1. LEADING THE WAY FOR NATURAL GAS TO FIT IN A LOW-CARBON ENERGY WORLD
CHALLENGE: REDUCING METHANE EMISSIONS

2. NATURAL GAS SUPPLY CHAIN
Source: Adapted from American Gas Association and EPA Natural Gas STAR Program

3. METHANE EMISSIONS PROFILE
Millions of Potential “Affected Sources”
1.3 million oil and gas wells
5,000+ gathering/boosting facilities
668 processing facilities
Over 1,800 transmission facilities
Over 400 storage
111 LNG facilities
Regional Variations
Significant regional variations among emission sources
Differences likely attributable to:
Type of natural gas production (i.e. wet gas-vs-dry gas)
Age, number, and type of infrastructure
Fat-Tail (“Super-Emitter”) Phenomenon
Small number of emission sources are responsible for a disproportionately large number of emissions

4. EMISSION REDUCTION OPPORTUNITIES By Emission Source

5. EMISSION REDUCTION OPPORTUNITIES By Industry Segment

6. POLICY OPTIONS FOR ADDRESSING METHANE EMISSIONS
TECHNOLOGY-BASED DESIGN Command-and-Control Approach
Pre-defined emission control technologies are applied to all “affected sources”
Application of control technology is required regardless of the actual emission profile of the source
Technology-based design is more appropriate for a smaller population of homogenous emission sources
Monitoring, recordkeeping and reporting requirements are burdensome due to large number of emission sources
PERFORMANCE-BASED DESIGN ONE Future Approach
Performance-based design allows companies to focus on “super emitter/fat-tail” emission sources
Each company optimizes emission reductions by focusing capital deployment on its highest emitting sources
Technology-neutral approach encourages development of new technologies to achieve emission reduction goals
Intensity-based metrics enable bench-marking between companies, regardless of size

7. KEY POLICY DESIGN QUESTIONS
How do you design a policy that matches the science?
Super-emitters and marginal wells are misunderstood
Chronic super-emitter
Episodic super-emitter
Malfunctioning super-emitter
Marginal wells
Incorporate existing operating practices
Does the policy optimize emission reductions by deploying capital on the highest emitting sources?
Does the policy encourage development of new emission reduction technologies?

8. ONE FUTURE POLICY DESIGN
Performance-based approach
Methane intensity goal of 1% leak/loss rate across value chain
Methane intensity “sub-goals” developed for each segment of value chain
Recognizes variations among emission sources and the “super- emitter” phenomenon, thereby optimizing capital deployment
Emissions inventory protocols approved by EPA
Methane Emissions Intensity
Methane Emission Intensity Goals (percent of Gross Production)
Industry Segment
2012
2020
2025
Gas Production and Gathering
0.55%
0.46%
0.36%
Gas Processing
0.18%
0.15%
0.11%
Gas Transmission and Storage
0.44%
0.37%
0.30%
Gas Distribution
0.26%
0.24%
0.22%
Total
1.44%
1.22%
1.00%

9. MONITORING TECHNOLOGIES
EDF Detector Challenge
Piccaro Surveyor
Rebellion Photonics
Gas Cloud Imaging
ARPAE MONITOR

10. RAPID SURVEY, LEAK DETECTION AND DIRECTED INSPECTION & REPAIR
SINGLE DAY SURVEY CAPACITY
Airplane 50 Square Miles
Drone
4 Square Miles
Ground Crew
0.5 Square Miles

11. RESEARCH ON NEW DETECTION TECHNOLOGIES