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Opportunities to reduce methane emissions from oil and gas operations

Feb 29, 2024

Oil & Gas Industry

By EnergyCC

 

EnergyCC is working to reduce wasted gas emissions from oil and gas operations. It participated actively in COP26, COP27 and COP28 in collaboration with UNU-WIDER, to support the Global Methane Pledge. An overview of deliverables from publications, projects and events.

 

Context

EnergyCC is working to reduce wasted gas emissions from oil and gas operations. It participated actively in COP26, COP27 and COP28, in collaboration with UNU-WIDER and the Center for Global Development, to support the Global Methane Pledge. 

More than 60 countries have significant oil and gas production for the global or local economy; of which, 30+ low- and middle-income countries are highly dependent on oil and gas production. World Bank Global Gas Flaring Reduction (GGFR) finds that 54 oil producers have committed to end ‘routine flaring’, yet there is no global reduction in natural gas flaring since 2011 and a net increase in 2021. 

Many low- and middle-income countries see climate mitigation as costly, with no direct benefits to the countries themselves; countries that are the largest emitters need to lead climate mitigation measures. By reducing methane emissions at source, however, these oil and gas producing countries get local benefits, such as use of natural gas for energy access, significant health improvements, and financial proceeds from gas exports. 

The annual gas sales value of the 7.5% gas wasted through unnecessary flaring and venting is US$ 100 billion per year. Better management - including improved policy and regulation, reduces emissions and wastage of natural gas as a valuable commodity, giving countries much needed capital when climate finance is once again in the spotlight. This further enables commercial opportunities and value creation for the private sector. 

EnergyCC finds that reducing methane emissions creates benefits for UN Sustainable Development Goals. Action is a win-win-win for oil and gas producing countries and their citizens. 

 

Why is this important? 

Methane is the most powerful but short-lived climate pollutant. Rapidly reducing methane emissions gives significant near-term gains. It is the single most effective strategy to limit warming to 1.5˚C. The IEA finds that the quickest way to reduce methane emissions is from the global energy sector, which is responsible for 40% of methane emissions from human activity. 

UNU-WIDER peer-reviewed, published research quantifies in dollar terms the Social Cost of Atmospheric Release (SCAR) of eight chemical emissions from gas flaring, including methane, NOX, SOX and Black Carbon, on human health, agricultural yields and climate. 

 

At a UNU-WIDER COP27 Webinar, Dr. Mahmoud Mohieldin, UN Climate Change High Level Champion for COP27, complemented EnergyCC’s key message that reducing emissions creates benefits that extend well beyond climate, including for health and air quality. 

In 2022, the BBC reported the severe health impacts of natural gas flaring in Basra. The Minister of Environment for Iraq acknowledged that natural gas flaring pollution from oil production is the main reason for increases in cancer rates among local communities living close to oil fields, https://www.bbc.com/news/science-environment-63284896   

 

EnergyCC focus is on solutions that exist today 

Our actions to reduce emissions combine four key elements applied in concert:

Independent measurement using satellites. Publicly available satellite data enable identification of the exact location of the emitters and how much they waste. From this data, the cost in financial, economic, and social terms can be measured. In Nigeria, EnergyCC has worked with the Regulators to demonstrate the benefits of using satellite technologies for oversight of onshore and offshore super-emitter flares. Results were presented to the Vice President’s Office and at a ‘National Stakeholders Summit’. Feedback was widely positive. Specific recommendations were included for Nigeria Regulators and policy makers. General observations are relevant for all oil & gas producing countries. 

Fiscal / regulatory measures. EnergyCC is working with the IMF to include its innovative fiscal proposals for cutting methane emissions into its staff guidance for mandatory annual consultations with 190 governments. Important progress has already been made. We now work to include methane in Article IV consultations and the IMF’s new Resilience and Sustainability Trust, launched at a successful COP28 event. 

Gas monetisation technologies. There is room for much expanded communication, given that technologies have already been developed and are available for application. EnergyCC presented these solutions at a high-level invitation only UNU-WIDER COP27 event: ‘Gas monetization and fiscal measures for energy access and exports: Technologies exist today’. It was very well received among participants, including industry, multilateral development institutions, the Climate and Clean Air Coalition, leading think tanks, expert research organisations and advisory NGOs. Discussions with NRGI have been held and are ongoing to assess frameworks and methodologies for selecting and implementing gas monetisation solutions by repurposing wasted gas. 

Transparency. There is an opportunity to prioritise action by developing an annual list of Global Top 200 super-emitters out of 10,000 natural gas flares globally. These Top 200, 2% of all flares, account for 35% of all gas flared from the oil and gas sector. By adding separate methane satellite data for these same gas flare locations, this enables a list of Top 200 flaring and venting ‘super-emitters’ which can achieve emissions reductions at scale and create significant opportunities for local energy access and exports of natural gas.

 

Opportunities created by a Top 200 super-emitter list:

  • Investors - under increasing pressure to demonstrate not to invest in companies that are disproportionally contributing to global emissions, can prioritise their focus on influencing companies to reduce emissions from super-emitter assets. Investors have visibility of the risks and opportunities - if existing emitting assets were to emit less. Satellites record all gas flaring emitters and their emissions, and hence can contribute to increased transparency on companies’ emissions, including from third-party operated assets currently not reported. 
  • Companies - manage reputational risks associated with super-emitters; benchmark flaring performance; secure higher prices for responsibly produced hydrocarbons.
  • Governments – create economic and social benefit through application of gas monetisation solutions and improved health. 
  • Climate - The IEA finds that reducing methane emissions from the global energy sector is among the ‘lowest of the low hanging fruit’.  

 

Publications / Working Papers / Events

 

2024

Major studies on Nigeria Super-Emitters published by UK FCDO and Oxford Policy Management https://energycc.com/news/energycc-major-studies-on-nigeria-super-emitters-published-by-oxford-policy-management.html  

  • The first report: “Nigeria’s super-emitter flares - an evaluation of trends and causes of natural gas wastage: reducing emissions and improving human health. A regional analysis of onshore global super-emitter flares in the Niger Delta region”. 
  • The second report: “Nigeria’s super-emitter flares - an evaluation of trends and causes of natural gas wastage: an analysis of five offshore global super-emitter flares and their related field performances”. 

2023

The Center for Global Development Event: Practical Action on Methane Emissions: How the IMF and Others Can Help https://energycc.com/news/cgd-talks-practical-action-on-methane-emissions-how-the-imf-and-others-can-help.html  

The Center for Global Development and EnergyCC video launch on Methane reduction for Climate and Development, November 2023 https://energycc.com/news/cgd-and-energycc-launch-video-for-methane-emission-reduction.html  

Natural Resource Governance Institute Briefing: Why Senegal should Minimize Petroleum Operations Emissions, September 2023 https://resourcegovernance.org/publications/why-senegal-should-minimize-petroleum-operations-emissions  

Norwegian Ministry of Foreign Affairs, Norwegian Agency for Development Cooperation, Department of Climate and Environment: Cutting Methane Emissions Delivering results and an agenda to extend these more generally, September 2023

UNU-WIDER Development Conference, Oslo, Norway: Revving up revenue for development – the role of domestic resource mobilization, September 2023: Cutting Methane Emissions Partnership and Opportunities https://www.wider.unu.edu/sites/default/files/Events/PDF/Slides/ConfOslo2023-Kathryn-McPhail.pdf

UNU-WIDER Development Conference, Oslo, Norway: Revving up revenue for development – the role of domestic resource mobilization, September 2023:

UNU-WIDER In the media: UNU-WIDER research on oil theft gains attention, July 2023  https://www.wider.unu.edu/media/unu-wider-research-oil-theft-gains-attention

UK FCDO Nigeria Chair meeting for stakeholders (including IMF, World Bank, EU, UK): Gas flare and oil facility operational performance analysis using satellite data, June 2023 

Center for Global Development Blog: The IMF’s 2023 Climate Resolutions—A Modest Idea for a Quick Win on Methane, April 2023 https://www.cgdev.org/blog/imfs-2023-climate-resolutions-modest-idea-quick-win

UNU-WIDER Webinar: Corruption and Theft in the Global Oil and Gas Sector April 2023 https://www.wider.unu.edu/event/corruption-and-theft-global-oil-and-gas-sector

Nigeria NOSDRA meeting: The use of Satellite for tracking offshore Gas Flare emissions in the Oil and Gas Sector in Nigeria, April 2023

UK FCDO / Oxford Policy Management Ltd: Nigeria: an evaluation of trends and causes of natural gas wastage in five offshore super-emitter flares, March 2023

Monetary Authority of Singapore and the SEACEN Centre: Scaling up Sustainable Finance: Tackling emission reductions in Asia’s energy sector, March 2023

The Investor Forum Member meeting: Reducing emissions from natural gas flaring and venting: Risks and Opportunities, February 2023

Canada in Asia Conference: CEO Roundtable on environmental collaboration, Singapore, February 2023

Center for Global Development Blog: Launching the RST: Country Policies Must Adapt—and So Too Must IMF Conditionality, February 2023 https://www.cgdev.org/blog/launching-rst-country-policies-must-adapt-and-so-too-must-imf-conditionality

 

2022

Romsom, E. and K. McPhail (2022). ‘Looking Ahead To Cop27—From Climate Pledges To Action: The Global Methane Pledge—Opportunities And Risks’. WIDER Working Paper 2022/131. Helsinki. https://www.wider.unu.edu/publication/looking-ahead-cop27%E2%80%94-climate-pledges-action

UNU-WIDER Think WIDER Webinar Series: World Energy Looking ahead to COP27, October 2022 https://www.wider.unu.edu/event/world-energy-looking-ahead-cop27

International Monetary Fund Staff Climate Note: How to Cut Methane Emissions, October 2022 https://www.imf.org/en/Publications/staff-climate-notes/Issues/2022/10/28/How-to-Cut-Methane-Emissions-525188

UNU-WIDER Roundtable (invitation only): Looking ahead to COP27: from climate pledges to action, September 2022 https://www.wider.unu.edu/event/looking-ahead-cop27-climate-pledges-action

Nigeria NOSDRA National Stakeholders Summit: The use of Satellite for tracking Gas Flare emissions in the Oil and Gas Sector in Nigeria, September 2022

UK FCDO / Oxford Policy Management Ltd: Nigeria’s super-emitter flares: An evaluation of trends and causes of natural gas wastage: reducing emissions and improving human health, August 2022

Nigeria NOSDRA Workshop: Opportunities to reduce flared gas in Nigeria, June 2022

Center for Global Development Note: To Flourish or Fizzle? How to Make Sure the IMF’s New Trust Doesn’t Miss Its Golden (and Green) Opportunity, March 2022 https://www.cgdev.org/publication/flourish-or-fizzle-how-make-sure-imfs-new-trust-doesnt-miss-its-golden-and-green

Romsom, E. (2022). ‘Global Oil Theft: Impact And Policy Responses’. WIDER Working Paper 2022/16. Helsinki: UNU-WIDER. https://www.wider.unu.edu/publication/global-oil-theft-impact-and-policy-responses

Romsom, E. (2022). ‘Countering Global Oil Theft: Responses And Solutions’. WIDER Working Paper 2022/35. Helsinki: UNU-WIDER. https://www.wider.unu.edu/publication/countering-global-oil-theft-responses-and-solutions 

Center for Global Development Blog / Note: A Practical Proposal on Methane for 2022: From Climate Pledges to Action, February 2022  https://www.cgdev.org/blog/practical-proposal-methane-2022-climate-pledges-action and https://www.cgdev.org/publication/practical-proposal-methane-2022-climate-pledges-action

 

2021

UNU-WIDER Blog: Reducing wasted gas emissions is an opportunity for clean air and climate, October 2021 https://www.wider.unu.edu/publication/reducing-wasted-gas-emissions-opportunity-clean-air-and-climate

Oxford Policy Management Blog: Gas and Oil industry emissions – what can be done right now? October 2021 https://www.opml.co.uk/blog/gas-oil-emissions-what-could-be-done-now

UNU-WIDER Roundtable: COP26 Are we Ready? Capturing economic and social value for developing countries, October 2021 https://www.wider.unu.edu/event/cop26-are-we-ready 

Center for Global Development Note: Taking the Lead: Rechanneling SDRs to Create and Leverage a New Global Resilience Trust at the IMF, September 2021 https://www.cgdev.org/publication/practical-proposal-methane-2022-climate-pledges-action

 Romsom, E. and K. McPhail (2021). ‘Capturing Economic And Social Value From Hydrocarbon Gas Flaring And Venting: Solutions And Actions’. WIDER Working Paper 2021/6. Helsinki: UNU-WIDER. https://www.wider.unu.edu/publication/capturing-economic-and-social-value-hydrocarbon-gas-flaring-and-venting-solutions-and 

Romsom, E. and K. McPhail (2021). ‘Capturing Economic And Social Value From Hydrocarbon Gas Flaring And Venting: Evaluation Of The Issues’. WIDER Working Paper 2021/5. Helsinki: UNU-WIDER. https://www.wider.unu.edu/publication/capturing-economic-and-social-value-hydrocarbon-gas-flaring-and-venting-evaluation

 

2020-2017

Romsom, E. and K. McPhail (2020). ‘The Energy Transition In Asia: The Role Of Liquefied Natural Gas And Implications For East African Producers’. WIDER Working Paper 2020/80. Helsinki: UNU-WIDER. https://www.wider.unu.edu/publication/energy-transition-asia-0

Romsom, E. and K. McPhail (2020). ‘The Energy Transition In Asia: Country Priorities, Fuel Types, And Energy Decisions’. WIDER Working Paper 2020/48. Helsinki: UNU-WIDER. https://www.wider.unu.edu/publication/energy-transition-asia

Center for Strategic and International Studies Workshop: Gujarat State Energy Transition Priorities

Center for Global Development Policy Paper 182. Alexander Lehmann, 2020. “Private Sector Climate Finance After the Crisis.” Washington, DC: Center for Global Development.  https://www.cgdev.org/publication/private-sector-climate-finance-after-crisis  

Assessing the economic fall-out from the COVID-19 pandemic for oil, natural gas and LNG, EnergyCC blog. https://energycc.com/blogs/covid-19impact.html

Envision seminar: The IoT Era/The Future is Now Envision, 20 April 2018; .https://energycc.com/blogs/seminar-the-iot-era-the-future-is-now-envision.html

World Bank Group Asia Gas Workshop: Pathways to Cleaner Air and Net Zero Emissions, Singapore. https://energycc.com/blogs/asia-gas-workshop-pathways-to-cleaner-air-and-net-zero-emissions.html

McPhail, K. (2017). ‘Enhancing Sustainable Development from Oil, Gas, And Mining: From An ‘All Of Government’ Approach To Partnerships For Development’. WIDER Working Paper 2017/120 Helsinki. https://www.wider.unu.edu/publication/enhancing-sustainable-development-oil-gas-and-mining 

British Chamber of Commerce panel discussion moderator: New Energy Realities - Changing Strategy and Operating Models, Singapore, 22 September 2017. https://youtu.be/y_m4Zc31VoU

Seeding a Hydrogen Market using learnings from LNG as fuel, EnergyCC blog, 29 September 2017; .https://energycc.com/blogs/seeding-a-hydrogen-market-using-learnings-from-lng-as-fuel.html

Business Opportunities from Marine Fuel Efficiency, EnergyCC blog, 4 October 2017; https://energycc.com/blogs/business-opportunities-from-marine-fuel-efficiency.html

EnergyCC Supporting Organisation of Asia Clean Energy Summit (ACES), part of Singapore International Energy Week (SIEW), 24-25 October 2017. https://energycc.com/blogs/key-messages-and-observations-on-the-asia-clean-energy-summit-aces.html

 

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