As world leaders descend on Egypt for the 2022 United Nations Climate Change Conference (COP27), it is at odds with a global energy crisis that has countries around the world facing energy insecurity heading into the cold which are winter months.
In what should be an event focused on solutions to discuss ways to meet the shared goals of decarbonization, it is worth remembering the proven successes we have already seen to reduce greenhouse emissions gas while also increasing access to global energy – achievements led by the US oil and natural gas industry.
#1: The United States Leads the Globe in Reducing Greenhouse Gas Emissions
The US oil and natural gas industry has made great strides in reducing its emissions, setting the standard on the world stage.
The EPAs 2022 Greenhouse Gas Inventory shows that total US greenhouse gas emissions have decreased 20 percent since 2005, including continued reductions in CO2 and methane, thanks in large part to the shift to natural gas for power generation.
In 2020 alone, the shift to natural gas provided a reduction in emissions of 562 million metric tons of CO2 (MMT CO2), according to a recent EIA report. That’s the emissions equivalent to 150 coal-fired power plants operating for one year! And since 2005, the increased use of natural gas for power generation has led to emission reductions of 3,871 MMT CO2, or the equivalent of removing more than 834 million gasoline-powered vehicles from the road.
In addition, the total CO2 equivalent of methane from petroleum and natural gas systems has decreased by 15 percent despite massive increases in oil and natural gas production.
And while the United States leads the world in oil and natural gas production, it is far from the largest emitter of methane. In fact, North America’s methane emissions are a fraction of those from Asia, according to GHGSat’s latest methane emissions report. A whopping 69 percent of methane emissions by 2021 will come from Asia, underscoring the stark difference in US industrial innovation.
However, US oil and gas companies continue to make reducing emissions a top priority. One of the examples of this is the voluntary Environmental Partnership coalition that works to lower emissions through improvements including reducing flaring, replacing gas-driven pneumatic controllers with low or zero-emitting devices , and reduced leak occurrence rates.
The Partnership’s recently released 2022 Annual Report details the industry’s success in cutting flare intensity nearly in half for the second year in a row, reducing leak rates by 0.05 percent, and in place of more than 22,00 gas-driven controls, showing the industry’s commitment to modernization. equipment that serves the environment better.
This highlights a huge opportunity for cleaner, more efficient energy production in the US to replace the higher emissions of foreign fuels, especially as the need for fossil fuels is more evident now than ever.
#2: US LNG Exports are Lifeline for Global Energy Access
One sure-to-be-discussed topic at COP 72 is balancing energy access and security without jeopardizing climate goals. Fortunately, liquefied natural gas in the US has proven to be one of the best tools for lowering emissions worldwide, while also meeting growing demand.
We have seen a strong need for a diversified energy portfolio in Europe this year as a result of Russia’s invasion of Ukraine and the weaponization of their energy resources. In the face of the crisis, the US natural gas market has stepped up to the plate, providing a critical global lifeline to keep the lights on for families across Europe.
In fact, according to the International Energy Agency’s World Energy Outlook 2022, the United States is poised to become the world’s largest exporter of natural gas. In late 2021, the United States became the largest LNG exporter for the first time, and in the first eight months of 2022, net LNG imports to Europe increased by two-thirds compared to the same period last year.
US LNG exports increased by 12 percent this past year, with at least 71 percent of these exports going to the European Union and the United Kingdom. And as the graph below shows, Europe’s natural gas consumption will continue to be increasingly dependent on LNG imports over the next decade.
While Europe still faces high prices and a supply crisis, it is hard to imagine what the European energy crisis would have been like without the ability of the United States to quickly transfer natural gas supplies due to of our abundance of critical resources.
In addition, a recent study by Rystad Energy sponsored by the American Petroleum Institute (API) and the International Association of Oil and Gas producers (IOGP), highlights Europe’s need for US LNG as the most viable and competitive solution to meet a long-standing need. The study found that US LNG is responsible for meeting 50 percent of that demand in the next 10 years and more than 75 percent by 2040.
This growing confidence is fueled by growing recognition of the climate benefits of natural gas. For example, the European Parliament in July voted to classify some uses of natural gas as “green,” or climate-friendly.
This is also the reason why the highest emitting countries such as China and India are pushing the growth of LNG to meet the challenges of decarbonization. The International Energy Agency predicts that China will account for 22 percent of total LNG demand by 2025, while India will represent 20 percent of global LNG trade in the same year.
To meet emissions goals and needs, government leaders must embrace LNG exports as a solution to providing cleaner and more reliable energy.
#3: The Oil and Gas Industry is Critical for Food Insecurity, Fighting Poverty
In addition to the traditional thinking of energy use, oil and natural gas are also an important part of ensuring good global supply and combating poverty, two topics that will probably also be present at the upcoming COP27 conference.
Earlier this year, Máximo Torero, a top economist at the UN Food and Agriculture Organization, warned against growing calls to transition too quickly from natural gas:
Talked to PoliticsTorero said:
“If you change the energy mix quickly, you increase the price of energy. … Then you increase the price of fertilizers, you increase the price of food, more people die of hunger. So, what do you want?”
“We have to understand that actions have consequences. You can’t continue the climate objective without thinking that there is no connection to hunger.”
In addition, increased access to energy is an important building block for poverty reduction worldwide. Increased energy reliability equals increased energy security for the economy, health, and efficiency.
#4: Not an “Either/Or” Choice – Renewables Work Hand in Hand with Natural Gas
Finally, renewable energy sources and the future energy transition will certainly be a dominant part of the COP27 discussion – but it is important to remember that it is not an either/or choice between fossil fuels and new technologies. Energy in Depth repeatedly explores the symbiotic relationship between renewable energy and natural gas, a position also advocated by the National Renewable Energy Laboratory(NREL).
In a study, NREL considered natural gas the most reliable and cost-effective method to fill the gaps left by intermittent wind and solar. NREL’s “least cost electricity” scenario projects 60-80 percent of generation from wind and solar, with natural gas (with carbon capture and storage) supplying the rest of the energy to provide net-zero emission energy in aggressive scenarios by 2035.
And earlier this year, John Kerry, US Special Presidential Envoy for Climate, wrote an op-ed on Wall Street Journalendorses the relationship of natural gas with renewables:
“Natural gas is at the center of a smart and achievable policy to cut greenhouse-gas emissions today. In the near term, that means matching renewables to clean electricity.” (emphasis added)
Natural gas is also critical to grid reliability, helping to support the constant nature of renewable energy where wind and solar alone often fail.
The International Gas Union (IGU) says:
“Natural gas is clearly the most effective partner for green energyjust one of the many qualities of natural gas that make it a important element in the global energy mix today and tomorrow.” (emphasis added)
Bottom line: As the world looks to this important climate conference and looks for solutions, leaders must not ignore the proven innovation we are already seeing. The key to meeting global energy needs while simultaneously lowering greenhouse gas emissions, increasing energy reliability, and giving countries a path to further prosperity begins with the US oil and natural gas industry.
