner / Published: April 11, 2017

The biggest irony of the Trump Administration’s attack on environmental safeguards is that it will undermine a central promise of his candidacy: supporting boots on the ground, American jobs in growth sectors. One prime example? The emerging service industry that puts people to work finding and fixing harmful natural gas leaks.

American workers in the methane mitigation industry keep the product, methane (the main ingredient in natural gas), in the pipes and out of the sky. That’s a win for workers, who receive technology training, competitive wages, and opportunities for upward mobility. It’s a win for surrounding communities, as methane emission reductions also help keep smog-forming pollutants out of the air they breathe. It’s a win for oil and gas operators, which make operations more efficient and improve safety. And it’s a win for the climate, since methane is 84 times more potent in the near term than carbon dioxide.

In other words, if winning were more than a campaign slogan, supporting America’s methane mitigation industry would be an obvious opportunity to seize. Unfortunately, President Trump’s anti-jobs approach to undermining methane safeguards does just the opposite. Read More »

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Recent Methane Success in California Offers Blueprint for Mexico’s Energy Boom

By Drew Nelson / Published: April 5, 2017

Following energy reform in 2013, oil and gas industry expansion in Mexico is moving full steam ahead. The first round of bidding for Mexico-owned deep-water oil leases wrapped last December, ushering in a slew of private companies like ExxonMobil and Chevron for the first time since the 1930s. Additional leases for land that will become hotbeds for oil and gas activity on and offshore are planned later this year.

All of this is happening while Mexico is demonstrating remarkable climate leadership, and while countries and energy companies around the world are beginning to act on controlling methane, a harmful pollutant that routinely escapes from the global oil and gas industry. In other words, the Mexico energy boom couldn’t come at more critical time. Mexico ranks as the world’s fifth largest oil and gas methane emitter. Absent strong rules for future development, these emissions could steadily rise as more oil and gas production comes on line as a result of the energy reform.
Read More »

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El Reciente Éxito de la regulación del Metano en California Ofrece un Modelo para el Auge Energético en México

By Drew Nelson / Published: April 5, 2017

A raíz de la reforma energética en 2013, la expansión de la industria del gas y del petróleo ha crecido rápidamente. La primera ronda de licitaciones para el arrendamiento de petróleo en aguas profundas mexicanas terminó en diciembre, marcando el inicio para una serie de compañías privadas como:  ExxonMobil y Chevron, por primera vez desde los años treinta. Durante este año se planean arrendamientos adicionales de lugares que se convertirán en nichos para actividades petroleras y de gas, tanto en tierra como mar adentro.

Todo esto sucede mientras México demuestra un notable clima de liderazgo, y mientras los países y las compañías del sector energético alrededor del mundo empiezan a actuar para controlar las emisiones de metano, un contaminante sumamente dañino que en forma rutinaria escapa de la industria mundial del petróleo y el gas. En otras palabras, el auge energético no pudo suceder en un momento más crítico. México está clasificado como el quinto emisor de metano más grande del mundo. Con la ausencia de reglas sólidas para el desarrollo futuro, estas emisiones pueden aumentar a un ritmo constante conforme más producción de petróleo y gas entre en operación como resultado de la reforma energética. Read More »

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Can Technology Save the Climate? These Companies are Betting $1 Billion It Can

By Ben Ratner / Published: March 28, 2017

Last November, on the same day the Paris climate agreement took effect, 10 of the world’s largest oil and gas companies, including BG Group, BP, Eni, Pemex, Reliance Industries, Repsol, Saudi Aramco, Shell, Statoil and Total, announced a billion-dollar investment in climate solutions. Together, the member-companies of the Oil and Gas Climate Initiative (OGCI) produce 20 percent of the world’s oil and gas and operate in 55 countries.

Their commitment was the beginning sign of a growing and public recognition by the oil and gas industry that tomorrow’s low carbon energy transformation has become today’s new energy imperative.

Right now, the biggest, most pressing climate item for the oil and gas industry is methane. Importantly, OGCI’s announcement included a global focus on reducing methane, a powerful greenhouse gas. Far more potent than carbon dioxide over a 20-year timespan, methane is responsible for about a quarter of the warming we feel today. Read More »

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