Royal Dutch Shell (NYSE: RDS.A) announced on Sept. 17 plans to limit leaks of methane, a potent greenhouse gas, across its oil and gas operations as it tries to sharply curb carbon emissions.
Shell aims to maintain methane emissions below 0.2% of its total oil and gas production by 2025, the company said in a statement, joining BP (NYSE: BP), which last year set a similar goal. Exxon Mobil (NYSE: XOM) announced in May plans to reduce methane emissions by 15% by 2020.
Methane is released into the atmosphere mostly from the burning of excess gas, known as flaring, as well as through leaks in gas infrastructure such as wells, pumps and pipelines. The gas has a bigger greenhouse impact than CO2, even though the oil and gas industry produces less methane and the gas also has a shorter lifetime.
The methane target will be measured against a baseline leak rate, which is currently estimated at range from 0.01% to 0.8% across the company's oil and gas assets, it said.
The Anglo-Dutch company set out last year an ambitious plan to halve its carbon emissions by 2050, far exceeding rivals. Investors have called on the company to set binding targets to reach those goals.
Climate change and emissions, caused by burning fossil fuels, have moved to the forefront of discussions between energy companies and investors since the signing of the 2015 U.N.-backed Paris climate agreement that seeks to curb emissions to zero by the end of the century in order to limit global warming.
"The race to near-zero methane emissions is on," said Ben Ratner, director at Environmental Defense Fund, U.S-based non-profit climate advocacy. "Company leadership on methane does not stop with setting targets. Follow through with good data and transparency are vital."
Shell's methane emissions reached 123,000 tonnes last year, accounting for about 5% of its total greenhouse gas emissions, according to its website.
Recommended Reading
Mighty Midland Still Beckons Dealmakers
2024-04-05 - The Midland Basin is the center of U.S. oil drilling activity. But only those with the biggest balance sheets can afford to buy in the basin's core, following a historic consolidation trend.
CEO Darren Woods: What’s Driving Permian M&A for Exxon, Other E&Ps
2024-03-18 - Since acquiring XTO for $36 billion in 2010, Exxon Mobil has gotten better at drilling unconventional shale plays. But it needed Pioneer’s high-quality acreage to keep running in the Permian Basin, CEO Darren Woods said at CERAWeek by S&P Global.
Mesa III Reloads in Haynesville with Mineral, Royalty Acquisition
2024-04-03 - After Mesa II sold its Haynesville Shale portfolio to Franco-Nevada for $125 million late last year, Mesa Royalties III is jumping back into Louisiana and East Texas, as well as the Permian Basin.
Life on the Edge: Surge of Activity Ignites the Northern Midland Basin
2024-04-03 - Once a company with low outside expectations, Surge Energy is now a premier private producer in one of the world’s top shale plays.
Analyst: Chevron Duvernay Shale Assets May Sell in $900MM Range
2024-01-29 - E&Ps are turning north toward Canadian shale plays as Lower 48 M&A opportunities shrink, and Chevron aims to monetize its footprint in Alberta’s Duvernay play.