Energy Exchange

Strong Federal Air Measures Still Needed

By EDF Blogs / Published: June 21, 2013

This blog post was written by Tomás Carbonell, Attorney in EDFs Climate and Air Program.  Jack Nelson, a legal intern in EDF’s Washington, D.C. office, assisted in the preparation of this post. 

Source: EPA

The U.S. Environmental Protection Agency put in place last year important standards to protect public health and reduce emissions of harmful air pollutants from oil and gas storage tanks and related equipment.  EPA wisely issued those standards after thousands of comments were provided by concerned public advocates for cleaner air.  With oil and gas production expanding quickly, tough standards are needed now more than ever to assure air quality protections for people living near oil and gas producing areas.

Recently, EPA proposed changes to standards for storage tanks in the oil and gas sector — a major source of pollutants that contribute to smog, climate change, and other threats to public health and the environment.  These changes would undermine the progress made thus far and would lead to significant and unnecessary increases in emissions of volatile organic compounds, methane, and other pollutants.  EDF is urging EPA not to finalize the proposed revisions in comments filed together with Clean Air Council, Clean Air Task Force, Environmental Integrity Project, Natural Resources Defense Council and  Sierra Club.

Proposed Changes to the Storage Tank Standards

Last fall, oil and gas industry groups petitioned EPA for changes to the storage tank standards, arguing that less stringent standards are needed because these tanks are even more numerous and emit at higher levels than EPA predicted when it was developing the current standards.  If anything, this new information indicates the need to maintain or strengthen health-protective standards for storage tanks.  EPA’s proposed changes would instead: Read More »

Posted in Methane, Natural Gas, Washington, DC / Comments are closed

Methane Research: The Data Pursuit Continues

By Mark Brownstein / Published: June 11, 2013

Source: Kinder Morgan

Is natural gas really better for the climate? This may seem like a simple question. After all, natural gas is the cleanest burning fossil fuel.  And data from the Energy Information Administration in April showed a downward trend in U.S. energy-related carbon dioxide (CO2) emissions. A move many experts believe is largely attributed to the increased production of U.S. natural gas and the shift it has caused in the power sector – old, dirty coal plants being retired because new natural gas plants are more competitive.

But, this is only part of the story. Natural gas is comprised primarily of methane, and unburned methane is an incredibly potent greenhouse gas – 72 times more powerful than CO2 over the first two decades it is released.

The oil and gas industry is one of the largest domestic sources of methane, and while new gas reserves are being drilled every day,  too little is known about how much and from where methane is leaking out from across the natural gas system. Lack of direct measurements has been a challenge, as EDF’s Chief Scientist Steven Hamburg explains here.

The need for better data to understand and control methane emissions in order to understand the true climate opportunity of natural gas led to EDF’s largest scientific research project. This effort currently involves about 85 academic, research and industry partners subdivided over five areas of the value chain (production, gathering and processing, transmission and storage, local distribution and transportation).  Read More »

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

Is BLM Phoning It In?

By Matt Watson / Published: May 17, 2013

Source: Soundcheck-WNYC

Yesterday the Bureau of Land Management (BLM) released a new draft of its so-called “fracking rule.” To be fair, the proposed rule does represent a level of progress compared to sorely outdated rules on the books. But we’re dealing with critical issues here – not the kinds of things we can afford to only get half right.  And unfortunately, “half right” is about all we got here.

The most significant failings of the proposed rule have to do with well integrity – the way an oil or gas well is constructed and operated to minimize risks to the environment and public safety. Proper casing, cementing and pressure management are critical to protecting groundwater resources and the lives of the men and women who work the rigs. The rule takes steps in the right direction, but it doesn’t include nearly the level of detail necessary to ensure casing is set where it’s needed, operators are getting good cement jobs and the whole system is checked for mechanical integrity at critical points in the well development process.

The rule also falls short on chemical disclosure. We’re pleased to see the agency propose the same basic disclosure framework that has already been established by leading states – including requirements that operators disclose all chemicals used in hydraulic fracturing fluids (not just chemicals subject to OSHA reporting), and requirements to post the information on a user-friendly, publicly accessible website like FracFocus. But the proposal is far too weak on trade secrets. For the public to have confidence trade secret protections aren’t being abused, there needs to be a clear path for challenging trade secret assertions and policing the system.

Finally, while we recognize that you can’t address every issue in a single rule, it’s still worth noting two areas where agency rules are in glaring need of an overhaul. First, BLM needs to improve its rules for the handling, storage and disposal of the huge volumes of wastewater produced by unconventional oil and gas operations (the proposed rule merely asks operators to submit a plan). Second, BLM needs to adopt requirements to minimize emissions of methane – a highly potent greenhouse gas – and other contaminants that create local and regional air quality problems like they’re seeing in Colorado and Wyoming. There’s long been talk of dealing with methane emissions at BLM, but so far we’ve yet to see action. We hope that changes soon. Read More »

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

In Texas, Freshwater Use For Oil And Gas Should Be Reduced Strategically

By Virginia Palacios / Published: April 9, 2013

Texas is suffering from a water deficit; one that is spurring lawmakers at the Texas Capitol to discuss unprecedented, and much needed, investments in our water infrastructure.  With roughly 98 percent of the state in drought and water use restrictions in place in 70 percent of Texas counties as of April 3, 2013, it is crucial that our legislators consider every tool available to protect Texas’ water supply.  One approach is reducing freshwater use in the oil and natural gas sector, which can help alleviate competition for scarce water resources; however, this should be deployed at strategic places and times to minimize pollution risks and ensure a sustained future water supply for Texas.

In the Texas Legislature, the House recently passed a bill which will provide $2 billion to fund water supply projects.  It might surprise you to hear that this high price tag represents less than 10 percent of the state funding that will be needed over the next 50 years to sustain water supplies for Texas’ growing population.  In light of this, it is essential that legislators enact bills that encourage responsible water management solutions. Although the oil and gas industry’s water use appears miniscule when considered on a statewide basis, even small amounts can have a big impact in the most water stricken areas. EDF created a map of the counties in Texas currently being impacted by water scarcity and that would benefit greatly if the oil and gas sector reduced its use of freshwater.

Data used to create the map revealed the following:

  • The majority of water used for Texas oil and gas development in 2011 was in 13 counties, ten of which currently have water restrictions in place.
  • For 12 counties, oil and gas water use made up at least 25 percent of overall county-wide demand in 2011.
  • In 15 counties, oil and gas water use is projected to be greater than or equal to 25 percent of the water deficit in those counties in 2020.
  • In five counties, 100 percent of the water deficit projected for 2020 can be met by cutting oil and gas water use by half.

The oil and gas industry is a prime candidate for reducing its reliance on freshwater because – unlike the agriculture and municipal sectors – using non-freshwater is technologically feasible.  Some of the most popular alternative water sources for the oil and gas industry include brackish (or salty) water, treated flowback water from hydraulic fracturing and reclaimed water from public wastewater treatment plants.  Taking advantage of these options could be a win-win-win for industry, people and the environment. Read More »

Posted in Natural Gas, Texas / Comments are closed

Study Intends To Determine Methane Leakage Associated With A Growing Natural Gas Transportation Sector

By EDF Blogs / Published: March 4, 2013

This blog post was written by Jason Mathers, Senior Manager of EDF’s Corporate Partnerships Program.

Source: Waste Management

The use of natural gas to power our nation’s freight fleet vehicles is a hot topic in these days of rising diesel and falling natural gas prices. There are several reasons to be excited about this opportunity, including operating cost savings, use of a domestic fuel source, and the potential for a reduction in greenhouse gas (GHG) emissions compared to diesel heavy-duty trucks. However, significant concerns remain with the development of new gas supplies, including the threat of fugitive methane emissions from natural gas vehicles and the fuel supply chain.

Methane is the main ingredient in natural gas and a GHG pollutant many times more potent than carbon dioxide (CO2), the principal contributor to man-made climate change. Even small amounts of methane leakage across the natural gas supply chain can undermine the climate benefit of switching to natural gas from other fossil fuels for some period of time.

In a paper published last year, EDF scientists and other leading researchers examined the impact of potential fugitive emissions on the climate benefits of a switch from diesel to natural gas heavy-duty trucks. The study found that, according to the best available data, methane leak rates would need to be below 1% of gas produced in order to ensure that switching from diesel to natural gas produces climate benefits at all points in time. They also found that – using the EPA leakage rate estimates at that time – converting a fleet of heavy duty diesel vehicles to natural gas would result in increased climate warming for more than 250 years before any climate benefits were achieved.

EDF is working with leading researchers and companies in a series of studies designed to better understand and characterize the methane leak rate across the natural gas supply chain. The studies will take direct measurements at various points across the production, gathering and processing, long distance transmission and storage, local distribution, and transportation. The first study, led by researchers at the University of Texas, is measuring emissions from natural gas production. Results will be released in the coming months. Read More »

Posted in Climate, Methane, Natural Gas / Tagged , | Read 1 Response

El Paso Electric Inks Solar Deal That Is Cheaper Than Coal

By / Published: February 7, 2013

On the heels of our blog post last week, showing how competitive wind and solar power have become in recent years, is news of possibly the cheapest solar deal yet in the U.S. (that we know of publicly, at least).  Even more interesting is the fact that the deal was made between Texas-based El Paso Electric and First Solar, an Arizona-based solar manufacturer.  While it’s a little sad that a Texas-based company has to go to New Mexico to build solar, it’s at least heartening that they could partner with a U.S. company to get the project done.  First Solar has been one of the leading solar manufacturers for several years, and last year their suite of projects made them the #2 solar panel supplier in the world (up from #4.) 

Marty Howell, the City of El Paso’s Director of Economic Development and Sustainability, said that “El Paso Electric’s recent solar contract with First Solar is another example of our great partnership with El Paso Electric and how El Pasoans are working together to make our community more sustainable.”

This new 50 megawatt (MW) project in New Mexico comes in at 5.79¢/kilowatt hour (kWh), which is almost half the cost of a new “advanced” coal power plant (12-14¢/kWh), according to the Energy Information Administration.  It is helpful to note that the deal did benefit from subsidies, as detailed in an article by Renewable Energy World, including the Investment Tax Credit (ITC) – which provides renewable energy projects with a tax credit equal to roughly 30 percent of a project’s costs.  If we were to remove that credit and the benefit of local incentives, the project would come in right around the cost of a new advanced coal plant, even if the coal plant lacks carbon capture and storage technology.

Time will tell whether this deal is an exception or the new rule, but growing signs of price parity for solar power, and the continued growth of competitive wind energy, consistently point to a critical shift in our energy infrastructure.  With continued declines expected in both wind and solar prices, this First Solar project seems more likely to become the norm than not.  The only question is whether utilities and regulators are ready for such rapid growth in wind and solar power. 

In New Mexico, they certainly seem to be ready.  However, in many other states, including El Paso Electric’s home state of Texas, that’s still an open question.

Posted in Renewable Energy / Comments are closed