ONE Future Releases Methane Intensity Numbers of 0.552%

                   ONE Future Releases Methane Intensity Numbers of 0.552%

-Natural Gas Coalition Surpasses Target of 1%-

Houston, TX – Nov. 15, 2018 – Our Nation’s Energy Future (ONE Future), a coalition of natural gas companies, announced today its inaugural reporting of methane intensity numbers. Using uniform, EPA-approved reporting protocols, the coalition registered a 2017 methane intensity number of 0.552%, well ahead of its goal to reach 1% by 2025. These numbers have been independently reviewed by National Energy Technology Laboratory and by Innovative Environmental Solutions.

“Today’s report validates that through targeted investment in abatement technologies, we can significantly reduce methane emissions across the natural gas supply chain,” said Richard Hyde, Executive Director of ONE Future. “We are demonstrating that natural gas can indeed meet the growing energy needs of our country in a sustainable manner, and as our coalition continues to grow, we look forward to helping new members across the country achieve their methane reduction goals.”

ONE Future’s data represents a geographically diverse and material share of the U.S. natural gas supply chain. Its member companies have the flexibility to deploy their capital where it will be most effective in reducing emissions. This includes upgrading and replacing pipeline infrastructure as well as actively seeking and repairing system leaks. To demonstrate credible and measurable results, members agree to measure their emissions and track their progress over time according to EPA-approved reporting protocols.

The graph above shows ONE Future’s 2017 cumulative methane emission intensity by sector and the resulting overall methane emission intensity value of 0.552% compared to ONE Future’s segment target intensities. The graph also compares the ONE Future results to the 2012 national emission intensity that was used to set the ONE Future goal of 1%. Berkshire Hathaway Energy Pipeline Group and Noble Energy joined ONE Future in the 4th quarter of 2018. Their emissions data are not reflected in this current report but will be included in future years.

ONE Future members are committed to ongoing methane emission reduction activities while sharing key learnings through technical reports and workshops to enable others across the industry to build on these successful initial results

About ONE Future

ONE Future formed in 2014 when eight forward-thinking natural gas companies came together and resolved to implement a performance-based approach to the management and mitigation of methane emissions. ONE Future determined that, using proven methods and technologies and science-based criteria, it would voluntarily set an ambitious goal of 1% methane intensity across the natural gas value chain by 2025.

Since its inception, ONE Future has grown to 16 companies accounting for the some of the largest natural gas producers, transmission and distribution companies in the U.S. ONE Future members operate in 11 out of the 19 production basins and other segments of the value chain operate in multiple regions of the country. Its members include Antero Resources, Apache, Berkshire Hathaway Energy Pipeline Group, BHP, Dominion Energy, Equinor (formerly StatOil), EQT, Hess Corporation, Jonah Energy, Kinder Morgan, National Grid, Noble Energy, Southern Company Gas, Southwestern Energy, Summit Utilities, and TransCanada U.S. Gas Operations. Together, these U.S. companies account for approximately 10% of total natural gas production, 32% of natural gas transmission miles and 9% of natural gas distribution.

For more information visit www.onefuture.us.

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Media Contact:

Beverly Jernigan

713-494-1733

beverly@beverlypr.com

 

Oil and Gas Investor Magazine: On A Mission To Mitigate

On A Mission To Mitigate: Industry Vs. Methane Leaks


Joseph Markman
Senior Editor, Digital News Group Hart Energy
Safety, economic and public perception risks compel oil and gas players to push for a fix before the methane leak issue exacts a high price.

Source: Shutterstock, Hart Energy

Methane leaks bedevil the oil and gas industry throughout the value chain, posing threats to safety and economics, and already bestowing a black eye to the industry’s beleaguered environmental reputation.

The issue also disrupts the industry’s narrative that natural gas is superior to coal as a source for power generation because of reduced greenhouse gas emissions. A 2014 study revealed that when methane leaks of an assumed 1.5% in are figured in, there is no significant reduction in carbon dioxide emissions without a climate policy in place.

“Methane is a potent greenhouse gas and the primary component of natural gas,” said the Environmental Defense Fund (EDF) on its website. “In its first 20 years, methane has more than 80 times the global impact of carbon dioxide.”

With industry under pressure to find a fix, some have already decided that a regulatory scheme is the best solution.

“We have to work with governments,” urged Rachel Kyte, CEO of Sustainable Energy for All and Special Representative of the UN Secretary-General for Sustainable Energy for All, at this year’s World Gas Conference in Washington. Kyte said she wants “to have governments put very strong regulations in place to make clear that we have to plug the methane leaks.”

However, several partnerships within the industry are striving to get ahead of the regulatory curve.

Our Nation’s Energy Future (ONE Future) began in 2014 when eight companies joined to tackle the    problem. That group now numbers 13 and is on the verge of adding more. The membership list includes Kinder Morgan Inc. (NYSE: KMI), Apache Corp. (NYSE: APA), TransCanada Corp. (NYSE: TRP), Antero Resources (NYSE: AR), Equinor ASA (NYSE: EQNR), BHP Billiton Plc (NYSE: BBL), EQT Corp. (NYSE: EQT) and others.

“We want make sure that natural gas is a competitive fuel and a sustainable fuel so we’ve got to do something about that,” Richard Hyde, executive director of the group, told Hart Energy. “This group of eight companies went to the EPA and said, ‘Hey, we would like to propose to you a voluntary performance- based program. We want to work with you on and get your approval to put it into place.’”

ONE Future’s members represent between 5% and 12% of natural gas throughput, depending on a member’s place in the value chain—production, gathering, processing, transmission (compression stations), storage, pipelines and distribution.

The measurement the group uses to gauge the problem is methane intensity. That is the percentage calculated by the amount of emissions relative to the amount of natural gas produced. ONE Future has a set a goal for its members of 1% in the U.S.

A study released in May by the U.S. Department of Energy’s (DOE) National Energy Technology Laboratory (NETL) and ONE Future showed that the production stage was the source of the highest emissions with an industry average methane intensity of 0.619%. ONE Future’s members in the production segment were able to keep their methane intensity at 0.304%.

Total methane intensity for the industry was 1.617%, compared to 0.672% for companies using ONE Future’s program, said NETL’s study. The comparison in methane intensity in the pipeline segment was

particularly striking, with ONE Future’s program (0.005%) besting the sector as a whole (0.039%).

Clearly, the group is onto something.

“One of the key things of our whole program is by setting a goal of 1%,” Hyde said. “We wanted to publicly make a statement that we’re going to get to 1% so people could see, ‘how are you guys progressing over time?’ We wanted to not only hold ourselves accountable but we are working very closely with the EPA to ensure that they hold us accountable.”

ONE Future employs what Hyde described as a “toolbox,” or collection of technologies that companies can utilize to mitigate methane leaks depending on their place in the value chain and individual circumstances. The group focuses on methane leak reduction in the U.S. but Hyde said all members benefit from the experience and expertise of multinational companies like BHP, Equinor and TransCanada.

ONE Future is not alone. Other organizations like the American Petroleum Institute, American Gas Association and INGAA, as well as the Environmental Defense Fund’s partnership with industry players, are pursuing solutions to the problem.

But while political pressure grows globally to reduce emissions—the U.S. committed to reducing emissions by 26% to 28% from 2005 levels in the Paris climate accord—ONE Future focuses on other aspects. Members of the group are in business to make money, Hyde stressed, and methane leaks are an economic threat.

He described methane concerns as the sides of a triangle: safety, investors and customers. Inside the triangle is the environment. Take care of the surrounding sides and the environmental problem is resolved.

“Safety is obviously something that impacts our employees and the areas that we’re operating in,” he said. “The investor community over the last two to three years has really turned its attention to sustainability, with methane emissions being one subset of that. Investors want to know: what are companies doing

to ensure they’re using their resources—in our case, natural gas—in a sustainable manner. The third is obviously our customers—that’s how we make money.”

Of course, ONE Future is made up of major players in the industry who pursue profits but are also acutely aware of public perception. At a panel discussion at the World Gas Conference, moderator Amy Hemingway of Edelman recalled a conversation she had with a natural gas company executive.

That company was working hard to reduce its emissions, she said, but he indicated to her that his company’s approach was not widespread in the industry. Until that happens, worker safety will be at risk, money will be lost, and investors and customers will grumble.

“In today’s environment it’s a little bit different for industry to have good working relationships with the agencies that regulate them,” Hyde said. “It just so happens in this case, we’re not being regulated but we want to ensure that the regulating agencies are having an oversight on us. At the end of the day, if we don’t have credibility with the general public then I think we’ve missed the mark for a lot of what we want to achieve.”

Joseph Markman can be reached at jmarkman@hartenergy.com or @JHMarkman.

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