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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.

What is Natural Gas? To define natural gas, we must to understand what it consists of, beyond an understanding that it comes from nature. Natural gas is made up of a mixture of four naturally occurring gases, all of which have different molecular structures. This mixture consists primarily of methane, which makes up 70-90% of natural gas along with ethane, butane and propane. These gases are a result of compacted heat and pressure from deceased animals buried deep under the Earth’s surface for millions of years. Natural gas is extracted from inside the Earth through natural gas drilling and alongside oil drills. Once extracted, the gas is combined with a liquid called crude oil – this is how we can convert natural gas into everyday energy. Why Use Natural Gas? Natural gas is a beneficial source of natural energy, offering advantages over other energy sources such as: • fewer impurities • less chemically complex • combustion results in less pollution • produces less carbon dioxide (which is the primary greenhouse gas), sulfur dioxide (primary precursor of acid rain), nitrogen oxides (primary precursor of smog) and particulate matter (affects health and visibility), than other energy sources • affordable • reliable, meaning it is available for extraction. Natural gas is also being as a clean energy source in the following ways: • making fertilizer for ethanol • generating power for homes and businesses • transportation on land and sea • electricity generation • making methane for hydrogen • used in most of our manufacturing products. Where is Natural Gas? Domestic natural gas production has grown over 20% in the past few years and America is now the world’s leading producer. It is estimated that America has at least a 100-year supply of natural gas. Natural gas is most abundant in states including Texas, Pennsylvania and Oklahoma. Fun Facts about Natural Gas • Natural gas is odorless, colorless, flammable and non-toxic. • Natural gas was first discovered when lighting strikes ignited gas that was seeping from the ground in the middle east between 6000 and 2000 BC. • In 1626, natural gas was found in America when French explorers discovered Native Americans igniting gases that were seeping out of Lake Erie. • A man-made volcano erupts in front of the MGM Mirage Hotel in Las Vegas every hour on the hour in the evenings and it is fueled with pina colada-scented natural gas.

Natural Gas is Reliable Why do we need natural gas? Natural gas works for America because it is a reliable source of energy. Think of all the times throughout the day that we rely on energy being conveniently and readily available. Every time you flip a switch to turn on the lights, press a button to turn on your computer, or turn a knob to power your stove, energy is used. As consumers, we demand that energy be available 24 hours a day, year round. But while energy use is constant, the amount of energy used is not always consistent. Consider, for example the different climates around the country and the fluctuations in energy needed to heat and cool homes throughout the year. Maintaining the supply to meet demand requires a balance between the energy that flows into the power grid, and the energy used. We need an efficient and flexible source of energy that keeps the lights on, even when the wind isn’t blowing or the sun isn’t shining. Natural gas is the right solution to meet these needs. The forecast for natural gas To say that natural gas is reliable touches on a few other key points, that it is abundant and affordable. In 2016, one-third of all electricity used in the US was produced by natural gas. And the outlook on natural gas is promising. America has an abundance of natural gas, meaning generations of resources that we can extract and produce at affordable costs.

Is Natural Gas Affordable? Yes, natural gas offers an affordable source of energy. According to an IHS study, 800 trillion cubic feet of natural gas can be developed for around $3 per cubic foot, and America consumed 27.5 trillion cubic feet of natural gas in 2016. When you do the math, it’s clear that natural gas is a cost effective solution to America’s demand for energy. Why is Natural Gas Affordable? Affordability goes hand in hand with the fact that natural gas is abundant in America. As mentioned, the amount of natural gas used by America in 2016 amounts to 27.5 trillion cubic feet, yet an additional 800 trillion cubic feet is available at roughly the same price point. And, another 1,400 trillion cubic feet of natural gas is available at just a reasonable price point. Extraction > Production > Savings Advancements in natural gas extraction methods have resulted in an abundant supply of natural gas. Technology has increased production efficiency through both hydraulic fracturing (also commonly referred to as fracking) and directional/horizontal drilling. Improved production methods reduce costs, allowing producers to produce more natural gas and oil. Assuming that technological advancements within the industry continue over the next decade with access to additional resources, the estimated total end-use consumer cost of natural gas and electricity in the year 2030 is expected to drop from $654.8 billion to $588.9 billion. This 10.1% price decrease accounts for a savings $65.9 billion, nationally. Per household, this reflects a savings of $464. By the year 2040, end-use consumer costs of natural gas and electricity are estimated to drop 14.5%, or $100.6 billion. Per household, this reflects a significant savings of $655 per household.