Field GHG Reduction Projects Understanding the Benefits Knowledge - PowerPoint PPT Presentation

Field GHG Reduction Projects Understanding the Benefits Knowledge Sharing Workshop Workshop organized by CETAC-WEST and Technical Experts December 4, 2015

WCBU Energy Efficiency 2 February 10, 2016

Welcome • Ken Lueers, President – ConocoPhillips Canada 3 December 4, 2015

CCEMC Introduction • Richard Nelson, Program Director – Alberta Innovates: Energy and Environment Solutions 4 February 10, 2016

GCS Safety • First Aid • There is a first aid kit, AED and fire extinguisher located in the kitchen of the Auditorium. • Medical Emergencies • If a medical emergency arises, dial 9.911 and have another person call the receptionist at 9.403.233.4000 to advise that you have an emergency in the Auditorium. The receptionist will notify building security (403.221.1160) to ensure the EMTs get to the correct area. • Building Evacuation (Gulf Canada Square has a two-stage alarm system) • Stage 1 Alert: signal sounds at 20 strokes per minute, followed by a voice instructing guests to prepare for evacuation. • Stage 2 Alert: signal sounds much quicker, at 120 strokes per minute and is followed by a voice informing guests to evacuate immediately. • There are two emergency exit routes during a building evacuation. Exit route one goes out the main entrance to the Auditorium, turns right and takes the stairwell directly out of the building. The second exit is located on the right of the Auditorium stage, across from the Breakout Rooms. There is an emergency stairwell which leads out to 9 th Avenue. 5 December 4, 2015

GCS Muster Points 6 December 4, 2015

Safety Moment – Winter Driving Preparedness British Columbia Winter Driving Regulations - Drivers must obey winter tire and chain signs throughout the province from October 1 to March 31 . - Winter tires (3-peaked mountain and snowflake symbol) or M+S (mud and snow symbol) with at least 3.5mm tread depth. 7 December 4, 2015

Workshop Ground Rules, Overview • Dr. Blaine Lee, Facilitator – CETAC-West Ground rules • Cell phones, breaks, HAVING FUN! Process • Presentations/panels • Looking for participation, commitment, open dialogue, collaboration, honesty Overview • Importance of the workshop (end-result of a project – sharing of learnings) • Prime example of collaboration between industry, government, innovators, etc. • This workshop represents a milestone in the Canadian Upstream Oil & Gas energy efficiency journey! • Taking it to the next level (creating the culture of openness, sharing, non- competitiveness) 8 February 10, 2016

Agenda Time 9:30am Panel 1 Presentations: GHG Opportunity Assessment Tool REMVue AFR REMVue SlipStream 11:30am Lunch Break 12:30pm Panel 2 Presentations: Dehydration Optimization Waste Heat Recovery 2:00pm Coffee Break 2:15pm Panel 3 Presentations: High-to-Low Bleed Instrument Conversions Solar Chemical Pumps Vent Gas Capture 3:45pm Panel 4 Presentations: GHG’s Summary Where do we go from here in the industry? 4:30pm Reception/Mixer 9 February 10, 2016

2010 CCEMC Call for Proposals: Energy Efficiency CPC’s Successful Application Details: Project Title: Company-wide rollout of a systematic Energy Efficiency Program leading to significant GHG reductions in Alberta’s Upstream Oil and Gas (UOG) Industry Project Details: • Project Length: 2011 to 2013 2015 (project extension requested) • 10 Different EE Technologies/Initiatives • Focus on new technologies which are potentially viable, but not yet widely used • Company-wide implementation • GHG reduction of > 50,000 tonnes CO2e per year (>1,000,000 tonnes CO2e over 20 yr project life) • Knowledge Sharing Workshop • Partnership with CETAC-West • Project Cost: $7MM (CCEMC) + $7MM (CPC) = $14MM!!! 10 December 4, 2015

CCEMC Project - Expectations Expected Expected GHG Annual GHG Reductions over a 20 Number of Reductions year project life GHG Reduction Technology/Initiative Projects (tonnes/yr) (tonnes) Cost ($/tonne) Waste Heat Recovery 14 11,079 221,581 $19.62 Engine Fuel Management Systems (REMVue AFRC) 20 10,526 210,512 $15.58 Vent Gas to Engine Air Intake (SlipStream) 11 7,811 156,229 $4.98 High-to-low/no Bleed Instrument Conversions 200 5,300 105,993 $5.66 Solar-powered Chemical Injection Pumps 50 6,183 123,659 $6.07 Gas Pneumatic Pump Vent Gas Capture/Utilization 100 4,416 88,328 $1.70 Dehy Optimization 5 1,343 26,852 $16.76 Waste Heat to Electricity 1 2,135 42,692 $26.35 Pressure Drop to Electricity 1 1,123 22,469 $27.82 Gas Plant Optimization 2 1,000 20,000 $10.00 Totals: 404 50,916 1,018,315 Average: $13.80 Expected GHG reductions equivalent to removing approx. 10,830 passenger cars Is this even achievable? driven for one year from the road!!! 11 December 4, 2015

CCEMC Project - Results Expected Expected GHG Annual GHG Reductions over a 20 Number of Reductions year project life GHG Reduction Technology/Initiative Projects (tonnes/yr) (tonnes) Cost ($/tonne) Waste Heat Recovery 7 2,157 43,140 $21.50 Engine Fuel Management Systems (REMVue AFRC) 25 17,550 351,000 $15.67 Vent Gas to Engine Air Intake (SlipStream) 5 7,954 159,080 $7.99 High-to-low/no Bleed Instrument Conversions 1,062 53,100 1,062,000 $2.09 Solar-powered Chemical Injection Pumps 86 12,040 240,800 $4.78 Gas Pneumatic Pump Vent Gas Capture/Utilization 15 675 13,500 $4.96 Dehy Optimization 13 4,905 98,100 $5.13 Waste Heat to Electricity 1 558 11,160 $159.68 Pressure Drop to Electricity 1* 924* 18,480* $70.35* Gas Plant Optimization 2* 9,200* 184,000* - Totals: 1214 98,939 1,978,780 Average: $6.79 Resulted GHG reductions equivalent to Mission Accomplished!!! removing approx. 21,050 passenger cars (DOUBLED project expectations) driven for one year from the road!!! 12 December 4, 2015

Why are you here? 13 February 10, 2016

Why are you here? We are ready and willing to share the “secrets” to our CCEMC EE Project! • What went well?  … and What didn’t go so well  … • Program & Technology-specific (GHG Reduction, $/GHG Abatement Cost) • Realizing the “win-win” and understanding the GHG reduction opportunity • Provide advice/recommendations, and perhaps a “starting-point” for your own EE program Watch-out for the “golden safe” symbols throughout the workshop, as they will identify CPC EE Best Practices. 14 December 4, 2015

High-level Project Learnings • Initial application process (time consuming, costly, and risky) • Project execution forecast (>400 distributed project types/locations over 5 years) • Quarterly spend targets w/ allowable variance • Inter-project technology focus change (contract amendment) • Project end-date change (contract amendment) • Quarterly status updates & invoicing • Delayed invoicing from vendors/3 rd parties • Internal Execution Challenges • Lack of small installed equipment inventory (instruments, pneumatic pumps) • EE project team changes (11 CPC key personnel changes since 2011) • Multi-level stakeholder project support (management/field) • Scheduling EE projects around “planned outages” (minimizing lost production) • Asset divestiture • AFE/invoice management (hundreds of AFE’s, and even more invoices!) • 10 different technology-types (bit off a lot!) 15 February 10, 2016

High-level Project Learnings CPC WCBU’s Secrets to Success • Internal Energy Efficiency Focus • Management support (Right from the top!) • Regional/global GHG-reduction goals • Dedicated “operations” energy efficiency team (3-5 personnel) • Dedicated “operations capital” energy efficiency budget • “Early” identification of momentum/successful technologies • Led to a EE program optimization (inter-project technology shift) • Allowed the project to exceed expectations (by DOUBLE!) Industry Win’s • Protocol Development: “Quantification Protocol for Methane Vent Reduction from Pneumatic Devices” • High to Low Bleed Conversions, Gas to Electric Pump Conversions, Vent Gas Capture • Regulatory Technology Acceptance/Approval • Dehydration Waste Gas to Engine Air Intake SlipStream (Benzene Control Technology) • Canadian Market Technology Introduction/Development • Waste Heat to Power (ORC) • Cloud-based Small Equipment/GHG Opportunity Inventory “app” • Culture Development (EE is not competitive) • Collaborative, Open, Honest, Sharing, Teamwork! • Catalyst to promote innovation, technology development 16 February 10, 2016

COFFEE BREAK 17 February 10, 2016