What Does the Global Methane Pledge Mean to the Oil & Gas Industry?

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In September 2021, the United States and European Union announced a Global Methane Pledge to reduce methane emissions by 30% below 2020 levels by 2030. Since then, over one hundred other nations have joined the pledge, with more expected to join soon. This blog seeks to understand what the pledge means to the O&G sector and the role digital tools play in mitigating emissions.

What Is the Global Methane Pledge?

The Global Methane Pledge is a joint agreement to slash global methane emissions by 30% from 2020 levels in all industries by 2030. Experts reveal cutting methane by this percentage can reduce global warming by 0.2 degrees Celsius by 2050. This translates to reduced severity and frequency of extreme weather events that we experience today because of climate change.

What Does the Global Methane Pledge Mean for the Oil and Gas Industry?

Undoubtedly, the Global Methane Pledge is a game changer in the battle against global warming. Experts agree that one of the most effective ways to restrict methane is to stop energy companies from releasing it. The new commitment means the industry must adopt effective ways to reduce its methane emissions if they are to survive in the thriving era of renewable energy. Following are some of the impacts of the new commitment on the oil and gas industry:
  • Increased adoption of technologies to capture methane leaks: The Global Methane Pledge will pressure oil and gas companies to take stock of their fossil fuel operations and take steps to plug and capture methane leaks. Companies will have to use innovative technologies and methods to detect and measure fugitive leaks in hazardous locations. These include technologies and platforms, such as planes, satellites, and drones equipped with infrared cameras to capture images of methane plumes even in poor weather conditions.
  • Better global energy security: The oil and gas industry contribute to approximately one-quarter of all anthropogenic methane emissions attributed to flaring, venting, and leaking methane. Tackling these emissions can boost global energy security by eliminating needless waste of valuable gas resources. Experts estimate that implementing the Global Methane Pledge has the triple effect of reversing climate change, improving profitability by cutting costs, and enhancing the global gas supply.
  • Increased financing: Participating countries commit their support and efforts by providing financial resources to help companies deploy abatement technologies to cut emissions and flaring from the gas and oil sector. For example, Australia recently announced the doubling of climate finance commitment in Asia-Pacific with $2 billion until 2025.
  • Market shocks: No doubt methane emission reductions will trigger significant transformations across the industry. Amid countries, energy markets will experience shocks due to gas-oriented policies. More countries may impose gas import limits or look toward supplies that promise fewer emissions, like carbon-neutral LNG. These changes will only spare companies that are initiative-taking in limiting their environmental impact. Adopting innovative technologies, such as those provided by Aegex Technologies, can be an effective way to cut your emissions and better position your company in an inevitable clean energy transition.

Leverage Aegex Technologies Solutions to Reduce Methane Emissions

Methane is a potent greenhouse gas with adverse warming effects. In the fight against global warming, methane emissions have been ignored for a long time as players focused more on carbon emissions. However, this odorless gas is eighty times more potent than CO2, in terms of warming effects. In recent years it has jumped to the top of everyone's climate to-do list, with over one hundred countries committing to reduce methane emissions by 30% below 2020 levels by 2030. Aegex Technologies provides innovative tools to detect methane leaks and boost predictive maintenance along your entire oil and gas ecosystem. Aegex's NexVu IoT solution offers smart sensors, endpoints, and radios to detect and monitor leaks in hazardous environments for timely interventions. You can also leverage Aegex's Aegex10 Intrinsically Safe Tablet to gain valuable insights into the state of your crucial equipment for effective preventive maintenance action. The tablet features the Windows 10 platform and data-driven predictive maintenance technologies to detect potential damages in old systems and parts for timely remedial action. Contact us today to learn more.