Methane Emissions in the Oil and Gas Industry: Why Compliance Isn’t Enough

Methane emissions from the energy sector are increasingly under the spotlight. Recent satellite imagery from MethaneSAT and CarbonMapper reveals that emissions are higher than previously reported, largely due to inefficiencies in flaring and unaccounted leaks across the value chain.

While regulatory frameworks exist to minimise the environmental impact of flare gas, they are not enough to fully address the issue, especially when assumptions such as the 98% destruction and removal efficiency (DRE) for flaring systems are proving overly optimistic. Studies indicate that real-world DRE values are closer to 91–92%, driven by factors such as unlit flares and inconsistent monitoring.

Whichever way the political pendulum swings—whether governments prioritise or downplay environmental policies—the urgency of addressing methane emissions remains.

Relying on external enforcement or outdated assumptions about DRE for instance not only delays action but also heightens the environmental and reputational risks faced by the industry.

These findings highlight the need for a shift in industry attitudes. Rather than relying solely on regulatory enforcement, the oil and gas sector must adopt a proactive approach to reducing methane emissions, leveraging advanced technologies and data to optimise operations and demonstrate environmental leadership.

Why Regulatory Compliance Alone Falls Short on Methane Emissions

Regulations are a foundation, but not the finish line. Established regulatory frameworks such as the EPA’s New Source Performance Standards (NSPS) in the USA, along with global standards like API 14.10, and initiatives such as the Methane Pledge, and the Zero Routine Flaring by 2030, provide essential guidance for reducing methane emissions. These efforts often inspire similar regulatory actions worldwide.

However, many high-emitting regions lack robust regulations or enforcement mechanisms, leaving critical gaps in methane control. Even in regulated markets, compliance often lags behind technological capabilities and environmental needs. Minimum standards prioritise adherence over innovation, and operational blind spots—such as unlit flares and inefficient combustion—remain hard to detect and address under current frameworks.

These limitations highlight the need for the industry to lead by taking proactive measures. Advanced tools and voluntary initiatives provide opportunities to go beyond regulatory requirements and address emissions at their source.

Technologies and Strategies to Reduce Methane in Oil and Gas Operations

1. Leveraging Advanced Technology

Modern technologies and operational improvements offer the oil and gas sector clear pathways to reduce methane emissions more effectively. Monitoring solutions like FlareSens provide continuous flare gas flow measurement and detailed gas composition analysis, helping operators optimise combustion efficiency and identify inefficiencies. Satellite data from MethaneSAT and CarbonMapper complements this by delivering a broader view of emissions, pinpointing hotspots that require targeted intervention.

• Invest in Operational Excellence

Operational excellence is equally important. Adopting best practices in flare design, such as using air-assisted flares and enclosed combustion devices (ECDs), can significantly enhance DRE. Regular inspections and the use of optical gas imaging (OGI) cameras are critical for identifying and mitigating emissions from unlit flares.

• Align with Voluntary Initiatives

Voluntary initiatives further support proactive action. Industry frameworks like the Global Methane Pledge and OGMP 2.0 provide structured pathways for companies to commit to ambitious methane reduction goals. Our customer, PETRONAS, for example, demonstrates leadership by investing in innovation and collaboration through initiatives such as the Methane Emissions Technology Evaluation Centre (METEC). By aligning with these initiatives, the sector can foster shared progress while setting benchmarks for sustainability.

A Call to Action: Industry Leadership in Methane Reduction

Addressing methane emissions requires more than adhering to regulations. Political variability and delays in enforcement highlight the need for industry-driven solutions that prioritise action over waiting for external mandates. By leveraging advanced monitoring tools, optimising operational practices, and aligning with voluntary initiatives, companies can take ownership of their role in emissions reduction.

This approach not only addresses environmental responsibilities but also strengthens operational resilience and competitiveness in a market increasingly focused on decarbonisation.

The tools, data, and frameworks to act are already available. Industry leaders have a unique opportunity to set the pace, moving beyond compliance to establish themselves as frontrunners in the global energy transition.

Progress must not hinge on shifting political tides—it’s time for the industry to lead.