Three ways satellites are poised to transform the oil and gas sector

The opinions expressed in this article are those of the guest post contributor, and not of Gas Outlook.

As corporate energy leaders gathered at CERAWeek in Houston, Texas earlier this year, emissions-sensing satellites were high on the list of groundbreaking technologies that are transforming the oil and gas sector, and for good reason.

2024 was a big year with two non-profit backed satellites — the Environmental Defense Fund’s MethaneSAT and the Carbon Mapper Coalition’s Tanager-1 — launched into orbit, joining existing satellites designed to track and provide insights on methane emissions.

Increasingly, oil and gas companies are leveraging tiered-monitoring strategies alongside increased granularity and transparency of satellite methane data to navigate a transitioning global energy sector.

Today’s diverse policy landscape, growing expectations, and market realities are serving as critical drivers for action. Here are three ways satellite data is being used by the oil and gas sector to cut emissions, reduce product losses, and increase global economic competitiveness.

1. A growing technology ecosystem is providing emissions transparency

There is no ‘one size fits all’ technology that can pinpoint and monitor all methane emissions around the globe or even at one facility. We need a system of systems — a portfolio of technologies including satellites, aircraft, and ground sensors capable of detecting methane at different levels of granularity to give us a fuller methane picture. Matching the right technology and tool with the right use is critical to developing effective and efficient strategies to support emissions reduction efforts on the ground.

Amongst the growing capabilities of satellites, some like the European Space Agency’s TROPOMI, survey large areas. The Environmental Defense Fund’s (EDF) MethaneSAT is also designed for broad coverage, and collects data on aggregate emissions from specific regions or basins. Both offer valuable data and insights that help identify where emissions are occurring, how large they are, and how they change over time at national, regional, basin, and sub-basin scales. 

Other satellites capture more granular images, zooming in on specific pieces of infrastructure or equipment to provide relevant data and help drive decisions on the ground at the facility level. Examples include GHGSat and Planet Labs’  Tanager-1, developed by the philanthropically-backed Carbon Mapper Coalition.

The complementary capabilities of these systems are fostering a rapidly evolving monitoring ecosystem, whose data is becoming increasingly valuable to industry operators.

2. Satellite data can help the market differentiate oil and gas resources

Emissions data from satellites and other remote-sensing sources is being infused into a growing number of tools that can enable decision-makers to assess the climate impact of different oil and gas resources which can vary significantly based on where and how these sources of energy are produced.

This is especially critical as energy companies look to maintain market competitiveness in response to policies like the European Union’s Methane Regulation, which is looking to set maximum methane intensity values on fossil fuels placed on the European market.

Other key provisions like mandatory measurement, reporting and verification, which require operators to detail source-level emissions have implications, especially for LNG imports into the EU.

3. Satellite data is increasingly empowering direct mitigation activity 

Oil and gas companies have leveraged commercial satellite data providers like GHGSat or consulting companies like Kayrros to monitor their assets. Over the last two years we have seen a rise in other programmes that are providing public data, filling information gaps and opening doors to new mitigation opportunities thanks to strong partnerships. 

For example, several states, including California and Colorado, have leveraged their experience in airborne remote sensing pilots to inform state-wide mitigation efforts. These pilots identified large plumes of methane, and used this information to notify operators, many of whom were unaware of these events and mitigated these emissions by taking voluntary actions, like fixing a leak in a pipeline or repairing a malfunctioning flare.

On a global scale, the Methane Alert and Response System (MARS) managed by UNEP’s International Methane Emissions Observatory (IMEO) is an initiative that leverages data from multiple satellite instruments to identify very large methane emissions around the world and notify governments and companies to enable action.

MARS notifications have already led to successful emissions mitigations, and IMEO continues to build partnerships that will help grow the impact of this important programme.

Looking ahead

The exciting part is that we are only scratching the surface of what’s possible when we unleash the power of satellites to inform methane mitigation opportunities in the oil and gas sector.

However, accessible data is only one piece of the puzzle. Translating that data into action is a much more complex but critical challenge that must be addressed collaboratively.

The implications for energy security, supply chain management, and climate ambitions in the near future cannot be ignored.

Importantly, we are encouraged that energy companies are increasingly recognising these attributes and have the opportunity to incorporate satellite monitoring as a form of critical intelligence that safeguards their operations, investment, and supports communities.   

Mackenzie Huffman is Director of Strategy and Partnerships for Carbon Mapper. Prior to joining Carbon Mapper she was Vice President for Sustainability at JPMorgan Chase. She also previously served as Deputy Chief of Staff at the White House Council on Environmental Quality and in several roles at the Department of Energy where she focused on policies related to climate, energy, finance, environment, and resilience.

(Writing by Kenzie Huffman; editing by Sophie Davies)