Delta Dispatches: Sitting Down with the St. Bernard Parish Coastal Division

6 years 10 months ago

On today’s show John Lane and Jerry Graves from the St. Bernard Parish Coastal Division join Jacques and Simone to talk about the progress on the rebuilding and coastal front, particularly since Hurricane Katrina in St. Bernard Parish, The Biloxi Marsh Oyster Reef restoration, the Chandeleur Islands & the efforts to restore these islands, their event "Cook-Off for the Coast" on November 18th and much more! Below is a transcript of this week's Delta Dispatches Podcast. Subscribe to our feed ...

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The post Delta Dispatches: Sitting Down with the St. Bernard Parish Coastal Division appeared first on Restore the Mississippi River Delta.

rchauvin

Microgrids can help prevent extreme power outages, and cities are taking notice

6 years 10 months ago
By Ellen Shenette, manager, EDF Climate Corps This year, the Atlantic basin had eight consecutive storms develop—the first time in 124 years. The storms—and by storms I mean big storms—have had catastrophic effects on families, communities and the economy at large. Millions of people were left powerless, access to clean drinking water was compromised and homes were […]
EDF Blogs

Microgrids can help prevent extreme power outages, and cities are taking notice

6 years 10 months ago
By Ellen Shenette, manager, EDF Climate Corps This year, the Atlantic basin had eight consecutive storms develop—the first time in 124 years. The storms—and by storms I mean big storms—have had catastrophic effects on families, communities and the economy at large. Millions of people were left powerless, access to clean drinking water was compromised and homes were […]
EDF Blogs

Microgrids can help prevent extreme power outages, and cities are taking notice

6 years 10 months ago
By Ellen Shenette, manager, EDF Climate Corps This year, the Atlantic basin had eight consecutive storms develop—the first time in 124 years. The storms—and by storms I mean big storms—have had catastrophic effects on families, communities and the economy at large. Millions of people were left powerless, access to clean drinking water was compromised and homes were […]
EDF Blogs

Microgrids can help prevent extreme power outages, and cities are taking notice

6 years 10 months ago

By EDF Blogs

By Ellen Shenette, manager, EDF Climate Corps

This year, the Atlantic basin had eight consecutive storms develop—the first time in 124 years. The storms—and by storms I mean big storms—have had catastrophic effects on families, communities and the economy at large. Millions of people were left powerless, access to clean drinking water was compromised and homes were destroyed. It will take decades for the country to recover from this devastation, and hurricane season is only halfway over.

And as the intensity of these storms increases, so do their price tags. Together, hurricanes Harvey, Irma and Maria, which hit the U.S. earlier this fall, are estimated to cost $150-$200 billion in combined destruction. This is an enormous blow to the economy and to tax payers’ wallets.

To those of us on the east coast, this sounds awfully similar to destruction caused by Hurricane Sandy, which hit New York City and New Jersey hard this time five years ago. That’s why it’s important to ask: could the devastation have been avoided, or at least reduced?

Microgrids can help prevent extreme power outages, and cities are taking notice
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Cities are building back, stronger

This year’s storms showed the vulnerability of centralized electric grids, and the need for a modernized system. When Hurricane Maria hit Puerto Rico, 100 percent of the territory’s power supply was cut off to its 1.57 million customers and 80 percent of the transmission and distribution system destroyed. The rebuilding and repairs will go on for months.

Fortunately, changes to our current electrical system can prevent some of this. Microgrids–localized power grids that can operate independently from the main, centralized grid–are designed to provide power when the traditional grid is not functional. The ability to act autonomously strengthens the power system’s reliability and resilience, and protects critical infrastructure, such as hospitals, water treatment facilities and police stations in event of an extreme weather event like we saw this year.

Microgrids can be clean by adding renewables like solar and wind that reduce reliance on fossil fuels and diesel generators—which may be compromised in a major storm event.

They can also be clean by adding renewables like solar and wind that reduce reliance on fossil fuels and diesel generators—which may be compromised in a major storm event. And, since microgrids are not transmitting electricity over long distances, they don’t require an extensive network of transmission lines, allowing them to get up and running soon after a storm hits.

In the aftermath of Hurricane Sandy, the City of Hoboken announced it would use recovery funds to design a microgrid that would increase its sustainability and resiliency. With the help of EDF Climate Corps, the City of Hoboken created a Microgrids Toolkit. The toolkit includes a centralized dashboard for monitoring energy use, a timeline for implementation and scorecard for tallying up the potential benefits. It’s a customizable tool that can be used to scale projects across cities, creating a more resilient coastline.

The toolkit is currently being used to study the potential for additional microgrids in other municipalities across the state.

Spotlight: NY taking action

Now, New York is jumping on the microgrid train. During Sandy, nearly 2 million customers lost power and $19 billion in damages incurred. Some of the most important utility infrastructure on the city’s waterfront was destroyed, shedding light on the city’s large vulnerability issue. The New York Governor's Office of Storm Recovery, in charge of coordinating statewide recovery efforts for Superstorm Sandy and other major weather events, has vowed to not only build back, but build back stronger.

New York Governor's Office of Storm Recovery, in charge of coordinating statewide recovery efforts for Superstorm Sandy and other major weather events, has vowed to not only build back, but build back stronger.

New York Governor's Office of Storm Recovery and NYSERDA are working on a community microgrids program that would mitigate future instances of power outages. 

The agency, in coordination with NYSERDA, is working on a community microgrids program that would mitigate future instances of power outages. EDF Climate Corps fellow Ben Bovarnick was hired to develop up to five microgrids in municipalities to demonstrate the feasibility and best practices for publicly-financed projects. The program had started to identify optimal projects, but sought new ideas for integrating advanced energy technologies and renewable energy into the projects.

Bovarnick identified opportunities for energy storage to reduce electricity demand and provide cost savings as well as improved system stability. Battery storage will also help with peak shaving and back up electricity, which has the potential to improve the project value and save the municipality on annual electricity expenditures.

Prepare, not react

The truth is, these superstorms are likely to continue, and their severity may increase. That means preparedness is key. States and municipalities, especially on the coast, must work together to create a comprehensive framework to tackle resiliency. Our efforts and finances should be invested in developing solutions that prevent extreme devastation, as opposed to cleaning up the aftermath.

Sandy was our wakeup call. But although post-Sandy protection-projects were introduced, there’s still a long way to go. Fortunately, the technology is out there to make resiliency a reality.

This post originally appeared on EDF+Business.

Photo by Ryan Loughlin on Unsplash.

EDF Blogs

Data reveals real-time electricity pricing would help nearly all ComEd customers save money

6 years 10 months ago
Over the past few years, Illinois has taken great strides to not only modernize its electric grid, but also to provide people and businesses with access to energy data. In February, the Illinois Commerce Commission (ICC) approved the release of anonymous, aggregate energy-use data on a large scale, broken out in half-hour increments, 24 hours […]
Dick Munson

Data reveals real-time electricity pricing would help nearly all ComEd customers save money

6 years 10 months ago
Over the past few years, Illinois has taken great strides to not only modernize its electric grid, but also to provide people and businesses with access to energy data. In February, the Illinois Commerce Commission (ICC) approved the release of anonymous, aggregate energy-use data on a large scale, broken out in half-hour increments, 24 hours […]
Dick Munson

Data reveals real-time electricity pricing would help nearly all ComEd customers save money

6 years 10 months ago

By Dick Munson

Over the past few years, Illinois has taken great strides to not only modernize its electric grid, but also to provide people and businesses with access to energy data.

In February, the Illinois Commerce Commission (ICC) approved the release of anonymous, aggregate energy-use data on a large scale, broken out in half-hour increments, 24 hours a day. Sensing an opportunity to unlock innovation, Environmental Defense Fund (EDF) and the Citizens Utility Board (CUB), Illinois’ utility watchdog, dove into that treasure trove of granular data.

Specifically, we wanted to see how the customers of Illinois’ largest electric utility, ComEd, would have fared under a “real-time pricing” program in which power prices change hourly. Anonymous data from over 300,000 homes revealed several interesting tidbits that we’re sharing in our new whitepaper, The Costs and Benefits of Real-Time Pricing.

Most importantly, the study shows that real-time prices would have saved 97 percent of customers money in 2016 – even if the customers made no changes to how they use electricity.

Data reveals real-time electricity pricing would help nearly all ComEd customers save money
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The study

In 2007, ComEd began offering its customers an “Hourly Pricing” program, an optional way to pay for electricity in which the wholesale market price fluctuates by the hour (kind of like airline tickets). Elevate Energy, which manages ComEd’s program, says participants have saved more than 15 percent off the supply portions of their bill since Hourly Pricing was launched.

A relatively small number of ComEd customers have enrolled – about 17,500 out of over 3 million. Everyone else is still on traditional billing, and we wanted to find out how their bills would have changed with dynamic pricing. 

Even greater savings are possible for those who choose to change their energy use.

Using 12 months of energy-use data from smart meters, anonymized by zip code, EDF and CUB calculated what the 2016 electricity bills of 300,000 ComEd residential customers would have been under the Hourly Pricing program. The study found:

  • 97 percent of the households studied would have saved money, comprising total savings of $29.8 million.
  • The average ComEd customer would have saved $86.63 for the year, or 13.2 percent less than they paid under traditional billing.
  • The top 5 percent of savers would have cut their bills by an average of $104 a year, or 31 percent.
  • Of the customers who would have lost money (roughly 3 percent of the sample), the median increase in bills was an estimated total of $6.23 for the year.
  • There are no significant differences between the effects of real-time pricing on the bills of customers who have low-incomes and other customers.

In sum, the vast majority of ComEd customers would have financially benefitted in 2016 from participating in the Hourly Pricing program. Again, they would have saved while using electricity exactly as they have been.

Programs like Hourly Pricing are designed to reward people who use energy when market prices are cheapest, typically when electricity demand is low. Customers pay a different price for electricity depending on when they use it, and could be motivated by cheaper prices to use power during times when demand is low.

Since our study shows that real-time prices save customers money without changing their behavior, even greater savings are possible for those who choose to change their energy use. For example, a customer could take advantage of the Hourly Pricing program by shifting their appliance-use to when power is cheaper.

Furthermore, for the small percentage of customers who wouldn’t have saved in 2016, the same tactics could be used to ensure their electricity bills do not go up.

Dynamic pricing benefits

Moreover, environmentally-minded prices could encourage people to use energy when it’s cleanest.

The Hourly Pricing program also helps ComEd avoid the high costs associated with running expensive and dirty power plants, often known as “peaker plants,” when energy demand is high. During this time, ComEd will send higher prices to customers’ smart meters, and some may choose to wait to run the dishwasher or washing machine until electricity is cheaper. This leads to the more efficient use of power plant resources and energy.

Moreover, environmentally-minded prices could encourage people to use energy when it’s cleanest. For example, wind blows strongly at night in Texas, and some Texas utilities offer free power between 9 p.m. and 6 a.m. so that customers will take advantage of the low-carbon power source. So, real-time pricing not only saves customers money and prevents utility waste, it can also lower pollution.

More research needed

This whitepaper is the nation’s most comprehensive analysis of dynamic-pricing from smart meter data so far, but more studies – with multiple utilities and during different years – are essential to informing smart pricing design. For example, flat-rate utility prices in 2016 were elevated due to the lingering effects of “polar vortex” price spikes two years earlier, which may have influenced the level of savings found in our paper. Examining data from other years can help ensure we get an accurate and well-rounded picture of the effect of dynamic pricing.

Illinois policymakers should investigate the costs and benefits of providing real-time pricing for customers on an opt-out basis.

Toward this end, our new data analysis is an exciting step toward better understanding how well-designed electricity pricing can help people save money and create a more efficient, cleaner electricity system. In the meantime, Illinois policymakers should investigate the costs and benefits of providing real-time pricing for customers on an opt-out basis (as California is introducing with time-of-use prices), rather than through its current form – a passive “opt-in” choice.

EDF and CUB will continue to evaluate the Illinois data to answer important policy questions, such as how to ensure efficiency programs benefit economically-challenged communities or which rate designs can best advance electric-vehicle charging stations powered by clean energy. Updates and new whitepapers will be available at BigEnergyData.info.

Dick Munson

Data reveals real-time electricity pricing would help nearly all ComEd customers save money

6 years 10 months ago
Over the past few years, Illinois has taken great strides to not only modernize its electric grid, but also to provide people and businesses with access to energy data. In February, the Illinois Commerce Commission (ICC) approved the release of anonymous, aggregate energy-use data on a large scale, broken out in half-hour increments, 24 hours […]
Dick Munson

Why climate policy is good economic policy

6 years 10 months ago

More than 200 world leaders met over the last few days at the United Nations’ Annual Climate Change Conference in Bonn to discuss how to fill in the details of individual countries’ pledges of the Paris agreement. And while the United States has clearly ceded its leadership role to China, Germany, France, Canada and others, […]

The post Why climate policy is good economic policy appeared first on Market Forces.

Thomas Stoerk

Why climate policy is good economic policy

6 years 10 months ago
More than 200 world leaders met over the last few days at the United Nations’ Annual Climate Change Conference in Bonn to discuss how to fill in the details of individual countries’ pledges of the Paris agreement. And while the United States has clearly ceded its leadership role to China, Germany, France, Canada and others, […]
Thomas Stoerk

Why climate policy is good economic policy

6 years 10 months ago

By Thomas Stoerk

More than 200 world leaders met over the last few days at the United Nations’ Annual Climate Change Conference in Bonn to discuss how to fill in the details of individual countries’ pledges of the Paris agreement. And while the United States has clearly ceded its leadership role to China, Germany, France, Canada and others, there are clear signs that adopting an ambitious climate policy is smart for long-term economic prosperity.

Economists across the political spectrum agree that the market alone will not solve climate change, because carbon pollution is still largely unpriced. From an ideal point of view, the optimal climate policy would be a global carbon price. If an appropriate and sufficiently robust global carbon price existed, with clear declining limits on pollution, no other climate policy would be needed.

Unfortunately, such a carbon policy does not currently exist. So, in the absence of such a global pricing regime, what kind of climate policy is cost-effective?   Each individual climate policy can be judged on its merits, and most typically show large economic gains, as the benefits of avoiding climate change far outweigh the costs.

Ambitious climate policy passes a benefit-cost test by using the Social Cost of Carbon

To understand the benefit of climate policy, we first need a sense on the magnitude of the climate damages that can be avoided. The current economic consensus view quantifies the social cost of carbon – that is the damage from emitting one ton of CO2 – at $42 per metric ton of CO2 emissions in 2007 U.S. Dollars based on work by the U.S. Government’s Interagency Working Group on Social Cost of Greenhouse Gases.

And while estimating the full range of climate damages is a daunting task, new research indicates economists are getting much better at it. Recent empirical studies have started to expand and strengthen the quantification of climate damages based on improved statistical techniques. A recent study in Nature, for example, finds that a lack of climate policy would reduce average income by 23% by 2100. These empirical estimates indicate that the true social cost of carbon is an order of magnitude higher than those based on the integrated climate-economy models that the Interagency Working Group still relies on. Which is what leading researchers suspected all along.

But what about the cost of climate policy? For many, the potential cost of enacting ambitious climate policy has become a powerful argument against taking any sort of action. So how can we tell if enacting climate policy is cost-effective? A first pass is to subject individual climate policy proposals to benefit-cost analyses that weigh the cost of the specific policy against the avoided climate damages using the social cost of carbon. For example, if the climate mitigation component of a renewable energy proposal costs less than the social cost of carbon, then the policy is good economics.

On the flip side, failing to pass a benefit-cost test does not necessarily imply that a policy is not cost-effective. The social cost of carbon still only captures some of the damages, and future revisions will in all likelihood correct it upwards. Additionally, a policy might lead to important co-benefits beyond climate policy such as reductions in criteria pollutants that have negative effects on human health and the environment.

The Clean Power Plan can serve as a good example to illustrate the argument.  Using benefit-cost analysis based on the social cost of carbon, the EPA determined that the Clean Power Plan is a worthwhile investment, with net gains totaling billions of dollars. This is the case even when ignoring any non-climate co-benefits, and when using the lower consensus estimate for the social cost of carbon. Relying instead on the newly available climate impact estimates adds several billion dollars to the net benefits.

Climate policy can go hand in hand with economic prosperity

Moreover, the evidence suggests that – contrary to what some claim – we can implement climate policy while growing the economy. While there can be small adjustment costs, climate policy also leads to lead to new opportunities and innovation. Patenting in clean technologies, for instance, is as vibrant as in biotech, translating into additional growth benefits for the economy as a whole.

Uncertainty makes acting now even more compelling

While there is uncertainty as to just how much CO2 levels in the atmosphere will rise, we know it will be more than ever before encountered by modern humans. And, we already know the economic impacts will be bad. The devastation from hurricanes Harvey, Irma and Maria—made worse by the impacts of a warming climate—will cost communities, taxpayers and insurance companies billions. .

But things could turn out much worse. Theoretically, catastrophic climate damages could be so high as to dominate any benefit-cost analysis. This as of yet unpriced uncertainty is a compelling reason to act, not to wait. How to quantify uncertainty with precision is still at the frontier of climate economics. A recent working paper at the NBER calibrates a climate-economy model to financial risk attitudes. The authors find that taking the uncertainty in climate impacts seriously will increase the social cost of carbon even more.

Uncertainty taken seriously means ambitious climate policy today. At least that's what unites groups on both ends of the political spectrum, from progressive environmentalists to Nobel-prize winning Chicago economists.

 The economic case for ambitious climate action is clear. With the right policies, the benefits of avoiding climate change far outweigh the costs. And in the absence of a price on carbon, the only question is: what are the right climate policy instruments? As EDF has long argued, political debates in climate policy must be not be over the if, but the how.

Thomas Stoerk

New Texas Permian oil and gas flaring report reveals excessive gas waste and major gaps in operator flaring practices

6 years 10 months ago

By Colin Leyden

As companies flock to West Texas’ Permian Basin to cheaply drill for and extract oil and gas, some operators are flooding the night sky with natural gas flares, polluting the air with unhealthy and climate-altering pollutants, and wasting copious amounts of this important, domestic energy resource.

The Permian Basin, which stretches across 75,000 square miles in West Texas and southeastern New Mexico, is in the midst of one of the largest energy booms of the century. An estimated 60-70 billion barrels of recoverable oil is located in the area, which is worth roughly $3.3 trillion at current prices, according to IHS Markit. Oil isn’t the only resource in abundant supply. EIA estimates that operators in the Permian are producing 7.3 billion cubic feet of natural gas per day. But a rush to produce higher value oil has some Permian drillers simply flaring the gas instead of investing in gathering and pipeline infrastructure.

A new EDF flaring report, released this week, has uncovered a wide discrepancy between flaring rates among the top 15 oil and gas producers working in the Texas Permian Basin. Some of the oil and gas producers studied in the report are wasting close to 10 percent of their produced gas due to flaring practices, highlighting the fact that the oil and gas industry continues to struggle to control natural gas waste.

Background

Flaring is a practice by which oil and gas operators burn off natural gas (usually gas that is associated with oil production) rather than putting it in a pipeline or otherwise putting it to beneficial use. Flaring produces both carbon dioxide and particulate matter pollution and, because no flare is 100% efficient, un-combusted methane, a powerful greenhouse gas. Most oil and gas producing states flare less than one percent of associated gas.

Oil and gas industry groups have long insisted methane emission regulations are unnecessary because the industry has the economic incentive to save their own natural gas product. Yet in 2015 alone, Permian operators in Texas flared 45.5 billion cubic feet of natural gas, enough to serve all of the household needs in Texas Permian counties for two and a half years.

It should be noted that some Permian operators are doing a good job of avoiding wasteful flaring.  In fact, more than a third of the operators studied in the report generated consistent, minimal flaring rates, indicating companies and policy makers can do more to reduce gas waste and pollution through better flaring practices and policies. There may be valuable lessons from these high performing operators that should be applied and replicated throughout the Basin.

The EDF study analyzed venting and flaring practices in the Permian Basin during the high production years of 2014-2015. We then assessed how top producers performed compared to the region’s average flaring rate in those two years.

Impact on health and dark skies

With Permian oil production exceeding 2.5 million barrels per day, the report suggests that some operators are more concerned about extracting the oil as fast as possible instead of adhering to best practices to reduce waste and protect the environment.

The level of unnecessary flaring taking place in the Permian can come with a hefty environmental and health price tag for nearby communities. In addition to wasting a valuable natural resource, flaring produces methane emissions which contribute to climate change and the combustion emissions can have serious public health impacts. A Clean Air Task Force study ranked seven of the Texas Permian Basin counties in the U.S. top 10 worst counties for asthma attacks.

The new EDF report also highlights that oil and gas flaring is affecting nighttime visibility at the University of Texas McDonald Observatory, located in the Davis Mountains. The observatory is located in one of the darkest spots in the U.S. Those dark skies are under threat along with the world-class science the observatory produces.

Satellite images show light visible at night increased dramatically from 2010 to 2013, with much of it attributable to oil and gas flaring in the region. Apache Corporation’s “Alpine High” discovery in Reeves County will push oil and gas development to within 40 miles of the observatory.

Technology can lead the way

Many technologies already exist to help companies minimize flaring without impacting production yields. In fact, the EDF analysis found that much of the Permian’s venting and flaring problem can be dealt with by handling a relatively small number of high producing leases.

More than 30 percent of Permian oil leases could deploy gas recovery solutions at minimal to no cost. And 32 percent of the leases are responsible for over 95 percent of the vented and flared gas in the state of Texas.

Regulatory recommendations

Regulations can help turn leading practices into the standard practice and not put companies doing the right thing at a competitive disadvantage. The report recommends implementing several solutions for both operators and state officials, including treating wasted gas as a viable resource, eliminating permanent flaring permits, requiring new technologies, and improving reporting processes and requirements.

The findings reiterate the need for responsible regulatory policies, especially considering the massive size and scale of the Permian energy reserve.

The full analysis of company rates of flaring in the Texas Permian is available at: http://blogs.edf.org/energyexchange/files/2017/11/Permian-Flaring-Report-2017.pdf

Colin Leyden

New Texas Permian oil and gas flaring report reveals excessive gas waste and major gaps in operator flaring practices

6 years 10 months ago
As companies flock to West Texas’ Permian Basin to cheaply drill for and extract oil and gas, some operators are flooding the night sky with natural gas flares, polluting the air with unhealthy and climate-altering pollutants, and wasting copious amounts of this important, domestic energy resource. The Permian Basin, which stretches across 75,000 square miles […]
Colin Leyden

New Texas Permian oil and gas flaring report reveals excessive gas waste and major gaps in operator flaring practices

6 years 10 months ago
As companies flock to West Texas’ Permian Basin to cheaply drill for and extract oil and gas, some operators are flooding the night sky with natural gas flares, polluting the air with unhealthy and climate-altering pollutants, and wasting copious amounts of this important, domestic energy resource. The Permian Basin, which stretches across 75,000 square miles […]
Colin Leyden

New Texas Permian oil and gas flaring report reveals excessive gas waste and major gaps in operator flaring practices

6 years 10 months ago
As companies flock to West Texas’ Permian Basin to cheaply drill for and extract oil and gas, some operators are flooding the night sky with natural gas flares, polluting the air with unhealthy and climate-altering pollutants, and wasting copious amounts of this important, domestic energy resource. The Permian Basin, which stretches across 75,000 square miles […]
Colin Leyden

New Texas Permian oil and gas flaring report reveals excessive gas waste and major gaps in operator flaring practices

6 years 10 months ago
As companies flock to West Texas’ Permian Basin to cheaply drill for and extract oil and gas, some operators are flooding the night sky with natural gas flares, polluting the air with unhealthy and climate-altering pollutants, and wasting copious amounts of this important, domestic energy resource. The Permian Basin, which stretches across 75,000 square miles […]
Colin Leyden

New Texas Permian oil and gas flaring report reveals excessive gas waste and major gaps in operator flaring practices

6 years 10 months ago

By Colin Leyden

As companies flock to West Texas’ Permian Basin to cheaply drill for and extract oil and gas, some operators are flooding the night sky with natural gas flares, polluting the air with unhealthy and climate-altering pollutants, and wasting copious amounts of this important, domestic energy resource.

The Permian Basin, which stretches across 75,000 square miles in West Texas and southeastern New Mexico, is in the midst of one of the largest energy booms of the century. An estimated 60-70 billion barrels of recoverable oil is located in the area, which is worth roughly $3.3 trillion at current prices, according to IHS Markit. Oil isn’t the only resource in abundant supply. EIA estimates that operators in the Permian are producing 7.3 billion cubic feet of natural gas per day. But a rush to produce higher value oil has some Permian drillers simply flaring the gas instead of investing in gathering and pipeline infrastructure.

A new EDF flaring report, released this week, has uncovered a wide discrepancy between flaring rates among the top 15 oil and gas producers working in the Texas Permian Basin. Some of the oil and gas producers studied in the report are wasting close to 10 percent of their produced gas due to flaring practices, highlighting the fact that the oil and gas industry continues to struggle to control natural gas waste.

Background

Flaring is a practice by which oil and gas operators burn off natural gas (usually gas that is associated with oil production) rather than putting it in a pipeline or otherwise putting it to beneficial use. Flaring produces both carbon dioxide and particulate matter pollution and, because no flare is 100% efficient, un-combusted methane, a powerful greenhouse gas. Most oil and gas producing states flare less than one percent of associated gas.

Oil and gas industry groups have long insisted methane emission regulations are unnecessary because the industry has the economic incentive to save their own natural gas product. Yet in 2015 alone, Permian operators in Texas flared 45.5 billion cubic feet of natural gas, enough to serve all of the household needs in Texas Permian counties for two and a half years.

It should be noted that some Permian operators are doing a good job of avoiding wasteful flaring.  In fact, more than a third of the operators studied in the report generated consistent, minimal flaring rates, indicating companies and policy makers can do more to reduce gas waste and pollution through better flaring practices and policies. There may be valuable lessons from these high performing operators that should be applied and replicated throughout the Basin.

The EDF study analyzed venting and flaring practices in the Permian Basin during the high production years of 2014-2015. We then assessed how top producers performed compared to the region’s average flaring rate in those two years.

Impact on health and dark skies

With Permian oil production exceeding 2.5 million barrels per day, the report suggests that some operators are more concerned about extracting the oil as fast as possible instead of adhering to best practices to reduce waste and protect the environment.

The level of unnecessary flaring taking place in the Permian can come with a hefty environmental and health price tag for nearby communities. In addition to wasting a valuable natural resource, flaring produces methane emissions which contribute to climate change and the combustion emissions can have serious public health impacts. A Clean Air Task Force study ranked seven of the Texas Permian Basin counties in the U.S. top 10 worst counties for asthma attacks.

The new EDF report also highlights that oil and gas flaring is affecting nighttime visibility at the University of Texas McDonald Observatory, located in the Davis Mountains. The observatory is located in one of the darkest spots in the U.S. Those dark skies are under threat along with the world-class science the observatory produces.

Satellite images show light visible at night increased dramatically from 2010 to 2013, with much of it attributable to oil and gas flaring in the region. Apache Corporation’s “Alpine High” discovery in Reeves County will push oil and gas development to within 40 miles of the observatory.

Technology can lead the way

Many technologies already exist to help companies minimize flaring without impacting production yields. In fact, the EDF analysis found that much of the Permian’s venting and flaring problem can be dealt with by handling a relatively small number of high producing leases.

More than 30 percent of Permian oil leases could deploy gas recovery solutions at minimal to no cost. And 32 percent of the leases are responsible for over 95 percent of the vented and flared gas in the state of Texas.

Regulatory recommendations

Regulations can help turn leading practices into the standard practice and not put companies doing the right thing at a competitive disadvantage. The report recommends implementing several solutions for both operators and state officials, including treating wasted gas as a viable resource, eliminating permanent flaring permits, requiring new technologies, and improving reporting processes and requirements.

The findings reiterate the need for responsible regulatory policies, especially considering the massive size and scale of the Permian energy reserve.

The full analysis of company rates of flaring in the Texas Permian is available at: http://blogs.edf.org/energyexchange/files/2017/11/Permian-Flaring-Report-2017.pdf

Colin Leyden