New Mexico Oil & Gas Association Publishes Methane Mitigation Roadmap

Jun 24, 2019 11:45 AM

SANTA FE, NEW MEXICO – Today, the New Mexico Oil and Gas Association (NMOGA) published a Methane Mitigation Roadmap, outlining areas where industry and government can work together through cost-effective regulatory strategies to continue reductions in methane emissions. The roadmap identifies the four most reported sources of methane emissions from oil and natural gas production using EPA data and provides specific regulatory suggestions and considerations based on proven industry experience in reducing emissions and the best available science and peer-reviewed data.

FOR IMMEDIATE RELEASE
June 24, 2019 

 

 

 

New Mexico Oil & Gas Association Publishes Methane Mitigation Roadmap

Analysis Will Help Guide Policymakers in Developing Regulatory Strategies to Further Reduce Methane Emissions

 

SANTA FE, NEW MEXICO – Today, the New Mexico Oil and Gas Association (NMOGA) published a Methane Mitigation Roadmap, outlining areas where industry and government can work together through cost-effective regulatory strategies to continue reductions in methane emissions. The roadmap identifies the four most reported sources of methane emissions from oil and natural gas production using EPA data and provides specific regulatory suggestions and considerations based on proven industry experience in reducing emissions and the best available science and peer-reviewed data.

“There is nothing we value more than safeguarding the people and places we care about the most, and that means working continuously to protect the environment and reduce and control methane emissions. It’s a responsibility we take personally,” said Ryan Flynn, Executive Director of the New Mexico Oil and Gas Association. “We know that we have a responsibility to reduce our methane emissions and this report underscores we are in fact reducing emissions through responsible operations. We will continue collaborating with willing partners in the public and private sector, while investing in advanced technology and innovation to achieve even greater reductions in methane emissions.”

The roadmap is grounded in the first-ever analysis of New Mexico-based EPA Greenhouse Gas Reporting Program data and is the most comprehensive dataset of state-level emissions available. From 2011 to 2017, the data shows that New Mexico methane emissions from oil and natural gas production decreased by 51%, or 378,025 to 182,924 Metric Tonnes methane. Combined oil and natural gas production climbed 31% over the same period to 392,176 Barrels of Oil Equivalent. The San Juan Basin reported the most dramatic decline as methane emissions collapsed by 55%, while combined oil and natural gas production fell 24%. In the Permian, where the industry’s growth has recently been the most significant, methane emissions have fallen 35% while production has soared 101%.

NMOGA’s roadmap includes analysis and recommendations for the four highest reported sources of methane emissions, including fugitive emissions, storage tanks, pneumatic devices, and liquids unloading operations. With appropriate regulatory flexibility, NMOGA’s roadmap outlines support for annual leak detection and repair with exemptions for low producing wells and facilities that are not required to obtain a Notice of Intent; storage vessel control requirements with appropriate thresholds; phase-out of high-bleed pneumatic controllers unless required for safety function; and, onsite monitoring of manual liquids unloading operations. NMOGA suggests that regulators recognize that many equipment sources are already subject to controls under federal New Source Performance Standards OOOO and OOOOa regulations. Additional layers of state regulations will impose further requirements and costs without attendant emission reductions, according to the report.

Earlier this year, Governor Lujan Grisham tasked state agencies and regulatory bodies with identifying and crafting regulations to reduce methane emissions from oil and gas operations. Following Governor Lujan Grisham’s lead, the New Mexico Environment Department and New Mexico Energy, Minerals, and Natural Resources Department have initiated a process to develop strategies to reduce emissions, and both departments have planned joint stakeholder engagement meetings planned in Farmington, Albuquerque, and Carlsbad, later this summer.

“New Mexico’s future shines brighter with a strong oil and natural gas industry. We are committed to safely and responsibly producing the energy we need along with critical funds and tax revenue that supports our communities, public schools, and first responders,” added NMOGA Chairman Claire Chase of Mack Energy Corporation. “A smart and balanced regulatory framework allows us grow our economy and protect our environment at the same time.”

New Mexico is the third-largest oil producer in the United States, having cemented the position with rapidly increasing production in the Permian Basin. New Mexico oil producers are showing no signs of slowing down having reached an annual record of 250 million barrels of oil in 2018, an impressive increase of 46% over 2017 figures. New Mexico natural gas production is also on upswing, coming in at a ten-year high of 1,488,471 Million Cubic Feet for 2018.

Increased oil and natural gas production has provided New Mexico with greater fiscal stability around the state and in the state capitol. A recent report in the Santa Fe New Mexican said New Mexico is on track to exceed FY 2020 spending by more than $1 billion, thanks to growing oil and natural gas production. The New Mexico Tax Research Institute also reports that New Mexico’s general fund and public schools benefit $2.2 billion from oil and natural gas taxes and revenues contributions. That includes $822 million in funding for public schools and nearly $241 million for the state’s universities, colleges, and other higher education institutions.

NMOGA Methane Mitigation Roadmap: https://www.nmoga.org/methaneroadmap

Based in Santa Fe, New Mexico, the New Mexico Oil and Gas Association (NMOGA) represents the hard-working men, women, and families of the oil and natural gas industry in New Mexico. NMOGA is dedicated to promoting safe and responsible energy policies, while strengthening New Mexico’s economy and ensuring a bright future for our state’s children.

About NMOGA: https://www.nmoga.org/about

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