Permian methane emissions dropped 26% in 2023 from previous year, new study finds

Annual methane emissions stemming from oil and gas production operations in the Permian basin decreased 26% in 2023 from the previous year—equal to the total amount of carbon emissions avoided by every electric vehicle on the road in the United States that year, according to a new analysis by S&P Global Commodity Insights.

The data show that methane emissions from upstream oil and gas operations in the Permian Basin fell by more than 34 billion cubic feet (bcf) in 2023, the most recent year that data is available. Given that methane is a potent greenhouse gas, the reduction was equivalent to 18.5 million tons of carbon dioxide emissions avoided (100-year equivalency factor of 28*). 

The findings of the latest analysis for Permian upstream methane, produced in partnership with leading methane management firm Insight M, are based on high frequency observation data that include nearly 700 high-resolution aerial surveys covering 88% of the basin’s active wells to provide the most accurate, basin-wide estimate of methane emissions.

“The sheer scale of this single-year improvement represents significant progress and demonstrates the potential for what lies ahead,” said Daniel Yergin, Vice Chairman, S&P Global. “Continued improvements in the Permian—an area roughly the size of Great Britain that is responsible for almost half of all U.S. oil output—is providing a path to make meaningful contributions that lower overall U.S. emissions.”

To put the numbers into perspective, the size of the 2023 reduction in methane emissions was:

• More than the total 2023 driving emissions avoided by every EV ever sold in the United States, even if all the vehicles were powered 100% by zero-carbon electricity.
• Roughly the same as the total GHG emission from all sources for the state of Hawaii during the same period.

The decline in emissions occurred even as total oil and gas production in the Permian increased, the analysis says. As a result, the basin’s methane intensity (ratio of total methane emissions to total output) registered an even more pronounced decline, exceeding 30%.

The analysis attributes the emissions decline to ongoing improvements in equipment as well as increasing deployment of new technologies—from AI-driven analysis of operational data to on-the-ground sensors, aircraft overflights and satellites—that make it possible to detect leaks with greater speed and accuracy.

“Improvements and increased accessibility of remote sensing technologies is providing a better understanding of U.S. methane emissions, and more actionable information, said Kevin Birn, Head of the Center for Emissions Excellence, S&P Global Commodity Insights. “Leaks that previously might have persisted for weeks or months can now be addressed in a matter of days.”