Making “CENTS” of Methane Sensing
The Financial Impacts of Methane Management
Undetected methane leaks are more than just emissions; they're significant revenue leaks. With the Henry Hub gas price averaging around $2/mmbTU, even marginal product losses can punch holes in the balance sheet. At these prices, a loss of 2,000 metric tons of methane emission can equate to a staggering loss of over $240,000 in gas sales.
Moreover, new regulatory rules will translate the cost of carbon emissions from a societal concern to a tangible financial burden. With oil and gas industries being primary methane emitters, the onus on them to curtail emissions is increasing. But there's a cost to this. Manual programs can cost anywhere from $600-4000/per site/year. With the upcoming regulatory changes, this cost will only increase as the EPA’s new rules incentivize site-specific measurements vs. generic emissions factor calculations. Additionally, forthcoming US Inflation Reduction Act changes will impose fines of up to $1,500 for each metric ton of methane emissions, a first in the United States by 2025.
Managing Methane Emissions: Making "Cents" of Sensing and Reporting
The pressing need to align with the upcoming changes to the EPA's Methane Emissions Reduction Program and the EPA Greenhouse Gas Reporting guidelines has pushed oil and gas firms to adopt the latest technological advancements in methane monitoring and reporting to stay on top of this. Modernizing a Leak Detection and Repair (LDAR) program with wireless methane sensors and software automation should be your go-to strategy for reducing emissions and avoiding unnecessary taxes and lost methane revenues.
Recent advancements in methane sensors can help oil and gas companies improve their LDAR protocols. Companies and field technicians no longer have to deal with paper logbooks and cumbersome reporting for recording leaks and repairs. Today, integrated methane sensors and advanced software facilitate remote sensing and automated reporting at lower costs. The transition towards these modern methodologies isn't just about emission control; it's also about economics.
Not only are these technologies cheaper than doing it manually, but the EPA is giving more than $1.5b in financial assistance for firms to adopt newer technologies, such as what we're bringing to market at 6th Element Labs. This is a win-win for firms that capitalize on this. They can avoid taxes and reduce costs.
4 Steps to Effective Methane Management
1. Advanced Methane Detection: Move away from traditional "boots-on-the-ground" surveys towards advanced methane sensors. Receive instant, accurate alerts. Quickly send out technicians to repair, reducing lost methane. Our platform will guide you directly to the leak source, saving hours and ensuring accuracy.
2. Capture Data Automatically: Our digital tools streamline leak and repair documentation, making compliance with EPA Greenhouse Gas Reporting guidelines more effortless. Why fill out reports and spreadsheets when the sensors can do it for you automatically? Our tools will significantly mitigate the risks associated with audits, penalties, and stringent compliance requirements.
3. Data Visualization and Analytics: Start with automating leak detection with our sensors, and over time, leverage the platform's AI capabilities to get smarter over time. Our vision is that you will move from reactive to proactive methane management by utilizing machine learning to uncover trends, predict leaks, and optimize maintenance, ensuring a more efficient emission control strategy.
4. Reporting and Compliance: As methane emissions gain public and regulatory attention, transparent and automated reporting becomes vital. Adopt a dual communication strategy: a visually rich, simple approach for the general public and a more detailed, data-driven approach for the operations and management teams.
6th Element Lab's Pioneering Solution
We are building out a holistic solution for methane management. Our sensors and web-based software bring continuous monitoring and automated reporting capabilities to your operations. As the EPA continues to impose more and more scrutiny on leaks and introduce more and more regulations, using technology to stay steps ahead is vital. Moving from reactive to proactive management is the only way to succeed. Our sensors and integrated mobile app, complete with built-in GHG calculations, ensure seamless compliance with OOOOa and GHG MRR guidelines. 6th Element Labs is your ally for sustainable and profitable operations in this era of heightened environmental awareness and tighter regulations.
