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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.

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.

Energy is Becoming Cleaner The United States used 97.8 quadrillion British thermal units (Btu) of energy in 2016. That’s 3.5 times more energy than Russia used the same year. Burning fuel to meet these energy demands affects the environment, but a shift in the last decade to lower-carbon natural gas has had a significant impact. Natural gas also emits less carbon dioxide (CO2) than other fossil fuel sources, so its greater use drives down the number overall. In fact, the U.S. Energy Information Administration’s (EIA) projections show that in 2019 energy-related carbon emissions will have decreased 13 percent from 2005. Why has this shift occurred? Technology and innovation have provided access to abundant supplies of natural gas – an energy source that produces fewer emissions than other fossil fuels. Its increased availability has increased its affordability, making natural gas the leading choice for electric generation and supporting renewable energy. Innovation in Access Though people have used natural gas since 1000 B.C., innovations over the past few decades have improved the efficiency and effectiveness in how we extract it. Advanced technologies, like hydraulic fracturing and horizontal drilling, allow operators to access larger amounts of natural gas trapped in shale and other tight rock formations. While conventional vertical drilling requires spacing out many individual wells over a wide area, horizontal drilling allows for up to 20, or more, wells from a single surface location. Utilizing these techniques has reduced the surface footprint of natural gas development by 90 percent. Continuously evolving technologies have pushed production to reach record highs by streamlining the extraction process. These innovations have also impacted the amount of methane emitted from hydraulically fractured natural gas wells, which dropped 14% between 1990 and 2016, even as production rose more than 50 percent. Increased Use of Natural Gas Increased access to natural gas has made it more abundant and affordable. This energy source fueled more than 31 percent of U.S. electricity generation in 2017, leading all other fuels and the EIA projects that number will rise to 41 percent by 2050. The surge stems from the construction of new natural gas plants to meet growing demand, in addition to replacing facilities that use more carbon-intensive fuel, like coal. This is already evident in regions like the northeastern U.S., where natural gas has nearly doubled its generation portfolio. Natural Gas Generates Most of Our Electricity Flexibility for America’s Electricity Grid A rise in renewable generation is another way power is becoming cleaner. These carbon-free technologies are an important part of our energy future, but most sources can’t produce energy 24 hours a day. For example, solar panels can only generate electricity when the sun is shining. Natural gas can act as a stable back-up, providing power when renewables cannot. By quickly ramping up and down production to match the changing output from these emissions-free sources, natural gas has asserted itself as a key ally in bringing more renewables online. The benefits of this partnership are demonstrated in a 2016 study by the National Bureau of Economic Research, which found that for every 1% increase in natural gas’ share of electricity generation, there was a .88% increase in long-term renewable capacity. The U.S. is primed to lead the way in clean energy development. Whether its providing cleaner baseload power, or integrating more innovative, variable renewable energy sources, natural gas is cleaning up our energy options.