Clearing the Air: Reducing Upstream Greenhouse Gas Emissions from U.S. Natural Gas Systems

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James Bradbury, Senior Associate, Lead Author Co-authors: Mike Obeiter, Laura Draucker, Wen Wang and Amanda Stevens April 4, 2013 Clearing the Air: Reducing Upstream Greenhouse Gas Emissions from U.S. Natural Gas Systems

description

The rapid expansion of unconventional natural gas development has reshaped the U.S. energy picture through increased production and reduced prices of natural gas. The shale gas production boom has also ignited divisive debates over its near- and long-term environmental impacts. Our new study looks to clarify what is known about leakage rates of methane, a potent greenhouse gas, from the U.S. natural gas sector, what progress has been made to reduce those emissions, and what more can be done to further reduce leakage. Despite lingering data uncertainties, we find that these emissions can and should be addressed with urgency, and we identify a number of cost-effective reduction options available to do so. The paper outlines tools that federal and state governments can employ to reduce these harmful emissions, helping to clear the air and slow the rate of climate change.

Transcript of Clearing the Air: Reducing Upstream Greenhouse Gas Emissions from U.S. Natural Gas Systems

Page 1: Clearing the Air: Reducing Upstream Greenhouse Gas Emissions from U.S. Natural Gas Systems

James Bradbury, Senior Associate, Lead Author

Co-authors: Mike Obeiter, Laura Draucker, Wen Wang and Amanda Stevens

April 4, 2013

Clearing the Air:

Reducing Upstream Greenhouse Gas Emissions from U.S. Natural Gas Systems

Page 2: Clearing the Air: Reducing Upstream Greenhouse Gas Emissions from U.S. Natural Gas Systems

Overview

1) What is known about methane emissions from natural gas systems?

2) What has been done to reduce those emissions?

3) What more can be done?

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Why we need to “get it right”

Page 4: Clearing the Air: Reducing Upstream Greenhouse Gas Emissions from U.S. Natural Gas Systems

Natural gas vs. coal: a climate perspective

Source: adapted from IEA, “Golden Age of Gas” special report (Figure 1.5)

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Estimating Emissions From Shale Gas Systems

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Opportunities to Reduce Fugitive Methane

• New EPA rules – NSPS/NESHAP– Volatile Organic Compounds(VOCs)– Hazardous Air Pollutants (HAPs)

• Two Scenarios with additional reductions– Low-hanging fruit– “Go-getter” scenario

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Upstream GHG Emissions Projections, Shale Gas Systems

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Business as Usual

Reference Case, with EPA NSPS Rule

MM

t CO

2e, 1

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r GW

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Pre-NSPS

BAU (w/ NSPS)

Source: Baseline GHG data from Weber and Clavin (2012), EPA (2012a), and EIA (2012).

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Upstream GHG Emissions Projections, All Natural Gas Systems

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Reference Case

Reference Case, with EPA NSPS Rule

MM

t CO

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00 y

r GW

P Pre-NSPS

BAU (w/ NSPS)

Source: Baseline GHG data from Weber and Clavin (2012), EPA (2012a), and EIA (2012).

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Upstream GHG Emissions

Projections from all Natural Gas

Systems, with Two

Abatement Scenarios

Source: Baseline GHG data from Weber and Clavin (2012), EPA (2012a), and EIA (2012).

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Federal & State Policies to Reduce Emissions

• EPA - Direct regulation of GHG emissions– Address new and existing sources– Gets sources with lower VOC concentrations

• Enabling State Policy Leadership– Raise revenues to help state agencies keep pace– Provide technical and regulatory assistance to

states with expanding O&G development– Develop a database on state policy actions;

support model rules and legislation

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Improve Understanding of Emissions/Expand Policy and Technology Options

• Collect and Analyze emissions data– Direct emissions measurements– Update emissions factors for key processes

• Applied technology research and development– Emissions measurement/leak detection– Reduce costs for abatement options

• Identify and address barriers to investment in cost-effective emissions controls

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Key Takeaways1. Fugitive methane emissions represent roughly 3 to 4% of

total U.S. GHG emissions

2. Reducing these emissions to below 1% will help ensure that fuel-switching to natural gas is beneficial

3. Fugitive methane occurs at every stage of the natural gas life cycle, more direct measurements are needed

4. Recent EPA rules will stem methane leakage; but much greater reductions can be achieved cost-effectively

5. The Clean Air Act is an appropriate tool for policy action; responsive to industry and flexible for states