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Reducing Methane Emissions All energy sources have an environmental effect; from the space they take up to emissions produced throughout their life-cycle. As an example, there is some methane released during natural gas development. But despite a record-setting over the last three decades, the amount of methane emitted into the atmosphere during natural gas extraction continues to drop. Why? Because leading companies are working hard to continuously improve their environmental performance by developing new technologies, collaborating with other companies and colleagues, and implementing best practices that will bring these emissions down to nearly zero. What is methane? Methane is the primary component of natural gas. With a chemical formula of CH4, methane is made up of four hydrogen atoms and only one carbon atom. The result? For the same amount of energy produced, burning natural gas emits significantly less CO2 into the air than other fossil fuels. Methane is the clean-burning energy source that fuels our nation more efficiently and cost effectively than ever before. However, methane in the atmosphere is a greenhouse gas. That’s why the industry’s proactive stance on reducing methane emissions that occur during the development of natural gas is so important. Moving even faster in the right direction. According to the Environmental Protection Agency, methane emissions from the energy sector decreased 14 percent from 1990 to 2016, while natural gas output increased by more than 50 percent during the same period. And now, new industry programs are bringing companies together to share information and take actions that reduce methane emissions further and faster than ever before. The Oil and Gas Climate Initiative has committed $20 million to support technologies and businesses that detect, measure and mitigate methane emissions. And The Environmental Partnership, comprised of dozens of the country’s largest natural gas companies responsible for 30 percent of U.S. production, has made a collective commitment to reach specific goals within the next five years that will drastically reduce operational methane emissions. One of these goals is to create a more airtight infrastructure through the widespread replacement of pneumatic control valves. Pneumatic control valves manage liquid levels, temperature and pressure during the production, transmission and storage of natural gas. Replacing existing pneumatic controllers with low- or zero-bleed alternatives will nearly eliminate a major source of emissions. Methane leak detection, monitoring, and repair is another area of increased focus. Over the next eighteen months, companies will rapidly increase the use of technologies like optical gas imaging (OGI) infrared cameras to detect and measure methane leaks from a variety of gas industry equipment and will complete necessary repairs more quickly. Companies are also ramping up internal training programs to ensure employees understand and follow all best practice protocols and procedures to reduce or eliminate methane emissions. In addition to industry-led initiatives like these, natural gas companies are voluntarily participating in programs administered by the U.S. Environmental Protection Agency, including Natural Gas STAR, and Methane Challenge, both of which promote the use of technologies and practices that reduce methane emissions. One successful practice is a protocol for completing new natural gas wells known as reduced emissions completions, or “green completions.” The process captures gas that would otherwise be released into the atmosphere during the final stage of bringing a new gas well online. Since the start of these EPA programs, U.S. energy partners have implemented approximately 150 new technologies and practices and eliminated nearly 1.39 trillion cubic feet (Tcf) of methane emissions. One goal, many benefits. Controlling methane emissions is not only about environmental health and safety – it’s also good economics. Methane is a valuable commodity; eliminating methane leakage means more natural gas is captured and retained, which can be sold and used as energy. The increased use of natural gas has reduced carbon emissions, lowered costs to American consumers, and increased our nation’s manufacturing competitiveness. U.S. industrial electricity costs are lower than those of our foreign competitors, giving manufacturers – including producers of steel, chemicals, refined fuels, plastics, fertilizers and numerous other products – a major competitive advantage. Industry standards and existing regulations on air emissions from EPA and other agencies are empowering the private sector to continue to innovate and deliver more natural gas and oil to customers while improving air quality and protecting public health and the environment without unnecessarily hampering manufacturing and business expansion. What’s more, the methane mitigation industry has taken off over the past six years, leading not only to cleaner air, but also to high quality jobs in a growing field. Methane mitigation equipment manufacturers and service providers are providing an array of good-paying jobs across nearly all 50 states. The industry’s numbers are trending in all the right directions. Natural gas production is up while carbon emissions are down, and the industry’s big steps forward in reducing methane emissions are having a broad and positive impact. It all adds up to a win-win situation – for the industry, the environment, the American workforce, and energy consumers everywhere.

Increasing America’s Energy Security From daily commutes to keeping homes warm in the winter, Americans rely on energy each day. Because of its importance in everyday life, it is crucial that energy resources remain readily available and affordable. The ability for the U.S. to access reliable energy is known as its energy security. When a country is in control of its access to energy, and doesn’t need to rely on other countries, it’s more secure. For over 60 years, the U.S. couldn’t produce enough natural gas to meet its energy needs, instead relying on imports from other countries – until now. In 2017, the U.S. became a net exporter of natural gas. This remarkable transformation means that, because more natural gas was produced than needed, we can now export more to other countries than we import. Why? Hydraulic fracturing, horizontal drilling and a number of innovative technologies enabled the nation to extract more natural gas at an affordable price, making the U.S. the world’s leading producer. By importing fewer energy resources and exporting more to allies, the nation is creating jobs, boosting the economy, and securing its footing in the global energy marketplace. Exporting natural gas. Growing American Jobs. With global demand for energy expected to increase drastically in the coming years, U.S. natural gas exports show no sign of slowing down. According to the International Energy Agency’s World Energy Outlook 2017, global energy demand will rise at a rate equivalent to adding another China and India to today’s demand level by 2040. Additionally, natural gas use will rise by 45 percent in the same period. This opportunity will undoubtedly boost America’s economy at home. We just completed a second liquefied natural gas (LNG) export plant in Maryland. This one terminal alone is creating thousands of jobs and millions in tax revenue. In addition to the two already in operation, four other LNG projects are currently under construction and many more are in various stages of proposal. These export terminals hold a bright future for the U.S. economy. By 2040, U.S. exports of LNG could create 452,000 jobs nationwide and add $73.6 billion to the economy. Supporting Our Friends. Becoming an Energy Leader. Because we now have more than enough affordable natural gas at home, we can sell to our allies around the world. This ensures our allies have what they need, while weakening the hand of bully nations that use energy as a bargaining chip to advance their own interests. Helping our allies, and removing the bargaining chips of nations whose interests don’t align with our own, has firmly established the U.S. as an energy superpower. Many countries in eastern Europe are now looking to the U.S. for natural gas to diversify their energy sources. For example, Poland was heavily dependent for years on energy imports from one country that used the natural gas it supplied as leverage for more power. To reduce its reliance on a single country alone and increase its own energy security, Poland completed its first LNG import terminal in 2016 and started importing U.S. LNG in July 2017. It has subsequently agreed to buy additional U.S. LNG going forward, with other countries in the region—including Lithuania and Croatia—expressing interest in doing the same. And because natural gas is a cleaner burning fuel source, American LNG exports will often benefit the environment for everyone. Greater adoption of LNG enables countries to modernize their energy infrastructure while reducing the amount of CO2 released into the atmosphere. It is projected that LNG will have greenhouse gas emissions 43 to 52 percent lower than today’s dominant fuel by 2035. Natural gas is transforming the energy landscape at home and around the world. Because the U.S. is now producing record amounts of natural gas within its own borders, the national economy is growing, and America is becoming a stronger global leader.

Natural gas makes U.S. manufacturing more competitive. The price of energy – from the electricity needed to run a factory to the gas powering the delivery truck – impacts the final cost of every item you purchase. Some things require more energy than others. In the steel industry, energy can account for 20 to 40 percent of the cost to make materials for things like stainless steel appliances or railroad tracks. So when manufacturers have access to less expensive energy, their overall production costs decrease as well. For decades, Americans saw their jobs move overseas where the labor, and thus cost of doing business, was cheaper. But a shift since 2010, according to the Bureau of Labor Statistics, shows that the number of manufacturing employees continues grow. Why? Innovative technologies like hydraulic fracturing and horizontal drilling now provide access to abundant supplies of natural gas. This energy source’s increased availability caused its prices to drop and companies have utilized the savings in many ways, which includes hiring more workers. This is especially true for U.S. energy-intensive manufacturers, who now have an advantage over many foreign competitors, and that means more investment and jobs. For example, access and proximity to this plentiful energy resource has made the U.S. the place to be for petrochemical and plastics manufacturers. According to the American Chemistry Council, our abundant supply of natural gas has attracted nearly $200 billion in new manufacturing investment which will create 468,000 new jobs by 2025. The need for this plentiful, affordable energy source is not slowing down. According to the National Association of Manufacturers, total natural gas demand is expected to increase by 40 percent over the next decade, with the manufacturing and power generation sectors driving that need. Natural gas is in manufactured products. From parts in the cars we drive to the toys we buy our children, natural gas products serve as a building block for thousands of consumer goods. It’s one of the primary feedstocks for chemical compounds know as petrochemicals. Scientists classify these compounds into one of three categories – olefins, aromatics and synthesis gas. Natural gas liquids produce around 90% of U.S. olefins, which is a class of chemicals that includes ethylene, propylene, and butadiene. These three petrochemicals are required to manufacture a wide range of items that support the leisure and fundamental comforts of modern life. Vehicles, no matter the power source or size, are lighter, sleeker and faster because of the natural-gas based plastics, fibers, compounds and adhesives used to make and maintain them. They’re also safer thanks to the seat belts and air bags made from polyester, a strong, durable and flexible fiber. Products made with natural gas also save lives – acrylic lenses sharpen the vision of those suffering from cataracts; sterile products, like intravenous lines and bags, gloves, masks and catheters, prevent the spread of disease; and medications are able to last longer with refrigeration. The Renaissance of petrochemical manufacturing. Just a decade ago, the U.S. petrochemical industry was in decline. However, greater access to low-cost natural gas feedstocks, and an increased need for goods manufactured with them, has shifted the tide. According to the International Energy Agency, global economic growth is lifting people in developing countries into the middle class. Higher incomes give these individuals more money to buy items made with petrochemicals like kitchen appliances, toys, credit cards and furniture. This demand has resulted in multimillion-dollar investments to expand or build new petrochemical manufacturing facilities. In fact, jobs at energy-related chemicals companies are projected to rise from 53,000 in 2012 to nearly 319,000 by the end of 2025. Not only will job growth increase, but so will wages. Labor income in the energy-related chemicals industry will likely increase nearly $3.8 billion in 2012 to just over $26 billion in 2025. And though the industry has a long history along the Gulf Coast, this boon has the potential to create a secondary hub in Appalachia. Two advantages of this area are its proximity to abundant natural gas liquids in the Marcellus and Utica shale formations and to major manufacturing markets in the Midwest and East Coast. According to the American Chemistry Council, this growth could result in over 100,000 new jobs for residents throughout the mountain region, thanks in part to natural gas. The shale revolution has meant so much more than just lower electricity prices for end consumers. Increased natural gas production has resurrected manufacturing, and brought along with it more jobs, higher wages and the potential for new business in new regions.