Drilling Down on Methane Loss

An analysis of Texas oil and gas data reveals that methane waste is significantly underreported, with estimates suggesting actual losses are 3 to 4.5 times higher than official figures. The study finds that venting is the primary source of underreporting, particularly in low-production oil wells where economic incentives discourage gas capture. The report argues that current self-reporting systems are insufficient and recommends disaggregated reporting and more stringent regulations to reduce environmental harm and recover lost tax revenues.

• Texas is estimated to have wasted between 3 and 4.5 times more gas than operators reported for the 12 months ending November 2024, with the majority of this waste occurring through intentional venting.
• The gap between self-reported and estimated gas waste is substantial: while operators reported approximately 120 billion cubic feet (Bcf) of vented and flared gas, the analysis suggests the true total could be as high as 551 Bcf, equating to 7.6 million metric tons of methane emissions.
• There is a systemic pattern of underreporting in oil wells; more than one-third of oil wells in Texas report oil production but zero associated gas production or disposal, which is geologically impossible.
• Methane waste is driven by economics: gas-dominated wells waste very little, while oil-dominated wells waste more. Within oil wells, low-rate producers waste a higher percentage of associated gas than high-rate wells, accounting for about half of overall methane emissions.
• The underreporting of gas waste results in significant economic losses for the state of Texas. In 2024, the estimated gas waste represents over $1 billion in lost gas value and nearly $100 million in lost tax revenue.
• The report identifies that venting is more frequently underreported than flaring, partly because NASA's VIIRS satellite can detect and measure flaring, making it harder for operators to hide those volumes.

APA

RMI (2026). Drilling Down on Methane Loss. https://rmi.org/resources/drilling-down-on-methane-loss/

Chicago

RMI. Drilling Down on Methane Loss. 2026. https://rmi.org/resources/drilling-down-on-methane-loss/.

Wikipedia

{{cite report |author=RMI |title=Drilling Down on Methane Loss |date=16 March 2026 |url=https://rmi.org/resources/drilling-down-on-methane-loss/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2026drilling, author = {{RMI}}, title = {{Drilling Down on Methane Loss}}, institution = {RMI}, year = {2026}, month = mar, url = {https://rmi.org/resources/drilling-down-on-methane-loss/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }