Permian Methane Emissions Reductions Point to Broader Progress

Mark Green
Posted January 2, 2025

Oil and natural gas company efforts to reduce methane emissions from operations have paid off – with plenty of reason to believe this progress can continue in the future. 

That’s the big takeaway from a new analysis by S&P Global Commodity Insights, showing upstream methane emissions in the Permian Basin, one of America’s most prolific production areas, dropped 26% in 2023 compared to 2022.  

A decrease in methane intensity – a ratio of total methane emissions to total output – was even more pronounced, falling more than 30%. 

Both numbers underscore the importance of new technologies – from analysis of operational data driven by artificial intelligence to on-the-ground sensors, aircraft overflights and satellites – to identify emissions sources and resolve them. 

Kevin Birn of S&P Global Commodity Insights: 

“Improvements and increased accessibility of remote sensing technologies is providing a better understanding of U.S. methane emissions, and more actionable information. Leaks that previously might have persisted for weeks or months can now be addressed in a matter of days.” 

Behind investments in technologies and manpower is the priority companies have assigned to reducing emissions to protect the environment and advance climate goals, and to capture as much methane as possible because it is the main component in the natural gas they deliver to customers.  

The Environmental Partnership, an industry-led initiative, has six voluntary programs designed to reduce methane emissions using proven, cost-effective technologies. For example, since 2018, participants have removed or replaced more than 180,000 natural gas-driven pneumatics, resulting in the permanent reduction of an estimated 355,421 metric tonnes of methane emissions per year, based on EPA’s mandatory emissions reporting requirements in place in 2023.  

There’s no question these initiatives have had positive effects in the Permian and other producing zones. It’s fair to say the U.S. and the Permian specifically are among the most actively monitored producing areas in the world. – contrasting with other areas where there is no data monitoring or reporting. 

Dan Yergin, S&P Global vice chairman: 

“The sheer scale of this single-year improvement represents significant progress and demonstrates the potential for what lies ahead. Continued improvements in the Permian – an area roughly the size of Great Britain that is responsible for almost half of all U.S. oil output – is providing a path to make meaningful contributions that lower overall U.S. emissions.” 

Additional detail from the S&P Global analysis: 

• Annual methane emissions reductions in the Permian in 2023 were equal to the total carbon emissions avoided by every electric vehicle on the road in the U.S. 

• Permian methane emissions decreased by more than 34 billion cubic feet in 2023 – equivalent to 18.5 million tons of carbon dioxide emissions avoided. 

• The analysis is based on high frequency observation data that include nearly 700 high-resolution aerial surveys covering 88% of the Permian’s 162,000 active wells. Overflights offer a level of resolution up to five times greater than that of satellites, providing reliable attribution by facility and, in most cases, to specific assets or pieces of equipment. 

On X, API President and CEO Mike Sommers called the S&P Global analysis “great news” to close 2024: 

“Through innovation, and collaboration, the U.S. oil and natural gas industry is delivering results on climate progress while powering the world.”