Greener thinking

BP forms new partnership to reduce methane emissions

BP has partnered with an environmental nonprofit to reduce emissions of methane. Getty Images

When it comes to greenhouse gas emissions in oil and gas, methane is a less talked about, sneakier culprit compared to carbon dioxide. While it remains in the atmosphere for a shorter period than CO2, methane is 84 times more potent than CO2 during its first 20 years after being emitted into the air.

BP, which has its North American headquarters in Houston, has set out a strategy to minimize its contributions of methane to the atmosphere. The company made a three-year deal with New York-based Environmental Defense Fund to reduce methane emissions in its global supply chain by incorporating new technologies and practices, which will be identified by the new partnership.

"BP is taking a leading role in addressing methane emissions, and this collaboration with EDF is another important step forward for us and for our industry," says Bernard Looney, BP's upstream chief executive, in a release. "We've made great progress driving down emissions across our own business, including meeting our industry-leading methane intensity target of 0.2 percent, but there is much more work to do and partnering with the committed and capable team at EDF will help us develop and share best practices."

BP and EDF will work with universities and third-party experts in order to identify cutting-edge technology for the new initiative, and the company hopes to serve as a leader in reducing greenhouse gas emissions, which is no small undertaking, says Fred Krupp, EDF president, in the release.

"The scale of the methane challenge is enormous, but so is the opportunity," Krupp says. "Whether natural gas can play a constructive role in the energy transition depends on aggressive measures to reduce emissions that include methane. BP took such a step today."

EDF, a nonprofit, won't be paid by BP — per EDF's policy —but BP will assist with funding when it comes to employing experts tasked with finding better technologies to minimize emissions.

"EDF and BP don't agree on everything, but we're finding common ground on methane," Krupp says in the release. "BP has shown early ambition to lead on methane technology. We hope to see more as BP delivers on its own stringent methane goal and we work together to spread solutions industrywide."

BP and EDF have identified three key areas the initiative will focus on this year.

New detection technology
BP will grant up to $500,000 to a detection and quantification technology project at Colorado State University. The initiative includes drone technology and stationary monitoring that hopes to speed up methane emission detection time.

"CSU welcomes this support from BP and EDF for this critical research work, and this provides the necessary confidence and momentum for other stakeholders to contribute in a collaborative environment, in which the results and tools will benefit the wider industry," says Dan Zimmerle, senior research associate for Colorado State University's Energy Institute, in the release.

Advances in digital technology
This year, BP and EDF will announce a digitization project for reducing methane emissions. An EDF report, Fueling the Digital Methane Future, which produced with Accenture Strategy, identified solutions such as machine learning, artificial intelligence, and augmented reality as potential pathways to fewer emissions.

Joint ventures
A 2018 EDF report proved that oil and gas companies can team up to reduce emissions together. BP and EDF plan to host a workshop to find best practices for emission reductions on a larger scale.

Houston-based Tracts, which makes it easier for mineral buyers and E&P companies to find leads in the industry, is geared for major growth. Courtesy of Tracts

A Houston company has flipped the script on lead generation for mineral buying in the oil and gas industry. Tracts.co has developed a way to get its clients in front of mineral sellers they otherwise wouldn't know to approach.

"Right now, mineral buyers have one major bottleneck — it's consistent across companies except those using Tracts — and it's lead generation," says Ashley Gilmore, CEO and co-founder of the company.

Traditionally, mineral buyers or E&P companies would have to go through public records to source leads. But Tracts' customers have access to the company's title management platform, which uses a patented computation engine and an interpretation library. The process reduces the cost and time spent generating leads, as well as the risk associated with mineral ownership and exploration and production companies and mineral buyers, Gilmore says.

The company has been around since 2014, and began hitting its stride last year after beta testing and working out the structure of the technology. Now, the more customers Tracts has, the more data the system has, which translates to a more valuable platform.

"For some of our clients, Tracts is now existential for their business," Gilmore says. "In other words, they wouldn't be able to operate on their current business model without Tracts."

It's not only customer growth the company has seen. Tracts launched a land solutions group called TLS — Tracts Land Solutions — in the beginning of the year. That group is growing by a dollar amount of 30 percent month over month since January. Tracts also opened a Dallas office, which focused on this land solutions team, to keep up with clients.

"There were two people in Dallas working from home in January," Gilmore says. "Last month, we moved into a 12-person office, and now we've already outgrown it."

Tracts has a 16-person office it'll be moving into, and Gilmore says he expects to double that in the next month or so. Tract's Houston headquarters is around 10 people, and the company has its development team in Seattle. The technology, Gilmore adds, is able to be used throughout the country since it's cloud based.

All this growth is translating into some interesting developments for Tracts, but Gilmore isn't ready yet to announce anything.

"I think our clients are going to be very happy within the next three to six months," Gilmore says.

Tracts allows its clients to skip a few steps in the mineral buying process. Courtesy of Tracts