Earth Day 2022: Industry-Led Innovation Equals Environmental Progress

Megan Bloomgren
Posted April 22, 2022

The millions of men and women who make up the U.S. natural gas and oil industry are problem solvers. Every day, they tackle the dual challenge of providing increasing amounts of energy to a growing world population, while reducing the risk to our environment. And they know that being the world’s leading provider of energy must dovetail with being champions of the air, water and land we all need.

This Earth Day is a great opportunity to underscore that the era of increasing production of U.S. natural gas and oil is occurring while emissions are declining. America’s emergence as the top oil producer and the top LNG producer is happening while carbon dioxide levels remain near generational lows. This downward trend is a nod to the deployment of cleaner natural gas in the power sector and the embrace by the natural gas and oil industry of technologies and innovations that reduce their overall footprint.

But last year, as the world economy recovered from the pandemic, a new administration placed restrictions on the production of American natural gas and oil. As a result, consumers were already feeling pain at the pump when Russia invaded Ukraine and exacerbated existing inflationary trends. These headwinds threatened energy security and tightened supply—the key ingredient to price.

API has applauded President Joe Biden and his administration when they take steps to acknowledge energy realities—especially regarding approval of new infrastructure and efforts to bolster LNG supplies for our allies in Europe. But instead of managing from crisis to crisis, policymakers would do well to acknowledge the long-term value of America’s abundance in addressing what could be the world’s central energy reality—that more natural gas and oil will be needed for decades to come. Experts say even if renewables develop as expected and if all 196 nations meet their Paris Agreement emissions reductions, half of global energy used in 2040 will be derived from natural gas and oil.

What does any of this have to do with Earth Day? The answer is potentially everything: If almost half of all energy a generation from now is obtained from natural gas and oil, doesn’t it make the most sense to produce that energy in America, with our high safety standards and stringent environmental regulations?

As the industry focuses on addressing ongoing geopolitical risk and helps with supply challenges overseas, we are just as determined to achieve meaningful environmental progress:

• Progress on Climate Reporting: For decades the industry has strongly supported timely and accurate reporting of greenhouse gas emissions to provide a transparent, factual basis for market-based solutions and government regulators. Regarding recent proposals from the Securities and Exchange Commission, the industry is submitting detailed comments and is looking forward to finding common ground with the SEC as they make revisions.
• Progress on Reduced Flaring: The Environmental Partnership, launched in 2017, is comprised of natural gas and oil companies committed to continuously improving the industry’s environmental performance and reducing flaring of associated gas in oilfield operations. As part of the flare management program, companies are advancing best practices to avoid flaring and minimize emissions. The partnership’s flare management program recently reported a 50% reduction in flare volumes from 2019-20, even as natural gas and oil output stayed consistent.
• Progress on Methane Emissions: The natural gas and oil industry is at the cutting-edge of technologies, including remote monitoring with satellites and lasers to detect methane emissions. Reducing these emissions is a priority in addressing climate risk, and we are seeing results. Innovations led to an average decline in methane emissions intensity of nearly 60 percent across key producing regions from 2011 to 2020, even as American production increased. API supports the direct regulation of methane.
• Progress on Hydrogen and Carbon Capture: Passage of the bipartisan infrastructure law in November of last year provided support for two pro-environment technologies backed by API – advanced hydrogen research and resources to further deploy carbon capture, utilization, and storage technologies (CCUS). Technologies like CCUS have strong support across many industries, labor organizations, and conservation groups, and members of Congress from both parties and both chambers made sure to include CCUS provisions in the final infrastructure bill. API was encouraged these technologies were included and is eager to work with policymakers to modernize U.S. infrastructure to meet increasing demand for reliable energy.

On this Earth Day, it is important to remember that much of the world’s work to address climate risk and tackle climate change is already underway and accelerating right here in America. Safely and responsibly producing natural gas and oil here in America is the top solution for alleviating supply issues as part of an all-of-the-above energy approach. At the same time, American natural gas and oil companies are taking action to protect our environment.