Methane from oil and gas operations is a serious climate risk, but also a ripe opportunity to make a huge dent in
overall greenhouse emissions. This past week, one state took a big, and
long-awaited, step to address the challenge.
While we wait for the Environmental Protection Agency to
release draft federal methane rules
this summer, the California Air Resources Board has just released a
draft of the most comprehensive and forward thinking regulations to cut
methane pollution from oil and gas yet.
While the April 22
proposal still needs work – such as in the area of how
often
equipment needs to be inspected and what to do with a portion of the
tanks that hold oil and gas wastewater – it’s a big and fundamental step
in the right direction. It has the potential to deliver what the rest
of the country needs – comprehensive equipment standards on new and
existing sources for both oil and gas operations, and enhanced leak
detection and repair requirements across the methane value chain.
But the benefits will be felt closest to home first.
California is the third largest oil-producing state. According to a
statewide survey
a few years ago, there are over 50,000 active oil wells, 1,300 gas
extraction wells, and 370 gas storage wells with over 7.7 million
pieces of equipment peppered across the California landscape – many of
which may be leaking methane right now.
Through the seven new strategies
being proposed, CARB modeling predicts over 500,000 tons of greenhouse
gas pollution reductions and major decreases in hazardous air pollution,
mostly in the state’s most overburdened air basins.
| Proposed Category for Control | Reductions (tons CO2e) |
| Uncontrolled Oil and Water Separators and Tanks | 252,000 |
| Reciprocating Compressors | 143,000 |
| Centrifugal Compressors | 10,700 |
| Pneumatic Devices and Pumps | 124,000 |
| Recirculation Tanks for Well Stimulation | 24,400 |
| Liquids Unloading | 350 |
| Components under New LDAR Program | 1,200 |
| TOTAL | 556,000 |
As we've written elsewhere, the consulting firm ICF
found
that major methane reductions from oil and gas operations can be
achieved for less than one penny per 1,000 cubic feet of produced
natural gas. Reducing methane emissions not only has a climate benefit,
it benefits industry and consumers by eliminating waste of a natural
resource and by keeping a valuable commodity in the pipeline.
Of
course, the release of a draft regulation is just the start of a
regulatory process that will likely take six months to a year to
complete, and likely won’t take effect until 2017. But, seeing as how
the U.S. oil and gas industry is responsible for 14 percent of U.S. VOC
emissions (a principal smog-forming gas) and 57,000 metric tons of
hazardous air pollutants, if California’s action stimulates action
elsewhere, it can deliver outsized results much, much sooner and on a
larger scale.
Moving Forward
In terms of
next steps, California should continue its reputation as an
environmental champion and see this regulation through – sticking to a
rigorous, forward thinking regulation that leads the way in the oil and
gas sector. With immediate action on methane emissions, the state can
help address a critical missing piece in the climate change mitigation
strategy across the U.S. and in the Golden State.
This post originally appeared on our California Dream 2.0 blog.
