Methane emissions double previous estimates — study

Mike Lee, E&E News reporter

Published: Friday, April 12, 2019

An oil and gas rig on public land in northwestern New Mexico. Ellen M. Gilmer/E&E News

New Mexico's oil and gas industry emits far more methane than previously estimated, new research
shows.

The state's drillers and pipeline operators release about 1 million metric tons (1.1 million U.S. tons) of
methane into the atmosphere, with almost three-fourths of the pollution coming from the rapidly
growing Permian Basin oil field, according to research the Environmental Defense Fund released
yesterday.

That's nearly twice the amount of methane EDF estimated two years ago and five times what data
collected by EPA suggests.

The findings, which the industry disputes, show how much New Mexico's booming energy sector is
contributing to global climate change. And they could have an effect as Gov. Michelle Lujan Grisham's
(D) administration works on regulations for methane emissions, part of a broader goal of addressing
climate change (Climatewire, Jan. 30).

"These findings make clear the true scale of the problem and underscore the importance of Gov. Lujan
Grisham's commitment to curb methane waste and protect New Mexico's health and future prosperity,"
Jon Goldstein, EDF's director of regulatory and legislative affairs, said in a statement.

Methane, the main ingredient in natural gas, is a potent greenhouse gas that traps more heat in the
atmosphere than carbon dioxide. It can have climate benefits if it's used to replace coal as a power plant
fuel, but EDF and other environmental groups have been pushing for tighter regulations to prevent stray
emissions during its production and transportation.

EDF worked with researchers at the University of Wyoming to measure methane emissions at more than
90 well sites in the Permian Basin. After calculating an estimate for the basin from those figures, the
group added estimates for other oil and gas sources to arrive at the 1 million-ton estimate.
Nationwide, the oil, gas and midstream pipeline industries emit about 13 million metric tons of methane
annually, EDF has previously estimated.

The New Mexico Oil and Gas Association said the estimate is too high. The EPA data, which is self-
reported by oil and gas companies and doesn't include some potential emissions sources, shows that New
Mexico's energy industry causes far less pollution, around 200,000 metric tons a year.

The industry group has argued that New Mexico should tread lightly on regulations because the state
economy depends heavily on oil and gas production. A spokesman for the group questioned EDF's
research.

"I'm saying they have a reason to ensure these numbers are as high as possible and an agenda drives their
organization — it wouldn't be surprising that an agenda would also drive their research," the spokesman,
Robert McEntyre, said in an interview.

The New Mexico Environment Department, which is one of two departments involved in writing the
state's methane regulations, cautioned that EDF's estimates may not represent the full emissions picture.

"The majority of these emissions are not steady state releases, but are intermittent releases that occur
periodically," Liz Bisbey-Kuehn, the department's air quality bureau chief, said in an email. "Thus, an
image taken of methane emissions from an oil and gas production facility is a snapshot in time, and may
not be representative of the long term steady state methane emission rate coming from the facility."

EDF said there are both economic and health reasons to reduce the amount of emissions. The wasted gas
is worth about $275 million at last year's average price, and the state is forgoing about $43 million in
royalties and taxes on the gas.

Cutting methane emissions would also reduce the amount of ozone-forming pollutants that are released,
the report said. Several counties in New Mexico, including Eddy County in the Permian Basin, are
approaching the federal limit for ozone, or smog.

Most of the difference between EDF's estimate and EPA data comes from "abnormal" emissions such as
malfunctioning equipment, said David Lyon, an EDF scientist who worked on the report.

The solutions could be relatively simple. The state currently has no rules on flaring gas — burning it at
the well site rather than shipping it to market — and other states including Texas don't generally allow it
except in special circumstances.

Other reductions could be as simple as tightening valves or hatches, Goldstein said.

The debate happens as the Permian Basin, which covers parts of West Texas and eastern New Mexico,
has become one of the hottest oil and gas fields in the world.

Its production has roughly doubled in the past three years, and so much gas is produced alongside the
region's oil that exploration companies can't get rid of it.

That makes it incumbent on the state to pass its regulations quickly, Goldstein said.

"Right now every new well being drilled — and they're being drilled very rapidly — is a new source of
waste and pollution without those rules in place," he said.