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Methane, a potent greenhouse gas, is quietly driving climate change while remaining hidden from view. The oil and gas industry is among the largest contributors to this problem, with companies using various methods to obscure the true scale of their emissions. Here's what you need to know.
According to a report by the Financial Times, methane is 80 times more effective at trapping heat than carbon dioxide over a 20-year period. It is the second-largest contributor to global warming, accounting for 30% of post-industrial temperature rises. The gas, primarily released by human activities like fossil fuel production, is also a major contributor to air pollution, causing millions of deaths annually.
While carbon emissions dominate climate discussions, methane is now receiving overdue attention thanks to advancements in satellite technology that expose emissions previously invisible to the naked eye.
New technologies, such as satellite-based sensors, have detected methane leaks worldwide, including six large emissions near Azerbaijan’s capital, Baku, during the COP29 summit. Such leaks often stem from oil and gas facilities and release not only methane but other harmful pollutants like carcinogens.
Globally, methane emissions from the energy sector hit a record high in 2023, frustrating climate experts. These emissions often result from deliberate venting, inefficient flaring, or leaks from aging equipment.
Oil and gas companies deploy several strategies to hide their methane footprint:
- Underreporting and Self-Monitoring: Companies often report lower emissions than actual levels, as highlighted by studies showing U.S. methane emissions are three times higher than official estimates.
- Inadequate Equipment: Monitoring devices fail to detect smaller leaks, which cumulatively cause significant damage.
- Questionable Practices: "Emergency" flaring often appears routine, while enclosed flaring structures obscure the true scale of emissions.
Lost methane could generate $50 billion in annual revenue for the energy sector if captured and sold. Yet, companies often prioritize expanding production over fixing leaks. The societal cost of these emissions—including health impacts, reduced agricultural productivity, and climate damage—is estimated at $9.3 billion annually.
While the 2021 Global Methane Pledge aimed to reduce emissions by 30% by 2030, progress has been slow. Efforts like the EU’s methane regulations, which require leak detection and repair, and the U.S.’s upcoming methane tax, show promise but face resistance from the industry.
In Azerbaijan, where 90% of export revenue comes from fossil fuels, methane emissions remain a significant issue. Despite pledges to address emissions, efforts have largely ignored the oil and gas sector.
Experts argue that addressing methane is the fastest way to mitigate climate change. Cutting emissions from "super-emitters" and improving technology for leak detection are key. However, these measures require stricter regulations and international cooperation.
Without immediate action, methane emissions will continue to rise, making it nearly impossible to limit global warming to the 1.5°C target set by the Paris Agreement.
