Emissions of methane from oil and gas exploration, production and transportation facilities have become a big topic in the news recently. The E&P industry touts natural gas as a more environmentally friendly fuel than coal for electric generation, reducing greenhouse gas emissions. But methane is a powerful greenhouse gas, and there is much debate over the amount of fugitive emissions from wells, pipelines, processing facilities and other industries handling the fuel.
- The UN Intergovernmental Panel on Climate Change has endorsed natural gas as a “bridge fuel” to reduce greenhouse gases.
- The EPA has issued estimates of methane fugitive emissions that have been criticized as low by environmental groups.
- The Obama Administration has recently outlined a new strategy for reducing methane emissions.
- Colorado has recently adopted regulations to require operators to reduce and capture fugitive emissions and monitor for leaks.
Emissions from oil and gas exploration and production also are being blamed for increased ozone readings in shale-boom areas in Wyoming and Texas. In Texas, a state-funded study by the Alamo Area Council of Governments is underway to determine whether drilling in the Eagle Ford is contributing to increased ozone readings in San Antonio. San Antonio may soon be cited by the EPA as a nonattainment area for ozone, which would require the city to impose additional air quality regulations. Recently, the Texas Commission on Environmental Quality, which is funding the study, froze increased funding because the Alamo Council issued a statement tying increased ozone levels around San Antonio to Eagle Ford drilling without getting clearance from the TCEQ.
San Antonio’s problems are reminiscent of a debate a few years ago over whether oil and gas exploration in the Barnett Shale was contributing to air pollution in the Dallas-Fort Worth area. The TCEQ has concluded that Barnett Shale drilling has had no significant impact on local ozone levels. But a recent study by a graduate student at the University of North Texas concluded that ozone is higher in areas with drilling activity in the Barnett Shale.
I expect that the Texas Railroad Commission and the TCEQ will come under increased pressure to tighten rules for fugitive emissions of methane from oil and gas activities in Texas.