Estimation and reduction analysis of methane emissions in China's oil and gas industry
Methane is the second largest greenhouse gas(GHG)after carbon dioxide.According to statistics,methane emissions account for as high as one-third of GHG emissions in the global oil and gas industry.Hence,it is of great significance to strengthen the control of methane emissions for the realization of the"carbon peaking and carbon neutrality"goals.In this paper,methane emissions in China's oil and gas industry are estimated for the period of 2021-2060,depending upon the expected oil and gas consumption and the expected emission control in the industry.Then,the potential and cost of technical emissions reduction under the emissions reduction target are analyzed.Finally,the marginal cost of methane emissions reduction in the oil and gas industry at two milestones(2030 and 2060)are estimated by taking into account the proportion of each type of emission source and the cost-effectiveness of the existing emissions reduction technologies.The results are obtained in four aspects.First,between 2021 and 2060,methane emissions will see a slight decline in the oil and gas industry,with slow contribution from the natural gas system,where great emissions reduction potential lies in transmission and distribution processes.Second,90%methane emissions in the oil and gas industry come from 30%sources,of which around 10%-20%cannot be eradicated through technological means.Third,the proportion of effective emissions reduction technologies employed by 2030 and 2060 will reach 22.0%and 44.4%respectively.Fourth,the average unit cost of methane emissions reduction by 2030 and 2060 will be RMB22.33/m3 and RMB14.57/m3,respectively.It is concluded that China's oil and gas industry needs to accelerate the construction of methane emission detection,reporting,and verification system in a medium to long run,promote the refinement of emission data,and consistently enhance the industry's initiative in methane emissions reduction through various means,such as green finance and the development of CCER methodologies.
Oil and gas systemMethane emissionsAccountingEmissions reductionMarginal costCarbon price