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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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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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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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.
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Media Contact:

Beverly Jernigan

713-494-1733

beverly@beverlypr.com

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.

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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.

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