Permian Basin Greenhouse Gas Emissions Decline Despite Increasing Oil and Gas Production

A recent analysis by S&P Global Commodity Insights reveals a significant reduction in absolute greenhouse gas emissions from the Permian basin, one of the world's most prolific oil and gas fields. Despite a 500,000 barrels per day increase in oil and gas production, absolute emissions decreased by 25 million metric tons of carbon dioxide equivalent (MMt CO2e) between 2022 and 2024, representing a 20% reduction. The biggest factor in this decline has been the improved detection and mitigation of methane, a potent greenhouse gas responsible for approximately two-thirds of total emissions in the Permian.

Key Takeaways:

• Absolute greenhouse gas emissions from the Permian basin declined by 25 million metric tons of carbon dioxide equivalent (MMt CO2e) between 2022 and 2024, a 20% reduction.
• Oil and gas production in the Permian increased by the equivalent of 500,000 barrels per day between 2022 and 2024.
• The improvement in methane detection and mitigation was the biggest factor in the overall emissions reduction, with a 50% decrease in methane intensity over the same period.
• The scale of methane reduction outpaced the impact of production growth, leading to a decline in absolute emissions.
• The average greenhouse gas intensity of oil production in the Permian was 22 kilograms of carbon dioxide equivalent per barrel of oil equivalent produced (equivalent to 3.8gCO2e/MJ) in 2024.
• Intensity varied widely from one well to another, ranging from more than 160 kgCO2e/boe (28 gCO2e/MJ) to less than 4 kgCO2e/boe (0.69 gCO2e/MJ).
• Utilizing advanced technologies and improved operations led to a significant reduction in overall emissions.
• Major Permian producers have a track record of improvements from an emissions per barrel standpoint, but the reduction in absolute emissions during a period of production growth was a surprise.

Statistics:

• Absolute greenhouse gas emissions reduction: 25 million metric tons of carbon dioxide equivalent (MMt CO2e) (2022-2024)
• Increase in oil and gas production: equivalent of 500,000 barrels per day (2022-2024)
• Methane intensity reduction: 50% over the 2022-2024 period
• Average greenhouse gas intensity of oil production: 22 kilograms of carbon dioxide equivalent per barrel of oil equivalent produced (equivalent to 3.8gCO2e/MJ) (2024)
• Range of greenhouse gas intensity: 4 kgCO2e/boe (0.69 gCO2e/MJ) to 160 kgCO2e/boe (28 gCO2e/MJ)

Sources:

• S&P Global Commodity Insights press release
• S&P Global Commodity Insights analysis for Permian upstream methane