Urgent reduction of methane emissions

The International Energy Agency (IEA) is calling on companies, governments and regulators to take urgent action to reduce methane emissions. Methane emissions were reduced in 2020 by 10% due to the industry’s production cut. But emissions can recover and with more force. Hence the IEA report: “Reducing Methane Leaks from the Oil and Gas Industry: A Roadmap and a Set of Regulatory Tools.”

Methane emissions from the global oil and gas industry were reduced in 2020 by the pandemic. The production cut of the world industry caused them to fall by 10%. However, the IEA warns that those emissions can recover, and more strongly, if companies, politicians and regulators do not take action.

Methane is a much more potent greenhouse gas than carbon dioxide (CO2) and makes a major contribution to global warming.

According to the International Energy Agency’s 2021 methane tracker update: Oil and gas operations around the world emitted more than 70 million tons of methane into the atmosphere last year. This is broadly equivalent to the total energy-related CO2 emissions of the entire European Union.

The agency notes that the decline in methane emissions in 2020 was as a result of the pandemic. It had nothing to do with the maintenance operations, to avoid leaks, of the companies, but with the decrease in oil and gas production.

International Energy Agency Alert

Dr. Fatih Birol, Executive Director of the IEA, said:

“The immediate task now for the oil and gas industry is to ensure that there is no resurgence of methane emissions, even as the global economy recovers, and that 2019 becomes its all-time high. There is no good reason to allow these dangerous leaks to continue, and there is every reason for responsible operators to ensure that they are addressed.”

“Along with ambitious efforts to decarbonize our economies, early action on methane emissions will be critical to avoiding the worst effects of climate change. There has never been a greater sense of urgency on this issue than there is today.”

Dr. Birol added:

“We believe the industry needs to act visibly and quickly. But there is also an important role for government policies; to incentivize early action by companies, drive transparency and performance improvements, and support innovation to deliver results.”

Reduction of methane emissions

The International Energy Agency, to help accelerate these efforts, has released a new report. It is a guide for governments and regulators to reduce methane emissions from oil and gas operations.

“Reducing methane leaks from the oil and gas industry: a roadmap and a set of regulatory tools.” It is a step-by-step guide aimed at anyone trying to develop or update methane regulation.

His advice is based on analysis of how more than 50 countries, states or provinces, have approached methane emissions from a regulatory perspective.

In addition, the IEA also highlights that reducing methane emissions is profitable for oil and gas companies. Unlike CO2, methane already has a price worldwide: the price of natural gas. The costs of improvement, in operations or repairs to prevent leaks, can be amortized with the value of the additional gas that is brought to market.

In this line, Birol recalled the need for commitments on the part of governments, in the face of COP26 in Glasgow. And just as important is the commitment on the part of governments, as of companies. The IEA recalls that the consumer is already analyzing the emissions profile of the different gas sources to choose what to buy.

Europe

A few months ago we spoke of the European Union’s interest in reducing methane emissions in order to achieve climate neutrality by 2050. The EU’s strategy on this issue is more forceful than it was before:

“The Commission will consider methane emission reduction targets, standards or other incentives for fossil energy consumed and imported into the EU.” In addition, in 2021, the EU will propose a new regulation: “in order for oil and gas companies to repair their leaks and report their emissions”.

Source: Ambientum