Methane intensity for oil and gas production: Key methodological considerations

The report examines various formulas for calculating methane intensity, evaluating trade-offs between simplicity, accuracy, and applicability. It specifically addresses the needs of the EU Methane Regulation, which requires a methodology for producer-level intensity by August 2027 to set maximum intensity thresholds for oil and gas placed on the Union market by 2030. The analysis covers key decisions such as using single versus separate formulas for oil and gas, the choice between produced and marketed product denominators, and the appropriate level of granularity for reporting.

• The EU Methane Regulation mandates that by 5 August 2027, the Commission must adopt a delegated act setting out the methodology for calculating methane intensity at the producer level for crude oil, natural gas, and coal placed on the Union market.
• Using a single methane intensity formula for both oil and gas is simpler and avoids the need for emission allocation, but it may mask which product is more emission-intensive and can be counter-intuitive if the denominator only considers one product.
• Separate formulas for oil and gas allow for product-specific calculations but require a defined allocation method to attribute emissions when products are produced together; energy-based allocation is the most common approach.
• A single quantitative threshold for methane intensity will have different levels of stringency for oil and gas; a loss rate (%) is generally more stringent for oil, while a mass-per-energy unit is more stringent for gas.
• Using 'marketed product' in the denominator can incentivize the reduction of venting and flaring to increase sales volumes, but it may discourage the on-site use of produced gas for power and heat.
• High levels of granularity (facility or asset level) better reflect individual mitigation efforts but increase data collection burdens and create a risk of 'cherry-picking' low-intensity assets for export to the EU.
• Lower levels of granularity (basin or country level) per operator reduce data requirements and the risk of cherry-picking, though they may be less actionable for producers who have not performed individual assessments.
• Inconsistent system boundaries regarding whether processing is included in the 'production' scope can lead to unequal treatment, where producers with integrated activities report higher intensities than those without.
• Expressing methane intensity as a percentage is intuitive and widely used in industry, but it can be misleading if the underlying ratios (volume, mass, or energy) are not clearly communicated.
• The reliability of methane intensity is dependent on robust Monitoring, Reporting, and Verification (MRV) systems; the report recommends that low reported intensities should not be the result of poor data quality.
• Super-emitting events (emissions above 100 kg of methane per hour) must be accounted for in intensity calculations, though satellite detection may be biased by regional geography.

APA

Clean Air Task Force (2026). Methane intensity for oil and gas production: Key methodological considerations. https://www.catf.us/wp-content/uploads/2026/02/methane-intensity-oil-gas-production.pdf

Chicago

Clean Air Task Force. Methane intensity for oil and gas production: Key methodological considerations. 2026. https://www.catf.us/wp-content/uploads/2026/02/methane-intensity-oil-gas-production.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=Methane intensity for oil and gas production: Key methodological considerations |date=February 2026 |url=https://www.catf.us/wp-content/uploads/2026/02/methane-intensity-oil-gas-production.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforce2026methane, author = {{Clean Air Task Force}}, title = {{Methane intensity for oil and gas production: Key methodological considerations}}, institution = {Clean Air Task Force}, year = {2026}, month = feb, url = {https://www.catf.us/wp-content/uploads/2026/02/methane-intensity-oil-gas-production.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }