Methane intensity for oil and gas production: Key methodological considerations

In recent years, policymakers in many jurisdictions have sought to reduce harmful emissions of methane from the upstream oil and natural gas sector. The European Union’s 2024 Methane Regulation seeks to do this in a number of ways, including setting penalties on imported oil and gas produced with higher methane emissions. This is done by requiring that those imports meet a methane emissions intensity standard.

This report reviews the various formulae that have been used to calculate methane emissions intensity, with extensive discussion of the advantages and disadvantages of the various approaches. While the report clearly discusses these advantages and disadvantages, it does not recommend any one formula. The core purpose of this report is to assist Union policymakers in developing a fit-for-purpose standard by outlining a series of key considerations.