Energy Exchange

Rogue methane leaks from idle wells carry four big takeaways for policymakers

By Adam Peltz / Published: May 26, 2022

An ongoing methane leak involving several long-term idle wells in Southern California is raising safety concerns for nearby residents and highlights an important climate issue. Southern California has some of the worst air quality in the country, and leaks like these compound the negative impacts on some of the country’s most vulnerable populations. Both in California and across the country, many hundreds of thousands of end-of-life oil and gas wells are idle. That means that they are just sitting around awaiting proper site closure, which involves plugging the wells with cement to prevent gases or liquids from escaping and threatening the environment and public health.

Several such wells were recently found to be leaking methane — a powerful greenhouse gas that often escapes from oil and gas facilities alongside other toxic pollutants — in the Morningstar section of Bakersfield, CA. Local residents are concerned about the possibility of subsurface methane migration to homes and other structures in the vicinity.

While CalGEM and other agencies work to investigate and remediate the situation, four takeaways are already emerging:

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

Big bright spot in a disappointing season for shareholder climate resolutions

By EDF Blogs / Published: May 26, 2022

By Andrew Howell, CFA

It’s annual general meeting season in the U.S. — when shareholders hold companies to account and press management to do better.

A record 71 climate-related resolutions will be presented this year at public companies, more than double the number last year. But with a more ambitious suite of resolutions, fewer are being approved: just 21% of climate resolutions have passed so far this year, compared with 33% last year.

So it is big news that yesterday brought the passage of the first two climate resolutions in the oil and gas sector at ExxonMobil and Chevron. And while the successful Exxon resolution, requiring reporting on the financial impacts of a net zero by 2050 world, received more attention, the Chevron resolution is equally noteworthy. Chevron’s shareholders voted overwhelmingly in favor of a resolution filed by Mercy Investment Services pushing the company to improve its reporting on methane emissions.

Methane is a critically important issue to mitigate climate emissions and improve energy security. Having reliable, quality data is the key to rapidly address both imperatives now.

The Chevron methane resolution was backed by a whopping 98% of shareholders and was supported by the company’s board — one of the first times a climate resolution has achieved this status.

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

Differentiated gas: Nothing but hot air without these five criteria

By EDF Blogs / Published: May 19, 2022

By Dan Grossman and Maureen Lackner

Getting a comprehensive and accurate picture of the extent of methane emissions from the oil and gas industry is hard.

Our scientists have spent much of the last decade detailing deficiencies and inaccuracies in the way companies — and even regulators — estimate emissions, which result in dangerous understatements of the methane problem.

And that is precisely why efforts by oil and gas companies and their consultants to differentiate some natural gas as “responsibly sourced” or “low emission” is problematic.

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

The New York Utility Commission institutes a climate planning framework

By Erin Murphy / Published: May 19, 2022

The New York Public Service Commission is taking decisive action to orient the state’s utilities towards a clean energy future, consistent with the Climate Leadership and Community Protection Act. In two new orders, the commission established a collaborative long-term planning process for gas utilities, put in place a framework for greenhouse gas emissions reporting for all New York utilities and directed a statewide study to assess the impacts of transitioning away from the use of natural gas.

Posted in Natural Gas, New York / Comments are closed

Lessons from New Mexico and Colorado’s leading methane rules

By Jon Goldstein / Published: May 5, 2022

Methane leaks from oil and gas sites represents a problem on many fronts. They create harmful air pollution, contribute to global warming and can even cause explosions. They also result in a lot of wasted gas.

Colorado and New Mexico — two of the nation’s leading energy producers — recently ramped up their methane pollution standards for the oil and gas industry.

Ensure standards apply to smaller, low-producing wells

The vast majority of the nation’s wells produce less than 15 barrels of oil a day and there are often calls for these sites to be exempted from environmental standards. This is a major problem because their footprint is huge and their climate impact adds up.

Posted in BLM Methane, Colorado, Methane / Tagged New Mexico | Comments are closed

An all-inclusive way to look at energy transition in New Jersey

By EDF Blogs / Published: April 11, 2022

By Elizabeth B. Stein and Cole Jermyn

Update: On August 17^th, the BPU voted to accept the final version of the Ratepayer Impact Study. The final version has the same limitations EDF and others identified in comments on the proposed study, including not accounting for the environmental and public health benefits of the energy transition, and failing to fully account for modernized utility practices that can minimize costs such as innovative price signals and grid modernization. But even with these limitations, the final study shows that electrification is the pathway to both lower costs and less greenhouse gas pollution.

By 2030, New Jersey ratepayers who adopt electric vehicles, electrify their buildings and improve their energy efficiency will see lower energy costs than both their fossil fuel-reliant neighbor and the average customer today. This is true for small and large commercial customers, residential customers and low-income residential customers. These results should be a wakeup call to ensure all customers can afford to deploy these technologies in order to meet the state’s environmental and energy affordability goals.

New Jersey, like many other states, has been hard at work developing a strategy to drastically reduce its own climate impact. The state’s residents are already experiencing more than their share of climate change. With 130 miles of coastline, including population centers near much-loved beaches, more frequent extreme weather events are an existential threat to the state.

The state’s Energy Master Plan identifies and coordinates efforts, in various parts of the economy, to achieve a sustainable pathway to substantial decarbonization by 2050. But a new study, proposed by the New Jersey Board of Public Utilities, that seeks to estimate the financial impact of these efforts to eliminate fossil fuels on gas and electric utility customers, is infected with methodological flaws and faulty assumptions that would put it out of step with the state’s energy and climate policy.

Posted in Clean Energy, New Jersey / Comments are closed