Energy Exchange

Satellites and state regulators: New data spotlights extreme emissions and need for action in nation’s largest oilfield

By EDF Blogs / Published: April 22, 2020

This week a study drawing on nearly a year’s worth of satellite data revealed that Permian methane emissions are the highest ever measured from a U.S. oil and gas basin.

As the federal government continues its rollback of methane safeguards, public attention is now trained on policymakers and companies in Texas and New Mexico — two leading oil producing states that straddle the Permian Basin.

While New Mexico Gov. Michelle Lujan Grisham forges ahead on nation-leading rules to curb oil and gas methane waste and pollution, state leaders in Texas have yet to get serious about a problem that could undermine the industry’s viability in an economy that increasingly prioritizes cleaner sources of energy.

Posted in Air Quality, Climate, Methane, Methane regulatons, Natural Gas, PermianMAP, Texas / Tagged New Mexico | Comments are closed

It’s time for the Texas Railroad Commission to curb flaring to prevent waste, protect property rights

By Scott Anderson / Published: April 22, 2020

This piece originally appeared in the Houston Chronicle

The Texas Railroad Commission has a unique chance to save the state’s oil and gas industry from one of its own worst habits — setting fire to over 100 billion cubic feet of natural gas each year, transforming a valuable asset into waste and pollution with zero benefit to anyone. Now, as commissioners eye production cuts in response to collapsing oil prices, they also have an opportunity to stem the profligate practice known as flaring.

The measure under consideration is called proration. Last used in the 1970s, it allows the commission to set a monthly production ceiling equal to market demand, with shares allocated among the state’s producers based on a variety of factors. Often described as a way to raise prices by limiting supply, authority for proration actually comes from the commission’s statutory obligation to prevent the waste of natural resources and protect property rights.

Flaring, of course, is the very definition of waste. Since 2013, operators in Texas have burned off roughly a trillion cubic feet of natural gas — enough to meet the yearly needs of every Texas home three times over. In 2019, Permian operators alone flared almost 300 billion cubic feet of gas, sending over a million dollars a day up in smoke.

Posted in Air Quality, Methane, Methane regulatons, Natural Gas, Texas / Comments are closed

New data finds alarming levels of methane emissions in the Permian, posing long-term risk for oil and gas portfolios

By Dominic Watson / Published: April 21, 2020

Investors managing oil and gas portfolios are contending with major disruption as two interrelated crises play out: the global COVID-19 pandemic and extreme volatility in the price of oil. Yet even before these events, cracks were showing in the sector’s financial footing. Pressure has been rising on industry to improve returns, while demand to deliver on Environmental Societal Governance initiatives has never been higher.

Into this mix comes new data from scientists working with EDF’s PermianMAP initiative showing that methane emissions in the Permian Basin, the world’s largest oil field, is nearly three times the rate reported in Environmental Protection Agency’s nationwide statistics.

The 3.5% loss rate estimated in the data area is roughly 15 times higher than reduction targets set by leading producers, and significantly higher than many companies have reported. It translates to 1.4 million tons of wasted gas each year, enough to meet the annual natural gas needs of every home in Dallas and Houston combined.

The findings surface a material risk to oil and gas investors and to the future of natural gas from the Permian Basin. At current emissions rates from the basin, burning Permian natural gas for electricity does more near-term climate damage than coal.

A year from now, the U.S. oil and gas sector may look very different for many of the independent operators who make up a large portion of Permian producers. Withstanding this period of economic turbulence will require companies to make tough decisions. Yet even in this time of crisis, operators must keep an eye on future market demands, operational excellence and climate performance.

Permian study findings

The Permian sprawls across West Texas and New Mexico and has more than 100,000 operating well sites. Between October 2019 and March 2020, EDF scientists collaborated with academic institutions to collect data using tower-based monitors, ground-based mobile sensors, helicopters and fixed wing aircraft across a 10,000-square-kilometer study area responsible for 40% of Permian production.

The estimated 3.5% leak rate reflected in the new data stands in stark contrast to the .20% leakage rate agreed to by the 13 of the world’s largest operators in the Oil and Gas Climate Initiative, representing 30% of global oil and gas production. Furthermore, the emissions rate seen in the Permian is more than 10 times the methane intensity of 0.29% that OGCI has been reporting for 2018.

Posted in Air Quality, Methane, Methane regulatons, PermianMAP, Texas / Tagged New Mexico | Comments are closed

Now more than ever, it’s time for strong EU standards on methane emissions

By Ben Ratner / Published: April 16, 2020

As European Union leaders begin the transition from COVID-19 rescue to economic recovery, the need to build back better is taking center stage. Already, national governments representing over 65% of the EU’s population have insisted that leaders stick with the European Green Deal. Their resolve underscores the importance of leadership, resilience and science-based decision making in the face of the gravest health emergency of our time.

These national governments know that the EGD will help usher in a thriving, sustainable European economy that creates good jobs for working people. And they understand the tragic lesson of the COVID-19 crisis: that all nations must heed scientific warnings about public health and security. The scientific community’s clarion call on climate change, and the role of methane pollution in driving near-term warning, should be at the top of the agenda.

For the oil and gas industry, this means that a key component of the post-COVID recovery is the establishment of stringent standards to certify very low methane emissions for all gas used in the EU. Without such standards, the case for “cleaner-burning” natural gas evaporates; over the first 20 years, methane is 80 times more potent than CO2 in driving planetary warming. That’s why the European Commission’s forthcoming methane proposal presents a window that energy companies must take — and an ESG opportunity that investors cannot afford to ignore.

Posted in Air Quality, Climate, Europe, Methane, Methane regulatons, Natural Gas / Comments are closed

New York is developing a gas planning framework, an important step to achieve its climate goals

By EDF Blogs / Published: April 9, 2020

By Erin Murphy

As New York implements a sweeping new climate law and moves toward decarbonization of its energy systems, state regulators are beginning to develop a framework to ensure the natural gas system is part of the transition.

EDF has long advocated that the New York Public Service Commission harmonize its natural gas policies with the state’s ambitious climate goals because natural gas distribution and combustion is a significant contributor to the state’s greenhouse gas footprint. Last month, the commission took a major step forward by initiating such a proceeding to develop a long-term planning framework for gas utilities.

Posted in Climate, Natural Gas, New York / Comments are closed

Groundbreaking data is a wake-up call in the Permian, call to action for New Mexico

By Jon Goldstein / Published: April 8, 2020

Last year, EDF announced a first-of-its-kind project to measure and map emissions from the Permian Basin — the nation’s most productive oilfield and the primary source of New Mexico’s methane problem.

Although the Permian Basin has led the world in oil and gas production, public data on its emissions has been near nonexistent. PermianMAP is changing that, and we’ve launched the project’s first tranche of data to help regulators, companies and the public understand and address the region’s methane challenge.

The scale of emissions PermianMAP uncovered is sobering, but this publicly available data will prove critical as New Mexico advances nation-leading rules under Gov. Lujan Grisham to cut methane pollution and achieve the state’s climate and clean air goals.

Posted in Climate, Methane, Natural Gas, PermianMAP / Tagged New Mexico | Comments are closed