Methane Clips: July 22, 2022

GENERAL NEWS

Report That Oilfield Methane Emissions Are Down By Half Is Wrong, Front Range Cities With Own Pollution Monitors Say. According to Colorado Sun, “Air pollution from oil and gas operations is on the wane, the industry says. But communities along the Front Range — with their own air monitors — counter that they are finding repeated spikes of methane and other pollutants. ‘Ground-level methane monitoring shows no decline in levels,’ Cindy Copeland, an air and climate policy advisor for Boulder County, told a Colorado Air Quality Control Commision hearing Thursday. In Broomfield, air monitors recorded a dozen spikes where ambient benzene levels were estimated to have exceeded a 9 parts per billion health standard in the fourth quarter of 2021 — in one instance the level reached 223 ppb. Broomfield identified the peaks as coming during drilling, hydrofracturing, or fracking, and tubing wells — the so-called preproduction phase, Mindy Olkjer, the city’s oil and gas program manager told the commission. The air commission adopted new regulations in 2020 to cut emissions from the preproduction phase of oil and gas operations. What the spikes and eddies in emissions means for public health and safety is still undetermined.” [Colorado Sun, 7/22/22 (=)]

Report: Oil And Gas Companies Slow With Emissions Transitions, Need Credible Targets. According to Environment + Energy Leader, “No oil and gas company has developed a business strategy that includes a transition to low-carbon emissions operations and renewable energy use that includes a clear path from fossil fuel production, and they are struggling to come up with such plans, according to a report from Sustainable Fitch. To address the challenges long term, oil and gas companies should go beyond greenhouse gas emissions reduction targets and develop significant transition plans that include changes to business strategy and capital expenditure, according to the report. By doing so, the industry can get better in line with international climate goals while ensuring continued business success. Sustainable Fitch says large companies have more resources to make such transitions successful, but smaller and localized businesses may struggle with the approach. Volatility in the industry is also playing a role. The report says profits over the next 10 to 15 years are uncertain, and companies with more carbon intensity will face financial, investor, and regulatory risks. More oil and gas companies are reporting their ESG efforts, driven largely by investors and increasing regulations, according to a report from Haynes and Boone and EnerCom earlier this year. All but one of 30 companies surveyed for the report said they’ve publicly disclosed ESG policies, up from 21 in 2021. Currently, capital expenditures on low-carbon efforts in the industry are expected to range from 5% to 25% through 2030, meaning the majority of oil and gas business is still going toward fossil fuels.” [Environment + Energy Leader, 7/21/22 (=)]

U.S. Pipeline Companies Eye Nat Gas Infrastructure For Growth. According to Reuters, “U.S. midstream companies have set their sights on natural gas pipelines and export terminals as a key growth opportunity as investor pressures and political headwinds make new crude oil pipeline projects unpalatable. U.S. pipeline operators are expected to have benefited from high oil and gas prices and rising domestic production in the second quarter, though some analysts warn that the decline in consumer demand late in the quarter could affect results. Earnings per share for five of the top U.S. oil pipeline companies are expected to have grown about 15% from the year ago period, according to a Reuters analysis. Natural gas projects are expected to be the mainstay of growth in coming years as production rises and shippers find new customers in Europe, which is trying to wean itself off of Russian energy, and in Asia, where many countries are boosting imports of LNG. ‘The biggest opportunity right now is primarily in serving LNG, whether it’s adding U.S. export capacity or building pipelines to bring the gas to LNG terminals,’ said Stephen Ellis, a strategist at financial services firm Morningstar.” [Reuters, 7/20/22 (=)]