Permian Methane Emissions Intensity Declines More Than 50 Pct

New S&P Global Commodity Insights analysis found that the methane emissions intensity of the Permian basin declined by more than half in two years, a statement sent to Rigzone by the S&P Global team highlighted.

“The methane intensity of oil and gas production in the Permian Basin – an area responsible for half of U.S. oil production and one fifth of natural gas – declined by more than 50 percent during the 2022-2024 period as improved operations, better equipment and the utilization of AI and other advanced technologies led to reductions across all observable plume rates (large and small), according to a new analysis by S&P Global Commodity Insights,” the statement noted.

The latest data for the year 2024 show the methane emissions intensity of upstream oil and gas operations in the region to be 0.44 percent per barrel of oil equivalent, the S&P Global statement said, pointing out that this was a 29 percent reduction from the previous year.  

Absolute annual 2024 methane emissions decreased by 21.3 billion cubic feet (bcf), according to the statement, which highlighted that this was a 22 percent decline from the previous year.

The reduction was equivalent to 11.1 million tons (MMT) of carbon dioxide emissions avoided, the S&P Global statement said. Since the end of 2022, absolute emissions have declined by 55.2 bcf, equivalent to 28.8 MMT of carbon dioxide emissions avoided, it added.

The findings of the latest analysis for Permian upstream methane were produced in partnership with methane management firm Insight M, S&P Global highlighted in the statement. It went on to note that the findings are “based on high frequency observation data that include more than 500 high-resolution aerial surveys covering 90 percent of the basin’s production to provide the most accurate, basin-wide estimate of methane emissions”.

In the statement, Kevin Birn, Head of the Center for Emissions Excellence, S&P Global Commodity Insights, said, “access to reliable methane data is crucial to provide critical context to benchmark and allow companies to differentiate themselves and truly compete on carbon”.

“Whereas data quality still varies globally, improvements in access to reliable observation data in places like the Permian are leading the way and allow us to more credibly measure the impact of emissions mitigation efforts,” he added.

Raoul LeBlanc, Vice President, Global Upstream, S&P Global Commodity Insights, said in the statement, “methane emissions management is being increasingly normalized as part of field operations”.

“It’s becoming a standard and accepted part of the field staff’s responsibilities … At the same time, oilfield service manufacturers are now producing equipment that includes emissions reduction as an important feature, and operators are increasingly utilizing AI and machine learning to not only ‘find and fix’ but ‘predict and prevent’ emissions,” he added.

A separate statement sent to Rigzone back in December 2024 by the S&P Global team outlined that, according to new analysis by S&P Global Commodity Insights at the time, “annual methane emissions stemming from oil and gas production operations in the Permian Basin decreased 26 percent in 2023 from the previous year”.

“The data show that methane emissions from upstream oil and gas operations in the Permian Basin fell by more than 34 bcf in 2023,” that statement noted.

The findings of that analysis were produced in partnership with Insight M and were based on high frequency observation data that included nearly 700 high-resolution aerial surveys covering 88 percent of the basin’s active wells, that statement pointed out.

“The sheer scale of this single-year improvement represents significant progress and demonstrates the potential for what lies ahead,” Daniel Yergin, Vice Chairman, S&P Global, said in that statement.

“Continued improvements in the Permian – an area roughly the size of Great Britain that is responsible for almost half of all U.S. oil output – is providing a path to make meaningful contributions that lower overall U.S. emissions,” he added.

In that statement, Birn said, “improvements and increased accessibility of remote sensing technologies is providing a better understanding of U.S. methane emissions, and more actionable information”.

“Leaks that previously might have persisted for weeks or months can now be addressed in a matter of days,” he added.

LeBlanc noted in that statement, “for oil and gas operators, evaluating spending on methane emissions reduction is a dynamic exercise as technologies and data steadily improve, regulations change, and mitigation progress continues”.

“Obviously, the economics tighten as the leaks get smaller and harder to find. However, detecting and mitigating fugitive methane usually turns a profit simply from the sale of the recaptured gas, even in a lower natural gas price environment,” he added.

S&P Global Commodity Insights, which is a division of S&P Global, states on the S&P Global site that it provides “robust solutions across critical industries, offering market data, price assessments, real-time insights, in-depth reports, analytics, and workflow, AI and risk management tools designed to support client goals”. S&P Global notes on its site that it “serves the instrumental functions of the world’s largest and most complex industries”.

To contact the author, email andreas.exarheas@rigzone.com