Decline in Permian Basin Methane Emissions Equaled the Annual Carbon Emissions Avoided by Every Electric Vehicle in the United States, New S&P Global Commodity Insights Analysis Finds
S&P Global Commodity Insights reports that methane emissions from oil and gas operations in the Permian Basin decreased 26% in 2023, equivalent to 34 billion cubic feet reduction. This decline equals the carbon emissions avoided by all U.S. electric vehicles that year, or approximately 18.5 million tons of CO2 emissions avoided.
The analysis, conducted with Insight M, used nearly 700 high-resolution aerial surveys covering 88% of the basin's active wells. Despite increased oil and gas production, the basin's methane intensity dropped by over 30%. The methane emissions represented 1.36% of the region's total 2023 production of over 23 bcf per day, with methane intensity at 0.63% of total production.
The improvement is attributed to better equipment and new technologies, including AI-driven analysis and enhanced leak detection methods.
S&P Global Commodity Insights riporta che le emissioni di metano dalle operazioni petrolifere e di gas nel Bacino Permiano sono diminuite del 26% nel 2023, equivalenti a una riduzione di 34 miliardi di piedi cubi. Questa diminuzione corrisponde alle emissioni di carbonio evitate da tutti i veicoli elettrici statunitensi in quell’anno, ovvero circa 18,5 milioni di tonnellate di emissioni di CO2 evitate.
L'analisi, condotta con Insight M, ha utilizzato quasi 700 rilievi aerei ad alta risoluzione che coprono l'88% dei pozzi attivi nella regione. Nonostante l'aumento della produzione di petrolio e gas, l'intensità di metano del bacino è diminuita di oltre il 30%. Le emissioni di metano rappresentavano l'1,36% della produzione totale della regione nel 2023, che superava i 23 bcf al giorno, con un'intensità di metano allo 0,63% della produzione totale.
Il miglioramento è attribuito a migliori attrezzature e nuove tecnologie, inclusa l'analisi guidata dall'IA e metodi avanzati di rilevamento delle perdite.
S&P Global Commodity Insights informa que las emisiones de metano de las operaciones de petróleo y gas en la Cuenca Pérmica disminuyeron un 26% en 2023, lo que equivale a una reducción de 34 mil millones de pies cúbicos. Esta disminución es equivalente a las emisiones de carbono evitadas por todos los vehículos eléctricos de EE. UU. ese año, o aproximadamente 18,5 millones de toneladas de emisiones de CO2 evitadas.
El análisis, realizado con Insight M, utilizó casi 700 encuestas aéreas de alta resolución que cubren el 88% de los pozos activos de la cuenca. A pesar del aumento en la producción de petróleo y gas, la intensidad de metano de la cuenca se redujo en más del 30%. Las emisiones de metano representaron el 1,36% de la producción total de la región en 2023, que superó los 23 bcf por día, con una intensidad de metano del 0,63% de la producción total.
La mejora se atribuye a mejores equipos y nuevas tecnologías, incluyendo análisis impulsados por IA y métodos avanzados de detección de fugas.
S&P Global Commodity Insights는 Permian Basin의 석유 및 가스 작업으로 인한 메탄 배출량이 2023년에 26% 감소했다고 보고합니다. 이는 340억 입방피트의 감소에 해당합니다. 이 감소는 해당 연도 미국의 모든 전기차가 피한 탄소 배출량, 즉 약 1850만 톤의 CO2 배출량에 해당합니다.
Insight M과 함께 수행된 이 분석은 88%의 활발한 우물이 있는 분지를 커버하는 거의 700개의 고해상도 항공 조사를 활용했습니다. 석유 및 가스 생산량이 증가했음에도 불구하고, 분지의 메탄 강도는 30% 이상 감소했습니다. 메탄 배출량은 2023년 해당 지역의 총 23 bcf/일 생산량의 1.36%를 차지했으며, 메탄 강도는 총 생산량의 0.63%였습니다.
이러한 개선은 더 나은 장비와 AI 기반 분석 및 향상된 누출 탐지 방법을 포함한 새로운 기술 덕분에 이루어졌습니다.
S&P Global Commodity Insights rapporte que les émissions de méthane provenant des opérations pétrolières et gazières dans le Bassin Permien ont diminué de 26% en 2023, ce qui équivaut à une réduction de 34 milliards de pieds cubes. Cette diminution est équivalente aux émissions de carbone évitées par tous les véhicules électriques américains cette année-là, soit environ 18,5 millions de tonnes d'émissions de CO2 évitées.
L'analyse, réalisée avec Insight M, a utilisé près de 700 enquêtes aériennes haute résolution couvrant 88% des puits actifs du bassin. Malgré une augmentation de la production de pétrole et de gaz, l'intensité de méthane du bassin a chuté de plus de 30%. Les émissions de méthane représentaient 1,36% de la production totale de la région en 2023, qui dépassait 23 bcf par jour, avec une intensité de méthane de 0,63% de la production totale.
L'amélioration est attribuée à de meilleurs équipements et à de nouvelles technologies, y compris des analyses pilotées par l'IA et des méthodes de détection des fuites améliorées.
S&P Global Commodity Insights berichtet, dass die Methanemissionen aus Öl- und Gasbetrieben im Permian Basin um 26% im Jahr 2023 gesenkt wurden, was einer Reduzierung von 34 Milliarden Kubikfuß entspricht. Dieser Rückgang entspricht den Kohlenstoffemissionen, die von allen US-Elektrofahrzeugen in diesem Jahr vermieden wurden, oder etwa 18,5 Millionen Tonnen vermiedene CO2-Emissionen.
Die Analyse, durchgeführt mit Insight M, nutzte fast 700 hochauflösende Luftbefragungen, die 88 % der aktiven Bohrlöcher des Beckens abdecken. Trotz eines Anstiegs der Öl- und Gasproduktion fiel die Methanintensität im Becken um über 30 %. Die Methanemissionen machten 1,36 % der gesamten Produktion der Region im Jahr 2023 aus, die über 23 bcf pro Tag betrug, wobei die Methanintensität bei 0,63 % der Gesamtproduktion lag.
Die Verbesserung wird auf bessere Ausrüstung und neue Technologien zurückgeführt, darunter KI-gesteuerte Analysen und verbesserte Lecksuchemethoden.
- 26% reduction in methane emissions in 2023
- Methane intensity decreased by over 30%
- Production increased while emissions decreased
- 70% drop in economic value loss from emissions
- Methane emissions still constitute 1.36% of total gas production
- Economic benefits of fixing leaks diminish as leaks become smaller and harder to find
Insights
The 26% reduction in Permian Basin methane emissions represents a watershed moment in environmental progress within the U.S. energy sector. The measurement methodology, utilizing 700 high-resolution aerial surveys covering 88% of active wells, provides unprecedented data reliability. The reduction of 34 billion cubic feet of methane, equivalent to 18.5 million tons of CO2, showcases a significant operational efficiency improvement.
The declining methane intensity ratio (exceeding
For S&P Global (SPGI), this analysis strengthens its position as a leading provider of energy market intelligence and ESG data. The findings validate the effectiveness of modern methane detection technologies and could influence future regulatory frameworks and industry standards. The demonstrated improvement in the Permian Basin, which produces nearly half of U.S. oil output, could positively impact valuations of companies operating in the region.
The economic efficiency of methane capture, even in a low natural gas price environment, suggests potential revenue opportunities for technology providers and operators. This could drive increased investment in methane detection and mitigation technologies, creating new market opportunities for S&P Global's data and analytics services.
Analysis provides the most accurate public, basin-wide estimate of methane emissions for the Permian
The data show that methane emissions from upstream oil and gas operations in the Permian Basin fell by more than 34 billion cubic feet (bcf) in 2023, the most recent year that data is available. Given that methane is a potent greenhouse gas, the reduction was equivalent to 18.5 million tons of carbon dioxide emissions avoided (100-year equivalency factor of 28*).
The findings of the latest analysis for Permian upstream methane, produced in partnership with leading methane management firm Insight M, are based on high frequency observation data that include nearly 700 high-resolution aerial surveys covering
"The sheer scale of this single-year improvement represents significant progress and demonstrates the potential for what lies ahead," said Daniel Yergin, Vice Chairman, S&P Global. "Continued improvements in the Permian—an area roughly the size of
To put the numbers into perspective, the size of the 2023 reduction in methane emissions was:
- More than the total 2023 driving emissions avoided by every EV ever sold in
the United States , even if all the vehicles were powered100% by zero-carbon electricity.
- Roughly the same as the total GHG emission from all sources for the state of
Hawaii during the same period.
The decline in emissions occurred even as total oil and gas production in the Permian increased, the analysis says. As a result, the basin's methane intensity (ratio of total methane emissions to total output) registered an even more pronounced decline, exceeding
The analysis attributes the emissions decline to ongoing improvements in equipment as well as increasing deployment of new technologies—from AI-driven analysis of operational data to on-the-ground sensors, aircraft overflights and satellites—that make it possible to detect leaks with greater speed and accuracy.
"Improvements and increased accessibility of remote sensing technologies is providing a better understanding of
Additional findings from the analysis:
- Methane emissions measured as a percentage of the basin's total natural gas output fell
33% . Methane emissions constituted1.36% of the region's total 2023 production of over 23 bcf per day—roughly 1/5 of allU.S. gas production.
- In terms of total energy (barrel of oil equivalent) produced—notable because Permian production is heavily oil-focused, with associated gas occurring as part of the process—the 2023 methane intensity for the Permian was
0.63% of total production.
- In terms of lost economic value (i.e. had the gas been captured and sold), 2023 methane emissions accounted for just
0.12% of upstream revenues, a70% drop from prior year as gas prices fell relative to oil. While this revenue loss is minor in the context of total revenues, given ongoing improvements in technology fixing leaks can still deliver positive returns.
"For oil and gas operators, evaluating spending on methane emissions reduction is a dynamic exercise as technologies and data steadily improve, regulations change, and mitigation progress continues," said Raoul LeBlanc, Vice President, Global Upstream, S&P Global Commodity Insights. "Obviously, the economics tighten as the leaks get smaller and harder-to-find. However, 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."
About the analysis
Produced by S&P Global Commodity Insights Center for Emissions Excellence in partnership with Insight M, the Permian upstream methane analysis combines near-total coverage of the basin and high frequency observations to provide the most accurate public, basin-wide estimate of fugitive methane leaks and venting released to date.
Frequency:
- The 2023 observed data is derived from roughly 700 survey flights which took place on 185 separate days spread over the course of the year.
Coverage:
88.2% of the 162,000 active Permian wells, (85.1% of conventional wells and95.6% of unconventional wells)- Assets supplying
96.3% of the 3.5 billion boe produced in 2023.
Resolution:
- Overflights offer a level of resolution that is up to 5 times greater than that of satellites, providing reliable attribution not only by facility, but in most cases to specific assets or pieces of equipment.
Threshold:
- Measurements taken detect emissions as low as 10 kg/hr, which account for more than
72% of total methane released to the atmosphere from upstream oil and gas operations. The volumes from all sources below this threshold were estimated using the Rutherford model developed by Stanford University. More information on the methodology employed by Insight M can be found here.
Global Warming Potential Factor:
- S&P Global Commodity Insights conversion of methane to CO2 equivalency are based on a Global Warming Potential (GWP) factor for 100 years of 28 tons of CO2 per ton of methane. Using the 20-year factor of 86 would thus increase both the emissions reduction and the continuing emissions to 3.07 times the figures cited in this report.
* Compared with a ton of CO2, a ton of methane (CH4) absorbs more energy and thus has a greater impact on earth's warming. However, methane stays in the atmosphere for only about a decade, whereas CO2 persists for hundreds of years. When looked at on a 100-year basis, methane thus has a Global Warming Potential of 27-30 times that of the same mass of CO2.
Media Contacts:
Jeff Marn +1-202-463-8213, Jeff.marn@spglobal.com
Global/EMEA: Paul Sandell + 44 (0)7816 180039, paul.sandell@spglobal.com
Americas: Kathleen Tanzy + 1 917-331-4607, kathleen.tanzy@spglobal.com
Asia: Melissa Tan + 65-6597-6241, melissa.tan@spglobal.com
About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of global energy and commodity markets enables our customers to make decisions with conviction and create long-term, sustainable value.
We're a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts® products and services, including leading benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights. S&P Global Commodity Insights maintains clear structural and operational separation between its price assessment activities and the other activities carried out by S&P Global Commodity Insights and the other business divisions of S&P Global.
S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit https://www.spglobal.com/commodityinsights.
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SOURCE S&P Global Commodity Insights
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