How an upstream operator connected methane reduction to $3M+ in annual savings
An upstream oil and gas operator lacked a clear, data-driven process for prioritizing emissions-reduction projects and connecting capital spend to operational cost savings. Validere brought together the customer’s existing emissions, production, and operational data to model investment scenarios and rank cost-effective abatement options. The analysis supported a $20M investment expected to abate approximately 15,000 mt of methane annually and identified $3M+ in annual savings from recovered sales gas.
Annual savings identified from recovered sales gas
Projected annual methane abatement from the supported project
Investment supported for the emissions-reduction project
01
The challenge
The operator did not have a clear, data-driven process for prioritizing emissions-reduction projects. High-cost projects were difficult to justify to leadership, especially when capital spend could not be connected to operational cost savings.
There was also no integrated way to forecast the financial and emissions effects of different investment scenarios. Without that view, the team struggled to present comparable options that linked methane outcomes to operating economics.
02
The approach
Validere connected the customer’s existing emissions data, production forecasts, and operational costs to support investment decisions. Working on top of existing data tools, Validere’s consultants built dynamic forecast scenarios that modeled how different capital projects would affect the company’s emissions trajectory.
Using Marginal Abatement Cost Curve (MACC) analysis, the team identified and ranked cost-effective abatement projects. Those scenarios and rankings gave leadership a shared financial and environmental view of where to invest.
03
The results
More customer impact
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