This week’s Highwood Bulletin covers developments in greenhouse gas emissions management from around the world, including new legislative proposals for eliminating venting and flaring of methane in Europe, Exxon’s looks to net zero in Permian by 2030, BP gets “A” grade from MiQ, controversial new methane rules in Pennsylvania, TransAlta sheds coal, Saskatchewan reports 50% methane drop, Diversified commits $9MM to aerial LDAR, public comment for Canada’s emission reduction plan to 2030, last chance to register for methane technology course, and opportunities to join Highwood.
Draft European Union Methane Rules Released
As part of efforts to achieve carbon neutrality by 2050, the European Commission has released legislative proposals to accelerate adoption of clean fuels and regulate methane emissions. The proposal, which is the first for methane in the EU, bans flaring and venting, introduces leak detection and repair, and sets standards for measurement, reporting, and verification. As the world’s biggest importer of the natural gas, the EU is also proposing to track emissions from imported gas in a “methane transparency database”. Read the EU press release here and the get the legislative proposal here.
Exxon Sets Sights on Net Zero by 2030 in Permian
In recent years, the Permian Basin has become the poster child for high methane emissions. In December, ExxonMobil announced plans to achieve net zero emissions in the Permian by 2030. To do so, Exxon intends to eliminate flaring before 2023 and to electrify operations as much as possible while relying on renewable electricity. Exxon also intends to expand use of satellites, aerial monitoring, and continuous measurement to reduce fugitive emissions. Read more here.
BP Achieves Top MiQ Grade in Haynesville
An “A” grade has been awarded by MiQ to BPX Energy for natural gas produced by its Haynesville Facility, which consists of 70 wells and produces 0.2 bcf per day. To achieve an “A” grade MiQ certification, a producer must demonstrate a methane intensity below 0.05%, among other requirements. As part of its efforts, BPX uses a range of advanced leak detection solutions, including drones, aircraft, and handheld cameras. Read more here.
Controversial New Methane Rules Imminent in Pennsylvania
Pennsylvania, the second-largest producer of natural gas in the U.S., is preparing to approve new methane rules that would regulate older assets. The new rule would require that leak detection and repair be performed on a quarterly basis, unless a well produces less than 15 boe/d. The Environmental Defense Fund is not pleased with the rule, as there are upwards of 60,000 marginal (but still producing) wells across Pennsylvania that would not be covered. Read more here.
TransAlta Completes Transition to Coal
Since 2019, TransAlta has invested $295 million in converting from coal to natural gas, retiring 3,794 MW of coal-fired generation capacity. TransAlta estimates that the shift from coal to natural gas reduced emissions by 50%. TransAlta is also increasing the use of renewables to generate electricity. Read more here.
Saskatchewan Reports 50% Cut in O&G Methane
A new report by Saskatchewan’s Ministry of Energy and Resources claims that O&G in the Province has achieved a 50% reduction in methane emissions from 2015 to 2020. The province states that upstream venting and flaring emissions were 10.9 Mt in 2015 and that they dropped to 5.2 Mt in 2020. Read more and access the report here.
Diversified Energy Commits $9 Million to Aerial Methane Monitoring
Diversified Energy Company – a large natural gas producer that operates nearly 70,000 wells in the U.S. – has committed $3 million per year over three years to aerial leak detection and repair (LDAR). Bridger Photonics will perform aerial LiDAR inspections as part of Diversified Energy’s plan to achieve net zero emissions by 2040. Read more here.
Government of Canada Emission Reduction Fund on Hold
At the eleventh hour, before applications were due for the third round of Canada’s $675-million Emissions Reduction Fund (ERF), Natural Resources Minister Jonathan Wilkinson announced an overhaul of the highly criticized program. The Government is set to announce new application requirements in January for submission in March. Many operators who were ready to submit their applications have expressed frustration at the last-minute change and moving targets. Read more here.
Speak Up: Public Comment Requested on Canada’s 2030 Emissions Plan
Want to influence Canada’s trajectory towards net-zero emissions? The Government of Canada is currently seeking input on how to achieve 40-45% emissions reductions by 2030. Participation is voluntary and the deadline for input is January 14th, 2022. Click here to participate.
Education: Methane Measurement Technology Course **TOMORROW**
Last chance to register for a new course by Highwood’s President Thomas Fox, which launches tomorrow, January 11th, 2022. Did you know that there are over 100 commercially available methane measurement solutions, ranging from handheld instruments, to satellites, to drones, to aircraft, to continuous measurement? Opportunities exist for energy companies across the supply chain to use many of these solutions for regulatory compliance – and leverage the data for MUCH more. The course will overview the current state of methane measurement, giving participants the ability to clearly understand the value of different approaches for detecting and quantifying methane emissions. Click here to read an article about the course and click here to register.
Join our Team! Highwood is Hiring!
Highwood is always looking for bright folks who want to help us change the world for the better. If you have experience in greenhouse gas emissions management and you’re looking for a career change, please reach out!
