UPDATED 1 Sept: The EI library in London is temporarily closed to the public, as a precautionary measure in light of the ongoing COVID-19 situation. The Knowledge Service will still be answering email queries via email , or via live chats during working hours (09:15-17:00 GMT). Our e-library is always open for members here: eLibrary , for full-text access to over 200 e-books and millions of articles. Thank you for your patience.
New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
Escalating action to reduce methane emissions in the oil and gas industry
26/4/2023
6 min read
Feature
Annual methane emissions from fossil fuel operations rose to over 120mn tonnes in 2022; to date they are estimated to account for around 30% of global warming since the Industrial Revolution. But the International Energy Agency estimates that 80% of the options to reduce the industry’s emissions could be implemented at no net cost. Here, Julien Perez, Vice President of Strategy & Policy at the Oil and Gas Climate Initiative (OGCI), discusses this preventable problem.
Mitigating methane (CH4) emissions can have a huge impact in the fight against climate change. Methane is responsible for more than a quarter of anthropogenic global warming. It has a global warming potential (GWP) 80 times more powerful than that of CO2 over a 20-year timeframe. Whilst it is relatively short-lived, dissipating after approximately a decade, it breaks down into water vapour and CO2 – the latter of which can last in the Earth’s atmosphere for 300–1,000 years.
‘Tackling methane is the fastest, most effective way to reduce near-term warming and keep 1.5°C within reach.’
These words, spoken by US Special Presidential Envoy for Climate John Kerry at the closing of COP27 in 2022, were supported by the establishment of the Global Methane Pledge. The pledge is an agreement signed by 150 countries that calls for a 30% cut in methane emissions from all sectors by 2030.
Methane emissions come from many sources, with the oil and gas industry estimated to contribute around 20% of the total. Those emissions contribute 50% of the oil and gas industry’s direct emissions of greenhouse gases (GHG), amounting to 2 GtCO2e/y, or 5% of global GHG emissions. According to International Energy Agency (IEA) research, eliminating those emissions by 2030 would be equivalent to neutralising two-thirds of the global transport sector’s GHG emissions.
The message to the oil and gas industry is clear: action on methane must happen, and quickly.
To successfully tackle methane emissions, the OGCI believes three things need to happen:
- We need a shift in mindset at oil and gas companies, so that methane emissions are viewed as they now see safety – we may not reach zero emissions, but we strive to do so.
- We have to use the available cost-effective technology for detection, quantification and abatement.
- We have to see increased collaboration, sharing best practice and setting each other high standards.
Shifting the mindset of oil and gas companies
We believe that the oil and gas industry can and should lead the effort to rethink how we approach methane emissions. However, this will require a step change in how methane emissions are viewed. We are advocating for an all-in approach that treats methane emissions as seriously as the oil and gas industry treats safety – we aim for zero and we will strive to do what is needed to get there.
These are not empty words. The 12 OGCI members, some of the largest oil and gas companies worldwide, have proven that serious mitigation can happen when it becomes a focus. Collectively, the OGCI member companies reported an aggregate upstream methane intensity of 0.17% in 2021, a 17% decrease year-on-year and a drop in absolute upstream methane emissions of 40% over five years.
With a mindset focused on continual improvement, we believe it is possible to achieve near zero methane emissions by 2030 from operated oil and gas assets.
It is not just OGCI members who are embracing this attitude towards methane. Several multi-stakeholder initiatives, such as the Methane Guiding Principles, the Oil and Gas Methane Partnership 2.0 and the Global Methane Alliance and, most recently, OGCI’s Aiming for Zero Methane Emissions Initiative, are being supported by more and more oil and gas companies.
With a mindset focused on continual improvement, we believe it is possible to achieve near zero methane emissions by 2030 from operated oil and gas assets.
Utilising cost-effective technology
While having the right attitude is important, nothing will be achieved without the right tools. In this respect action on methane is in a strong position – there is a wide variety of available, cost-effective technologies that companies can use to detect, quantify and abate methane emissions.
Advances in satellite technology have made it possible to cost-effectively detect methane emissions across large areas. OGCI has been at the forefront of this work, commissioning a satellite monitoring campaign over Iraq which used a combination of satellite observations at the country and asset level to identify major sources of methane emissions. We worked in partnership with GHGSat, an OGCI Climate Investments’ portfolio company, who operated the satellites and provided readings of emissions from the facilities. Carbon Limits supported the partnership with operator engagement, conducted on-site assessment, and helped find ways to fix leaks rather than venting the gas.
The detection, attribution and engagement with a non-OGCI local operator in Iraq resulted in the elimination of a continuous plume in the range of 5–10 tCH4/h to a level not detectable by satellite over the course of a few months in 2022. If the plume is assumed to be continuous over time, the abated emissions are in the order of 1.2mn tCO2e/y (using a GWP=28; the GWP of methane over 100 years).
Even in offshore operations, where methane emissions have traditionally been much harder to detect, cost-effective and reliable technology now exists.
In May 2022, OGCI member company TotalEnergies launched a worldwide drone-based emissions detection and quantification campaign across all its on- and offshore operated sites. The campaign, using airborne ultra-light spectrometer for environmental application (AUSEA) technology, has shown the success of a miniature dual sensor mounted on a drone to detect methane and CO2 emissions, while at the same time identifying their source. The campaign detected emissions below 10 kg/h.
Meanwhile, OGCI Climate Investments' portfolio company Seekops has worked with BP to enhance offshore methane measurement by using a simulation tool for analysis and flight planning, an air pollutant plume dispersion equation and relative standard deviation to map expected concentration fluctuations from sites in the North Sea.
Innovative approaches are also being tested to leverage satellite monitoring on water – a technology that previously could not work at sea. On 13 August 2022, GHGSat detected the smallest offshore methane emission ever seen from space, off the coast of Louisiana. This measured approximately 1,500 kg/h and was linked to a fugitive methane emission from an offshore oil and gas platform.
These examples shows that technology does exist, at a cost-effective price point, for methane abatement. All companies should be looking at their options and investing in the best solution available.
Collaboration
Even with available and cost-effective technology, tackling methane emissions isn’t going to happen without collective endeavour and the sharing of best practice.
This desire for a collective approach led to OGCI’s launch of the Aiming for Zero Methane Initiative. The initiative calls on all members of the industry to sign up to the principle of striving to reach near zero methane emissions from operated oil and gas assets by 2030 and implement all responsible means to avoid methane venting and flaring and repair detected leaks. The initiative also creates a space for companies to learn from each other.
To date, around 75 organisations have endorsed the initiative, all recognising that virtually all methane emissions from the industry can and should be avoided. Signatories are now using this clear, straightforward ambition to galvanise action within their organisations, whether in the deployment, maintenance and upgrading of physical assets, investment in new technologies, or other areas that might help eliminate methane emissions.
If the entire oil and gas industry makes similar commitments, nearly 70% of the objectives pursued by the Global Methane Pledge could be achieved, allowing a greater focus on developing options to address hard-to-abate remaining emissions, such as from agriculture or landfills.
I encourage all organisations working in the offshore sector to join companies such as Petrobras, Saipem, SLB and Baker Hughes to become signatories or supporters of the Aiming for Zero Methane Initiative.
Eliminating upstream methane emissions is one of the best short-term ways to advance the goals of the Paris Agreement. This can be achieved by the industry changing its attitude towards methane and treating leaks as seriously as safety incidents. The tools to achieve this are available at a cost-effective price point and support from other companies is available through several industry initiatives. Taken together, these actions will allow the oil and gas industry to take the lead on the issue of methane and make a meaningful contribution to addressing climate change.