Strategies for Minimising Carbon Emissions from Facilities whilst Improving Opex
- Mike Guinee (PI Energy & Emissions Limited)
- Document ID
- Society of Petroleum Engineers
- Offshore Europe, 6-8 September, Aberdeen, UK
- Publication Date
- Document Type
- Conference Paper
- 2011. Society of Petroleum Engineers
- 6.5.1 Air Emissions, 6.6.1 Integrating HSSE into the Business, 5.3.2 Multiphase Flow, 4.1.5 Processing Equipment, 4.1.2 Separation and Treating, 4.1.6 Compressors, Engines and Turbines, 4.5.7 Controls and Umbilicals, 6.5.7 Climate Change
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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.
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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