Whalesbook
The Huge Potential of Plugging Leaks
The energy industry has a major opportunity it's largely missing: plugging methane leaks could recover about 200 billion cubic meters of natural gas each year. This volume is double what was lost from recent Strait of Hormuz disruptions, which cut nearly 20 percent of global LNG supplies. Experts say using current methods to fix leaks could immediately supply about 15 billion cubic meters to markets. Over time, addressing oil and gas operations could yield 100 billion cubic meters, with another 100 billion cubic meters potentially freed up by stopping non-essential flaring. Together, these could offset recent supply shocks. Yet, methane leaks from the energy sector are still at near-record highs in 2025, showing a serious gap between promises and action. The International Energy Agency (IEA) notes that while commitments now cover more than half of global oil and gas production, actual progress has been very limited. This slow action hurts energy security, especially when geopolitical tensions and supply chains are unstable. Past events show that disruptions at key points, like the Strait of Hormuz, always cause price surges and market uncertainty, highlighting how valuable a stable, recovered gas supply would be.
Profitable Fixes, Slow Progress
Nearly 70 percent of methane emissions from the energy sector could be stopped using technology available today. The IEA estimates that about 30 percent of these fixes could be profitable, as the captured methane can be sold at current prices. This means the industry is losing out financially. Oil and gas operations account for over 60 percent of this potential fix, with coal and bioenergy making up about 20 percent each. Satellite data shows that a few sites with very high methane leaks are responsible for a large part of these harmful emissions. For example, if all countries controlled emissions intensity as well as Norway does, global oil and gas methane pollution could drop by over 90 percent. Despite these clear financial and environmental benefits, current plans are only set to cut oil and gas methane emissions by 20 percent by 2030 and 26 percent by 2035. This falls short of the Global Methane Pledge goal for at least a 30 percent reduction by 2030. The coal sector shows even weaker ambition, with projections for only a 12 percent reduction by 2030 under existing policies.
Why Methane Leak Action Trails Behind
The ongoing gap between what countries promise and what they do points to systemic issues. Although more than 150 nations have signed the Global Methane Pledge, covering about 80 percent of global fossil fuel production, most haven't put policies in place to meet their goals. This lack of action is amplified because a small fraction of sources, known as 'super-emitters' (sites responsible for exceptionally high leaks), cause a huge proportion of emissions. Even with new satellite technology that can spot leaks as small as 1 tonne per hour, response to identified leaks is slow. For example, only about 12 percent of alerts from systems like the UN Environment Programme's Methane Alert and Response System get a response globally. This response rate rises to about one-third if countries assign specific officials, but drops to just 2 percent where no such designation exists. In addition, missing data and different measurement methods, especially where satellite coverage is limited, create uncertainty that can be used to delay action. Abandoned infrastructure, including millions of wells and mines, continues to leak significant volumes of gas. Marginal wells in the U.S., while producing little, contribute substantially to upstream methane emissions. The coal sector, seen as an area with easy fixes, gets little policy focus. There are also concerns about underreporting in places like Australia and Indonesia, where methane intensity is estimated to be far higher than officially reported.
The Drive for Faster Solutions
Experts increasingly highlight methane control not just as an environmental need but as a near-term, cost-effective strategy with tangible financial and energy security benefits. Investors are paying closer attention to companies that show proactive methane management, viewing it as a sign of operational efficiency and environmental commitment. Without a much faster push for policy implementation and enforcement, however, the energy sector risks continuing to forfeit substantial revenue streams while failing to meet vital climate objectives and jeopardizing energy security. The disparity between the economic logic of capturing wasted gas and the slow pace of real-world action suggests a profound disconnect that continues to cost the industry dearly.