Quantification of the Potential Gross Economic Impacts of Five Methane Reduction Scenarios

Methane (CH4) is a potent greenhouse gas that is released from the natural gas supply chain into the atmosphere as a result of fugitive emissions and venting. We assess five potential CH4 reduction scenarios from transmission, storage, and distribution (TS&D) using published literature on the costs and the estimated quantity of CH4 reduced. We utilize cost and methane inventory data from ICF (2014) and Warner et al. (forthcoming) as well as data from Barrett and McCulloch (2014) and the American Gas Association (AGA) (2013) to estimate that the implementation of these measures could support approximately 85,000 jobs annually from 2015 to 2019 and reduce CH4 emissions from natural gas TS&D by over 40%. Based on standard input/output analysis methodology, measures are estimated to support over $8 billion in GDP annually over the same time period and allow producers to recover approximately $912 million annually in captured gas.