Methane emission intensity metrics: unmasking the trade-offs

Reducing methane emissions is essential to slowing near-term climate warming, and the oil and gas industry is a major anthropogenic source offering some of the lowest-cost, most readily-available mitigation options. Regulators, investors, and voluntary initiatives are increasingly focused on differentiating oil and gas by the methane emitted during production and delivery. For example, the European Union—the world’s largest fossil fuel importer—is implementing an import standard with a maximum methane intensity, and major producers representing nearly half of global production have pledged to reduce emissions to near-zero levels (0.2% loss rate). However, consistent methane intensity metrics are needed to provide meaningful comparisons across the diverse industry, chosen from the myriad options. Using industry-reported and aircraft-measured emissions data from Canada and the U.S., we show that different metrics considerably alter the ranking of best/worst methane performers. Methane loss rate (methane lost per methane produced) better ranks gas producers, while energy intensity (methane lost per energy produced) more favourably ranks oil producers. Since neither metric alone provides a complete picture, we recommend reporting both. The methane loss rate measures gas-handling performance, while energy intensity provides a broader look at resource production efficiency. Together, these metrics will provide a diversity of user groups with the data they need to make effective decisions.