Whereas, methane is at least 80 times more potent than carbon dioxide over a 20-year period, and cutting methane is the strongest lever we have to slow climate change over the next 25 years.[1] In 2020, 32% of anthropogenic U.S. methane emissions came from natural gas and petroleum systems.[2]
Methane emissions can be quantified directly through measurement, or indirectly through calculations and modelling. The Environmental Protection Agency’s reliance on the latter methodology fails to capture many major leaks, which are associated with the loss of product worth $2 billion per year.[3] Studies have found actual emissions to be 50 to 100% higher than reported emissions.[4] In certain basins, actual emissions are more than 10 times industry-disclosed figures.[5] These gaps suggest oil and gas industry Scope 1 emissions may be significantly higher than currently reported.
Reporting accuracy improves when direct measurement methodologies are used to identify and measure emissions by source type and to reconcile them with the site or facility level, as shown by the Oil and Gas Methane Partnership 2.0 (OGMP).[6]
Investors and governments are setting expectations for methane management: In 2021, investors managing over $6 trillion supported strong federal methane regulations. The U.S. joined the Global Methane Pledge, committing to using best available methodologies to quantify methane emissions. Companies across the world – including Cheniere, ConocoPhillips, and Occidental – are meeting these expectations by joining OGMP, thereby committing to improving methane data quality and consistency.[7]
Companies that do not accurately measure and manage methane emissions risk their reputations and licenses to operate.
Targa has taken some steps (e.g., membership in ONE Future and EPA’s Natural Gas STAR Program, methane aerial surveys on its Permian assets, participation in the Environmental Partnership’s aerial surveys[8]), but it fails to use and report on direct methane measurement across all operations.