Oil & Natural Gas Production, Oil & Natural Gas Production, - - PowerPoint PPT Presentation

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Oil & Natural Gas Production, Oil & Natural Gas Production, - - PowerPoint PPT Presentation

Oil & Natural Gas Production, Oil & Natural Gas Production, Oil & Natural Gas Production, Processing, and Storage Processing, and Storage Processing, and Storage Public Workshop Public Workshop California Air Resources Board


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California Air Resources Board Sacramento, California December 8, 2009

Oil & Natural Gas Production, Processing, and Storage Oil & Natural Gas Production, Oil & Natural Gas Production, Processing, and Storage Processing, and Storage Public Workshop Public Workshop

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  • Background

– AB 32 – Oil & Gas Measure – Oil & Gas Industry Survey

  • Preliminary Survey Results
  • Testing Programs
  • Next Steps
  • ARB Oil and Gas Contacts

Outline Outline Outline

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Assembly Bill 32 (AB 32) Assembly Bill 32 (AB 32) Assembly Bill 32 (AB 32)

  • California Global Warming Solutions Act of

2006

  • Enacted to monitor and regulate Greenhouse

Gas (GHG) emissions:

– From Oil & Gas operations, primarily CO2 and CH4

  • Requires that 2020 GHG emissions be

reduced to 1990 levels

  • Requires ARB to develop a Scoping Plan
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  • Included in the Scoping Plan
  • Designed to reduce fugitive CH4 emissions from

production, processing, and storage

  • Formed district and industry working groups
  • Conducted survey to estimate baseline GHG

emissions

Oil & Gas Measure Oil & Gas Measure

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Oil & Gas Industry Survey Oil & Gas Industry Survey

  • Needed to quantify types of equipment and

components to estimate 2007 GHG emissions

  • Districts typically do not inventory GHGs
  • Survey refines emission inventory and identifies

the state of technology

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Oil & Gas Industry Survey Oil & Gas Industry Survey

  • Survey developed with industry input
  • Mailed out February 19, 2009
  • Initial due date of April 30, 2009 (still receiving

surveys and data)

  • Using industry recognized emission factors to

estimate a baseline emission inventory

  • Baseline inventory will be used to assess

potential emission reductions

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Oil & Gas Industry Survey Oil & Gas Industry Survey

  • Extraction, production, processing facilities
  • Drilling and well workover operations
  • Crude oil storage, pipelines, loading operations
  • Underground natural gas storage
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Preliminary Survey Results Preliminary Survey Results

Survey Statistics

  • 1429 surveys mailed out
  • 960 removals
  • 385 surveys received
  • 84 extension requests outstanding
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Preliminary Survey Results Preliminary Survey Results

Company Breakdown

  • 301 Companies
  • 1430 Facilities

– 542 Crude oil facilities – 568 Dry gas facilities – 14 Crude oil and dry gas facilities – 306 Other facilities (e.g. gas plants, crude oil pipelines, well servicing)

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Preliminary Survey Results Preliminary Survey Results

Global Warming Potentials

298 25 1 Fourth Assessment Report (FAR) 296 23 1 Third Assessment Report (TAR) 310 21 1 Second Assessment Report (SAR) N2O CH4 CO2

Values are in SAR for all subsequent slides unless otherwise noted

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Preliminary Survey Results Preliminary Survey Results

2007 Total Emissions (Metric Tons)

19,586,104 19,039,346 314 137,632 16,051,808 Totals: 10% 1,928,690 1,647,228 70,367 169,515 Fugitive 8% 1,514,763 1,278,231 59,133 36,438 Vented 82% 16,142,651 16,113,887 314 8,132 15,845,855 Combustion Percent of Total CO2E CO2E (FAR) CO2E (SAR) N2O CH4 CO2

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Preliminary Survey Results Preliminary Survey Results

Compared With ARB’s 2006 GHG Inventory (Million Metric Tons CO2E)

2.9 19.0 SAR FAR SAR 0.8 17.9 3.4 Vented/Fugitive 19.5 Combustion 2007 Survey 2006 GHG Inventory

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Preliminary Survey Results Preliminary Survey Results

  • Combustion numbers compare favorably with

mandatory reporting – Mandatory reporting: 15.0 MMT

– 2007 preliminary survey: 15.3 MMT

  • Vented and fugitive numbers are higher than

GHG Inventory – GHG Inventory estimated fugitives from districts’

criteria pollutant inventory – GHG Inventory excluded most venting

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Preliminary Survey Results Preliminary Survey Results

2007 Total Emissions by Size

19,039,346 1,430 Totals: 53% 10,178,449 9 > 500,000 31% 5,978,735 30 > 100,000 to 500,000 4% 788,469 11 > 50,000 to 100,000 4% 780,255 21 > 25,000 to 50,000 2% 423,781 26 > 10,000 to 25,000 5% 889,656 1,333 < 10,000 Percent of Total CO2E MT CO2E Number of Facilities Range (MT CO2E per Facility)

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Preliminary Survey Results Preliminary Survey Results

852,164,003 Crude Oil Pipeline 14,854,174 Ultra-Light Oil (API >30) 60,868,669 Light Oil (API 20 - 30) 151,772,639 Heavy Oil (API 10 - 20) 131,293 Ultra-Heavy Oil (API <10) Barrels Crude Oil Produced/ Transported (bbls) Type 210,804,167 Natural Gas Storage 87,301,157 Produced Gas 305,648,255 Associated Gas Natural Gas Produced/Stored (mcf) Type

2007 Production Totals

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Preliminary Survey Results Preliminary Survey Results

Average 2007 Emissions per Barrel Crude Oil Produced

0.05 10,771,873 221,424,887 96 > 100,000 0.08 72,460 899,096 11 > 75,000 to 100,000 0.38 516,246 1,279,211 20 > 50,000 to 75,000 0.04 83,809 2,002,118 54 > 25,000 to 50,000 0.04 42,034 1,100,463 72 > 10,000 to 25,000 0.12 132,911 882,214 213 > 1,000 to 10,000 0.20 4,478 38,786 79 < 1,000 Average MT CO2E per Barrel Total CO2E (Metric Tons) Total Crude Oil Produced (bbls) Number of Facilities Range (bbls produced per year)

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Preliminary Survey Results Preliminary Survey Results

Average 2007 Emissions per MCF Natural Gas Produced/Stored1

  • 1. Excludes Associated Gas

0.005 1,569,231 251,400,466 29 > 500,000 0.002 2,425 1,369,829 3 > 400,000 to 500,000 0.002 4,668 2,820,646 8 > 300,000 to 400,000 0.006 87,019 15,374,857 67 > 200,000 to 300,000 0.007 126,159 17,057,010 106 > 100,000 to 200,000 0.009 47,477 5,434,653 74 > 50,000 to 100,000 0.079 187,256 4,641,618 214 > 1,000 to 50,000 24.72 14,195 6,246 65 < 1,000 Average MT CO2E per MCF Total CO2E (Metric Tons) Total MCF Natural Gas Produced/Stored Number of Facilities Range (mcf produced per year)

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Preliminary Survey Results Preliminary Survey Results

2007 Natural Gas Combustion Volumes

100% 16,957,167 16,957,167 Waste Gas 18% 54,819,498 305,648,255 Associated Gas 5% 4,585,522 87,301,157 Produced Gas Percent Combusted Volume Combusted (mcf) Volume Produced (mcf) Type

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Preliminary Survey Results Preliminary Survey Results

2007 Combustion Emissions by Equipment Type (Metric Tons)

6% 991,681 22 2,688 928,520 Other 16,113,887 314 8,132 15,845,855 Totals: 6% 931,185 2 15 930,377 Cogeneration 7% 1,142,234 16 5,079 1,030,757 Internal Combustion Engine 17% 2,780,708 153 168 2,729,710 Turbine 22% 3,571,372 7 62 3,567,918 Combined Heat and Power 42% 6,696,706 115 120 6,658,573 Steam Generator Percent of Total CO2E CO2E N2O CH4 CO2 Type

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Preliminary Survey Results Preliminary Survey Results

2007 Vented Emissions by Equipment Type (Metric Tons)

1,278,231 59,133 36,438 Totals: 16% 206,051 8,277 32,232 Other 17% 222,829 10,473 2,888 Natural Gas Gathering Pipelines 31% 401,670 19,071 1,176 Compressor Blowdowns 35% 447,681 21,311 143 Dehydrators Percent of Total CO2E CO2E CH4 CO2 Type

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Preliminary Survey Results Preliminary Survey Results

2007 Fugitive Emissions by Equipment Type (Metric Tons)

1,647,228 70,367 169,515 7% 120,430 5,683 1,096 Other 15% 242,472 11,495 1,083 Storage Tanks 15% 244,716 11,264 8,165 Other Natural Gas Processing 15% 249,196 11,299 11,910 Dehydrators 20% 337,566 15,987 1,848 Compressor Seals 27% 452,847 14,640 145,414 Sweetening Percent of Total CO2E CO2E CH4 CO2 Type

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Preliminary Survey Results Preliminary Survey Results

Future Activities

  • Upload remaining surveys
  • Evaluate outlying data
  • Explore developing new emission factors

– Storage tanks

– Separators – Well completions – Newly drilled wells – Components – Automated control devices – Flares

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  • California Energy Commission contract to

develop new natural gas system emission factors

– August 2009 through summer 2010 – Technical Advisory Committee

  • Air Resources Board contract to develop new

emission factors for oil fields

– October 2009 through summer 2010 – Extensive industry input

Testing Programs Testing Programs Testing Programs

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  • Continue working on survey results
  • Welcome comments on preliminary data
  • Testing programs proceeding
  • Future workshops on control concepts and

regulatory language

Next Steps Next Steps Next Steps

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ARB Oil & Gas Contacts ARB Oil & Gas Contacts ARB Oil & Gas Contacts Web Page:

http://www.arb.ca.gov/oil-gas/oil-gas.htm

List Serve:

http://www.arb.ca.gov/listserv/listserv_ind.php?listname=oil-gas

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ARB Oil & Gas Contacts ARB Oil & Gas Contacts ARB Oil & Gas Contacts

Jim Nyarady, Manager jnyarady@arb.ca.gov (916) 322-8273 Joseph Fischer, Project Lead Joseph.fischer@arb.ca.gov (916) 445-0071 Stephanie Lee, Survey Lead sjlee@arb.ca.gov (916) 324-8024