By Missi Currier

The recent analysis by S&P Global Commodity Insights has revealed a significant milestone in the fight against climate change: a 26% reduction in methane emissions from oil and gas production operations in the Permian Basin in 2023. This achievement is not just a win for the environment but also a testament to the industry’s ability to innovate, adapt, and companies’ commitment to stewardship.

Methane, a potent greenhouse gas, has long been a target for emission reduction efforts. The S&P analysis shows that the decline in methane emissions from the Permian Basin is equivalent to the annual carbon emissions avoided by every electric vehicle (EV) on the road in the United States. This comparison underscores the magnitude of the achievement and highlights the critical role that the oil and gas industry is playing in reducing greenhouse gas emissions.

The data, collected through high-frequency observation and nearly 700 high-resolution aerial surveys, provides the most accurate basin-wide estimate of methane emissions to date. The findings show that methane emissions fell by more than 34 billion cubic feet (Bcf) in 2023, equivalent to 18.5 million tons of carbon dioxide emissions avoided. This reduction is more than the total 2023 driving emissions avoided by every EV ever sold in the United States, even if all the vehicles were powered 100% by zero-carbon electricity.

This progress is particularly noteworthy given that it occurred even as total oil and gas production in the Permian Basin increased. The basin’s methane intensity, or the ratio of total methane emissions to total output, registered an even more pronounced decline, exceeding 30%. This demonstrates that it is possible to increase production while simultaneously reducing emissions. This ensures that the world’s most affordable and reliable energy source is readily available for consumers’ ever-evolving needs.

The decline in emissions can be attributed to ongoing improvements in equipment and the increasing deployment of new technologies. AI-driven analysis of operational data, on-the-ground sensors, aircraft overflights, and satellites have all played a role in detecting leaks with greater speed and accuracy. As Kevin Birn, head of the Center for Emissions Excellence at S&P Global Commodity Insights, noted, “Improvements and increased accessibility of remote sensing technologies are providing a better understanding of US methane emissions and more actionable information.”

For oil and gas operators, the economic benefits of reducing methane emissions are clear. 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. As Raoul LeBlanc, vice president of global upstream for S&P Global Commodity Insights, explained, “Evaluating spending on methane emissions reduction is a dynamic exercise as technologies and data steadily improve, regulations change, and mitigation progress continues.”

The Permian Basin’s success in reducing methane emissions is a model for the rest of the industry. It shows that with the right technologies and a commitment to continuous improvement, significant progress can be made in reducing greenhouse gas emissions. This is a win for the environment, the industry, and the communities that depend on both.

As we look to the future, it is essential that we continue to support and invest in the technologies and practices that have made this progress possible. The fight against climate change requires a collective effort, and the oil and gas industry has a crucial role to play. By continuing to innovate and reduce emissions, we can ensure a sustainable future for generations to come.

Missi Currier is president of the New Mexico Oil and Gas Association; Jim Winchester is president of the Independent Petroleum Association of New Mexico; Ben Shepperd is president of the Permian Basin Petroleum Association.