4C Conference Reflections

February 13, 2019: 4C Conference Recap

I spent most of last week in Austin, TX where I was pleased to be able to present on behalf of ONE Future at the 4C Conference. The mission of the 4C Conference is to promote the latest emissions reduction technology and best Management practices in order to drive better environmental outcomes.

I participated as one of the keynote speakers, as a panelist discussing potential new markets and made a presentation as part of the Sustainability Beyond Compliance training session. The one thing that stood out to me overall from the conference was the technology that is already being deployed to reduce emissions. It was also very exciting to talk to people who have great ideas that are being developed that will soon be on the market.

I talked to several interesting companies, and the thing that everyone consistently asks me in regard to ONE Futurewas how did member companies achieve such a low methane intensity level so quickly.. This is exciting to me because it shows that there is recognition of the hard work that ONE Future member companies have been doing for many years.

2019 has just begun, and I’m looking forward to a full year of conferences, presentations, learning and spreading the ONE Future gospel – so to speak. Even though we’ve reached our 2025 goal to reduce emissions by 1%, I look forward to encouraging other members of the natural gas industry to join us in reducing methane emissions.

I look forward to seeing you this year!

Richard Hyde, Executive Director

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New Jersey Natural Gas Makes ONE Future 16 Members Strong

February 7, 2019: New Jersey Natural Gas Makes ONE Future 16 Members Strong

Hopefully you’ve seen the press release that was issued this week announcing the membership of New Jersey Natural Gas. We’re thrilled to have them as a member and I know they’ll make an excellent addition to our coalition, and the Board.

As you may know, ONE Future member companies represent the entire natural gas value chain and with the addition of New Jersey Natural Gas, 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. This is something to take pride in!

New Jersey Natural Gas is an important addition to the distribution segment of our coalition because it demonstrates that ONE Future is adding significant momentum to its value chain approach to reducing methane emissions. As we continue our outreach, we know that the involvement of New Jersey Natural Gas will serve as a positive example to others considering membership.

A few things you might not know about New Jersey Natural Gas – NJNG has a long record of acting with corporate and environmental responsibility as a top priority, including the following noteworthy achievements:

• NJNG was the first utility in the nation to source natural gas supply from the TrustWell Responsible Gas Program.

• NJNG recently earned the distinction of being the first natural gas utility in New Jersey to eliminate the use of cast iron pipe in its distribution system.

• By the end of 2019, NJNG expects to replace all the remaining bare steel in its system. Once complete, it will be the first natural gas utility in New Jersey to do so.

• NJNG boasts the fewest leaks per mile of all natural gas utilities in New Jersey.

I hope you’ll join me in welcoming them!

Richard Hyde, Executive Director

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ONE Future Welcomes New Jersey Natural Gas

ONE FUTURE WELCOMES NEW JERSEY NATURAL GAS

-NATURAL GAS COALITION MEMBERSHIP REACHES 16-

Houston, TX – February 5, 2019 – Our Nation’s Energy Future (ONE Future) announced today that New Jersey Natural Gas (NJNG) has joined the coalition, bringing the total number of member companies to 16. New Jersey Natural Gas is the principal subsidiary of New Jersey Resources (NYSE: NJR), a diversified energy company and Fortune 1000 business.

“We are pleased to start 2019 with this important partnership that builds on NJNG’s core commitment to responsible, sustainable practices that benefit our environment,” said Stephen Westhoven, President and Chief Operating Officer of New Jersey Resources. “ONE Future’s recent reporting demonstrates its commitment to achieving measurable goals and exceeding expectations. NJNG is proud to join the coalition and take another important step in our ongoing commitment to environmental responsibility.”

ONE Future member companies represent the entire natural gas value chain and with the addition of New Jersey Natural Gas, 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. As part of its member benefits, NJNG will hold a seat on ONE Future’s Board of Directors. ONE Future board members work with other board members to promote best practices and share learnings on each company’s respective science-based, technology and methods for methane reduction; though each member always has the flexibility to deploy its capital where it will be most effective. Additionally, NJNG will report its 2018 methane results as part of the distribution sector within the coalition.

“New Jersey Natural Gas is an important addition to the distribution segment of the coalition because it demonstrates that ONE Future is adding significant momentum to its value chain approach to reducing methane emissions,” said Richard Hyde, Executive Director, ONE Future. “As we continue our outreach, we know that the involvement of New Jersey Natural Gas will serve as a positive example to others considering membership.”

New Jersey Natural Gas operates and maintains nearly 7,500 miles of natural gas transportation and distribution infrastructure, serving over half a million customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex and Burlington counties.

NJNG has a long record of acting with corporate and environmental responsibility as a top priority, including the following noteworthy achievements:

• NJNG was the utility in the nation to source natural gas supply from the TrustWell Responsible Gas Program.
• NJNG recently earned the distinction of being the first natural gas utility to eliminate the use of cast iron pipe in its distribution system.
• By the end of 2019, NJNG expects to replace all the remaining bare steel in its system. Once complete, it will be the first natural gas utility in New Jersey to do so.
• NJNG boasts the fewest leaks per mile of all natural gas utilities in New Jersey.

About New Jersey Resources

New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services.

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, New Jersey Natural Gas, Equinor (formerly StatOil), EQT, Hess, Kinder Morgan, National Grid, Southern Company Gas, Southwestern Energy, Summit Utilities, and TransCanada, for more information visit www.onefuture.us.

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Oil and Gas Investor Magazine: The Greener Green Gas

The Greener Green Gas

Better together. Isn’t that true in so many situations? This thought occurred to me as I read the January issue of Oil and Gas Investor. Senior Editor, Darren Barbee interviewed Jennifer Stewart, Southwestern Energy’s Senior Vice President of Government and Regulatory Affairs, Tom Hutchins, Kinder Morgan’s Vice President Environmental, Health and Safety and me for an article that appears in this month’s issue.

Southwestern and Kinder Morgan are two of the founding members and I value the leadership that both Jennifer and Tom bring to the coalition. One of Jennifer’s more persuasive quotes was highlighted on the first page.

“Any methane that’s leaked is methane that’s not sold. So it just makes sense from a bottom-line perspective to capture it.” As simple as Jennifer’s statement is, it makes such a big impact. Our efforts together are to aid and enable each other to reduce emissions for the betterment of our environment, but it’s also for a better bottom line. As a coalition, we are working together to support our industry, but it’s also an effort that should increase profitability.

Kinder Morgan’s efforts have spanned the last 20 years, and I’m proud that the article highlights this. Tom elaborated on the company’s ongoing involvement in the EPA’s Natural Gas Star program, and how its emissions reduction efforts yielded an intensity of just 0.12%.

This article highlights how ONE Future met its goal to collectively reduce methane emissions to 1% by 2025 – eight years early. But as Tom also pointed out, “Having already met the goal, we will not rest on our laurels, we will continue to look for technologies and best practices that will allow us to continue managing and minimizing methane emissions.”

As ONE Future grows, we encourage you to consider membership to advance your company’s efforts – both environmental and financial and more importantly help the industry as a whole, as I said at the beginning of this article, we are better together and we all have the same goal in mind, a long-term sustainable natural gas industry. More information on membership is available on our website.

Questions or comments? Post them here or email me, I’d love to hear from you.

Richard Hyde, Executive Director

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Oil and Gas Investor Magazine: The Greener Green Gas

Oil and Gas Investor Magazine: The Greener Green Gas

The January issue of Oil and Gas Investor features an article by Senior Editor, Darren Barbee, where he interviews Jennifer Stewart, Southwestern Energy’s Senior Vice President of Government and Regulatory Affairs, Tom Hutchins, Kinder Morgan’s Vice President Environmental, Health and Safety and Richard Hyde, Executive Director, ONE Future.

The article discusses how E&Ps are voluntarily working together to reduce methane emissions across the value chain.

You can download the full text here.

ADNOC – One of the Lowest Emitters of Greenhouse Gases

January 18, 2019: ADNOC – One of the Lowest Emitters of Greenhouse Gases

The Abu Dhabi National Oil Company (ADNOC) has recently come out with several strong steps that are supporting its already committed stance to reducing greenhouse gases (GHG).

As part of its ongoing efforts, it plans to reduce GHG emissions by up to 10 percent by 2023, substantially increase its use of Carbon Capture, Utilization and Storage (CCUS) technology, reduce its use of potable water and cut the volume of waste sent to landfill sites.

In a recent article, the International Association of Oil & Gas Producers (IOGP) Environmental Performance Report for 2017 was cited, where ADNOC ranked in the top five lowest GHG emitters, with less than half the industry average, at 39.68 million tCO2e, and has one of the lowest methane intensities of 0.01 percent.

The article went on to point out, that at the same time, ADNOC has reduced the volume of natural gas flared by more than 72 percent since 1995.

One of the best lessons we can obtain from ADNOC’s success is its holistic approach to environmental protection – where pre-production work is conducted around its Hail, Ghasha and Dalma mega-sour gas development. To ensure the project is minimizing its environmental footprint, ADNOC has conducted one of the largest marine environmental baseline surveys in the UAE’s history.

It has enabled ADNOC to carefully locate the project’s 11 artificial islands and optimize well numbers and trajectories to reduce environmental impact and ensure that both islands and drilling activities are placed outside sensitive areas.

While ONE Future’s members certainly have global reach, the coalition’s focus is on our domestic efforts. ADNOC is a wonderful example of a holistic program that we might emulate to strengthen our own efforts.

I encourage you to read the full article online.

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Reflecting on the Success of 2018

Reflecting on the Success of 2018

The New Year is typically a time of reflection and goal setting. This is especially true for most on a personal level, but what about in the oil and gas industry?

Energy in Depth recently provided a high-level report of some of the biggest achievements in the oil and natural gas industry for 2018 – an encouraging reminder to all of us to keep moving ahead, making progress, setting – and exceeding – our goals!

I encourage you to read the full article, but here’s a recap:

1) America IS the global energy leader – Last summer, U.S. crude oil production exceeded 11 million barrels per day (b/d) for the first time, more than doubling 2008 production and surpassing Russia as the world’s largest crude oil producer, according to Energy Information Administration data.

2) The United States is exporting more oil and natural gas than ever before. The U.S. became a net exporter of petroleum liquids for the first time in 75 years, exporting more crude oil and other oil-derived liquids than it imported from other countries.

3) Proved U.S. oil and natural gas reserves reached an “all-time high.” In addition to production and exports, U.S. proved oil and natural gas reserves also hit an “all-time high” thanks to the continued development and exploration of shale formations nationwide, according to newly released data from the EIA.

4) Global petroleum industry leaders look to the United States for oil and natural gas investment. The United States remains the world’s most attractive region for oil and gas investment, according to the Fraser Institute’s 2018 survey of senior global petroleum industry leaders. In fact, the country is now home to nine of the top 10 jurisdictions for investment – led by Texas, Oklahoma, Kansas, Wyoming, and North Dakota – and across the board, U.S. jurisdictions improved their ranking in this year’s results.

5) The U.S. leads the world in carbon emissions reductions. As U.S. energy production soared, the industry maintained its commitment to lowering emissions and protecting the environment. In fact, the country has led the world in carbon emissions reductions from 2005 to 2017, according to BP’s 2018 Statistical Review of World Energy.

As the EID article so succinctly put it, 2018 was a record-breaking year for oil and natural gas: our environment is cleaner, our economy is improving, electricity costs are at record lows, consumers are saving billions of dollars on natural gas, and 2018 affirms that the United States will continue to be a world-leader in oil and natural gas exploration and production – talk about exceeding goals.

I’m looking forward to seeing what the industry achieves in 2019.

Richard Hyde, Executive Director

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Midland Reporter-Telegram: Natural gas coalition exceeds methane emission cuts 7 years early

Natural gas coalition exceeds methane emission cuts 7 years early

By Mella McEwen, MRT.com/Midland Reporter-Telegram

Amid the intensifying debate over climate change, the role of fossil fuels and what form energy sources should take, some energy companies are showing they can be part of the solution.

Our Nation’s Energy Future (ONE Future) has 16 members: natural gas produces, transmission and distribution companies, many active in the Permian Basin. The coalition has issued a report saying it far exceeded its goal of 1 percent methane intensity across the natural gas value chain and did so ahead of its 2025 deadline.

In its recently released initial report of methane intensity numbers, the coalition registered a 2017 methane intensity number of 0.552 percent.

“We were surprised we were that good,” Richard Hyde, ONE Future executive director, said in a phone interview from his Houston office.

He said the number was determined using uniform Environmental Protection Agency-approved reporting protocols that were independently reviewed by the National Energy Technology Laboratory and Innovative Environmental Solutions.

Hyde attributed the success to allowing member companies the flexibility to deploy their capital where it would be most effective — whether upgrading and replacing pipeline infrastructure or actively seeking and repairing system leaks.

“The key principal is we’re performance-based,” Hyde said. “Companies can pick and choose the technology that works on their systems. They get results more quickly and get results that are better.”

Currently, ONE Future membership accounts for approximately 10 percent of total natural gas production, 32 percent of natural gas transmission miles and 9 percent of natural gas distribution and spans the value chain, from the wellhead to the burner tip.

Hyde said the coalition doesn’t have specific limits on how many companies can become members, or how high a percentage of production, transmission and distribution are represented in ONE Future.

But as the coalition grows, it will gain critical mass and that will help create momentum for others to join as they see that the performance-based approach successfully drives down methane intensity numbers, he said.

ONE Future was formed in 2014 when eight natural gas companies came together with the goal of implementing a performance-based approach to the management and mitigation of methane emissions. Hyde said the initial goal of 1 percent was based on studies from the Environmental Defense Fund, which utilized 2012 data from the EPA, the most recent available at the time. He said the first year was focused on putting a program in place, and then it doubled in size over the next two years.

“We want everything we do to be science-based. A well-known peer-reviewed study published in the Proceedings of the National Academy of Sciences entitled, ‘Greater focus needed on methane leakage from natural gas infrastructure’ suggested that in order for natural gas usage to provide immediate greenhouse gas reduction benefits — as compared to any other fossil fuel in any other application — the industry would have to achieve a leak/loss rate of 1 percent or less. While ONE Future members do not unequivocally accept every conclusion of that paper, we believe it is sufficiently robust to serve as a guidepost for our targets,” he said.

Asked if the coalition might set even lower thresholds or even a zero emissions threshold, Hyde said, “Eliminating all emissions would be both technically unfeasible and economically untenable. However, ONE Future believes that targeted investment in abatement technologies today can yield both significant improvements in environmental performance and supply-chain efficiency, which is just good business. We believe that the industry can cost-effectively achieve an average emissions intensity rate of 1 percent, and ONE Future companies have already achieved a rate of 0.552 percent. We will continue to work to lower our emissions and encourage other companies in the natural gas industry to join our coalition to ensure that natural gas remains the fuel of choice.”

ONE Future’s information and reports are shared with environmental groups and the coalition has not received any pushback yet, he said. He said the group publicizes its numbers and may be the only group that reports actual results.

“The key thing we believe in is, transparency is vital. We have our data independently looked at by NETL to make sure we’re on the right track,” he said. “We have to be a credible organization. If people don’t believe our numbers, we’ve missed a golden opportunity to move the ball.”

Another key belief is that natural gas is the foundation fuel for a low-carbon economy, and Hyde said research is being done in ways to break down methane into hydrogen for use as a power source.

“We think natural gas will be around a long time,” he said. “We have to work on methane emissions to be competitive. We have to reduce them as low as we can. We want to go lower.

“There’s a long way to go but we think we’re trending in the right direction.”

Link to original article.

 

 

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

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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.

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