Oil and Gas Industry Oil and Gas Industry PresentationPresentation

Activities, GHG Emission Sources, and Activities, GHG Emission Sources, and Potential ReductionsPotential Reductions

January 14, 2009 January 14, 2009

Upstream

Drilling, Workovers, and Completions

Production Operations

Construction

Final Well Abandonment

Maintenance

Midstream

Gathering Systems

Processing Plants

Treatment Plants

Downstream

Refineries

Transportation

Terminals

Pad Construction and Interim Pad Construction and Interim ReclamationReclamation

Construct pad to fit rig Construct pad to fit rig activity and fulfill activity and fulfill permit conditionspermit conditions

Perform Interim Perform Interim reclamation upon reclamation upon conclusion of rig and conclusion of rig and completion activitycompletion activity

Pad Construction and Interim Pad Construction and Interim ReclamationReclamation

Construct pad to fit rig Construct pad to fit rig activity and fulfill activity and fulfill permit conditionspermit conditions

Perform Interim Perform Interim reclamation upon reclamation upon conclusion of rig and conclusion of rig and completion activitycompletion activity

POTENTIAL GHG EMISSIONS

Combustion of Diesel Fuel from earthmoving equipment

Transportation of Equipment to Wellsite

Drilling, Workovers, and Drilling, Workovers, and RecompletionsRecompletions

New well drillingNew well drilling Tubing repairsTubing repairs RestimulationRestimulation Downhole pump Downhole pump

failurefailure Complete well to a Complete well to a

new formationnew formation Scale in tubingScale in tubing

Drilling, Workovers, Completions, Drilling, Workovers, Completions, and Recompletionsand Recompletions

New Well DrillingNew Well Drilling Tubing RepairsTubing Repairs RestimulationRestimulation Downhole pump Downhole pump

failurefailure Complete well to a Complete well to a

new formationnew formation Scale in tubingScale in tubing

POTENTIAL GHG EMISSIONS

Combustion of Diesel Fuel on Rigs

Transportation of Equipment to Wellsite

Well Completions Fracture Stimulation

Well Completions Venting

Production Facility Production Facility Wellsite SetupsWellsite Setups

Setting tanks, Setting tanks, separator, separator, compressor, inlet compressor, inlet scrubbers, line scrubbers, line heaters, etc.heaters, etc.

Installing piping to Installing piping to connect various connect various equipmentequipment

Connecting meter Connecting meter stationstation

Production Facility Production Facility Wellsite SetupsWellsite Setups

Setting tanks, separator, Setting tanks, separator, compressor, inlet compressor, inlet scrubbers, line heaters, scrubbers, line heaters, etc.etc.

Installing piping to Installing piping to connect various connect various equipmentequipment

Connecting meter stationConnecting meter station Cathodic Well installationCathodic Well installation

POTENTIAL GHG EMISSIONS

Equipment Purging – CO2, Methane

Vehicle exhaust

Production Operations Production Operations

Gas, oil, and/or Gas, oil, and/or condensate condensate productionproduction

Unloading wellbore Unloading wellbore fluidsfluids

Crude Oil and Crude Oil and Produced Water Produced Water TransportTransport

Artificial LiftArtificial Lift

Production Operations Production Operations

Gas, oil, and/or Gas, oil, and/or condensate condensate productionproduction

Unloading wellbore Unloading wellbore fluidsfluids

Crude Oil and Crude Oil and Produced Water Produced Water TransportTransport

Artificial LiftArtificial Lift

POTENTIAL GHG EMISSIONS

Tank Emissions – Flash of Methane and CO2

Tank Truck Emissions – CO2

Well Emissions – Fugitive losses

Engine Exhaust – CO2

Heater Exhaust – CO2

Well Venting – Manual and Automatic

Pneumatic Controllers – Methane and CO2

Production Facility Production Facility Satellite Facility OperationsSatellite Facility Operations

Centralized Tank Centralized Tank Batteries.Batteries.

Compressor Stations Compressor Stations or Central Delivery or Central Delivery PointsPoints

Saltwater Disposal Saltwater Disposal FacilitiesFacilities

Production Facility Production Facility Satellite Facility SetupsSatellite Facility Setups

Centralized Tank Centralized Tank Batteries.Batteries.

Compressor Stations Compressor Stations or Central Delivery or Central Delivery PointsPoints

Saltwater Disposal Saltwater Disposal FacilitiesFacilities

Pig Launchers & Pig Launchers & CatchersCatchers

POTENTIAL GHG EMISSIONS

Tank emissions – should be minimal

Engine Exhaust – CO2

Heater Exhaust – CO2

Pigging Activities – Methane and CO2

Plugging and AbandonmentPlugging and Abandonment

Plug WellborePlug Wellbore Pull FacilitiesPull Facilities Recontour well padRecontour well pad Remove unneeded Remove unneeded

roadsroads RevegetationRevegetation

Plugging and AbandonmentPlugging and Abandonment

Plug WellborePlug Wellbore Pull FacilitiesPull Facilities Recontour well padRecontour well pad Remove unneeded Remove unneeded

roadsroads RevegetationRevegetation

POTENTIAL GHG EMISSIONS

Engine Exhaust – CO2

Well Venting – should be minimal

Gathering SystemsGathering Systems

Compressor StationsCompressor Stations EnginesEngines Dehydration unitsDehydration units TanksTanks HeatersHeaters Pig launcher/receiversPig launcher/receivers

PipelinesPipelines Pig launcher/receiversPig launcher/receivers

POTENTIAL GHG EMISSIONS

Tank emissions – should be minimal

Engine Exhaust – CO2

Heater Exhaust – CO2

Pigging Activities – Methane and CO2

Pipeline Leaks – Methane and CO2

Processing PlantsProcessing Plants Recovery of condensable Recovery of condensable

natural gas liquids from natural gas liquids from conventional gas (i.e, butane, conventional gas (i.e, butane, propane, etc.)propane, etc.)

Pumps, turbines, compressors, Pumps, turbines, compressors, dehydrators, flare etc.dehydrators, flare etc.

POTENTIAL GHG EMISSIONS

Tank emissions – should be minimal

Engine Exhaust – CO2

Heater Exhaust – CO2

Dehydration – None if dessicant system; Methane & CO2 if glycol.

Pipeline Leaks – Methane and CO2

Flare – CO2

Compression Liquids Recovery Dehydration

Fie

ld G

as &

Com

pres

sor

Sta

tions

To Distribution Line

Turbines

Treating PlantsTreating Plants

Removal of entrained Removal of entrained CO2 from natural gasCO2 from natural gas

Compressors, Compressors, dehydrators, heaters, dehydrators, heaters, etc.etc.

POTENTIAL GHG EMISSIONS

Direct CO2 venting – CO2

Tank emissions – should be minimal

Engine Exhaust – CO2

Heater Exhaust – CO2

Pigging Activities – Methane and CO2

Compression CO2 Removal Dehydration

Fie

ld G

as &

Com

pres

sor

Sta

tions

To Distribution Line

Natural Gas Treating Plant

GHG Reduction StrategiesGHG Reduction StrategiesUpstreamUpstream

Engine StrategiesEngine StrategiesHeater StrategiesHeater StrategiesCompletion StrategiesCompletion StrategiesVenting StrategiesVenting StrategiesOther StrategiesOther Strategies

Engine GHG Emission ReductionsEngine GHG Emission Reductions

Optimization of horsepowerOptimization of horsepower

Heater GHG Emission ReductionsHeater GHG Emission Reductions

Insulation of vesselsInsulation of vesselsPilotless firing unitsPilotless firing units

Completion GHG Emission Completion GHG Emission ReductionsReductions

Flaring vs VentingFlaring vs VentingGreen CompletionsGreen Completions

Venting GHG Emission ReductionsVenting GHG Emission Reductions

Low-bleed pneumaticsLow-bleed pneumaticsDehydrator optimizationDehydrator optimizationPlunger lift optimizationPlunger lift optimizationSolar chemical pumpsSolar chemical pumps

No-bleed Pilots. The pneumatic controllercan be equipped with one ofthree types of no-bleed pilots: a snappilot, throttling pilot, or patentedEnvirosavefpilot.

Other GHG Emission ReductionsOther GHG Emission Reductions

Produced Water ManagementProduced Water ManagementElectrical motors where power has low Electrical motors where power has low

carbon footprintcarbon footprintWell AutomationWell Automation