Texas Hold'em: Playing Poker With Methane - Ep167: Grant Swartzwelder
Jun 19, 2024
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Grant Swartzwelder, methane science expert, discusses conflicting estimates of methane leakage in the oil and gas industry, the challenges of reducing emissions, and the importance of reliable methane data. The conversation also explores the impact of methane emissions in major producing states like Texas, New Mexico, and Oklahoma, as well as the complexities of managing gas leaks in oil facilities and the challenges faced by companies in adhering to regulations
Methane emissions require urgent reduction efforts due to potent greenhouse gas effects.
Detection technologies like satellites and drones play a crucial role in monitoring methane leaks.
Smaller oil and gas producers face disproportionate challenges with escalating methane tax costs.
Deep dives
The Global Progress on CO2 Emissions
The world has made significant progress in controlling CO2 emissions, with annual emissions reaching peak levels. While CO2 is a significant greenhouse gas, there are other dangerous pollutants like nitrous oxides and sulfur hexafluoride.
Understanding Methane's Impact
Methane emissions are a critical concern, with 60% being anthropogenic, mainly attributed to human activities. Methane is a potent greenhouse gas, with a global warming potential far exceeding that of CO2. It is responsible for about 30% of historic global warming since the Industrial Revolution.
Sources of Anthropogenic Methane Emissions
The primary sources of anthropogenic methane emissions include agriculture (36%), fossil fuels (30%), and waste going to landfill (18%). Efforts have been made internationally to lower methane emissions, with key initiatives like the Global Methane Pledge.
Challenges in Detecting Methane Leaks
Detecting methane leaks poses challenges due to its invisible and odorless nature. Technologies like satellites, drones, and infrared cameras are being utilized to pinpoint and monitor methane emissions. Efforts are focused on improving data collection and enforcement to address methane leaks effectively.
Methane Tax and Impact on Small Producers
The discussion delves into the consequences of the methane tax on small oil and gas producers. With estimates of over a billion dollars in additional taxation or fines annually, the burden falls disproportionately on smaller operators compared to larger companies. The escalating costs associated with the methane tax pose significant challenges for smaller producers, potentially reaching up to 50% increases in costs, indicating a regressive impact.
Challenges in Environmental Regulations and Industry Transition
The conversation highlights the complexities of navigating environmental regulations and achieving industry transitions towards lower emissions. With a focus on addressing methane leakages, the need for bipartisan agreement on emission reduction targets, such as achieving near-zero emissions levels, becomes crucial. Issues like balancing environmental goals with economic impacts, the role of technology and dedication at ground level, and the challenges of international energy dependencies underscore the multifaceted nature of transitioning towards greener practices.
Depending on who you ask, methane is either a useful transition fuel to a low-carbon future, or a super polluter. The science of methane says that for natural gas to have a lower climate footprint than other fossil fuels, particularly coal, there can be leakage of no more than 3.2% from end to end. Yet studies across the US show wildly different leakage rates. One of the most influential, by Robert Howarth of Cornell University, puts it at 4.8%, making methane worse for the environment than coal. The EPA tells a different story, and says leakage rates are just 0.93%. All of this really matters for the climate, especially since Russia's invasion of Ukraine. The US has become the world's biggest producer and exporter of natural gas, and hundreds of billions of dollars have been invested globally on the premise that natural gas is a cleaner stop-gap between our fossil present and our low-carbon future. So who's right? And how can we find ways to reduce those methane emissions in either case. Grant Swartzwelder, founder of OTA Environmental Solutions and ESG Dynamics, based in Dallas, Texas, joins Cleaning Up to tease out the problem.
Episode Update (Dec 2024)
The 3.2% figure refers to the relative warming impact of coal-fired power generation versus national gas with a given level of leakage on day one - when all of the methane is still in the atmosphere. As methane decays in the atmosphere faster than CO2 is absorbed, the “breakeven” level of fugitive emissions increases as you look at longer periods. If you take the standard 100-year warming period, fugitive emissions from natural gas would need to be around 8% - well above those measured in the US – for gas power to be as bad as coal power. At 20 years the figure is around 4%. (source: https://www.pnas.org/doi/10.1073/pnas.1202407109)
The 4.8% figure has been modified by Professor Howarth subsequent to the release of the episode, based on critiques received when it was in pre-print. Criticism continues, however, and one proposed corrected analysis shows that 100-year GHG intensity of LNG that are at most 15% below the lowest general estimates for coal-fired power. (source: https://thebreakthrough.org/issues/energy/a-major-paper-on-liquified-natural-gas-emissions-is-riddled-with-errors)
More links/resources:
OTA Environmental Solutions - https://otaenvironmentalsolutions.com
ESG Dynamics - https://esg-dynamics.com
Robert Howarth study into US methane leakage rates - https://www.research.howarthlab.org/documents/Howarth2022_EM_Magazine_methane.pdf
International Energy Agency methane tracker 2024 - https://www.iea.org/reports/global-methane-tracker-2024
Cleaning Up Episode 157 - Leaking Methane Needs an Urgent Fix - https://www.youtube.com/watch?v=tIK8Z7oZMps
Cleaning Up Episode 146 - Jason Anderson: https://www.youtube.com/watch?v=VWUzOZmJSlI
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