Oil & Gas Q3 2023 Insights
Methane is responsible for around 30% of global warming, it is the second largest greenhouse gas contributor to global warming, after carbon dioxide.
Methane has a shorter atmospheric lifetime than CO2. However, it traps much more energy while it exists in the atmosphere. The Global Warming Power of Methane is 81 times higher than CO2, over a 20-year period.
The earth is warming rapidly, and global temperatures have already surpassed the preindustrial average by 1.1°C. Domestically, the UAE is particularly exposed to climate change impacts, including elevated temperatures and higher humidity for longer periods of the year, rising sea levels, and an overall higher likelihood of extreme weather events such as heavier precipitation and droughts.
Methane is responsible for around 30% of the rise in global temperatures since the Industrial Revolution, and rapid and sustained reductions in methane emissions are key to limiting near-term warming and improving air quality. The Global Methane Pledge was launched at COP26 in November 2021 to catalyse action to reduce methane emissions. Led by the United States and the European Union, the Pledge has nearly 120 country participants who together are responsible for about half of global oil and gas methane emissions. Scientists, policymakers and the energy industry collectively acknowledge reducing methane emissions in the energy and resources sector is key to tackling climate change.
Despite the existence of advanced technology and viable solutions, the world continues to rely on self-compliance and reporting based on theoretical calculations of methane emissions, highlighting the pressing need for an accurate and standardized methodology to effectively address this issue.
Studies done with aerial cameras show that the actual leaks are by far much higher than the industry consensus reporting. The economic value of tackling Methane Emissions in the Energy and Resources industry can be as big as the GDP of many developed countries.
The critical inquiry remains: What is the true extent of methane emissions into the atmosphere? This question remains unanswered until robust measurement practices are put in place.