The data shows the biggest leaks are in the Permian basin of Texas and New Mexico. Photo via Getty Images

American oil and natural gas wells, pipelines and compressors are spewing three times the amount of the potent heat-trapping gas methane as the government thinks, causing $9.3 billion in yearly climate damage, a new comprehensive study calculates.

But because more than half of these methane emissions are coming from a tiny number of oil and gas sites, 1% or less, this means the problem is both worse than the government thought but also fairly fixable, said the lead author of a study in Wednesday's journal Nature.

The same issue is happening globally. Large methane emissions events around the world detected by satellites grew 50% in 2023 compared to 2022 with more than 5 million metric tons spotted in major fossil fuel leaks, the International Energy Agency reported Wednesday in their Global Methane Tracker 2024. World methane emissions rose slightly in 2023 to 120 million metric tons, the report said.

“This is really an opportunity to cut emissions quite rapidly with targeted efforts at these highest emitting sites,” said lead author Evan Sherwin, an energy and policy analyst at the U.S. Department of Energy's Lawrence Berkeley National Lab who wrote the study while at Stanford University. “If we can get this roughly 1% of sites under control, then we're halfway there because that's about half of the emissions in most cases.”

Sherwin said the fugitive emissions come throughout the oil and gas production and delivery system, starting with gas flaring. That's when firms release natural gas to the air or burn it instead of capturing the gas that comes out of energy extraction. There's also substantial leaks throughout the rest of the system, including tanks, compressors and pipelines, he said.

“It's actually straightforward to fix,” Sherwin said.

In general about 3% of the U.S. gas produced goes wasted into the air, compared to the Environmental Protection Agency figures of 1%, the study found. Sherwin said that's a substantial amount, about 6.2 million tons per hour in leaks measured over the daytime. It could be lower at night, but they don't have those measurements.

The study gets that figure using one million anonymized measurements from airplanes that flew over 52% of American oil wells and 29% of gas production and delivery system sites over a decade. Sherwin said the 3% leak figure is the average for the six regions they looked at and they did not calculate a national average.

Methane over a two-decade period traps about 80 times more heat than carbon dioxide, but only lasts in the atmosphere for about a decade instead of hundreds of years like carbon dioxide, according to the EPA.

About 30% of the world's warming since pre-industrial times comes from methane emissions, said IEA energy supply unit head Christophe McGlade. The United States is the No. 1 oil and gas production methane emitter, with China polluting even more methane from coal, he said.

Last December, the Biden administration issued a new rule forcing the U.S. oil and natural gas industry to cut its methane emissions. At the same time at the United Nations climate negotiations in Dubai, 50 oil companies around the world pledged to reach near zero methane emissions and end routine flaring in operations by 2030. That Dubai agreement would trim about one-tenth of a degree Celsius, nearly two-tenths of a degree Fahrenheit, from future warming, a prominent climate scientist told The Associated Press.

Monitoring methane from above, instead of at the sites or relying on company estimates, is a growing trend. Earlier this month the market-based Environmental Defense Fund and others launched MethaneSAT into orbit. For energy companies, the lost methane is valuable with Sherwin's study estimate it is worth about $1 billion a year.

About 40% of the global methane emissions from oil, gas and coal could have been avoided at no extra cost, which is “a massive missed opportunity,” IEA's McGlade said. The IEA report said if countries do what they promised in Dubai they could cut half of the global methane pollution by 2030, but actions put in place so far only would trim 20% instead, “a very large gap between emissions and actions,” McGlade said.

“It is critical to reduce methane emissions if the world is to meet climate targets,” said Cornell University methane researcher Robert Horwath, who wasn't part of Sherwin's study.

“Their analysis makes sense and is the most comprehensive study by far out there on the topic,” said Howarth, who is updating figures in a forthcoming study to incorporate the new data.

The overflight data shows the biggest leaks are in the Permian basin of Texas and New Mexico.

“It's a region of rapid growth, primarily driven by oil production,” Sherwin said. “So when the drilling happens, both oil and gas comes out, but the main thing that the companies want to sell in most cases was the oil. And there wasn't enough pipeline capacity to take the gas away” so it spewed into the air instead.

Contrast that with tiny leak rates found in drilling in the Denver region and the Pennsylvania area. Denver leaks are so low because of local strictly enforced regulations and Pennsylvania is more gas-oriented, Sherwin said.

This shows a real problem with what National Oceanic and Atmospheric Association methane-monitoring scientist Gabrielle Petron calls “super-emitters."

“Reliably detecting and fixing super-emitters is a low hanging fruit to reduce real life greenhouse gas emissions,” Petron, who wasn't part of Sherwin's study, said. “This is very important because these super-emitter emissions are ignored by most ‘official’ accounting.”

Stanford University climate scientist Rob Jackson, who also wasn't part of the study, said, “a few facilities are poisoning the air for everyone.”

“For more than a decade, we’ve been showing that the industry emits far more methane than they or government agencies admit," Jackson said. “This study is capstone evidence. And yet nothing changes.”

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Houston energy company to invest $1B in U.S. electric grid manufacturing

grid boost

Hitachi Energy, whose U.S. headquarters is in Houston, has earmarked more than $1 billion to manufacture infrastructure for the U.S. electric grid, which is coping with greater power demand from data centers and AI platforms.

Of that sum, $457 million is dedicated to building a power transformer factory in Virginia. Hitachi Energy said it’ll be the largest facility of its kind in the U.S.

“Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race. Bringing production of large power transformers to the U.S. is critical to building a strong domestic supply chain for the U.S. economy and reducing production bottlenecks, which is essential as demand for these transformers across the economy is surging,” said Andreas Schierenbeck, CEO of Switzerland-based Hitachi Energy, which generates revenue of about $16 billion.

The Hitachi announcement aligns with various priorities of the Trump administration. The White House is promoting more U.S.-based manufacturing, more power to accommodate data centers and AI, and greater use of U.S. energy resources.

“If we are going to win the AI race, reindustrialize, and keep the lights on, America is going to need a lot more reliable energy,” U.S. Energy Secretary Chris Wright said.

Texas still has its best solar days ahead of it, even as federal tax credit sunsets

Guest Column

If you follow energy policy, you already know that Congress repealed the 30% residential solar tax credit. This poses a significant challenge for continued growth in the market. It also provides an opportunity for the industry to grow in a smart, consumer-friendly way. That’s why in Texas, the story is what happens next: The state and the market are continuing to make going solar much simpler, better, and cheaper.

Policies are moving in the right direction. For example, starting this month, a bipartisan permitting reform takes effect that will cut red tape for home solar and batteries. It lets licensed third-party professionals review plans and perform inspections, requires agencies to post standardized rules and fees online, and allows homeowners to start work once those third-party approvals are submitted. It also shifts negligence liability to the third-party reviewer, thereby reducing municipal risk while accelerating safe, code-compliant installs. In plain English: fewer bottlenecks, faster installs, and lower “soft costs.”

As a result, Houston is already piloting the National Renewable Energy Lab’s free SolarAPP+ to auto-approve standard solar designs, which cuts roughly 12 days from typical timelines. Independent analyses estimate that these automated permitting rules could trim rooftop solar costs by thousands. In other words, even small, costless policy changes like this can save you almost as much money as the huge solar tax credit did, and these great reforms are happening all the time, and they make the process much more convenient and reliable.

While Texas is making solar simpler, it’s also helping consumers have a good experience when going solar. As of this month, Texas law now also requires solar salespeople to register with the Texas Department of Licensing and Regulation. The same bill standardizes contracts and provides for mandatory disclosures of upfront cost and financing terms. The whole solar industry benefits when customers have a good solar experience. Word of mouth is vital to keeping solar shining.

There's yet another pro-solar Texas law that's also going into effect this month: in addition to SB 1202 (streamlining solar permits) and SB 1036 (regulating solar sales tactics), the legislature is also supporting the dissemination of information about your options when going solar via SB 1697. You can read more about these three brand-new pro-solar state laws here.

The end of the solar tax credit is not the end of the solar industry. Far from it.

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Dori Wolf is Senior Texas Program Associate for Solar United Neighbors, a vendor and neutral nonprofit with more than 15 years helping people go solar. Their free Solar Help Desk walks you through the details. Also check out their Go Solar Guide and Solar Owner’s Manual.

Solar United Neighbors also helps you find the best retail electricity plan through its partnership with Texas Power Guide.

Sunnova assets officially sold as founder launches new Houston energy startup

solar shift

Solaris Assets has completed its acquisition of the majority of Sunnova Energy International’s residential solar assets. Houston-based Sunnova filed for Chapter 11 bankruptcy this summer after piling up billions of dollars in debt.

Meanwhile, Sunnova founder and former CEO John Berger has launched a Houston-based home energy services startup, Otovo USA, which just received more than $4 million in seed funding.

Solaris now owns Sunnova’s residential solar services platform and its solar generation and storage portfolio, along with leases, loans and power purchase agreements. Sunnova’s operations are being shifted to SunStrong Management, an Austin-based asset manager for the renewable energy sector.

“By bringing together SunStrong’s asset management expertise with Sunnova’s nationally scaled customer base, we are creating a stronger, more capable leader in the solar industry,” Brendon Merkley, CEO of SunStrong, said in a news release. “Our priority is to maintain the highest levels of service for customers as we expand our footprint as a premier solar asset servicer.”

In June, Sunnova sold its new-home business to homebuilder Lennar for $15.2 million and sold certain assets to investment firm Atlas SP Partners for $15 million.

As of December, Sunnova’s debt totaled nearly $10.7 billion, Reuters reported. Sunnova faced numerous challenges in its quest to survive, including higher interest rates, the reduction of solar incentives in California, and a shakeup in federal subsidies for renewable energy.

Sunnova filed for Chapter 11 bankruptcy in June. A month later, a bankruptcy judge approved the court-supervised sale of Sunnova. Solaris’ acquisition of Sunnova closed Sept. 3.

As SunStrong absorbs the bulk of Sunnova’s assets, Berger — who quit in March as Sunnova’s CEO — has formed a new business. He’s now the founder and CEO of Otovo USA, a partner of European residential power company Otovo.

Otovo USA offers solar power systems, solar batteries, standby generators, EV chargers, electric-load managers, and other power generation and management systems. Otovo’s AI-supported offerings are now available in Texas; the company plans to expand nationwide.

Otovo USA raised its seed funding from the EIC Rose Rock Venture Fund, which invests in energy startups.

“Otovo USA is here to help the millions of Americans with home energy services that are fed up with the complexities of warranties, juggling multiple vendors, and long repair times,” Berger said. The startup, he added, “is bringing customers what they really need: reliable power and a single partner accountable for keeping it up and running. It’s your power, backed by ours.”