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Abstract
Conservatively, at least 4 million boe are consumed daily and around 500
million tonnes of CO2 emitted annually from upstream oil and gas operations
worldwide. There is a huge economic prize and an urgent business need to
improve upstream energy efficiency, particularly since the carbon emissions
from this industry are alleged to be one of the major contributors towards
climate change.
The UK government has just introduced targets to reduce Green House Gas (GHG)
emissions by 50% by 2025. Hence it is about to introduce increased legislation
for carbon emissions from 2013 onwards that will impose significant additional
Opex for all operators that, as yet, is not fully appreciated by the upstream
industry. This additional levy may have the undesired affect of bringing
forward the economic cessation of production date and reduce the ultimate
recovery from each field.
This paper gives a concise background on the legislation, details of the
regulatory framework and its likely impact on an asset’s CoP date. Lessons
learned from over 200 energy assessments conducted in the UK and
internationally will be shared as to how Operators can reduce their commercial
exposure by using state-of-the art energy reduction tools and techniques.
Selected case studies will be described with costs and benefits
highlighted.
This experience has been gained by the author in reducing carbon emissions
across a broad spectrum of Operators and asset types over the last twelve
years. It will be shown that many of the tools and techniques provide quick
fixes that can help to reduce carbon emissions by over 10%. This paper will
also highlight how production is often increased as a desirable by-product of
prudent and efficient energy management of operating assets, giving a positive
rate of return for any investment needed to improve uptime and
efficiency.
Introduction
Oil and gas operators have a difficult task in operating in harsh environments,
with an ever increasing age of equipment and increased safety culture. Another
piece of legislation, involving the environment has been gradually introduced
in stages into the UKCS, which to date has had differing impacts on changing
individual company policy towards focusing on energy reduction measures.
Some companies have embraced the concept and energy efficiency is now fully
embedded into the organisation. Other companies regard any implementation of
energy reduction measures as an increased burden to their operations and are
content to pay for the emission costs. However, as the latest legislation
becomes more restrictive and CO2 trading prices increase, such companies may be
forced to make such improvements or else incur considerable financial
burdens.
Statement of Theory and Definitions
UK Government Policy.
The UK Government has recently updated its policy on GHG reduction. A limit on
the total amount of greenhouse gases to be emitted by the UK between 2023 to
2027 has been proposed to cut Britain’s emissions by 50% from 1990 levels [Ref
1]. There is a stretch target of putting the UK on course to cut emissions by
at least 80% by 2050.
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