The recently released annual report from The Environmental Partnership (TEP), a voluntary collective of oil and gas companies “committed to continuously improving the industry’s environmental performance,” details the serious progress the industry has made in emissions reductions, especially in reducing flare intensity.
TEP describes its mission as “to continuously improve the industry’s environmental performance by taking action, learning about best practices and technologies, and fostering collaboration to responsibly develop our nation’s essential oil and natural gas resources.” It’s 106-member companies represent nearly 70 percent of U.S. onshore oil and natural gas production and includes such big names as BP, Chevron Corporation, ConocoPhillips Company, ExxonMobil Corporation, Hess Corporation, and Shell.
According to the report, in 2023, TEP members achieved a 6.6 percent reduction in flare intensity and a 10 percent reduction in overall flare volumes from 2022, even with a 9 percent increase in oil production and a 4 percent increase in natural gas production.
“Flaring” in oil and gas development refers to the controlled burning of natural gas that cannot be processed or sold. This occurs at oil production sites where gas is extracted along with oil but is not economically viable to capture and transport to market. Flaring produces carbon dioxide and smaller amounts of other pollutants like methane and nitrogen oxides.
It is also a controlled way to dispose of gas that could otherwise pose safety risks. For instance, gas that accumulates and is not managed can become a fire hazard or create pressure issues in the reservoir.
“Flaring intensity” refers to the amount of gas being flared in relation to the volume of oil being produced or to the overall level of production activity. It is a metric used to assess how much gas is being wasted through flaring and to gauge the efficiency and environmental impact of the flaring practices at a given site.
Overall, TEP members have reduced their flare volumes by 76 percent since 2019. Onshore methane emissions in the United States have dropped 37 percent from 2013 to 2022 according to data from the U.S. Environmental Protection Agency, and significant credit for that goes to the oil and gas industries for the innovations they have voluntarily undertaken to make drill sites as safe as possible and the best practices they have implemented.
Just to cite one example, TEP members enhanced their leak detection strategies to prevent emissions from occurring. “Detection methods use different technologies including laser absorption spectroscopy, optical gas imaging, and sensors,” the report notes. “While continuing to implement established ground-based monitoring approaches, many TEP members also are incorporating aerial-based monitoring approaches with drones and airplanes and space-based monitoring through satellites. Additionally, companies are identifying ways that operational information can be used to predict, prevent, and report emissions sources more accurately.”
These strategies have produced a reported leak occurrence rate of just 0.06 percent, or less than one component leaking in a thousand.
The oil and natural gas deposits found throughout the United States are abundant, affordable, and environmentally safe. Moreover, they can ensure the United States is the world’s largest energy producer well beyond the 21st century. Therefore, policymakers should refrain from placing unnecessary burdens on the natural gas and oil industries which, as this TEP report demonstrates, are committed to safe, environmentally responsible extraction and positively impact state economies.
The following documents provide more information about fossil fuels.
Debunking Four Persistent Myths about Hydraulic Fracturing
https://heartland.org/wp-content/uploads/2023/10/Oct-23-FrackingMyths.pdf
This Heartland Institute Policy Brief by Policy Analyst Timothy Benson and former Heartland communications intern Linnea Lueken outlines the basic elements of the fracking process and then refutes the four most widespread fracking myths, providing lawmakers and the public with the research and data they need to make informed decisions about hydraulic fracturing.
Impacts of the Natural Gas and Oil Industry on the U.S. Economy in 2019
https://www.api.org/-/media/Files/Policy/American-Energy/PwC/API-PWC-Economic-Impact-Report.pdf
This study, conducted by PricewaterhouseCoopers and commissioned by the American Petroleum Institute, shows that the natural gas and oil industry supported 11.3 million U.S. jobs in 2019, produced $892 billion in labor income, and had a nationwide economic impact of nearly $1.7 trillion The study also shows the natural gas and oil industry has had widespread impacts in each of the 50 states.
America’s Progress at Risk: An Economic Analysis of a Ban on Fracking and Federal Leasing for Natural Gas and Oil Development
https://www.api.org/~/media/Files/Oil-and-Natural-Gas/Hydraulic-Fracturing/2020/fracking-ban-study-americas-progress-at-risk.pdf
The study from the American Petroleum Institute (conducted by economic modeling firm OnLocation) warns that banning federal leasing and fracking on public and private lands, which some presidential candidates have proposed, would cost up to 7.5 million American jobs in 2022 alone, lead to a cumulative GDP loss of $7.1 trillion by 2030, slash household incomes by $5,400 annually, increase household energy costs by more than $600 per year and reduce farm incomes by 43 percent due to higher energy costs. If a ban is enacted, the U.S. would flip from being a net exporter of oil and petroleum products to importing more than 40 percent of supplies by 2030
What If…Hydraulic Fracturing Were Banned? (2020 Edition)
https://www.globalenergyinstitute.org/sites/default/files/2019-12/hf_ban_report_final.pdf
This study from the Global Energy Institute at the U.S. Chamber of Commerce says a ban on fracking in the United States would be catastrophic for our economy. Their analysis shows that if such a ban were imposed in 2021, by 2025 it would eliminate 19 million jobs and reduce U.S. Gross Domestic Product by $7.1 trillion. Tax revenue at the local, state, and federal levels would decline by nearly a combined $1.9 trillion. Natural gas prices would leap by 324 percent, causing household energy bills to more than quadruple. By 2025, motorists would pay twice as much at the pump for gasoline as oil prices spike to $130 per barrel, while less domestic energy production would also mean less energy security.
The Value of U.S. Energy Innovation and Policies Supporting the Shale Revolution
https://www.whitehouse.gov/wp-content/uploads/2019/10/The-Value-of-U.S.-Energy-Innovation-and-Policies-Supporting-the-Shale-Revolution.pdf
This report from the White House Council of Economic Advisors estimates that increased oil and natural gas production due to the fracking revolution is saving American families a combined $203 billion annually, or around $2,500 per family. On top of this, the fracking revolution is benefitting the environment, lowering energy-related greenhouse gas emissions by 527 million metric tons between 2005 and 2017.
The U.S. Leads the World in Clean Air: The Case for Environmental Optimism
https://files.texaspolicy.com/uploads/2018/11/27165514/2018-11-RR-US-Leads-the-World-in-Clean-Air-ACEE-White.pdf
This paper from the Texas Public Policy Foundation examines how the United States achieved robust economic growth while dramatically reducing emissions of air pollutants. The paper states that these achievements should be celebrated as a public policy success story, but instead the prevailing narrative among political and environmental leaders is one of environmental decline that can only be reversed with a more stringent regulatory approach. Instead, the paper urges for the data to be considered and applied to the narrative.
Nothing in this Research & Commentary is intended to influence the passage of legislation, and it does not necessarily represent the views of The Heartland Institute. For further information on this subject, visit Environment & Climate News, The Heartland Institute’s website, and PolicyBot, Heartland’s free online research database.
The Heartland Institute can send an expert to your state to testify or brief your caucus; host an event in your state; or send you further information on a topic. Please don’t hesitate to contact us if we can be of assistance! If you have any questions or comments, contact Heartland’s Government Relations department, at [email protected] or 312/377-4000
Tim Benson joined The Heartland Institute in September 2015 as a policy analyst in the Government Relations Department.
