Report on Methane Emissions Reduction in the Permian Basin and Alignment with Sustainable Development Goals (SDGs)

Executive Summary

A new analysis by S&P Global Commodity Insights reveals a significant reduction in the methane intensity of oil and gas production in the Permian Basin between 2022 and 2024. The data indicates a decline of over 50%, demonstrating substantial progress in mitigating greenhouse gas emissions. These achievements directly contribute to several United Nations Sustainable Development Goals (SDGs), particularly SDG 13 (Climate Action), SDG 9 (Industry, Innovation, and Infrastructure), SDG 7 (Affordable and Clean Energy), and SDG 12 (Responsible Consumption and Production).

Key Findings and Contributions to SDG 13: Climate Action

The reduction in methane, a potent greenhouse gas, represents a critical step in combating climate change. The analysis quantifies this progress, showing a direct and measurable impact on global climate efforts.

Emissions Intensity and Absolute Reductions

• The methane emissions intensity for upstream operations in 2024 was recorded at 0.44% per barrel of oil equivalent, a 29% decrease from the previous year.
• Absolute methane emissions in 2024 fell by 21.3 billion cubic feet (bcf), a 22% year-over-year decline. This is equivalent to avoiding 11.1 million tons of carbon dioxide (CO2e).
• From the end of 2022 to 2024, the cumulative reduction in absolute emissions reached 55.2 bcf, equivalent to 28.8 million metric tons of CO2e avoided.

Comparative Climate Impact

The 28.8 MMT CO2e reduction over the two-year period is a substantial contribution to SDG 13, equivalent to:

• The approximate annual emissions of the nation of Lithuania.
• 15% more than the emissions avoided by all electric vehicles sold in the United States and the European Union combined.
• 50% greater than the total emissions reductions achieved in the UK power sector.

Drivers of Success: Advancing SDG 9 and SDG 12

The observed emissions decline is attributed to technological and operational advancements, underscoring progress toward SDG 9 (Industry, Innovation, and Infrastructure) and SDG 12 (Responsible Consumption and Production).

Technological Innovation and Infrastructure Upgrades (SDG 9)

The industry’s adoption of advanced technology has been a primary driver of success, aligning with SDG Target 9.4 to upgrade infrastructure and retrofit industries for sustainability.

• Advanced Monitoring: The analysis utilized data from over 500 high-resolution aerial surveys, demonstrating the power of high-frequency observation in managing emissions.
• AI and Machine Learning: Operators are increasingly using AI not only to “find and fix” leaks but to “predict and prevent” them, representing a shift towards proactive emissions management.
• Improved Equipment: Oilfield service manufacturers are now designing and producing equipment with emissions reduction as a core feature.

Responsible Production and Resource Management (SDG 12)

The reduction of fugitive methane emissions signifies a move towards more sustainable production patterns and the efficient use of natural resources, as called for in SDG 12.

• Waste Reduction: The decline in emissions occurred across all observable plume rates, from large (1000+ kg/hr) to small (10 kg/hr), indicating a comprehensive approach to minimizing resource waste.
• Operational Normalization: Methane management is becoming a standard operational responsibility for field staff, integrating sustainable practices into daily activities.
• Economic Decoupling: Notably, these reductions were achieved despite low regional gas prices, where the lost economic value from fugitive emissions was just 0.002% of total hydrocarbon revenues in 2024. This shows that environmental responsibility can be pursued independently of immediate economic incentives for capturing gas.

Implications for SDG 7 and SDG 17

Enhancing Energy Sustainability (SDG 7)

By reducing the greenhouse gas intensity of oil and gas, the industry is making progress towards making energy production cleaner and more sustainable. While not a renewable source, these efforts to decarbonize existing energy systems contribute to the broader goals of SDG 7 (Affordable and Clean Energy) by improving the environmental performance of a critical energy supply.

The Role of Partnerships (SDG 17)

This analysis, a product of the partnership between S&P Global Commodity Insights and methane management firm Insight M, exemplifies SDG 17 (Partnerships for the Goals). The collaboration highlights how multi-stakeholder partnerships are essential for generating reliable data, measuring progress, and driving industry-wide improvements in sustainability. Access to credible, observation-based data is crucial for benchmarking performance and enabling companies to compete on carbon management.

Relevant Sustainable Development Goals (SDGs)

• SDG 7: Affordable and Clean Energy
• SDG 9: Industry, Innovation and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

Identified SDG Targets

1. SDG 7: Affordable and Clean Energy

   • Target 7.3: By 2030, double the global rate of improvement in energy efficiency.
     
     Explanation: The article highlights a significant reduction in methane intensity, which is a direct measure of improved energy efficiency in oil and gas production. Methane that is not leaked is gas that can be captured and used, meaning less energy is wasted per unit of production. The article states, “The methane intensity of oil and gas production… declined by more than 50% during the 2022-2024 period.”

2. SDG 9: Industry, Innovation and Infrastructure

   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
     
     Explanation: The article directly attributes the emissions decline to technological advancements and infrastructure upgrades. It mentions “improved operations, better equipment and the utilization of AI and other advanced technologies,” as well as “on-the-ground sensors, aircraft overflights and satellites” as key drivers for the reduction.

3. SDG 12: Responsible Consumption and Production

   • Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle… and significantly reduce their release to air, water and soil to minimize their adverse impacts on human health and the environment.
     
     Explanation: The article focuses on the reduction of fugitive methane emissions, which is a chemical gas released into the air. The efforts described to “detect leaks with greater speed and accuracy” and the resulting decrease in absolute emissions directly align with the goal of reducing the release of waste products into the environment.

4. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies and planning.
     
     Explanation: The reduction of methane, a potent greenhouse gas, is a critical climate change mitigation measure. The article quantifies this impact, stating the reduction was “equivalent to 11.1 million tons of carbon dioxide emissions avoided” in one year. This demonstrates the implementation of climate action strategies at the industry level.

Indicators for Measuring Progress

1. Indicator for Target 7.3 (Energy Efficiency)

   • Methane emissions intensity per barrel of oil equivalent: The article provides a specific metric for energy intensity in the sector.
     
     Data from article: “The latest data for the year 2024 show the methane emissions intensity of upstream oil and gas operations in the region to be 0.44% per barrel of oil equivalent—a 29% reduction from the previous year.” This directly measures the improvement in energy efficiency.

2. Indicator for Target 9.4 (Sustainable Industries and Technology)

   • Adoption of advanced monitoring and prevention technologies: While not quantified as a percentage, the article implies this indicator by crediting the success to specific technologies.
     
     Data from article: The analysis attributes the decline to “utilization of AI and other advanced technologies,” “on-the-ground sensors, aircraft overflights and satellites,” and the use of “AI and machine learning to not only ‘find and fix’ but ‘predict and prevent’ emissions.”

3. Indicator for Target 12.4 (Reduction of Releases to Air)

   • Absolute reduction in fugitive methane emissions: This indicator measures the volume of the gaseous waste product that is no longer being released into the atmosphere.
     
     Data from article: “Absolute annual 2024 methane emissions decreased by 21.3 billion cubic feet (bcf), a 22% decline from the previous year.”

4. Indicator for Target 13.2 (Climate Action)

   • Total greenhouse gas emissions avoided (in CO2 equivalent): This is a standard indicator for measuring the impact of climate mitigation efforts.
     
     Data from article: “the reduction was equivalent to 11.1 million tons of carbon dioxide emissions avoided” in 2024, and a total of “28.8 MMT of carbon dioxide emissions avoided” since the end of 2022.

Summary of Findings

Source: worldoil.com