According to an S&P Global Commodity Insights report, environmental sustainability achieved a significant landmark last year with the plunge in methane emissions coming from oil and gas operations within the Permian Basin falling to a marked 26%. This significant reduction, equivalent to avoiding 18.5 million tons of carbon dioxide emissions, aligns with the total carbon savings achieved by all electric vehicles (EVs) on U.S. roads during the same year. Despite increased oil and gas production, the methane intensity of the basin—the emissions per unit of energy output—dropped by over 30%, showcasing remarkable progress in balancing energy production with environmental stewardship.
Praise from the Vice Chairman of S&P Global
Daniel Yergin commended the achievement as the scale represents a promising potential for future progress. “The sheer scale of this single-year improvement represents significant progress and demonstrates the potential for what lies ahead,” Yergin said.
For centuries, the Permian Basin has represented almost half of the United States’ oil production, but in this century, methane leak sources have decreased drastically because new technologies such as leak detection and mitigation technologies with AI-driven data analysis, ground-based sensors, aerial surveillance, and satellite monitoring have sparked improvements. This technology reduces time spent to detect and fix leaks, which in earlier times may take weeks or months without being identified and addressed.
Kevin Birn, Head of the Center for Emissions Excellence at S&P Global Commodity Insights, commented that these technological developments have an importance that cannot be underestimated. “Improvements and increased accessibility of remote sensing technologies are providing better understanding and actionable information,” he said, highlighting rapid response to leaks as a critical factor in emissions reduction.
The analysis, collaborated with methane management firm Insight M, relied on high-resolution aerial surveys that include 88% of active wells in the basin. Almost 700 flights carried out in 2023 provided the most accurate public estimate of methane emissions to date. The findings show that as a percentage of the basin’s natural gas output, methane emissions declined by 33%, while the methane intensity for the region’s total energy production dropped to 0.63%. In addition, economic losses from methane emissions decreased by 70% compared to 2022, accounting for just 0.12% of revenues.
According to Raoul LeBlanc, Vice President at S&P Global Commodity Insights, reducing methane leaks is both good for the environment and also provides economic benefits. “Finding and reducing fugitive methane typically pays for itself just from the sale of the captured gas, even in a lower natural gas price environment,” he added.
This progress is a critical step toward combating climate change and will be a model for future sustainability initiatives. The achievement of the Permian Basin shows how better technologies and operational efficiency can lead to meaningful reductions in greenhouse gas emissions without sacrificing economic growth.
In fact, the advances that Permian Basin made in the methane management provide a blue print for other regions and industries that have carbon footprint reduction goals. It goes to show how innovation can play a pivotal role in creating sustainable solutions, which will help the global community overcome this urgent challenge of climate change.