Ed Longanecker Talks Oil & Gas’s Image

Recently I asked the President of the Texas Independent Producers and Royalty Owners Association (TIPRO), Ed Longanecker, to talk about ways the industry can stress its long list of positives for society. Negative press abounds, and while no industry is perfect, the great majority of our way of life today relies on the plentiful, affordable, and reliable energy that’s really just available from oil and gas.

Here is Ed’s timely and insightful response:

The Permian Basin: The Next Era

• Many oil and gas nay-sayers have taken to falsely projecting the end of the industry – but in reality, the future of oil and gas is quite bright and incredibly important, especially in the Permian Basin.
• The history of the oil and gas industry is a story of constant transformation, evolution, and innovation. No basin has so exemplified this story as much as the Permian Basin – and, looking to the future, the Permian serves as a perfect backdrop of the next era of oil and gas production.
• We, as an industry, must do a better job properly articulating and communicating in tandem the unbridled possibilities and positive impact of the Permian Basin. The Permian Basin is also entering its next act – the next evolution of the industry.   
• Providing effective and timely communication to our members, elected officials, the media and general public about the Texas oil and natural gas industry remains a top priority for TIPRO. Our organization regularly releases analysis on industry employment and market conditions, as well as produces several publications to accomplish this objective. Providing this consistent communication and data have been strategic areas of focus for our organization to promote the Texas oil and gas industry and have become one of our key strengths. To reinforce these efforts, TIPRO announced two years ago that Texans for Natural Gas (TNG) would become a campaign managed by our association. Since its inception, TNG’s mission has been to give a voice to those who support Texas oil and natural gas production. Over the years, the organization has attracted more than 400,000 supporters from across the state. TNG has created leading industry reports, impactful research and campaigns that have shaped the energy conversation in Texas. Our collective resources have created one the most comprehensive industry communication and education campaigns in the country for the Texas oil and natural gas industry. Our platform is significant, and our organization has become a credible source of information, data and analysis.
• It’s imperative that more executives within our industry become active in communicating the importance of domestic oil and natural gas production with elected officials, our youth, the media and within their own communities, and social networks. We have an extraordinary story to tell and must collectively confront false narratives. This is happening on a limited basis through various organizations and supportive elected officials, but more can and should be done. One of many opportunities is for more Texas operators to support TIPRO’s education efforts to help expand our reach and impact. 
• Our industry is also one that is defined by innovation and perseverance, and no other sector compares from an economic, energy and national security perspective. Below are some examples that are all too often left out of the conversation by many elected officials and media in order to advance a flawed and politically motivated narrative. We are working diligently to change that and offer a big tent for others to join.
• The next act of the Permian Basin will be marked by producers’ unyielding efforts to minimize their environmental footprint.
  • Permian producers have made huge strides in reducing the emissions associated with production.
    • From 2011 to 2021, methane intensity in the Permian Basin has fallen more than 76 percent.
    • Flaring intensity in the Permian Basin decreased by over 34 percent from 2020 to 2021.
    • Texas as a whole has also dramatically reduced its flaring intensity. Between 2020 to 2021, the state reduced its flaring intensity by 60 percent.
    • From June 2019 to May 2021, Texas producers reduced flaring volumes by an estimated 73 percent.
  • Permian producers are embracing new technology to track and address methane and flaring emissions.
    • Leading Texas producers like Exxon have made significant operational investments to reduce their emissions footprint. For example, Exxon created the Center for Operations and Methane Emissions Tracking (COMET), a facility which will monitor sensors across their operations in the Permian Basin 24/7.
    • Diamondback Energy invested $20 million in Verde Clean Fuels – a renewable energy company with technology capable of capturing and transforming wasted natural gas from flaring into gasoline,
  • Permian producers have embraced collaboration to both set new industry standards and help progress emissions reduction goals.
    • The Texas Methane and Flaring Coalition has brought together Texas operators that are committed to working collaboratively to develop our state’s natural resources while improving environmental performance.
    • Oil and Gas Methane Partnership 2.0 Initiative, which includes leading operators like Pioneer Natural Resources, ConocoPhillips, Cheniere and Devon Energy, is the flagship oil and gas reporting and mitigation program of the United Nations Environment Programme (UNEP). Other initiative partners include the Environmental Defense Fund and the Clean Air Task Force.
    • Project Astra, which is a partnership between The University of Texas at Austin, the Environmental Defense Fund, ExxonMobil, Chevron, Gas Technology Institute (GTI), Schlumberger and Pioneer Natural Resources Company is developing an innovative sensor network for methane detection aimed at reducing methane emissions.
    • The Environmental Partnership brings together leading U.S. oil and gas producers, including many Texas operators, to focus on solutions that are technically feasible, commercially proven and will result in significant emissions reductions. Members include Devon Energy, Ovintiv, Exxon, XTO Energy, Pioneer Natural Resources, EOG Resources, Apache, Hess, Hunt Oil, Diamondback Energy and many others.
    • The ONE Future Coalition is a group of more than 50 natural gas companies working together to voluntarily reduce methane emissions across the natural gas value chain to 1% (or less) by 2025. In their 2022 methane intensity report, ONE Future found that their members are 99.54% efficient in delivering a molecule of gas from the rig to the burner tip.
    • Many Texas and Permian producers have set ambitious emissions reduction goals.
      • In 2021, Permian producer Apache eliminated routine flaring in its onshore U.S. operations.
      • Chevron has set a goal to minimize routine flaring by 2023 and eliminate it by 2030.
      • Pioneer Natural Resources has committed to end routine flaring by 2025, five years earlier than the their previous 2030 target.
      • Occidental has set a goal to achieve net-zero emissions in our operations and energy use before 2040, and eliminate routine flaring by 2030.
      • EOG Resources plans to achieve zero routine flaring by 2025.
• The Permian’s next act will be defined by relentless dedication to efficiency.
  • The current and projected production of oil and gas in the Permian would have been considered unbelievable or even fanciful just a decade ago.
    • In 2010, the EIA declared the world had already hit “peak oil”.
    • And yet, in January 2023, EIA projected that in 2024, crude oil production in the Permian will increase by 350,000 b/d – a record high.
    • According to the Dallas Fed, in April 2022, the Permian Basin accounted for 43.6 percent of U.S. oil, up from 18.1 percent in 2013.
    • Additionally, U.S. natural gas production is expected to rise to 42.1 trillion cubic feet (Tcf) by 2050, in part due to the Permian’s increased activity.
    • New players continue to enter and explore the Permian Basin. Garrison Energy Holdings just announced a half-billion investment to acquire assets across the Permian.
  • New technology will further build off the developments of the past decades, enabling operators to continue to push the boundaries of production, establishing ultra-efficient operations.
    •  For example, some companies have begun deploying drones that enable producers to capture massive amounts of data, mapping wells, and detecting methane leaks.
    • Artificial Intelligence can be used to more efficiently operate machinery and devices.
  • Efficiency in operations will also mean the efficient and thoughtful use of resources.
    • Many Permian producers have implemented water reuse policies, aiming to conserve freshwater that would otherwise be used during drilling.
      • In 2023, XTO signed a deal with water recycling company Infinity Water Solutions to preserve millions of barrels of water resources while also reducing downhole disposal in the Permian Basin.
      • New, groundbreaking facilities like the Big Spring Recycling System (BSRS), which is the largest produced water recycling facility in the Permian Basin serving commercial operators, helps further recycling efforts.
      • In 2021, more than 99% of Chevron’s Permian Basin water demand was met using brackish groundwater (salty water extracted from the earth) and produced water that was treated and recycled.
• The Permian Basin is entering its next act, and the world ought to pay attention. Permian producers are setting the gold standard for responsible and remarkable oil and gas production.