Forum Shows Government and Business Can Work Together to Tackle Oil & Gas Methane Emissions

powering-the-economyThere is often staunch disagreement between industry and policymakers on how to address pollution. But an event last week convening business leaders, federal and state officials and other stakeholders showed that there’s at least one idea on which they can agree and work together: the feasibility of reducing methane emissions from the oil and gas sector.

Here are four perspectives shared at this event that give me hope we can solve the large, but addressable problem of methane pollution from the oil and gas industry if we take a fact-based, collaborative approach. That would be great news in itself, and powerful precedent for tackling the broader climate opportunities ahead.

Environmental regulations are not a zero sum game. Martha Rudolph, director of Environmental Programs at the Colorado Department of Public Health and Environment, was on the front lines when Colorado proposed the nation’s first direct regulation of methane pollution from the oil and gas industry. At the event, she shared her state’s powerful example of unlikely allies coming together to protect climate and communities in a way that makes business sense.

Instead of tales of industry resistance, she shared a history of business and other stakeholders coming together with state policy makers to formulate and implement cost-effective regulations that will cut 100,000 tons of methane emissions – the climate equivalent of taking over 1.8 million cars off the road. Rudolph reports that the rules have not been challenged in court, and to date, her office had not heard complaints about compliance being difficult or costly . Noble, Anadarko, and Encana supported strong rules at the front end, and even the industry trade associations have rolled up their sleeves and set up trainings to ease rule implementation. Read more

Faith-Based Investors Call on Exxon, Valero and Others to Support Methane Regulations

Since the president announced in January a national goal of reducing methane emissions from the oil and gas industry nearly in half by 2025, an outpouring of voices has supported the move. Now, EPA has proposed rules to help meet that target, and we’ve seen another wave of support – everyone from editorial boards in the heart of oil and gas country to massive investors like California’s pension funds has recognized that the rules are a manageable, commonsense means for reducing methane pollution.

ICCR-logoThe one voice that’s been silent? The companies with the opportunity to adopt the proven, cost-effective technologies and services to not only reduce pollution but also prevent the waste of the very energy resource they’re producing. Now another voice has emerged to make the case directly to these companies that it’s worth constructively engaging in the rulemaking process: the Interfaith Center on Corporate Responsibility (ICCR), a group of shareholders dedicated to promoting environmentally and socially responsible corporate practices.

Several shareholders from ICCR’s coalition sent letters today to dozens of energy companies in which they invest, voicing their concern about the impact of methane emissions on the climate and public health. As You Sow, BCAM, Mercy Investments, Miller Howard, the Sisters of St. Francis of Philadelphia, Trillium Asset Management, and others made their case to companies whose shares they own, including some of the biggest names in the business, like Chesapeake Energy, ConocoPhillips, Exxon, Kinder Morgan, and Valero.

Specifically, the investors asked the companies to file public comments on EPA’s proposed methane rules, sharing the companies’ data and experience with methane monitoring and management and providing perspective on how the methane rules can be designed to reduce emissions cost effectively. They also urged the companies to guide their powerful trade associations –which have been some of the most vocal opponents of the rules – to engage honestly and transparently in the rulemaking process. Read more

Game Time for Fixing The Natural Gas Industry’s Achilles Heel

As the dog days of summer expire and football season approaches, many sports fans will anxiously scan their favorite team’s rosters for training camp injuries–finding everything from the innocuous, to the dreaded torn Achilles that already sidelined several pro players for the season’s start.

Gametime-300x250When it comes to the energy industry, methane emissions loom as the Achilles heel of natural gas. On the surface, natural gas appears to many as a star American player – abundant and cleaner burning than coal.

But unchecked methane emissions, which are 84 times more potent than CO2, undercut natural gas’ climate change performance.

This risk has grown particularly acute because the recently finalized Clean Power Plan, which targets carbon dioxide emissions from coal-fired power plants, casts natural gas as part of a viable near-term strategy to win the climate game.

The spotlight on natural gas’ performance is only growing as more viewers tune in.

The difference is, while there is no sure-fire way to prevent an Achilles tear on the athletic field, we have the means at our fingertips to dramatically reduce methane emissions and help natural gas become a stronger player that puts more points on the board for the economy and climate.

New EPA methane rules announced Tuesday can be an important step if finalized in strong form, yielding four business benefits: Read more

Investor Ranks Top $1.5 Trillion in Support of National Methane Standards

California public school teachers. Religious charities. New York police officers and firefighters.

investorsWhat do all of these groups have in common? Investors representing them — who manage $1.5 trillion in retirees, current employees’, and others assets – are standing together and calling for strong rules limiting harmful methane emissions from the oil and gas sector. This level of outpouring – from diversified investors with holdings in the oil and gas industry – represents five times the support investors expressed for methane rules last year. A trend is emerging.

The investors, including the largest retirement funds in California and New York, issued a powerful statement in support of the president’s methane proposal aimed at cutting emissions nearly in half in a decade. A centerpiece is regulation of methane, the primary ingredient in natural gas, which has over 80 times the warming power of carbon dioxide in the first 20 years after it’s released and is responsible for 25 percent of the warming we are feeling today.

From their vantage point as long-term stakeholders, the “serious threat” methane poses to climate stability compels them, as fiduciaries, to support action to cut emissions and avoid near term threats to “infrastructure and economic harm that will weaken not only the companies we invest in, but the nation as a whole.” Market pressure like that is difficult to ignore. Read more

The Good, The Bad and The Ugly: When Oil Giants Shift to Natural Gas

Pump jacks lined up in Oklahoma. (Credit: Kool Kats)

Pump jacks lined up in Oklahoma. (Credit: Kool Kats)

Six large European oil and gas companies recently announced a commitment to engage on climate policy, calling for a price on carbon. The now-emerging picture of their coordinated corporate talking points, however, leaves no doubt that promotion of natural gas is a core part of the group’s position.

Is this development a beneficial push to help the planet transition to a low carbon economy – or just another marketing campaign? The truth, so far, lies somewhere in between.

Here are the good, the bad and the ugly highlights of what we’ve learned over the past week and what it all means.

The good: Establishing a carbon price and cutting carbon dioxide emissions

Make no mistake about it: The world’s leading economies need to establish a price and limits on greenhouse gas emissions, and leadership from the private sector is instrumental in achieving that policy objective.

For large companies such as Shell, BP and Statoil to join forces and unequivocally state, as they now have, that a price on carbon should be a “key element” of climate policy frameworks is a refreshing boost to pre-Paris United Nations climate talks.

It is a potentially powerful validation that even some of the world’s largest corporate emitters see an upside to carbon pricing and will weigh in to make it a reality.

As to promoting natural  gas a solution, it is well documented that in many cases natural gas will replace coal for power generation – a shift already underway in the United States and partly responsible for driving down carbon dioxide (CO2) emissions. Read more

Big Question about the Oil and Gas Industry’s Newest Climate Effort

methaneleaks2_378x235Europe’s largest oil companies are reportedly working together on a policy strategy leading up to this year’s international climate talks in Paris. It’s nice to hear that some of the biggest players in the global oil and gas industry want to engage in solutions, but it remains to be seen if they will take the action needed to effectively tackle some of our most immediate climate threats – or to seize a major untapped opportunity.

That opportunity is methane. The highly potent greenhouse gas that’s been largely ignored until recently represents a solution for making real and immediate progress to slow warming. So will the group of oil companies sign on to tackle methane as a big part of its strategy, or are they going to ignore it?

Methane, the primary ingredient in natural gas, has over 80 times the warming power of CO2 and is responsible for 25 percent of the warming we are feeling today. That means tackling methane is an essential piece of the puzzle in making a real impact on greenhouse emissions. Read more

3 Climate Leadership Openings Corporate America Can't Afford to Miss

Too much ink has been spilled on the anti-climate furor of the Koch brothers. If we lose on climate, it won’t be because of the Koch brothers or those like them.

It will be because too many potential climate champions from the business community stood quietly on the sidelines at a time when America has attractive policy opportunities to drive down economy-endangering greenhouse gas emissions.

Corporate executives have the savvy to understand the climate change problem and opportunity. They have the incentive to tackle it through smart policy, and the clout to influence politicians and policy makers. Perhaps most importantly, they can inspire each other.

And today, they have a chance to do what they do best: lead. Corporate climate leadership has nothing to do with partisanship – it’s ultimately about business acumen.

For starters, here are three immediate opportunities smart companies won’t want to miss.

1. Clean Power Plan: Will spur new jobs and investments.

The Obama administration’s plan will cut emissions from coal plants by 30 percent by 2030. This is expected to trigger a wave of clean energy investment and job creation. It will also seize energy efficiency opportunities and take advantage of America’s abundant and economic supply of natural gas.

Every company with an energy-related greenhouse gas footprint has something to gain from a cleaner power mix. Each one of those companies therefore has a stake in the Clean Power Plan.

Google and Starbucks – two large and profitable American companies by any standard – are among more than 200 businesses that have already stepped up to voice their support.

Who will follow them?

2. First-ever methane rules: Will make industry more efficient.

The U.S. Environmental Protection Agency’s upcoming methane emission rules are another opportunity for business leaders to weigh in.

The rules are part of a White House plan that seeks to reducemethane emissions – a major contributor to global warming and resource waste – by almost half in the oil and gas industry.

Globally, an estimated 3.6 billion cubic feet of natural gas leaks from the sector each year. This wasted resource would be worth about $30 billion in new revenue if sold on the energy market.

Some oil and gas companies that have already taken positive steps include Anadarko, Noble and Encana, which helped develop the nation’s first sensible methane rules in Colorado.

Engaging to support strong and sensible national standards isa good next step for companies in this space. And for others with a stake in cleaning up natural gas, such as chemical companies, and manufacturers and users of natural gas vehicles.

3. New truck standards: Can help companies cut expenses and emissions.

New clean truck standards are scheduled for release this summer. Consumer goods companies and other manufacturers stand to see significant dollar and emissionsavings as they move their goods to market.

Cummins, Wabash, Fed Ex, Con-Way, Eaton and Waste Management are among those that applauded the decision to move forward with new standards.

Putting capitalism to work

American business leadership is still the global standard and will remain so if it adds climate policy to its to-do list. While it will take time to build the bi-partisan momentum for comprehensive national climate legislation, there are immediate opportunities to move the needle.

Which companies will take the field?

This post originally appeared on EDF Voices.

Read more

4 Reasons a National Methane Policy Will Be Good for Business

After months of anticipation, the Obama Administration this month released its new methane emissions strategy – a plan that opens up new opportunities for industry writ large, and especially for operators that want to cut waste and get ahead.

methaneleaks2_378x235The centerpiece of the strategy are imminent rules that will help us meet a new national goal to reduce harmful methane pollution from oil and natural gas operations by 45 percent by 2025.

But the rules also bring direct industry benefits. Here are four reasons the new methane emissions strategy is a boon, rather than bane, for America’s $1.2-trillion oil and gas sector:

1. It tackles $1.8 billion in annual waste and adds market certainty

Leaky infrastructure and unnecessary venting across the oil and gas value chain cost an estimated $1.8 billion in wasted product and lost revenue annually.

The new rules require companies to include up-to-date controls as they build out new and modified infrastructure, keeping gas in the pipeline while making new facilities more efficient.

Research shows such investments would cost industry no more than a penny on average per one thousand cubic feet of natural gas produced, and even save money in some cases.

The new rules also help bring market certainty.

As Goldman Sachs has pointed out, methane regulations are needed to address investor concerns, and unlock job creation and the most positive future for this American fuel.

Yes, as popular as the trend may be with consumers, today’s low oil prices cause economic pain for producers, and some operators are cutting back on costs.

But executives with vision beyond the next quarter can see that small, short-term investments in emission reduction technologies and practices are part of the longer game. Read more

Two Bold Efforts to Speed Methane Detection Technology to Market


Surging national focus among both industry leaders and government officials on the problem of methane emissions has put a sudden new premium on tools and technologies to help identify the leaks and other sources where the potent, heat-trapping greenhouse gas is escaping into the atmosphere. The good news is that some of the planet’s best innovators are rising to the challenge.

 Two major initiatives are helping uncover simpler, faster solutions: The U.S. Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E)’s Methane Observation Networks with Innovative Technology to Obtain Reductions Program grants (MONITOR for short), and the Methane Detectors Challenge, led by EDF and industry partners.

Fixing and repairing methane leaks is one of our most pressing climate challenges – and also one of our biggest opportunities. Improvements in methane detection technology will help the oil & gas sector find and fix leaks with the speed we expect in the digital age. In addition, reducing leaks can help clear the air in surrounding communities, and boost the revenue of companies that act quickly to repair them by keeping more product in the pipeline. Read more

Lasers, circuit boards and a $30 sensor: innovative solutions to the methane problem

This post originally appeared on EDF Voices.

The technologies we see today didn’t all start out in the forms we’re used to. The phones we carry in our pockets used to weigh pounds, not ounces. Engineers developed hundreds of designs for wind turbines before landing on the three-blade design commonly seen in the field.


(Missy Schmidt/Flickr)

Fast forward and now we're looking at a drunk-driver-and-alcohol sensor that was converted into a methane leak detector. And a sensor purchased off the web for less than $30 that was transformed into a monitor that fights off greenhouse gases.

I was excited to see the diversity of technologies such as these moving forward in the Methane Detectors Challenge.

Environmental Defense Fund’s initiative with seven oil and natural gas companies—including Shell and Anadarko Petroleum Company, the latest two to join—seeks to catalyze a new generation of technology for finding methane leaks in the oil and gas sector – a powerful contributor to climate change.

Read more