White House Plan to Cut Methane Emissions is Good News for Oilfield Equipment Manufacturers
Last month, the Obama administration announced a plan to cut methane emissions and combat climate change with a sweeping set of regulations on the oil and gas industry — and these regulations could give a major boost to oilfield equipment and industrial equipment manufacturers.
According to a January 14 FuelFix article, the massive oil and gas industry, which employs 9.8 million Americans and makes up about 8% of the nation’s economy, will soon be seeking out products like sealing devices, air sampling monitors and leak detectors on a major scale.
These pieces of equipment are vital for detecting the presence of methane, one of the most potent greenhouse gases. Currently, approximately 76 oilfield equipment makers offer these products, but that number will likely rise significantly in concurrence with boosted demand as more oil companies move to comply with the planned federal regulations, FuelFix reports.
Methane is a common byproduct of natural gas production, with emissions taking place on all parts of the supply chain — from the initial drilling and processing steps to storage and distribution. Methane can also be released during crude oil drilling processes. It’s estimated that methane gas is up to 84 times more potent than carbon dioxide at warming the atmosphere.
In addition to slowing the onset of climate change, reducing the amount of methane emissions from natural gas wells, pipelines and processing systems could also help create jobs and reduce waste from oil and gas drilling. The White House states that reducing the U.S.’ methane emissions should have no negative impact on oil or gas drilling.
Other devices that may soon be in high demand once the new methane regulations are in place? Things like plunger lifts, seals and pneumatic controllers are all projected to get a boost, according to FuelFix.
How else do you think cutting methane emissions will benefit makers of oilfield tanks and production rigs? Share your thoughts with us and get the conversation started by leaving a comment below.