WildEarth Guardians

A Force for Nature

Select Page

Current work in wildlife, rivers, public lands, and climate

Press Releases

Methane Reductions from Oil and Natural Gas Industry Could Save More than $1 Billion

Date
November 24, 2010
Contact
Jeremy Nichols (303) 573-4898 x1303
In This Release
Climate + Energy  
#KeepItInTheGround
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—WildEarthGuardians joined Earthjustice and the San Juan Citizens Alliance today inreleasing a report detailing the opportunities to significantly reduce globalwarming pollution from the oil and gas industry nationwide, while at the sametime making money and protecting public health.

The groups also called on the U.S. Environmental ProtectionAgency to seize these opportunities and establish mandatory reductions inmethane from the oil and gas industry.

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 Current regulations are outdated, withsome as old as 1985, and fail to limit a number of harmful air pollutants,including methane.

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

Methane emissions from the oil and gas industry stem frominefficient practices. One of themost common sources of methane comes from equipment leaks. Better maintenance could significantlyreduce 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 toreduce methane emissions.

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

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

Unfortunately, reducing methane emissions is not an industry-widestandard, and examples like EnCana are the exception, rather than thenorm. Part of the problem is thelack of regulatory incentive. Although methane reductions can be profitable, drilling more wells ismore profitable. Industry focuseson operations that yield a higher rate of return. Mandatory methane reductions established by the EPA wouldhelp to shift this focus to ensure more efficient and responsible oil and gasdevelopment.

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

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

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

 

Other Contact
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.