Discussing the unique challenges posed by methane emissions in natural gas production, including the utilization of satellite data for measuring methane intensity and the pricing transparency in the Methane Performance Certificate market. Exploring the complexities in tracking and monitoring methane emissions, analyzing methane emissions in US oil and gas basins, and the significance of real-time monitoring and estimating methane intensity in the fight against climate change.
Methane emissions from various sources hinder accurate quantification, requiring a comprehensive approach for effective reduction strategies.
S&P Global Commodity Insights utilizes satellite data to analyze methane emissions globally, enabling detailed assessments for informed emission reduction decisions.
Deep dives
Challenges in Methane Quantification
Quantifying methane emissions is challenging due to its widespread sources from various human activities like industrial production, power generation, and residential usage. Industries traditionally associated with methane generation include oil and natural gas production, but it's critical to comprehend that methane emanates from diverse sources including landfills, pipelines, and restaurants. This widespread distribution makes it difficult to pinpoint the exact sources of emitted methane, hindering accurate quantification and necessitating a comprehensive approach to tackle this pressing environmental issue.
Utilizing Satellite Data for Emission Analysis
S&P Global Commodity Insights leverages satellite data from the Copernicus Sentinel 5P with the tropospheric monitoring instrument to estimate methane emissions globally. By employing a top-down atmospheric inversion framework using the GEO's Chem simulation, historical emissions data is analyzed, focusing on key areas such as 19 refined basins in the US. This data enables a detailed assessment of methane intensities in relation to natural gas production, offering insights into emission trends and facilitating informed decisions towards emission reduction and management.
Financial Implications of Methane Management
S&P Global Commodity Insights introduced the Methane Performance Certificate (MPCE) in collaboration with Expensive CBL to measure avoided methane emissions in natural gas production. This certificate signifies the production of natural gas with minimal methane intensity, emphasizing environmental responsibility. The MPCE initiative not only highlights the financial benefits of reducing methane emissions but also integrates satellite emissions data for a comprehensive understanding of emission costs and management strategies. By bridging the gap between real-time monitoring and top-down emission estimations, companies can better quantify and address their methane footprint.
Methane is everywhere, but it poses a particular problem in natural gas production. Head of Low Carbon Commodities Deb Ryan is joined by Emmanuel Corral and Paula VanLaningham to discuss the unique problems posed by methane emissions in the fight against climate change, and S&P Global Commodity Insights’ new Methane Intensity assessments.
Using a top-down approach to measuring methane intensity through satellite data and the pricing transparency generated by the Methane Performance Certificate market, Commodity Insights has brought new transparency to the cost of methane emissions generated through natural gas production.
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