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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. 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.


Market-distorting energy subsidies vs. the market As energy consumers, Americans benefit most when all of the nation’s energy sources play a role in supplying the grid. Subsidies, like those recently pushed for nuclear plans in New Jersey, Ohio and Connecticut create a distorted market with an uneven playing field and do a disservice to energy consumers. While voters in key states like Pennsylvania, New Jersey, Ohio and Connecticut have made it clear in the polls that they don’t want to pay for nuclear plant bailouts, a recent IHS Markit study oddly suggests that the solution to market distorting subsidies to some energy sources is more subsidies. The study says that: Subsidies for specific generating technologies do not reduce, but rather shift, some of the cost of specific electric generation technologies. Federal subsidies shift some costs from consumer power bills to current or future consumer tax bills. In addition, some state subsidies shift costs from consumers with distributed generation resources to those without. Since subsidies shift costs, the result is the development of more subsidized resources than are cost-effective with a level playing field. As a result, an economic rationale exists for market interventions to offset the unintended consequences of the uneven playing field. Allowing the market itself to choose winners and losers in energy sourcing is the best approach to electricity generation for consumers. Factors like reliability, affordability and efficiency come into play, and unbiased markets allow for the innovation and competition that results in real solutions like lower prices and a better end-product. Natural gas was the leading energy source in the United States in 2016 with its growth attributed not to subsidies, but to the market. A recent study examined different energy sources to determine their reliability when supplying the future U.S. power grid. Study results show that “natural gas is uniquely positioned among energy sources to supply attributes – dispatchability, ramp rates, frequency response and others – that ensure the future reliability of the U.S. power grid.” These results demonstrate how natural gas provides a reliable source of energy, without subsidies that tip the market. While the idea is not to argue against other energy sources, the market and consumers alike can see the advantages offered by natural gas. And ultimately, the advantages offered to consumers by a market free of distorting-subsidies.

Is natural gas a type of clean energy? One of the major benefits of natural gas is that it’s a type of clean energy, offering environmental benefits over other fossil fuels like coal that include reduced CO2 emissions. In fact, CO2 emissions from natural gas are half of those resulting from coal. The increased reliance on natural gas over the past few years has resulted in the lowest CO2 levels the power sector has seen in nearly three decades. The U.S. Energy Information Administration attributes this benefit to the use of natural gas for energy production. Use of natural gas over coal is credited for nearly two-thirds of reductions in CO2 emissions from years 2006 to 2014. But, the environmental benefits do not end with CO2 emissions. As a source of energy, the use of natural gas will reduce other emissions including: NOx SO2 PM Acid gasses Hg Non-Hg heavy metals In addition to its environmental benefits, natural gas is helping the United States toward economic-related environmental and energy sustainability goals. According to the United States Department of Energy, “The clean energy industry generates hundreds of billions in economic activity, and is expected to continue to grow rapidly in the coming years. There are tremendous economic opportunities for countries that invent, manufacture and export clean energy technologies.” How Do Natural Gas Pipelines Work? In the 1920s, natural gas was discovered in the United States’ Great Plains. Upon that discovery, the rate of pipeline construction increased sharply to accommodate a growing need for natural gas as a heating fuel in large Midwestern cities. Since then, the United States has developed a sprawling natural gas pipeline network, composed of over 300,000 miles of transmission pipelines, and more than 210 separate natural gas pipeline systems. This large system can transport natural gas to and from virtually any location in the lower 48 states through both interstate and intrastate pipelines. During the transportation process, natural gas passes through many physical transfers and processing steps. Natural gas is sourced from a producing well or field, and then sent through three main natural gas pipeline types: Gathering pipelines are small-diameter pipelines that move natural gas from a wellhead, to either a mainline transmission grid, or processing plant, depending on the quality of the initial product. Processing plants separate hydrocarbon gas liquids, nonhydrocarbon gases, and water from the natural gas before it is sent to a transmission system. Transmission pipelines are wide-diameter, long-distance pipelines that transport natural gas from the producing and processing areas to storage facilities and distribution centers. A number of compression, or pumping stations line transmission pipelines. These stations contain one or more compressor units that receive the transmission flow from a previous station, and increase the rate and pressure of flow to sustain the movement of the gas along the multiple pipelines it needs to travel to reach markets and consumers. Distribution pipelines, or local distribution lines, move gas closer to cities and residential areas, where local distribution companies reduce the pressure of the natural gas to a level that is suitable for residences and commercial establishments. Smaller service lines travel to the homes, businesses, or industrial areas in need of natural gas.

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