Senior Manager, EDF+Business
Environmental Defense Fund
14:30 - 15:00
Tuesday, 17 September 2019
T2.1 Digital Methane Strategies are a Win-Win for Business and Environment
The loss of $30 billion a year in natural gas due to unmanaged methane emissions across the oil and gas value chain poses a serious problem to the future of natural gas. The excessive product loss combined with climate pressures on the industry creates a tremendous opportunity for oil and gas companies to step up and address this manageable issue.
Companies who have already implemented methane management programs have quickly found that the manual and time-intensive solutions of yesterday look nothing like the methane digitization solutions of today. Artificial Intelligence (AI), intelligent sensors and Industrial IoT (Internet of Things) solutions are unlocking tremendous value and intelligence to reduce methane emissions, making methane programs less costly and easier to deploy with fewer resources and less windshield time for workers.
Today’s transformative technologies are creating a new dynamic for the industry – companies no longer have to choose between production optimization and emissions management. Production optimization and emissions management can co-exist. Digital methane solutions can be a strategic tool to meet methane reduction target goals and reduce overall greenhouse gas emissions to adhere to investor and climate pressures.
The proof is in the pilots. BP recently deployed IoT-enabled sensors in Wyoming, which were integrated with an AI-driven software platform. Within six months, methane emissions events were down 74 percent, production volumes were up 20 percent, and overall costs dropped 22 percent. The BP operation now has access to high frequency, real-time data providing visibility into the infrastructure health of its entire field – creating a highly sophisticated and low-cost predictive maintenance system for the future.
The Environmental Defense Fund has dedicated extensive resources to study methane in recent years. We have worked closely with dozens of early adopter oil and gas companies already reaping the benefits of early stage digitalization methane technologies, and today EDF is partnering with Accenture to ensure more companies embrace this opportunity. The science shows that 80 percent of methane emissions are caused by 20 percent of the leaks. Digitally-enabled methane management has the potential to identify that 20 percent and predict emissions before they happen.
New methane technologies also support the validation of existing methane reduction target commitments, such as The Oil and Gas Initiative (OGCI). Thirteen of the largest operators in the world have openly committed to the OGCI targets by the end of 2025. Meanwhile, methane regulatory policies are on the horizon across the globe, creating even more incentive for companies to implement new digital methane strategies sooner rather than later.
This session will give an overview of the digital methane opportunity and highlight some of the most cutting-edge digital methane technologies available today. The discussion will also include examples of recent deployments and the business gains realized by the user companies, as well as new related data generated from our partnership with Accenture.