An environmental group is calling for better monitoring and reporting to ensure the amount of methane entering the atmosphere is properly understood.
Methane is a strong greenhouse gas and can trap 82.5 times more heat than carbon dioxide, accelerating short-term global warming.
A study by Princeton University and Colorado State University found monitoring methods in the United Kingdom severely underestimated methane leaks from offshore oil and gas production.
The study examined the UK's greenhouse gas data collection methods - which are provided to the climate change arm of the United Nations - and found emissions were five times larger than what was estimated.
The research suggested reporting underestimated greenhouse gas emissions because of outdated or incorrect emission factors and incomplete data.
Friends of the Earth Australia campaigner Jeff Waters said the study had implications for the rest of the world and in particular Australia which monitors greenhouse gas emissions in a similar way to the UK.
"The way we measure methane emissions has to change if we are to get a realistic picture of how much we are polluting the atmosphere," Mr Waters said.
He said Australia's methane reporting system was "opaque" and needed to be improved if the nation wanted to understand its greenhouse gas contribution and improve its response to climate change.
"We've got hundreds of kilometres of pipeline and we have no idea how much methane we are letting off," he said.
"Governments need to heed this warning and start measuring our emissions more adequately."
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