WildEarth Guardians

Wednesday, November 24, 2010
Methane Reductions from Oil and Natural Gas Industry Could Save More than $1 Billion

Report Finds Available Controls Can Reduce 120 million tons of Greenhouse Gases, Better Protect Public Health Nationwide
Contact: Jeremy Nichols (303) 573-4898 x1303

Denver, CO—WildEarth Guardians joined Earthjustice and the San Juan Citizens Alliance today in releasing a report detailing the opportunities to significantly reduce global warming pollution from the oil and gas industry nationwide, while at the same time making money and protecting public health.

The groups also called on the U.S. Environmental Protection Agency to seize these opportunities and establish mandatory reductions in methane from the oil and gas industry.

The report, which provides a roadmap for reducing methane emissions by 90% or more, was submitted to the U.S. Environmental Protection Agency (EPA) as part of their review of air quality regulations for the oil and gas industry.  Under a settlement with WildEarth Guardians and the San Juan Citizens Alliance, the EPA agreed to review and update federal oil and gas air quality regulations in 2011.  Current regulations are outdated, with some as old as 1985, and fail to limit a number of harmful air pollutants, including methane. 

Otherwise known as natural gas, methane is a valuable product and also a potent greenhouse gas with more than 20 times the heat-trapping capability of carbon dioxide.  Every bit of methane released is like releasing more than 20 bits of carbon dioxide. 

Methane emissions from the oil and gas industry stem from inefficient practices.  One of the most common sources of methane comes from equipment leaks.  Better maintenance could significantly reduce these emissions, in turn reducing the amount of lost natural gas.  However, vapor recovery systems, low-emitting valves, and other add-on controls could easily be utilized to reduce methane emissions.

Many companies have already realized the potential.  Through the EPA’s Natural GasSTAR program, a number of oil and gas companies have touted the success of utilizing more than 80 control technologies and practices to reduce methane at a considerable savings. 

In a recent article in the Casper Star Tribune, EnCana oil and gas reported that reducing emissions is good for business.

Unfortunately, reducing methane emissions is not an industry-wide standard, and examples like EnCana are the exception, rather than the norm.  Part of the problem is the lack of regulatory incentive.  Although methane reductions can be profitable, drilling more wells is more profitable.  Industry focuses on operations that yield a higher rate of return.  Mandatory methane reductions established by the EPA would help to shift this focus to ensure more efficient and responsible oil and gas development.

Annually, the oil and gas sector is estimated to release 331 billion cubic feet of natural gas, equal to more than 133 million tons of carbon dioxide.  This is as much carbon dioxide as is released by more than 25,000,000 passengers vehicles and 33 coal-fired power plants (according to EPA’s greenhouse gas equivalency calculator).

At current natural gas prices of around $4.00 per thousand cubic feet, a 90% reduction in industry-wide methane emissions could yield more than $1 billion in savings. 

At the same time, because methane is released with other harmful air pollutants, such as benzene, which is known to cause leukemia, methane reductions could yield significant health benefits.