Across the oil and gas industry, there is a growing trend toward sustainability and the reduction of methane emissions, driven by both regulatory requirements and a heightened sense of environmental responsibility. At the federal level, as a part of the Methane Emission Reduction Program, the U.S. EPA has imposed a fee, Waste Emission Charges (WEC), on methane emissions from certain oil and gas facilities that emit more than 25,000 metric tons of CO2e per year as reported under the Greenhouse Gas Reporting Program. This move underscores the government’s efforts to mitigate the methane emissions from the oil and gas industry.
In Part 1 of this blog, we discussed the key operations and various sources of methane emissions in the midstream sector. With increasing attention to the environmental impact of methane, operators are taking proactive measures to meet emission reduction targets. In this second part, we delve into the key initiatives midstream operators are implementing to reduce their methane intensity. Exhibit 1 below illustrates how midstream operators are actively taking various initiatives and keeping their methane emission intensity below the WEC limit.
Exhibit 1: Methane emission intensity of operators and initiatives taken by midstream operators to reduce methane emissions
Key initiatives in midstream driving methane emission reduction are outlined as follows:
- Electrification of compression: Replacing traditional combustion-driven engines with electric motors for compressor units significantly reduces direct methane emissions at the source. This transition also facilitates greater integration with renewable energy sources, further reducing the carbon footprint.
- Investing in air-powered equipment: Air-powered engines and pneumatic devices provide a viable alternative to natural gas-powered equipment, mitigating methane leaks associated with fuel consumption and system operation.
- Installing emission control devices and vapor recovery units: These systems capture and treat methane that would otherwise be released into the atmosphere, effectively managing vent gas from storage tanks and processing equipment.
- Advanced technology development: The industry is actively investing in research and development of advanced methane detection and mitigation technologies. This includes exploring innovative solutions such as AI-powered leak detection systems, more efficient compression technologies, and novel methane conversion approaches.
- Flaring reduction: Minimizing flaring through practices like gas re-injection and improved equipment reliability offers a dual benefit: reducing methane emissions and conserving valuable resources. Flaring, often caused by equipment malfunctions or pipeline constraints, highlights equipment reliability as a crucial factor in emissions reduction.
Overall, the midstream sector is making considerable progress in reducing methane emissions through a combination of technological innovation, operational improvements, and collaborative initiatives. Continued investment in research and development, combined with data-driven decision-making and robust regulatory frameworks, will be crucial for achieving further reductions in methane intensity.
– Bhautik Gajera
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