#United States #Houston #SP Global #Methane Emissions #Permian Basin

Decline in Methane Emissions from the Permian Basin

In a groundbreaking report by SP Global Commodity Insights, it has been found that methane emissions from oil and gas production operations in the Permian Basin experienced a substantial decline of 26% in 2023 compared to the previous year. This remarkable reduction is equivalent to the total carbon emissions saved by every electric vehicle (EV) operating in the United States during the same year. This analysis, which is the most comprehensive of its kind, highlights the significant progress being made in reducing harmful greenhouse gas emissions in one of the most productive oil and gas regions in the country.

The report indicates that in 2023, there was a decrease of more than 34 billion cubic feet (bcf) of methane emissions. Given that methane is a greenhouse gas that has a much higher short-term warming potential than carbon dioxide, reducing its emissions has a major impact on the environment. The decrease translates to an astonishing 18.5 million tons of avoided carbon dioxide emissions based on a 100-year equivalency factor of 28.

Methodology and Analysis

This analysis was conducted in partnership with Insight M, a leading firm specializing in methane management. It utilized advanced aerial surveys and high-frequency observation data, incorporating nearly 700 high-resolution surveys that covered 88% of the basin's active wells. The resulting data provides an accurate basin-wide estimate of methane emissions, making it a valuable resource for understanding the impact of oil and gas operations on the environment.

Daniel Yergin, Vice Chairman of SP Global, emphasized the significance of these findings, stating, "The sheer scale of this single-year improvement represents significant progress and demonstrates the potential for what lies ahead." The Permian Basin, which is comparable in size to Great Britain and accounts for nearly half of all U.S. oil production, is showcasing a path towards lowering overall emissions across the nation.

Insights into the Emission Decline

In analyzing the numbers, it's important to note that the 2023 decline in methane emissions was even more noteworthy as it coincided with an increase in oil and gas production in the Permian Basin. Consequently, the basin’s methane intensity—a measure of total methane emissions relative to overall output—decreased by over 30%.

The decline in emissions is largely attributed to advancements in technology and ongoing improvements in equipment. The deployment of innovative tools—from AI-driven analytics to sophisticated sensors and aerial monitoring—has enabled quicker and more precise leak detection. Kevin Birn, Head of the Center for Emissions Excellence at SP Global, mentioned, “Improvements and increased accessibility of remote sensing technologies provide a better understanding of U.S. methane emissions.” Leaks that once went undetected for lengthy periods can now be resolved in a matter of days.

Additional findings from the report reveal that:

• - Methane emissions, as a percentage of the region's total natural gas output, fell by 33%, reducing to 1.36% of the total production of over 23 bcf per day.
• - The methane intensity for the entire Permian Basin was measured at 0.63% of total production for 2023.
• - In terms of economic value, the methane emissions accounted for merely 0.12% of upstream revenues, representing a 70% drop from the previous year.

Conclusion

For oil and gas operators, devising strategies to manage methane emissions is an ever-evolving challenge, shaped by changes in technology, regulations, and market conditions. Despite dwindling leak sizes potentially complicating detection, the economic benefits of capturing and selling the recaptured gas remain substantial. The findings of this analysis underscore the ongoing commitment of the industry to minimize its environmental footprint while continuing to meet energy demands. As technological advancements progress, the balance between operational efficiency and environmental responsibility becomes increasingly achievable, paving the way for a more sustainable future in energy production.

SP Global Commodity Insights continues to lead in providing essential data and analysis, connecting stakeholders and fostering solutions that can drive meaningful changes in the energy landscape.