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Natural Gas Flaring in the Eagle Ford –
An Air Quality Perspective
November 13, 2014
James Smith
Air Quality Director
Overview
Fracking Boom
Reasons for NG Flaring
Pollution Being Emitted
Air Quality Regulations That Address Flaring
What Companies Are Doing to Reduce Flaring
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Eagle Ford Shale
From ~zero to >1,000,000 BOE/day by end of 2013
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Negative Press On NG Flaring in Eagle Ford
4-Part Investigative Report – “Up in Flames” (published Aug 22, 2014)
From 2009 – 2012, 400% increase in flared/vented NG
In 2012, 33 BCF flared/vented 2/3 (21 BCF) from Eagle Ford
Eagle Ford flaring 10X combined rate of all other TX oil fields
2012 Eagle Ford flares emitted > 15,000 tons VOC/other pollutants
More emissions than 6 refineries in Corpus Christi combined
Main Point – Companies Not Doing Enough to Capture NG
http://www.expressnews.com/business/eagleford/item/Up
-in-Flames-Day-1-Flares-in-Eagle-Ford-Shale-32626.php
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Perspective on NG Flaring (TX RRC)
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Reasons for Flaring Natural Gas
Coveting Crude Oil Over Natural Gas Production
Price of crude oil ~ $78/bbl (has been > $100/bbl)
Price of raw natural gas < $4/MCF
Lack of NG Pipeline Infrastructure from Field to Processing Plant
No gas pipelines in remote, rural areas
Existing gas pipelines cannot handle surge in NG production
Long delays in obtaining air permits for constructing compressor stations and
processing plants
Temporary Flare Used During Well Production Testing
For Safety and During Emergencies and Maintenance
If Downstream Customer Cannot Take Sales Gas, Must
Re-route Gas to Flare or Shut In Well
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Air Pollution From Flaring
Pollutants from combustion:
Nitrogen Oxides (NOx)
Particulate Matter (PM)
Carbon Monoxide (CO)
Sulfur Dioxide (SO2) minute amounts for “sweet” fields
Carbon Dioxide (CO2) greenhouse gas
Un-combusted pollutants (assumed 98% control):
2% Volatile Organic Compounds (VOC)
Can contain benzene hazardous air pollutant
2% Methane (CH4) greenhouse gas
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Federal Air Regs That Address Flaring
New Source Performance Standards (NSPS), 40 CFR 60, Subpart
OOOO – Crude Oil and Natural Gas Production, Transmission, and
Distribution
Requires gas capture starting 1/1/2015 from NG production wells
drilled after 8/23/2011 (“green completions”)
National Emission Standards for Hazardous Air Pollutants (NESHAP) for
Source Categories, 40 CFR 63, Subpart HH – Oil and Natural Gas
Production Facilities
Flaring related to TEG Glycol Dehydrators
NESHAP for Source Categories, 40 CFR 63 Subpart HHH – Natural
Gas Transmission and Storage Facilities
Flaring related to
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Texas Air Regs That Address Flaring
Texas RRC Statewide Rule 32
30 TAC 106.352 – Permit by Rule (PBR) for Oil
and Gas Handling and Production Facilities
30 TAC 106.492 – PBR for Flares (tied to 106.352)
30 TAC 116.620 – Standard Permit for Installation and/or
Modification of Oil and Gas Facilities
“Non-Rule” Standard Permit for Oil and Gas Handling and
Production Facilities most Eagle Ford sites obtain this air
permit
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Potential Penalties
Curtailing Oil Production
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Potential Enforcement
EPA’s Six National Enforcement Initiatives for 2014 – 2016
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Keeping raw sewage and contaminated stormwater out of our nation’s waters
Preventing animal waste from contaminating surface and ground waters
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Cutting toxic air pollution that affects communities’ health
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Reducing widespread air pollution from the largest sources, especially the
coal-fired utility, cement, glass, and acid sectors
Reducing pollution from mineral processing operations
o
o
o
Assuring energy extraction sector compliance with
environmental laws
For HAPs, EPA focused on three areas of reduction (based
on historical non-compliance)
1.
Leak Detection and Repair (LDAR)
Reducing volume of waste gas to flare and flare control efficiency
Excess emissions, including those from Startup, Shutdown, and Malfunction
2.
3.
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Flare Reduction Measures
“Green Completion”
Reduce Site NG Production Rate
Avoid More Stringent Air Permit (Title V)
Install a Vapor Recovery Unit on Oil Tanks
(reduces flash gas to flare)
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Green Completion
Required
by NSPS Subpart OOOO
Per
EPA, can reduce VOC by up to 95% for over
11,000 fracked gas wells each year
Rule
requires all new and re-fracked NG wells to
implement green completions by Jan 2015
Not required for “oil” wells – EPA defines a NG well as a
well “drilled principally for production of natural gas”
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Rule will not affect most Eagle Ford wells
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Green Completion (cont’d)
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Green Completion (cont’d)
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Vapor Recovery Unit
Recover > 95% hydrocarbons from storage tank
7,000 – 9,000 VRUs currently installed in O&G
industry (average 4 tanks connected to 1 VRU)
Benefits of VRU:
Recover
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Vapor Recovery Unit (cont’d)
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Vapor Recovery Unit (cont’d)
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Questions?
James Smith
Golder Associates Inc.
500 Century Plaza Drive, Ste. 190
Houston, TX 77073
(281) 821-6868
[email protected]
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Backup Slides
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Positive Message – TCEQ Video on Air
Quality Control For O&G Sector
Texas is the leading O&G producing state in the country
Texas energy sector contributes $200 billion to Texas economy
TCEQ committed to keep air quality safe amid increased O&G
production via:
State-of-the-art monitoring equipment, data analysis
Increased no. air monitors throughout shale areas
http://www.youtube.com/watch?
v=7w3elLj6mlo
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