Emission intensities in the U.S. upstream sector dropped by 15% since 2020, based on the latest 2022 EPA FLIGHT data released in early October. Absolute annual emissions fell from 97.2 to 88.5 million metric tonnes (Mt) CO2e over the same period, mainly driven by decreases in venting and flaring emissions.
Enverus Intelligence Research© (EIR) attributes the 8.9 Mt CO2e decrease in venting emissions to widespread retrofitting of intermittent bleed pneumatic controllers and increased surveying of equipment for leaks, rather than utilizing population counts and emission factors. Consequently, reported methane emissions fell across nine of the top 10 largest basins by production, except for Fort Worth.
However, even after the decreases, six of the top-producing basins would have on average breached the proposed 0.20% upstream intensity threshold for the IRA’s methane fee: the DJ, Western Gulf, Anadarko, Williston, Fort Worth and San Juan. EIR expects continued progress toward methane reduction targets will help to minimize the fee’s impact on operators from 2024 onward.
EIR’s extra detailed source category helps to pinpoint the core drivers behind the industry’s emissions progress. To learn more about the leaders and laggards at a basin, play and operator level, please contact [email protected].
Highlights from Energy Transition Research
- Gas-fired power generation – The flickering flame – Energy Transition Research’s view on the levers that will significantly impact power burn over the next seven years.
- Prism Signal – Methane reduction drives U.S. GHG emissions decline – This Prism Signal takes a closer look at the latest reported GHG emissions in the U.S., tracking the upstream sector’s progress from 2020 to 2022 based on the latest EPA FLIGHT data released in early October.
- Summoning Haynesville – This month’s FundamentalEdge reveals our upgrade to 2025-26 natural gas price expectations because of the need to summon ~7 Bcf/d of gas supply to feed LNG requirements and existing demand.
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About Enverus Intelligence®| Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Click here to learn more.