The world is focusing on finding a replacement for Russian gas as the conflict in Ukraine continues to escalate. America loses approximately $2 billion annually of natural gas (in form of methane), each year because of inefficient or faulty equipment. This is a huge problem for the environment and geopolitically.
Colorado and New Mexico have created a blueprint for the nation in order to reduce methane pollution and waste. They also have oil and gas regulations that provide economic, environmental and public health benefits. New Mexico joined Colorado last year in banning venting, flaring, and it is now required to inspect and repair all leaks, even those at small, leaky well sites. These state landmarks make economic sense and are common sense in protecting communities and the natural environment in energy-producing states. Federal agencies such the Environmental Protection Agency (Bureau of Land Management) should follow Colorado’s lead by ensuring the same methane protections when they consider new oil-and-gas regulations.
More:Oil and gas companies will be fined $275K for failing to report methane contamination in New Mexico.
Not only are they wasting valuable resources, but oil and gas emission also contribute to unsafe levels of smog and air pollutants that can harm the health and well-being of all Americans. Methane is a powerful greenhouse gases that is 84x more potent than carbon dioxide in short-term. As oil and natural gas development increases, so does the need to strengthen federal and state protections.
The good news? We have the technology and knowhow to reduce methane emissions and pollution from oil-and-gas operations. At the same time, we can create jobs and increase federal, state, and local tax revenues. As policy makers take action to reduce methane pollution, and waste, the methane mitigation sector is experiencing a massive boom. Colorado is one of the states that has strong methane regulations. Oil and gas companies are working to reduce emissions and repair leaks to stop energy waste.
The loss of $50 million annually in federal revenue due to methane emissions on federal lands is a result. These funds are crucial for infrastructure investments across the West, as well other priorities, including tribal lands. This wasted gas is enough to supply the annual fuel needs of nearly 2.1 million households (almost as many people in New Mexico, North Dakota and Utah combined).
More:Permian Basin land sale valued at $1 billion amid steady growth in oil and natural gas markets
In an emerging energy economy, which can reduce waste and have harmful impacts on overburdened communities as well as the environment, the old practice of venting natural gas for convenience does not belong. Investors and leaders in the industry are calling for action. According to a recent report, Find, measure, fix: Jobs in U.S. Methane Mitigation Industry, 75 percent of the manufacturing companies and 88 percent of service firms said that they expect to hire more employees if new federal or state methane emission rules are in place. The industry’s service sector has almost doubled in size since 2017, while manufacturing firms have grown by a third since 2014. Over 200 companies have over 750 locations throughout the country and offer products and service to reduce the emissions of the oil-and-gas industry.
Strong state and federal methane regulations are a win-win situation that creates economic benefits, energy security, public health, and economic benefit. The methane mitigation sector is a proud partner in the creation of a cleaner, more sustainable energy economy. It is ready for growth with the right policy drivers. The sooner we put in place strong state and federal rules to eliminate flaring and venting, as well as find and repair leaks, then the sooner we will reap their benefits.
