The EIA recently said that U.S. oil production will peak at 9.61 million barrels per day by 2019 and thereby nearly match the 9.64 mmb/d record set back in 1970. This is great news for U.S. energy self-sufficiency aspirations. Moreover, as Rex Tillerson, CEO of Exxon Mobil, pointed out in a recent interview:”We’re already the world’s largest natural gas producer (and) last year crude oil production surpassed levels not seen since the 1980s.”
While carbon dioxide emissions are discussed in the media on a daily basis, fellow companion “methane” often stays comfortably under the radar unless something happens. Meanwhile, methane (CH4) is, according to the U.S. EPA, the second most prevalent greenhouse gas emitted in the U.S. from human activities.
Read more about methane emissions on Breaking Energy here.
Source: U.S. EPA
The vast majority of methane emissions occur in the energy sector. Energy companies developing oil from shale formations like the Bakken often burn associated gas, which primarily consists of methane, because infrastructure needed to transport gas to markets has yet to be built. During the exploration phase it’s often cheaper to flare gas than capture it for use as fuel onsite and it’s less dangerous than allowing it to leak freely because methane is highly combustible.
Read more Breaking Energy coverage of the Bakken flaring challenge here.
Methane is also a potent greenhouse gas (GHG) with a global warming potential 21 times higher than carbon dioxide (CO2), according to data from the United Nations Framework Convention on Climate Change. At the same time, the planet’s ability to absorb the byproducts of this fossil fuel boom is limited. Analysts estimate that the energy sector is responsible for about 40% of global methane emissions, with North America and Australia leading the way. This augurs poorly for future emissions reduction strategies given that all countries – the U.S., Canada and Australia – are expected to further ramp up energy production activities over the medium term.
The Overall Carbon Emissions Picture
Source: Emissions Database for Global Atmospheric Research (EDGAR)
It is noteworthy to point out that nuclear reactors do not emit air pollutants such as ozone, particulate matter, carbon monoxide, nitrogen oxide, sulfur dioxide, or lead, according to a report by the American Physical Society. In this respect, the table below illustrates the significant emissions consequences if a country decides to replace its nuclear power capacity with other means.
Emissions Produced by 1 Kilowatt-hour of Electricity Based on Life-Cycle Analysis
Source: American Physical Society Report “Renewing Licenses for the Nation’s Nuclear Power Plants”
The following EIA chart shows energy-related carbon dioxide emissions.
While carbon dioxide emissions from natural gas have climbed steadily, the overall emissions from all fossil fuels are down due to the fact that natural gas emissions – the controlled burning of methane releases carbon dioxide – have been offset by reduced emissions from coal-fired power plant retirements. However, in a scenario with even more significant withdrawals of natural gas from storage due to colder weather along with higher spot and futures prices for natural gas due to increased overall demand, energy companies will increase production until a new balance is established in the market. Consequently, carbon dioxide emissions – and even more harmful methane emissions – may increase faster than projected.
Source: EIA
