World Oil’s Shale Tech Conference Address

December 6, 2018: World Oil’s Shale Tech Conference Address

This week I was honored to deliver the lunch time address at World Oil’s Shale Tech conference in Houston, TX. I chose the topic, Why Methane Emissions Matter; with the explanation that natural gas is a foundational fuel for today and tomorrow. I talked about how methane emissions are one issue that the industry must address for natural gas to remain a competitive fuel in an increasingly low carbon economy.

I shared ONE Future’s founding principles, our members, our efforts to reduce methane emissions and most exciting – our latest progress report, where we surpassed the original goal we set for the organization. I expressed that one of the key drivers to our success was adopting a performance-based approach to reducing emissions. ONE Future’s results demonstrate that when companies have the flexibility to deploy resources and technology in the most cost-effective and efficient manner then results are more robust and achieved more quickly.

Because I was speaking to folks in our industry, I also talked to them about how ONE Future members were focusing on three key stakeholder groups: employees, customers and investors/shareholders. If we listen to and take into account each of these groups as we reduce methane emissions, then both the environment and the competitive sustainability of natural gas would be addressed.

The presentation was very well received, and I talked to a few folks who expressed interest in our coalition. I encourage you to download the full presentation.

Until next time,

Richard Hyde, Executive Director

Follow by Email
Twitter
LinkedIn

What do the annual emission intensity numbers really mean?

November 27, 2018: What do the annual emission intensity numbers really mean?

ONE Future announced that it had released its 2017 annual emission intensity numbers. The results showed that the intensity was 0.552% significantly surpassing our 2025 goal of 1%. I have received questions over the last several days asking: was the goal too low; are these numbers real; and what do you do now?

We set our goal in 2014 when the EPA national emission intensity was 1.44%. At the time, many were saying that for natural gas to be sustainable and competitive against other fossil fuels, methane emission intensity needed to be at or below 1%, so that is where we set our goal. At the time we believed that 1% by 2025 was actually a stretch goal.

As you can see from the report posted on our website, the numbers are real and we are proud that the investment of time and resources has paid off. The numbers reported include the emissions that ONE Future members report to the EPA through the Greenhouse Gas Inventory and also include additional emissions not reported because they fall below reporting thresholds. In addition both the National Energy Technology Laboratory and Innovative Environmental Solutions have independently reviewed the numbers.

ONE Future members will continue to work to reduce methane emissions. We believe that our results show that a performance-based approach to reducing emissions works and will continue to be a leader in finding and deploying innovative technology that is cost effective in emissions abatement.

ONE Future also wants to encourage other members of the natural gas industry to join us in reducing methane emissions. As an industry we have demonstrated we are able to meet the growing energy needs of our country, however, in order to ensure that natural gas is a sustainable long-term fuel source, the entire natural gas value chain needs ensure they are doing their part in reducing methane emissions.

Follow by Email
Twitter
LinkedIn

Oil and Gas Investor Magazine: Natural Gas Companies Plug Leaks, Easily Surpass 2025 Goal

Natural Gas Companies Plug Leaks, Easily Surpass 2025 Goal

Darren Barbee Senior Editor, Oil and Gas Investor Hart Energy

Sunday, November 25, 2018 – 6:00pm

A coalition of natural gas companies, including E&Ps, midstream and downstream operators, far exceeded its target for reducing methane emissions eight years ahead of schedule.

In November, Our Nation’s Energy Future (ONE Future), an alliance of 16 companies, reported its 2017 methane intensity—the ratio of net emissions to throughput volumes—was 0.55%, surpassing its initial goal to reduce emissions to 1% by 2025. In 2012, the overall natural gas industry’s methane intensity was 1.44%.

The One Future companies collectively account for 10% of U.S. natural gas production, 32% of gas transmission miles and 9% of distribution. Other companies, including oil and gas majors, have entered similar groups in order to increase profitability and to demonstrate their stewardship of the environment.

“Today’s report validates that through targeted investment in abatement technologies, we can significantly reduce methane emissions across the natural gas supply chain,” said One Future Executive Director Richard Hyde. “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 protocols were developed in partnership with the U.S. Department of Energy and its results were independently reviewed by the National Energy Technology Laboratory and by Innovative Environmental studies.

One Future’s operators span the production and distribution cycle in the Williston, Green River, Anadarko, Permian, Appalachian basins and other areas. Operators include Antero Resources, Apache Corp., EQT Resources, Hess Corp. and Southwestern Energy.

Southwestern Energy’s focus on natural gas emissions led it in September to sell gas to New Jersey Natural Gas, a distribution company serving over half a million customers throughout New Jersey. Southwestern adopted One Future’s methane leak/loss rate goal of 0.36% of gross production by 2025 and surpassed it, with a 0.19% methane intensity, the company said.

Link to original article.

ONE Future Welcomes Dominion Energy

ONE Future Welcomes Dominion Energy

-Natural Gas Coalition Membership Reaches 16-

Houston, TX – Nov. 15, 2018 – ONE Future Coalition (ONE Future) announced today that Dominion Energy [NYSE: D] has joined the coalition bringing the total number of member companies to 16.

Dominion Energy is one of the nation’s largest producers and transporters of energy, with a portfolio of approximately 26,000 megawatts of electric generation; 14,800 miles of natural gas transmission pipeline; 51,800 miles of natural gas distribution pipeline; 6,600 miles of electric transmission lines; and 57,900 miles of electric distribution lines.

ONE Future member companies represent the entire natural gas value chain and with the addition of Dominion Energy, now account for approximately 10% of the total natural gas production, 32% of the US natural gas transmission miles and 9% of the US natural gas distribution.

“Dominion Energy has already made great strides on their own to reduce methane emissions,” said Richard Hyde, Executive Director, ONE Future. “As our coalition continues its rapid growth, we’re pleased that Dominion Energy has chosen to join, and we look forward to what they bring to the group.”

“For over 10 years, Dominion Energy has taken voluntary actions to reduce methane emissions in our natural gas business.  Since 2008, our industry leading methane reduction programs have resulted in saving more than 10 Bcf, equivalent to removing over 115,000 cars from the road,” said Diane Leopold, president and CEO of Dominion Energy’s Gas Infrastructure group. “We look forward to leveraging the emission reduction efforts we already have underway as part of our entry into ONE Future. ONE Future’s work and partnership with the EPA is commendable and we are proud to join this coalition focused on leading the industry to reduce methane.”

About Dominion Energy

Nearly 6 million customers in 19 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D). The company is committed to sustainable, reliable, affordable, and safe energy and is one of the nation’s largest producers and transporters of energy with over $80 billion of assets providing electric generation, transmission and distribution, as well as natural gas storage, transmission, distribution, and import/export services.  As one of the nation’s leading solar operators, the company intends to reduce its carbon intensity by 50 percent by 2030. Headquartered in Richmond, Va., Dominion Energy contributes more than $20 million annually to the communities it serves and actively supports veterans and their families. Please visit www.DominionEnergy.com, Facebook or Twitter to learn more.

About ONE Future

ONE Future was formed when eight companies came together in 2014 with a focus to collectively achieve a science-based average rate of methane emissions across our facilities equivalent to one percent (or less) of total natural gas production. Since our formation, we have 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, hence ONE Future’s data represent a geographically diverse and material share of the U.S. natural gas supply chain. Its members include Antero Resources, Apache, Berkshire Hathaway Pipeline Group, BHP, Dominion Energy, Equinor (formerly StatOil), EQT, Hess, Kinder Morgan, National Grid, Jonah, Southern Company Gas, Southwestern Energy, Summit Utilities, and TransCanada, for more information visit www.onefuture.us.
-END-

Media Contact:

Beverly Jernigan

713-494-1733

beverly@beverlypr.com

Bloomberg News: Gas Coalition Beats Its Own Methane Emissions Target Years Early

Gas Coalition Beats Its Own Methane Emissions Target Years Early

Posted Nov. 15, 2018, 9:56 AM

A group of U.S. natural gas companies beat its target to reduce methane emissions to 1 percent of what’s produced and delivered, an objective they set for 2025.

The ONE Future group of 16 gas producers, pipeline operators and utilities—including Kinder Morgan Inc., Southwestern Energy Co. and Southern Co. Gas—said only about 0.6 percent of the gas they handled was vented in 2017. The group was formed in 2014.

The announcement comes as industry is coming under scrutiny from environmental groups after the federal government proposed loosening some regulation of methane emissions. The changes include reducing the frequency with which oil and gas operators must monitor their equipment for leaks.

“We are paid to transport that methane molecule, not to lose it, so we put a lot of effort into minimizing emissions,” said Tom Hutchins, vice president of environmental, health and safety for the gas business at Kinder Morgan, which owns or operates more than 80,000 miles (130,000 kilometers) of pipelines in North America.

©2018 Bloomberg L.P. All rights reserved. Used with permission

To contact the reporters on this story: Ryan Collins in Houston at rcollins74@bloomberg.net; Rachel Adams-Heard in Houston at radamsheard@bloomberg.net

To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net Carlos Caminada, Christine Buurma

Original Link (Subscription Only): https://news.bloombergenvironment.com/environment-and-energy/gascoalition-beats-its-own-methane-emissions-target-years-early

Methane Emissions and Green House Gases Reduction go Hand-in-Hand

October 17, 2018: Methane Emissions and Green House Gases Reduction go Hand-in-Hand

In an article from Reuter’s last week, Shell Chief Executive Ben van Beurden said, “Shell’s core business is, and will be for the foreseeable future, very much in oil and gas… and particularly in natural gas.”

And it’s not just Shell (RDSa.AS) that is betting that the demand for natural gas will continue to increase for decades, along with BP (BP.L) and Total (TOTF.PA) also rising to the demand to develop cleaner energy sources, they are investing more and more in solar and wind power, electric vehicle technology and even forestation.

Still, they see oil, and especially natural gas, the least polluting fossil fuel, playing a major role throughout the decades of transition and beyond as demand for electricity and plastics grows.

By 2035, Shell expects global gas demand to grow annually by 2 percent, twice the pace of worldwide energy demand, van Beurden said.

This increase in demand is just one reason that the efforts of ONE Future make sense for oil and natural gas companies. ONE Future’s members begin with a focus on the outcome we want to achieve. In the case of natural gas methane emissions, our desired outcome is to collectively achieve an average rate of emissions across all facilities that is equivalent to one percent (or less) of total produced and delivered natural gas.

Qatar, one of the world’s largest natural gas suppliers, is set to grow its liquefied natural gas (LNG) capacity by over 40 percent by the next decade to around 110 million tonnes per year, as demand for the super-chilled fuel is set to soar, particularly in fast-growing economies such as China and India.

“We believe that natural gas will continue to play a key role, not as a so-called transition fuel but rather as a destination fuel,” Qatar Petroleum CEO Saad Al Kaabi said.

Shell is investing more than any other of its peers in clean energy, spending $1 billion to $2 billion a year on renewables and low-carbon energy. That compares with a total annual spending budget of $25 billion-$30 billion.

The investments “might even make people think we have gone soft on the future of oil and gas. If they did think that… they would be wrong,” van Beurden said.

It’s important in the years to come that we focus on reducing methane and protecting our environment in every way possible, all while ensuring natural gas is a sustainable energy source for decades to come.

Follow by Email
Twitter
LinkedIn

October 1, 2018: Methane Emissions Reduction Gains Global Momentum

October 1, 2018: Methane Emissions Reduction Gains Global Momentum

An important article ran in the Houston Chronicle last week, commending several well-known energy companies on their recent pledge to reduce methane emissions. Exxon Mobil, Chevron and Occidental Petroleum were mentioned as the most recent to join in the Oil and Gas Climate Initiative (OGCI). OGCI’s pledge is to reduce methane emissions to a methane intensity level of 0.25% by 2025; and with the addition of these new members, OGCI represents a significant portion of the global natural gas production.

ONE Future commends OGCI and its new members for their efforts to reduce methane emissions to a methane intensity level of 0.25% by 2025. Also, we’d like to extend a hearty invitation to these companies to consider joining the ONE Future coalition, and to expand their efforts into the U.S.

Collectively, there are many organizations working to reduce methane emissions worldwide, ONE Future focuses on such reductions within the U.S natural gas value chain, with the underlying premise that voluntary programs can help lead the way in reducing methane emissions. ONE Future’s goal is to reduce these emissions to a methane intensity level of 1% or less by 2025 and is on track to achieve this goal in 2018.

The more industry participation in ONE Future, the greater the emission reductions, and the cleaner the natural gas industry. In short, we believe that the entire value chain has a key stake in reducing methane emissions to maintain the current advantage that natural gas enjoys today and to ensure successful sustainability for the future.

Follow by Email
Twitter
LinkedIn

ONE Future Welcomes Berkshire Hathaway Energy!

September 13, 2018: ONE Future Welcomes Berkshire Hathaway Energy!

If you haven’t already seen the official press release, we announced today that Berkshire Hathaway Energy (BHE) Pipeline Group has joined with the coalition. BHE consists of two natural gas pipelines that operate in the Transmission and Storage Segment: Northern Natural Gas Company pipeline system stretches across 11 states, from Southern Texas to Michigan’s Upper Peninsula, providing access to five of the major natural gas supply regions in North America.

With the addition of BHE, our members now account for approximately 10% of the total natural gas production, 32% of the US natural gas transmission miles and 9% of the US natural gas distribution.

Our coalition is growing, not only by companies (we are up to 15 member companies with this addition), but geographically across the country and we couldn’t be happier. Every company’s efforts count, and are important in achieving our mutual goal of reducing emissions across the natural gas chain to one percent or less by 2025.

Membership is a great step for BHE, but they have already been actively working to reduce emissions – its natural gas transmission pipelines’ operational practices and methane leak detection programs are designed to minimize the release of methane emissions. These leading practices resulted in the gas transmission pipelines’ combined leak rates, measured as a percentage of throughput, of 0.053% and 0.046% in 2016 and 2017, respectively. If you’d like to learn more about Berkshire Hathaway Energy, we encourage you to visit their website.

Follow by Email
Twitter
LinkedIn

ONE Future Welcomes New Member, BHE Pipeline Group

Sept. 11, 2018: ONE Future Welcomes New Member, BHE Pipeline Group

ONE Future Coalition (ONE Future) announced today that BHE Pipeline Group has joined the coalition, bringing the total number of member companies to 14. BHE Pipeline Group consists of two natural gas pipelines that operate in the Transmission and Storage Segment:  Northern Natural Gas’ pipeline system stretches across 11 states, from Southern Texas to Michigan’s Upper Peninsula, providing its customers access to five of the major natural gas supply regions in North America. Kern River Gas Transmission Company is a direct link between the abundant Rocky Mountain natural gas-producing basins and Western markets.

ONE Future member companies represent the entire natural gas value chain and with the addition of BHE Pipeline Group, now account for approximately 10% of the total natural gas production, 32% of the US natural gas transmission miles and 9% of the US natural gas distribution. BHE Pipeline Group is one of several ONE Future companies that have invested in methane mitigation technologies and work-practices for more than a decade.

Matt Finnegan, vice president, resource management, BHE Pipeline Group said, “Engaging with ONE Future’s mission makes sense and allows us to advance our sustainability objectives by using innovative, performance-based approaches to the management of methane emissions. With the guidelines ONE Future provides, along with its toolbox of resources, we gain tremendous value from our membership and look forward to sharing the results of our efforts under the initiative.”

“We’re excited that BHE Pipeline Group has made the forward-thinking decision to formalize its efforts to reduce methane emissions,” said Richard Hyde, Executive Director, ONE Future. “Our coalition is growing, not only by companies, but geographically across the country and we couldn’t be happier. Every company’s efforts count, and are important in achieving our mutual goal of reducing emissions across the natural gas chain to one percent or less by 2025.”

About BHE Pipeline Group

BHE Pipeline Group consists of Northern Natural Gas and Kern River Gas Transmission. Northern Natural Gas has been in business since 1930, and owns the largest interstate natural gas pipeline system in the U.S. Northern Natural Gas’ pipeline system stretches across 11 states, from Southern Texas to Michigan’s Upper Peninsula, providing its customers access to five of the major natural gas supply regions in North America. The company provides natural gas transportation and storage services to 81 utilities, producers, energy marketing companies and industrial end users. It also provides grid transportation between other interstate and intrastate pipelines, and access to major North American gas supply basins in Canada, the Rocky Mountains, the MidContinent and Permian Basins, and major shale gas developments.

Kern River Gas Transmission Company began operating in 1992, and is a direct link between the abundant Rocky Mountain natural gas-producing basins and Western markets. Kern River’s interstate natural gas pipeline system includes approximately 1,700 miles of pipeline and 12 fully automated compressor stations. Additional company information is available at www.northernnaturalgas.com and www.kernrivergas.com.

About ONE Future

ONE Future was formed when eight companies came together in 2014 with a focus to collectively achieve a science-based average rate of methane emissions across our facilities equivalent to one percent (or less) of total natural gas production. Since our formation, we have grown to 14 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, hence ONE Future’s data represent a geographically diverse and material share of the U.S. natural gas supply chain. Its members include Antero Resources, Apache, Berkshire Hathaway Pipeline Group, BHP, Equinor (formerly StatOil), EQT, Hess, Kinder Morgan, National Grid, Jonah, Southern Company Gas, Southwestern Energy, Summit Utilities, and TransCanada, for more information visit www.onefuture.us.

The Methane Emissions Triangle

September 5, 2018: The Methane Emissions Triangle

In an op-ed that I recently read in the Wall Street Journal, it seems that the author is stating that neither side in the climate change argument has any real answers to the problem, and in my opinion, it is unlikely they will come to an agreement. One point that the author makes is that status quo is a problem. I agree with that point and will take it one step further; we can agree to disagree on climate change and still successfully address methane emissions.

I believe that the status quo from the perspective of the natural gas industry, as it specifically relates to methane emissions, can harm the reputation and competitiveness of the industry. That is one of the reasons that ONE Future was created in 2014, to ensure the sustainability and competitiveness of natural gas.

We in the industry must change the way we view methane emissions. I believe that many in our industry equate methane emissions reductions with climate change. While I don’t think industry would argue that methane has an environmental impact, I believe that industry needs to think of methane emissions reductions in a totally different way.

While the environment is very important to everyone, we in industry need to change our way of thinking about why we need to reduce methane emissions and as a result change the status quo.

I believe that methane emission reductions should be viewed as a triangle. At the top point is safety. All in the industry view safety as a priority; reducing methane emissions is a key element in increasing safety for our employees and for those who live near our facilities.

The second point is investors. Companies have a fiduciary responsibility to effectively and efficiently utilize the capital resources provided by investors. Some investors have been pushing back on companies to demonstrate how they are using resources in a sustainable manner, while continuing to make a profit.

The third point is customers. Customers are why companies are in business. Natural gas companies want to produce and deliver the commodity that is purchased. Each part of the value chain has a responsibility to do that.

As you can see; all three of these points are intertwined, thus the imagery of the triangle, and within the triangle resides the environment. If the industry will focus on the triangle as it relates to methane emissions, then the environment and the natural gas industry will both be winners.

Richard Hyde, Executive Director

Follow by Email
Twitter
LinkedIn