shale gas

This post originally appeared on The National Journal's Energy Experts blog.

The U.S. Department of Energy made a big announcement late last week, green lighting the country’s second liquefied natural gas (LNG) export project. Many argue that natural gas exports will bring economic and geopolitical benefits for the United States--with Japanese and French companies coming on board as key partners in the proposed export station.

Indeed, natural gas can contribute to a lower-emissions trajectory--but only if it’s done right. With effective policies and standards in place, natural gas can help displace coal while complementing lower-carbon, renewable energy sources. But without these protections, U.S. LNG exports will likely lead to an increase in domestic greenhouse gas (GHG) emissions and, as discussed below, may have a negative effect on global climate change.

The question becomes whether government agencies and businesses will take the necessary steps to limit the emissions risks associated with natural gas, including through LNG exports.

The U.S. Environmental Protection Agency (EPA) recently released its annual greenhouse gas (GHG) inventory report. Using new data and information, the EPA lowered its estimate of fugitive methane emissions from natural gas development by 33 percent, from 10.3 million metric tons (MMT) in 2010 to 6.9 MMT in 2011. While such a reduction, if confirmed by measurement data, would undeniably be a welcome development, it doesn’t mean that the problem is solved.

There are still many reasons why reducing fugitive methane is important. Even better, WRI’s recent analysis finds that we have the technologies and policy frameworks to do so cost effectively.

Here are five big reasons we should care about fugitive methane emissions:

1) Emissions Are Still Too High.

Methane is a potent greenhouse gas and a key driver of global warming. Methane is 25 times stronger than carbon dioxide over a 100-year time period and 72 times stronger over a 20-year period. In fact, 6.9 MMt of methane is equivalent in impact to 172 MMt of CO2 over a 100-year time horizon. That’s greater than all the direct and indirect GHG emissions from iron and steel, cement, and aluminum manufacturing combined. Reducing methane emissions is an essential step toward reducing U.S. greenhouse gas emissions and slowing the rate of global warming.

The rapid expansion of natural gas development in the United States has been a double-edged sword. While natural gas supporters are quick to point out its economic benefits and green attributes—natural gas produces roughly half the carbon dioxide emissions of coal during combustion—this isn’t the whole story. Natural gas comes with environmental consequences, including risks to air and water quality.

One risk is “fugitive methane emissions,” potent greenhouse gases that escape into the atmosphere throughout the natural gas development process. This methane—which is 25 times more potent than carbon dioxide over a 100-year timeframe—contributes to global warming and undercuts the climate advantage that cleaner-burning natural gas has over coal and diesel. (Learn more about fugitive methane emissions in our recent blog post.)

Despite the controversy surrounding natural gas development, energy forecasts suggest that natural gas is here to stay. Fortunately, several pathways are available to limit the climate impacts associated with its development. WRI just released a working paper, Clearing the Air: Reducing Upstream Greenhouse Gas Emissions from U.S. Natural Gas Systems, which outlines a number of state and federal policies and industry best practices to cost-effectively reduce fugitive methane emissions. We find that with the right amount of reductions, natural gas does offer advantages from a greenhouse gas (GHG) emissions perspective over coal and diesel.