Methane Mitigation in the Oil & Gas Industry

Mitigating methane leaks creates opportunities and jobs

Published: November 16, 2019 by sheltondigital

Oil, Gas & Methane

Methane Leak Detection and Repair (LDAR) service providers offer solutions to oil and gas companies across the U.S. by utilizing various technologies that identify and repair leaking equipment at industrial facilities.

Research shows that this growing industry:

  • Creates U.S. jobs: companies in the industry offer well-paid employment opportunities across the country that require boots on the ground and thus cannot be offshored.
  • Saves operators money: leak detection and repair minimizes waste by keeping otherwise lost product in the pipe.
  • Improves environment and climate: finding and fixing natural gas leaks across the country reduces emissions of a highly potent greenhouse gas, while contributing to cleaner air in surrounding areas.

Research was based on primary data collected from 60 LDAR firms in the U.S. Key findings include:

  • National footprint: at least 60 companies provide methane leak detection and repair services to oil and gas companies in 45 states. Hiring these service firms makes it easier for oil and gas operators to address methane emissions by eliminating the need to purchase equipment and train their own staff.
  • Majority small business: 55% of American LDAR firms are small businesses. Over one-third were founded within the last six years, reflecting an emerging industry.
  • Growth following methane rules: rules requiring methane controls create jobs cutting methane emissions. Companies have already experienced 5-30% business growth in states with methane regulations.
  • Continued growth expected, but rate uncertain: the industry anticipates future growth and projects headcount increases to meet demand across the country. However, the rate of growth will vary based on the regulatory direction chosen at the national level and in key states.
  • Diverse industry: more than one-fifth of firms have 40%+ workforce diversity.
  • Well paying jobs with upward mobility: the industry supports six job types with annual salaries ranging from $27,040 to $113,110. A common entry-level job, LDAR technician, offers opportunity for upward mobility.