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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Energy expert on powering Texas by leading globally and acting locally

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Texas is known around the world for shaping energy trends, including conservation efforts. As we reflect on Earth Day this month, let’s take a closer look at where Texas is getting things right and where there is still room for improvement.

Texas is the nation’s top producer of energy across oil, gas, wind and solar power. We have built our identity on the idea of leading the world as a powerhouse for energy production, but Texas also has to deliver results to its residents and the United States; otherwise, our global leadership falls flat.

Measuring Texas’ Global Leadership

Texas is the nation’s largest energy producer, leading the U.S. in wind-powered electricity generation and rapidly expanding its solar capacity, according to the U.S. Energy Information Administration. Our state continues to lead nationally in large-scale energy investments, business-friendly policies and abundant natural resources.

Texas is not standing still or simply doing what it has always done. The state recognizes that to stay competitive, we must adapt and change. Diversification in the areas of liquefied natural gas exports and new investments in carbon and hydrogen capture are defining what the next chapter of Texas’ leadership will look like.

Energy leadership requires production, innovation and influence. Together, these will keep Texas as a formidable force in global energy production.

Our Local Texas Reality Is Important, Too

When we zoom in to look more closely at what is happening in Texas, the picture becomes a bit more nuanced. Our energy independence creates both flexibility and vulnerability, especially during major weather events such as winter storms and hurricanes.

Five years later, the effects of Winter Storm Uri remain in many of our minds. Demand for home generators has risen quickly in the state, with Houston leading the way due to grid uncertainty. As our population continues to rise quickly and more data centers are built in the state, grid stability remains a major factor in Texas’ ability to lead in energy innovation to meet the demands of residents.

ERCOT has developed a three-part plan to help mitigate the risk of grid failure during periods of extreme demand or emergencies. While this is an improvement over five years ago, Texas still needs to invest significantly in grid resiliency.

Texas’ Energy Market and Affordability

Often, proponents of our deregulated energy market in Texas hold it up as an example of healthy competition and consumer choice. Lawmakers claim that it gives residents the ability to select an energy plan that best meets their needs.

In practice, however, the market can be difficult to navigate. There are many electricity plans and providers, so residents often feel overwhelmed when navigating the energy market. With fluctuating rates, complex contracts and peak pricing structures, monthly energy bills can be surprising.

Additionally, as utility companies seek to distribute energy infrastructure costs to customers, prices are rising rapidly. According to TEPRI, electricity rates have risen by 30% since 2021, and the organization predicts an additional 29% increase by 2030.

A 60% increase in electricity prices over less than a decade will affect more than 4.1 million LMI (low- to moderate-income) households in Texas. Conservative projections by TEPRI estimate that by 2030, LMI households will pay an additional $863 annually for electricity, representing an electricity-pricing burden of 8.2%.

The energy affordability crisis is just beginning here in Texas, and greater education and proactive legislation are needed to help LMI households navigate the changing market and rising energy costs. LMI households are already choosing between paying for electricity and healthcare for their family members.

If Texas wants to remain a global leader in energy production, innovation, reliability and affordability, the rising cost of energy needs urgent attention.

Grid Resilience Is Mandatory

In addition to energy affordability, Texas frequently experiences extreme weather, making grid resilience foundational to its continued leadership in both local and global markets.

Between 1980 and 2024, Texas experienced 190 weather-related events with financial losses exceeding $ 1 billion. From hurricanes along the Gulf Coast to prolonged heat waves and drought, the state’s energy infrastructure is under increasing strain. These events necessitate that Texas invest in long-term planning and preparedness for its energy infrastructure.

Next Steps for Local Leadership

Texas needs to strengthen every part of its energy infrastructure. Leading locally means strengthening the grid by building out transmission, scaling battery storage, and deploying smarter, more responsive technology. At the same time, we need to make the market easier to navigate and ensure Texans are better educated and protected as they make energy decisions.

Additionally, as Texans become more informed about the energy landscape, it is crucial to equip them with the knowledge to use energy conservation tools such as programmable thermostats, mobile apps to monitor and adjust energy usage, shifting away from peak-hour usage and selecting energy plans without gimmicks or tricky clauses.

These important intersections are where Texas’ global leadership meets local impact in a critical time of change and transition in the Texas energy landscape.

Going Forward

Beyond addressing the critical issues of reliability and affordability at home here in Texas, it is important to recognize that they are also global. While we already export our energy products to the world, we have a unique opportunity to also export solutions in grid innovation, market design and technologies that are applicable to varied environments and markets around the world.

If we get it right, Texas will be known for not only producing energy but also for shaping how energy systems evolve globally. In order for Texas to lead both locally and globally, we need to focus on performance through smarter infrastructure, thoughtful policy and informed consumers.

Because true energy leadership isn’t just about how much we produce, it’s about performance, access and impact from Texas communities to the global stage, which is an imperative that goes far beyond Earth Day.

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Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

Houston energy transition hub opens applications for new fundraising cohort

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EnergyTech Cypher has opened applications for its second Liftoff fundraising program.

Applications close May 20 for the 10-week virtual fundraising sprint. The program is geared toward energy and climatech founders preparing to raise their first institutional round. It will cover fundraising requisites, like pitch materials, term sheet negotiation and round closing, according to a release from EnergyTech Cypher.

The program kicks off June 1 and runs every Monday from 1-3 p.m. CST. It will conclude with an in-person capstone simulation in Houston on August 3, where founders will work to close a mock round.

Jason Ethier, EnergyTech Cypher founder and CEO, will lead the program with Payal Patel, an EnergyTech fellow and entrepreneur in residence.

The program is available through Cephyron, EnergyTech Cypher's new investor relationship management platform, built specifically for energy and climatech founders. Users must have a Cephyron Boost membership to participate in the Liftoff program.

The Cephyron IRM app recently went live and is available to founders at any point in their fundraising process, according to the news release. The platform aggregates investor data, tracks market signals and delivers curated weekly recommendations.

EnergyTech Cypher launched Liftoff last year. The inaugural cohort included 19 startups, including Houston-based AtmoSpark Technologies, The Woodlands-based Resollant and others. Each participant closed at least one fundraising deal, according to EnergyTech Cypher.

EnergyTech Cypher rebranded from EnergyTech Nexus earlier this year. It also launched its CoPilot accelerator in 2025. The inaugural group presented its first showcase during CERAWeek last month.

EnergyTech Cypher's annual Pilotathon Pilot Pitch and Showcase applications also opened this month. Find more information here.

Houston climatech startup raises $29M funding round​

fresh funding

Houston-based NanoTech Materials has closed a $29.4 million Series A.

The round was led by Austin-based HPI Real Estate & Investments. Houston-based Goose Capital and Austin-based Milliken & Company also participated.

Nanotech has developed its patented Insulative Ceramic Particle (ICP) technology, which reduces heat transfer in buildings and outdoor infrastructure, improving efficiency and safety. It's known for its Cool Roof Coat, Wildfire Shield and Insulative Coat: Cool Touch product lines.

With the new funding, Nanotech plans to scale operations and expand its market reach for its products.

“We’re addressing one of the pressing and urgent challenges facing infrastructure owners today: controlling energy costs and extending asset life,” Mike Francis, CEO and co-founder of NanoTech Materials, said in a news release. “This financing marks a transformative moment for us. It allows us to rapidly scale production and bring our high-performance materials to market faster, while delivering measurable cost savings and redefining what resilience looks like in today’s built environment.”

Nanotech launched in 2020 and was the first company selected for Halliburton Labs. It moved into a 43,000-square-foot space in Katy in 2023. It brought on new partners that expanded the company's reach in the Middle East and Singapore the following year. Its technology was recognized as one of Time magazine's 200 Best Inventions of 2024.

“We were early investors in Nanotech Materials and are pleased to continue supporting the company as it becomes a leader in breakthrough materials science and technology,” John Chaney, investor at Goose Capital and board member at NanoTech, added in the release. “NanoTech’s ability to elevate fire resilience and energy efficiency in the built environment is critical for strengthening and hardening infrastructure. Its pioneered approach is transforming current building standards and making our lives safer.”

The company has secured $34.4 million in total to date, according to the release. It raised an oversubscribed funding round in 2023 and a $5 million seed round in 2020.