The future looks bright for the oil and gas industry as rising global energy consumption is set to underpin healthy demand growth for the foreseeable future.

But the public perception of oil and gas is changing, and companies that make a living out of extracting petroleum need to adapt if they want to keep their licence to operate in a world where a growing share of voters demand that energy should not only be available and affordable, but also environmentally acceptable.

The rapid expansion of renewable alternatives such as solar and wind power has showed the public in many countries that energy does not have to come hand-in-hand with polluted air and the risk of leaks that cause explosions in city neighbourhoods, and oil slicks that kill marine life and damage coastal habitats.

At the same time, the threat of climate change is a source of deep concern for governments and citizens alike, with scientists warning that the current level of measures to reduce greenhouse gas emissions are not sufficient to keep global warming below the targets set out in the Paris Agreement.

Voters in an increasing number of countries are demanding faster and more aggressive action to combat emissions, even if it means higher energy costs and more restrictions on energy use.

In Norway, which has 40 years of oil and gas production to thank for its high living standards, more than one in five voters now support parties that would like the country to shut down its petroleum activities as soon as possible, rising to nearly one in three in the main cities – and even more among younger age groups.

Against this backdrop, it should worry the industry a great deal that one of the most serious environmental effects of gas production is starting to be put in the spotlight.

Methane leaks — odourless and invisible and more than 80 times more harmful to the climate than carbon dioxide — will with new technology soon be visible for all the world to see.

Believed to amount to about 75 billion tonnes per annum — twice the amount needed to produce power for all of Africa — methane leaks are not compatible with the image the petroleum industry likes to project of natural gas as a climate-friendly alternative to coal.

So far, leaks have been difficult to measure and have therefore remained the gas industry’s dirty secret. That will change when the Environmental Defense Fund in 2021 launches its MethaneSat satellite into orbit.

From space, the satellite will map and measure oil and gas methane emissions worldwide, including roughly 50 major oil and gas regions accounting for more than 80% of global production. The data will be freely available to anyone, including researchers, environment groups and media.

Without decisive, collective and visible action to halt methane leaks, the gas industry risks being sidelined by greener energy sources as voters push their governments to shut the door on energy sources that do not take their environment responsibilities seriously enough.

Large players including Shell, BP and Total have made a start by setting up guiding principles to reduce methane emissions that have so far been signed by 18 companies.

If gas players want to keep their licence to operate in a low-carbon future, those principles must be turned into action as soon as possible.

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Time to deal with the elephant in the room