Innovative Thinking Drives Emissions Mitigation

Abstract

_ The oil and gas industry walks a fine line between providing the energy supplies demanded by a growing global population and addressing the challenge of reducing greenhouse gas emissions, mainly methane. While the industry has made gains in many areas, critics have flagged concerns that the current pace of emissions mitigation needs to be faster and called for acceleration of the process. According to the International Energy Agency (IEA), methane is responsible for approximately 30% of the rise in global temperatures since the Industrial Revolution, making it the second-largest contributor to climate change behind carbon dioxide. Methane is released during oil and gas production processes, and the industry accounts for about a quarter of the global anthropogenic methane emitted into the atmosphere. With increasing recognition of their negative environmental impacts, these emissions are now under greater scrutiny by governments worldwide as they strive toward cleaner power generation sources. As a result, energy companies continue to find ways to effectively manage and reduce their methane emissions to remain compliant with new regulations. According to nonprofit organizations Clean Air Task Force and Ceres, industry efforts are delivering results. An analysis assessed the production-based emissions of more than 300 US producers, finding that the methane emissions intensity of natural gas production and the greenhouse-gas emissions intensity of oil and gas production vary dramatically across companies. The intensity of methane and greenhouse-gas emissions from the oil and gas sector declined 28% and 30%, respectively, between 2019 and 2021 among the largest producers in the country, the report said. However, according to the IEA, overall progress could have been faster. In a special report, the agency looked at the investment required to deliver a sharp reduction in emissions by 2030, finding that if the industry spent $75 billion—about 2% of its 2022 net income—to curb methane emissions through 2030, it would keep the sector on a pathway to achieve net-zero emissions by 2050. The agency also reported that methane abatement is one of the most cost-effective measures to cut emissions and would generate about $45 billion from the sale of captured methane (Fig. 1). Leak Detection Comparisons Promising advances in technology have improved methane measurement and leak detection. Traditionally a laborious and error-prone task, leak-detection technologies are undergoing a revolution. Drone technology, satellite surveillance, and infrared cameras are emerging as powerful tools in the industry’s arsenal to pinpoint leaks and fix them swiftly. Companies like Shell and BP have committed to routine checks via drones and cameras to spot leaks more accurately and promptly. By employing these technologies, the industry can reduce its environmental footprint and save valuable natural resources, transforming “waste” methane into a valuable energy source. ExxonMobil deployed new technology to expand measurement and mitigation of methane emissions and reduced methane emissions intensity from operated assets by more than 40% as of year-end 2021 vs. 2016 levels in line with greenhouse gas emission reduction plans. In its 2023 Advancing Climate Solutions Progress Report, the supermajor also said that it increased the amount it intends to invest through 2027 on lower-emission initiatives to approximately $17 billion, up by nearly 15%.