The latest data from S&P Global Commodity Insights confirms what producers in the Permian Basin have long been showing: oil and natural gas assets can deliver record energy production while reducing emissions. According to S&P, methane emissions intensity in the Permian Basin has dramatically declined by more than 50 percent from 2022 to 2024. The decline is attributed to improved operations, upgraded equipment, and the utilization of advanced technologies, including artificial intelligence.
Source: S&P Global Commodity Insights
Additionally, S&P’s recent data shows that since the end of 2022, absolute emissions in the Permian Basin have declined by 55.2 billion cubic feet (Bcf), which is equivalent to 28.2 million metric tons (MMT) of carbon emissions avoided. To put this reduction into perspective, the reduction is roughly the same as eliminating the annual emissions of an entire country the size of Lithuania, and greater than the greenhouse gas emissions from heating and cooling every home in California, as S&P notes..
Record production does not inhibit emissions reduction efforts
This impressive reduction comes amid record-setting oil production for the country. The United States has produced more crude oil than any nation at any time for the past six years in a row, according to the Energy Information Administration (EIA). In August of 2024, the United States reached a new monthly record for crude oil production at 13.4 million barrels per day (MMbbl/d).
The Permian Basin remains a cornerstone of that growth, accounting for nearly 50 percent of U.S. oil production and over 20 percent of U.S. natural gas output. Despite this record production, the prolific basin is actively contributing to environmentally conscious progress in key areas like methane emissions intensity.
As Energy in Depth has previously analyzed, data from the Environmental Protection Agency shows that Permian methane emissions have fallen 32 percent since 2019, even as production surged 51 percent during the same time period. That’s a perfect example of how energy growth and environmental goals can go hand in hand.
Industry leads voluntary emissions reduction efforts
Notably, American oil and gas companies have been at the forefront of voluntary efforts, commitments, and programs to reduce methane emissions – which are exactly what lead to impressive declines in emissions like those reflected in S&P Global’s recent data.
Industry groups like the Oil and Gas Methane Partnership, The Environmental Partnership, ONE Future, and the Texas Methane and Flaring Coalition all work to bring together the country’s top oil and gas producers to work towards common goals like improving methane emissions reporting, ending routine flaring, and sharing of best practices for emissions detection.
Following the release of the latest S&P data, the Texas Methane and Flaring Coalition emphasized:
“Our members have consistently demonstrated a sincere and deep commitment to reducing the level of methane intensity levels—efforts that are clearly working. Since the Coalition’s inception in 2019, operators have made significant progress in ending the practice of routine flaring, and as this new data confirms, achieved extraordinary methane intensity reduction alongside record production levels.”
Rather than penalizing American producers, who have already delivered results on the ground, policymakers should continue to collaborate with the industry to develop fair emissions reduction policies. Progress like dramatic reductions in methane emissions intensity showcase that industry’s voluntary commitments and pledges to eliminate emissions can and do work.
Bottom Line: The new S&P Global data is the latest proof that American oil and gas producers are leading the way in balancing energy production and environmental performance. The Permian Basin shows that record-breaking output and dramatic emission reductions are not mutually exclusive and can happen at the same time, and at scale.
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