Energy Exchange

50 Million Reasons Why California Should Adopt Stronger Oil And Gas Rules

California’s oil and gas industry emitted approximately 270,000 tons of methane in 2014 – nearly three times the gas released during the Aliso Canyon storage facility disaster. This wasted methane – primarily natural gas – is worth over $50 million, and would have met the heating and cooking needs of about 400,000 homes in the state, had it not been lost to the atmosphere.

Notwithstanding the fact that methane pollution damages the climate and co-pollutants can cause dramatic public health problems, losing natural gas is a wasteful practice. However, as demonstrated during a 2-day joint agency symposium in Sacramento earlier this month, there are businesses that are ready, willing and able to help the state reduce leaks by deploying cutting edge technology, many of which are based in California.

Innovative solutions on display

The symposium featured companies, like United Electric Technologies, Safety Scan, Rebellion and Heath Consultants, that showcased technologies and capabilities being used today to reduce methane emissions across the U.S. in the area of oil and gas production, transmission, and natural gas storage. Read More »

Posted in California, Methane, Natural Gas / Comments are closed

Sacramento is Thinking Big on Methane and Natural Gas

Bill schoolhouse rockYear two of the California legislative cycle usually yields some bold policy ideas – and this year it looks like rethinking California’s relationship with methane and natural gas is on track to do just that.

Given the fresh memories of the major methane pollution event at Aliso Canyon, the 20-plus bills introduced on the topic this legislative session – vastly more than in past years – aren’t surprising in the least. Moreover, 2016 could have a monumental effect on the methane and natural gas picture in the state for years to come.

What is responsible for this sudden increase in efforts to change California’s relationship with methane and natural gas.

The science is clear

First, the science is clear, as methane, the primary component of natural gas, is responsible for about 25% of the manmade climate change we’re experiencing today. With temperature records being broken nearly daily (2015 was the hottest year on record, and February 2016 was the hottest month ever globally), the cat is out of the bag – it’s past time to focus on methane.

The legislative pump is primed

California started down the path of finding solutions to address methane emissions years ago with a series of bills and policy actions, and in many ways the 2016 bill package doubles down on that progress. Read More »

Posted in Methane, Natural Gas / Read 3 Responses

The True Cost of Electricity: What We’re Not Paying for Through Our Utility Bills

image oneThe price we all pay for electricity generally does not reflect the “true costs” of producing it. As described in a recent blog post, generating electricity creates harmful pollution, damaging the environment and public health. This comes with a cost, but it is not necessarily paid for by those generating the pollution or purchasing the electricity. These types of costs are known as “external costs.”

For example, a coal-fired power plant releases pollution into the atmosphere, which adversely affects the health of residents in nearby communities. This pollution is an example of an external cost because it causes health problems that neither the plant owners nor the electric users pay for (unless they live near the plant and pay the cost through their health bills).

From coal mining and energy production, to distributing and using that energy, to disposing of waste products, electricity has many external costs. By examining them, we can better understand the true cost of electricity and how it varies depending on the technology or fuel used to generate it. Read More »

Posted in Electricity Pricing, General, Social Cost of Carbon / Authors: / Read 13 Responses

Texas Methane Leaks are a Problem—for California

CA TXAliso Canyon was a big methane release, especially in Los Angeles, but in the grand scheme of methane released every day by the nation’s oil and gas industry, it was a blip. And recent footage from Texas, coupled with a new study of over 8,000 oil and gas wells gives a glimpse at the kind of leaks that are happening outside of California’s borders – leaks that have huge implications for the state.

The Texas infrared footage shows a cloud of methane leaking from a pump jack in an oil field in Texas’ Permian Basin. While these smaller leaks may not be as egregious as the one at Aliso Canyon, they often go undetected and unaddressed, adding up to a large amount of pollution. And as these leaks happen in Texas – with little plans to stop them – the climate footprint of the gas supply system continues to increase.

So what does this have to do with California? California imports nearly 90 percent of its natural gas from regions across western North America, with a large portion coming from Texas production areas like the Permian and Anadarko basins. To put it another way: when it comes to the climate, what happens in Texas doesn’t stay in Texas. So even while progress is happening to cut oil and gas pollution in the Golden State, there is still a lot of work to be done to make sure imported gas isn’t responsible for significant climate damage before it gets here. Read More »

Posted in Methane, Natural Gas / Read 3 Responses

Transforming the Electric System to Reduce Costs and Pollution

electrical-power-linesBy: Beia Spiller and Kristina Mohlin

Electricity markets around the world are transforming from a model where electricity flows one way (from electricity-generating power plants to the customer) to one where customers actively participate as providers of electric services. But to speed this transformation and maximize its environmental and cost benefits, we need to understand how customer actions affect the three distinct parts of our electric system: generation, transmission, and distribution. Read More »

Posted in California, Electricity Pricing, Grid Modernization, New York, Texas, Utility Business Models / Read 7 Responses

Largest Methane Study to Date Confirms We Need to Do a Better Job Checking for Methane Leaks

By Matt Watson and David Lyon

Drive by an oil or gas well pad, and it may not look like much — a couple of storage tanks, some pipes, maybe a see-sawing pump jack. But fly over one of these facilities with an infrared camera and you might see something different: methane pollution.

We did exactly that for a new study accepted today in Environmental Science and Technology. In the largest sample size of any methane emissions study to date, we hired one of the nation’s most experienced leak detection companies to fly a helicopter over 8,000 well pads in seven regions across the country using infrared technology to capture images of methane and other pollutants. The goal was to better characterize the prevalence of “super emitters” – the large, enigmatic sources responsible for a big portion of industry’s methane pollution – so we could figure out how to stop them.

Read More »

Posted in Air Quality, Methane, Natural Gas / Tagged , | Read 4 Responses