Under provisions of the Inflation Reduction Act (IRA), in 2024 the EPA will begin imposing methane emission fees of $900/ton of methane, rising to $1,500/ton in 2026. Using recent emissions data, Kayrros estimates 2024 industry costs at $1.25 billion, and tripling to $3.3 billion in 2026.
While specific measurement tools and technologies are not specified, satellite monitoring is likely to be the first choice for government enforcement metrics. Several companies provide near-real-time satellite information on GHG emissions all over the planet – the window is closing rapidly on industry self-reporting.
Current space-based climate and GHG assessment projects:
A Permian Basin study by Kayrros found that midstream facilities comprise nearly 80% of the U.S. methane fossil fuel super-emitters. An article in Science found that U.S. oil and gas supply chain emissions may be severely undercounted by land-based data collection, and another confirmed large releases from equipment maintenance and failures.
Carbon dioxide and methane are the two largest human contributors to global warming. Atmospheric carbon dioxide lasts for hundreds of years: methane, a potent heat-trapper, for about a decade.
Reducing methane emissions offers the most impactful way to reducing global temperature in the short term.
Newly launched satellite networks are discovering and precisely locating unsuspected super-emitter and large-scale GHG emissions around the world from oil and gas equipment, landfills, and more.
In the Permian Basin, data from a three-year aerial survey estimated that mitigation could cut methane emissions by 100,000 metric tons/year and prevent a $26 million/year of gas losses.
Identifying methane emissions sources and quantifying emissions volumes through satellite data now will let companies identify and prioritize mitigation of their large-scale methane emissions, minimizing or even avoiding the financial pain of EPA methane fees.
Aug 25, 2022
Business titan Jamie Dimon, CEO of JPMorgan Chase, says American oil and gas can help other countries reduce dependence on dirty fuels like coal, which will reduce global CO2 emissions. In a message to shareholders, Dimon said "national security demands energy security for ourselves and for our allies overseas," noting that "using gas to diminish coal consumption is an actionable way to reduce CO2 emissions expeditiously."...
May 10, 2022
Surface casing vent flow (SCVF), the uncontrolled migration of liquid and gas upward through leakage pathways in the annulus, has become a major issue in Canada. While operators are taking action to intervene and prevent the escape of greenhouse gases like methane, the cards are stacked against them....
Tags: P&A | Orphan Wells | Canada