In a rare win for both production and environmental performance, a new analysis by S&P Global Commodity Insights found that absolute greenhouse gas emissions across the Permian Basin have fallen every year since 2022, even as oil and natural gas output climbed to record highs. The report revealed that between 2022 and 2024, total emissions dropped by 25 million metric tons of carbon dioxide equivalent, representing a 20 percent reduction during a period when daily production increased by the equivalent of half a million barrels.
For decades, the general rule in oil and gas has been straightforward: more barrels usually mean more emissions. Yet the Permian is now defying that logic. According to S&P’s head of the Center for Emissions Excellence, Kevin Birn, the industry is entering what he called “a whole new ballgame.” He noted that major Permian producers, who already have a strong record of lowering emissions intensity per barrel, have now reached a stage where overall emissions are falling even as output rises. “It’s a have-your-cake-and-eat-it-too moment,” Birn said, describing what many in the industry are viewing as a pivotal shift in production efficiency and environmental performance.
Methane Mitigation Leads the Charge
The S&P analysis attributes the bulk of the decline to improved detection and control of methane, which makes up roughly two-thirds of total greenhouse gas emissions in the basin. Methane is far more potent than carbon dioxide when it comes to trapping heat, so even small reductions can make an outsized impact. Over the past two years, Permian producers have cut methane intensity by more than half through better field operations, upgraded equipment, and advanced monitoring technologies. Artificial intelligence and high-frequency observational data now allow operators to not only detect leaks faster but also predict and prevent them before they occur.
Raoul LeBlanc, vice president of Global Upstream at S&P Global Commodity Insights, said the addition of higher-quality data has fundamentally changed how the industry measures and manages emissions. “The introduction of higher quality observational data in recent years not only establishes a more credible baseline against which to measure emissions mitigation, it enables technologies and practices that allow producers to improve those efforts, or to even anticipate and prevent emissions altogether,” LeBlanc said. He added that methane management is becoming a normalized part of field operations, and that cultural shift is driving measurable results across the basin.
Operators and industry groups in the region are quick to point out that this progress did not happen by accident. The Permian Basin Petroleum Association (PBPA), which represents a broad range of producers, has emphasized collaboration and innovation as key to these results. “Permian Basin Petroleum Association members are continuously working on practices and technologies that help further reduce waste and best develop natural resources in the Permian Basin,” said PBPA president Ben Shepperd. He credited partnerships with initiatives like the Texas Methane and Flaring Coalition for helping operators adopt practices that prioritize efficiency and emissions reduction.
A Model for Scalable Upstream Efficiency
The S&P report also provides a snapshot of how advanced the Permian has become as a global benchmark for efficient hydrocarbon development. It estimates the basin produced nearly 11 million barrels of oil with an average greenhouse gas intensity of just 22 kilograms of carbon dioxide equivalent per barrel of oil equivalent. That figure reflects emissions from drilling, completions, fuel combustion, power imports, flaring, and fugitive leaks across all major plays including the Wolfcamp Midland, Wolfcamp Delaware, and Bone Spring formations. Midstream emissions were excluded from the analysis, underscoring the focus on upstream activity alone.
The broader takeaway is that sustained emissions reductions are now possible without compromising production growth. Improved hardware, data-driven operations, and cultural buy-in from both corporate leadership and field crews have all played a role in decoupling emissions from production. The implications go beyond West Texas and southeastern New Mexico. The Permian’s performance offers a blueprint for other basins, demonstrating that oil and gas operations can remain highly productive while cutting emissions in real terms.
As global energy demand continues to rise and policymakers push for cleaner supply chains, the Permian story provides a rare example of alignment between economic and environmental goals. The basin remains the heart of U.S. oil production, and if its current trajectory continues, it may also become a global model for how to manage hydrocarbons responsibly. For now, the data is clear: more barrels, fewer emissions, and a growing sense that efficiency and innovation are redefining what success looks like in the modern oilfield.
