Oil & Gas Methane Emissions: A Global Opportunity Sean Wright September 2017
THE METHANE PROBLEM Methane is causing 25% of today’s global warming.
THE METHANE PROBLEM Reducing CO2 and short term climate pollutants like methane can slow the current rate of global warming
THE METHANE PROBLEM Oil & Gas is one of the largest industrial sources of global methane pollution.
The Problem: • Small % of sites account for significant % of emissions • Unpredictable • Not in inventories • >90% of detected large emissions in US from Tanks. • Large emissions more common in oil-producing regions, including tanks with ineffective controls
METHANE RESEARCH Higher Emissions Global Emissions As a whole, oil & gas methane • Operators lose $2b/yr in emissions are higher than natural gas conventional estimates suggest • Europe is the 7th largest emitter on par w/Iran. Cost Effective Reductions System-wide emissions • Possible to achieve ~45% • Studies have shown reductions using off-the-shelf significant emissions in each technologies segment of supply chain • Many solutions cost-effective, from production to some with +NPV transportation and local distribution
Methane Detectors Challenge
Global Momentum on Methane Policy 1. Colorado First to Regulate 4. U.S. Sets Precedent 2014: US state Colorado becomes first May 2016: First national methane state to regulation methane. 7 out of 10 policies released covering public and operators say benefits of policy private lands outweigh costs 5. Canada National Standards 2. Action in Alberta May 2017: Draft national standards Nov. 2015: Alberta reveals plan to cut released, to be finalized in 2018. Alberta 45% of oil & gas methane emissions by rules expected soon 2025 6. Europe Next? 3. North America Joins EU in early stages of considering broad June 2016: Mexico, Canada and U,S. methane strategy including O&G sign continental pledge to cut methane 45% by 2025. +75 investors w/$3.6T AUM come out in support
10 EDF Work with O&G Investors Key partnerships w/PRI, CERES, IIGCC and ICCR
Final Thoughts • Global opportunity – low-hanging fruit • Experience shows regulations can de developed and successfully implemented. • Measurements should include super-emitters. • Transparency and reporting are key. • Critical role for the Netherlands
Thank You For further questions, please contact: Sean Wright – swright@edf.org
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