Leveling the playing field on methane, strengthening Pennsylvania's competitive advantage

This post was co-authored by John Rutecki, EDF

• Pennsylvania’s methane rulemakings are an opportunity to reduce waste, protect public health and the environment and strengthen the long-term competitiveness of the state’s energy industry.
• Measurement studies and real-world emissions data consistently show that low-producing well sites account for a disproportionate share of methane emissions and waste, underscoring the need for strong standards that address emissions across the full industry.
• Major operators and investors have repeatedly supported well-designed methane standards because they provide certainty, establish a level playing field and reduce business risk.

When Governor Josh Shapiro and the Pennsylvania Department of Environmental Protection announced plans to develop methane standards for new and existing oil and gas sources, they were clear about their goals: reducing waste, protecting public health and the environment and strengthening the competitiveness of Pennsylvania’s energy industry.

Strong methane standards offer Pennsylvania a clear path to achieving all of those goals.

As the nation’s second-largest natural gas producer, Pennsylvania now has an opportunity to demonstrate that energy abundance and methane leadership go hand in hand.

Pennsylvania has a strong foundation to build on

Findings from the Appalachian Methane Initiative (AMI) show that some of the region’s largest producers have already achieved exceptionally strong methane performance through modern technologies, measurement programs and improved operating practices. Key operators involved in the effort include four AMI members — CNX Resources, EQT Corporation, MPLX and Seneca Resources — as well as two data-contributing operators, Ascent Resources and Expand Energy. Collectively, more than half of Appalachian gas production comes from AMI-participating operators.

However, the data also highlights a significant challenge: high methane loss rates from low-producing conventional well sites continue to weigh down the region’s overall emissions performance.

A recent preprint analysis using MethaneSAT observations reinforces that finding at a national scale. Researchers analyzed methane emissions from approximately 280,000 well sites across 11 oil and gas basins, which together represent more than 80% of U.S. onshore production. Low-producing well sites made up around 240,000 of the total, and while they account for only about 5% of U.S. oil and gas production, they generate nearly 60% of production-related methane emissions.

This imbalance is even sharper in Pennsylvania. EDF analysis of 2024 Enverus data shows that low-producing well sites account for only 1% of total oil and gas production but represent roughly half of total methane emissions in the state.

The encouraging news is that Pennsylvania’s methane challenge appears concentrated, measurable and more manageable than some suggest.

There is growing agreement that methane policy should be grounded in actual emissions data and informed by operational realities. The mounting evidence from AMI, MethaneSAT and other measurement programs points to a consistent conclusion. Across multiple measurement approaches and geographic scales, lower-producing well sites consistently account for a disproportionately larger share of methane emissions than their share of production would suggest.

A data-driven framework can reflect both sides of that picture, recognizing the strong performance industry leaders have already achieved while addressing the lower-producing sites with the greatest potential for methane abatement. Any credible effort to reduce methane emissions in Pennsylvania must therefore address emissions across the full industry, especially those sites.

Reducing waste creates value

Cutting methane is not only an environmental imperative. Because methane is the primary component of natural gas, emissions represent lost product that never reaches consumers, manufacturers, power plants, businesses or export markets. Every molecule captured, on the other hand, is product that can be sold, generating revenue, supporting jobs and contributing to state and local economies.

Demand for Pennsylvania gas is growing, driven by LNG exports, advanced manufacturing, electrification and data center development. Reducing waste within existing energy systems is one of the most practical ways to maximize the value of the state’s resources.

Strong standards create a level playing field

As Pennsylvania moves forward with methane rulemakings, one point is worth emphasizing: strong standards and a competitive industry are not mutually exclusive.

In fact, many leading producers argue they go hand in hand.

Over the past decade, companies including bp, ExxonMobil, Equinor, Oxy and others have consistently supported durable methane standards at both the federal and state levels. The industry understands that well-designed rules developed with broad stakeholder input establish a level playing field, provide certainty, support long-term planning and reward innovation.

Investors managing trillions of dollars have also supported strong methane standards because they reduce risk, improve transparency and create greater confidence in long-term business performance.

That matters in Pennsylvania. As AMI demonstrates, many of the region’s largest operators have already invested in monitoring, measurement and emissions reductions. They should not be disadvantaged by competitors that haven’t made the same forward-thinking investments. Strong, consistent standards align expectations across the industry and ensure reductions happen where data shows the greatest opportunity.

Other states have already shown what is possible

Pennsylvania is not the first state to face these questions. Colorado and New Mexico show how strong methane standards can reduce emissions while supporting a vibrant energy sector.

Independent satellite and aircraft observations show methane emissions and methane intensity declined significantly in Colorado, following adoption of methane regulations, even as production continued.

New Mexico has seen similar progress, with recent Permian Basin analysis finding operators on the New Mexico side emit less than half the methane per unit of production compared with neighboring Texas operations. Those lower emissions translated into roughly $125 million in additional natural gas value between 2024 and 2025, including approximately $27 million going to New Mexico in royalties.

Markets increasingly reward credible methane performance

There’s a competitive dimension, too.

Buyers are demanding lower-emissions sources of energy, and the European Union continues to move forward with methane-related import requirements that will require measurement, reporting, verification and ultimately methane performance standards for imported gas. While policymakers are currently considering limited adjustments to implementation timelines, the underlying direction of travel remains clear: energy producers that can credibly demonstrate low methane emissions will be better positioned to compete in global markets. Those that cannot may face growing commercial and regulatory risk. Clear, statewide standards give Pennsylvania operators the certainty and the credentials to compete, turning strong methane performance into a market asset rather than a liability.

Industry engagement matters

Pennsylvania has made clear that it intends to move forward with comprehensive methane standards for new and existing sources, including leak detection and repair requirements and measures to address venting and flaring.

The question is no longer whether to address methane, but how to design the smartest, most effective rule.

That is where industry engagement is critical. Companies can help shape practical implementation pathways that reflect operational realities while still delivering meaningful emissions reductions, including from the lower-producing well sites responsible for an outsized share of methane emissions.

The most effective frameworks establish clear expectations across the industry while allowing targeted flexibility where it is truly needed, such as for smaller operators or wells nearing the end of their useful life. That flexibility, however, must not come at the expense of meaningful reductions from the sources responsible for the greatest share of emissions.

A lasting framework should establish a fair statewide baseline of performance, reward operators that have invested in methane reductions and remain relevant as market expectations continue to evolve.

The road ahead

Governor Shapiro and DEP have correctly identified methane as both an environmental issue and an economic one. Reducing waste, improving operational efficiency, protecting public health and strengthening competitiveness are mutually reinforcing goals.

Pennsylvania’s leading operators have already demonstrated what strong methane performance looks like. The opportunity now is to extend that success across the industry through a framework grounded in real-world measurement data, focused on the sources responsible for the largest share of methane losses and designed to reward performance.

Done well, Pennsylvania’s methane rulemaking can reduce waste, create a level playing field and strengthen the Commonwealth’s competitive position in an increasingly performance-driven energy marketplace.