Oil & Gas

Methane: the oil and gas industry's fastest climate and commercial win

The IEA's Global Methane Tracker 2026 shows that most fossil fuel methane could be avoided with technology that exists today, and much of it at no net cost. Here is what operators can do now.

Refinery and flare stacks at night
Refinery and flare stacks at night

Key facts at a glance

  • 124 MtMethane emitted by fossil fuel operations per year (IEA, 2025 data)
  • 81 MtFrom oil (45 Mt) and natural gas (36 Mt) operations
  • ~70%Share of fossil fuel methane avoidable with existing technologies
  • ~30%Share avoidable at no net cost at 2025 energy prices
  • ~100 bcmNatural gas that oil and gas methane cuts could make available each year

Methane is a powerful greenhouse gas, and the oil and gas industry is one of its largest human-made sources. The good news is that methane is also one of the easiest emissions to cut. Much of it is simply natural gas escaping from leaking equipment, venting or incomplete flaring. Capture it, and you reduce emissions while selling more product.

What the latest data says

The International Energy Agency's Global Methane Tracker 2026 estimates that fossil fuel operations emitted around 124 million tonnes (Mt) of methane in 2025. Oil accounted for about 45 Mt, coal 43 Mt and natural gas 36 Mt. Together, oil and gas operations were responsible for about 81 Mt.

The IEA also reports that it found no sign that global energy-related methane emissions fell in 2025, despite progress in some countries and companies. In other words, the gap between commitments and results remains wide.

Most of the solution already exists

According to the IEA, around 70% of fossil fuel methane emissions, nearly 85 Mt, could be avoided with existing technologies. Around 30%, more than 35 Mt, could be avoided at no net cost at 2025 energy prices, because the value of the captured gas pays for the measures. In upstream oil and gas alone, more than 50 Mt can be abated with existing technology, nearly 30 Mt of it at no net cost.

The commercial upside is significant. The IEA estimates that methane cuts in oil and gas operations could make nearly 100 billion cubic metres (bcm) of natural gas available each year, and eliminating non-emergency flaring could add a further 100 bcm worldwide.

Five practical steps for operators

  1. Measure first. Build an emissions inventory that moves from generic emission factors toward site-level measurement. Frameworks such as the UN Environment Programme's Oil and Gas Methane Partnership 2.0 (OGMP 2.0) provide a recognised path for this.
  2. Run leak detection and repair (LDAR). Regular surveys with optical gas imaging cameras and handheld detectors, followed by prompt repairs, address the many small leaks from valves, flanges and seals.
  3. Replace high-bleed equipment. Gas-driven pneumatic controllers and pumps are a major source. Low-bleed, instrument-air or electric alternatives remove the emission at source.
  4. Stop routine venting and flaring. Recover associated gas for use on site, injection or sale, and improve flare combustion efficiency where flaring remains necessary.
  5. Govern and report. Set targets, assign accountability and report against recognised standards so investors, regulators and partners can see progress.

Why it matters for Pakistan and the region

For gas-importing economies, every cubic metre that is not lost to leaks or flaring improves energy security. For producers, lower methane intensity is becoming a condition for access to finance and to export markets. Methane management is therefore both an environmental duty and a commercial opportunity.

How Optimity Global helps

Our Oil & Gas practice supports operators with methane and flare monitoring, emission reduction programmes, ESG reporting and carbon accounting, together with the maintenance, instrumentation and procurement services needed to fix what surveys find. We help clients turn methane from a liability into recovered value.

Sources

  1. IEA, Global Methane Tracker 2026: Key findings
  2. IEA, Global Methane Tracker 2025 (event page)

Figures are quoted from the sources listed as published at the time of writing. Please refer to the original publications for full context and any later updates.

MM
Musaddaq Mahmood

Chairman & CEO, Optimity Global (SMC-Pvt) Ltd

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