Cost-Effective Methane Emissions Reductions for Small and Midsize Natural Gas Producers

Introduction U.S. demand for natural gas continues to grow dramatically, in large part because methane is the cleanest-burning fossil fuel. Onshore and offshore drilling and production continue to expand, often in very challenging plays ranging from shallow low-pressure coalbed methane to deep high-pressure/high-temperature gas production. A significant amount of this demand is expected to be met by independent producers. The U.S. Dept. of Energy estimates that small and midsize independent operators produce more than two-thirds of the natural gas in the lower 48 states. Independent producers drill 85% of new gas wells in the U.S., and 80% of these companies have fewer than 20 employees. Methane emissions from the U.S. natural gas production sector are approximately 150 Bcf/yr. With record sales prices for natural gas and high consumer demand, natural gas producers have great incentive and opportunity to reduce currently lost product and increase their revenue. Often many small producers lack the time and technical staff to research and evaluate cost-effective methane emission reduction opportunities, yet there are numerous proven and cost-effective methane emissions reduction technologies and techniques that are available today to the small to midsize producer. While individual releases of methane may appear to be minor, emissions are often continuous in nature, and cumulatively they become economically significant. This article provides information on methane emission reduction options that were developed by operators and promoted by the U.S. Natural Gas STAR Program, and are economic for small and midsize producers. In addition to increased revenue through reduced methane loss, many of the technologies and practices outlined here reduce operating costs, increase overall production, and provide high rates of return. All of these technologies and practices have been reported by gas producers through their participation in the Natural Gas STAR Program. This paper provides information and tools to help independent producers determine the most profitable gas emissions savings options for their operations. We describe 25 cost-effective methane emission reduction technologies and practices in Table 1, provide costs and savings data in Table 2, and crosswalk technologies and practices with production characteristics in Table 3 to help determine where each methane savings option is most likely to work. Finally, we provide a method to scale this data to your operation and calculate your potential economics in Fig. 1.