Soaring Methane Emissions Suggest U.S. Oil Production Is Bou

Soaring Methane Emissions Suggest U.S. Oil Production Is Bouncing Back


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Soaring Methane Emissions Suggest U.S. Oil Production Is Bouncing Back
By Irina Slav - Apr 05, 2021, 5:00 PM CDT
U.S. oil production remains about 2 million bpd lower than its pre-pandemic levels. Still, methane emissions are already back to their levels from before the coronavirus. Worrying as this is in itself, it could also threaten energy companies’ long-term growth prospects because investors’ priorities are changing. What investors want from oil and gas now is not just stable returns but a lower carbon—and methane—footprint.
The Financial Times reported recently, citing data from the Environmental Defense Fund, that methane emissions in the U.S. shale patch had rebounded to pre-pandemic levels already, after dropping sharply as oil and gas production dropped last year amid the pandemic. Methane is a much more powerful greenhouse gas than carbon dioxide, although it dissipates faster in the atmosphere and has recently been garnering growing attention from regulators, environmentalists, and, now, shareholders.

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