Get signals – before others – that might trigger shifts in market sentiment.

 
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Energy Producers

Be alerted to potential catastrophic risks of major and mid-size North American natural gas producers

Live updates integrate seamlessly with your workflow – text alerts, web dashboard, interactive maps, FTP

receive RISK ALERTS prior to public dissemination of negative news

NOT ACTUAL DATA – In this hypothetical example, news story was released one week after subscribers received an Acme Petroleum alert.

MethaneScan findings are prominently disseminated to financial media, stakeholders, and NGOs within seven days of Instant Access release to subscribers. Our open data approach is designed to give subscribers a trading advantage while maximizing impact, encouraging engagement and advancing scientific research.

 

WHY METHANE?

Methane – the primary component of natural gas – is a potent greenhouse gas. A powerful heat trapper, methane produces 86 times the warming power of carbon dioxide during its first 20 years in the atmosphere. This is why fugitive methane emissions are extremely deleterious to climate stability.  

Unfortunately, methane levels have shot up in the past decade. Keeping methane in check is critical to staving off the worst effects of climate change. In the U.S., the onus chiefly falls on the oil and gas industry as the #1 source of methane emissions. Gaining timely insights on these underlying risks open up trading and investment opportunities.

  The methane mystery: Scientists struggle to understand a recent rise in emissions of a powerful greenhouse gas  (The Economist, April 28, 2018)

The methane mystery: Scientists struggle to understand a recent rise in emissions of a powerful greenhouse gas (The Economist, April 28, 2018)

USE CASES

Fugitive methane emissions may be a key indicator of wasteful, inefficient energy businesses with poor governance. Super emitters, in particular, are likely to have above average exposure to legal liability, regulatory/compliance and reputation risk, as well as accidents. Therefore, the highest emitting companies may be candidates for short positions (or divestment) by traders and investors versus cleaner operating peers and alternatives.

Human or automated traders and investment managers can use MethaneScan™ in several different ways, including:

  • Hedge fund, energy and algorithmic trading – Enhance rules-based strategies with automated circuit breakers which may anticipate price volatility and directional movements based on early indicators of methane emission anomalies
  • Market making – Widen spreads or pull quotes when significant negative news impacting a given company or its peers is anticipated
  • Engagement – Trigger efforts by large institutional investors such as pension funds and mutual fund managers to affect directional change at given companies or their peers via shareholder resolution, proxy votes, disclosures, or other pressures.

Transparency on underlying risk IS a WIN-WIN

Earnings from recovering fugitive methane are not always sufficient to justify voluntary action by gas producers. Since this PBS News Hour story aired in 2015: 1) the Trump administration has begun rolling back federal methane regulation; and 2) remote detection of methane leaks has become possible via satellite. Taken together, tech-savvy, market-based initiatives like MethaneScan are a particularly timely solution for averting catastrophic climate change.