Transcript Canal 1 Français Channel 2 English Канал 3 Русский François Régis MOUTON World Bank GGFR Adviser.

Canal 1 Français
Channel 2 English
Канал 3 Русский
François Régis MOUTON
World Bank GGFR Adviser
Canal 1 Français
Channel 2 English
Канал 3 Русский
Yuriy MYROSHNYCHENKO
World Bank Operations Officer
Canal 1 Français
Channel 2 English
Канал 3 Русский
Policy and Regulatory Framework:
Flaring and Venting in Canada
Arden BERG
P. Eng. EUB Board Member
Endorsers
Independent Agency (IA) and Gov’t Department
NEB (IA - federal)
C-NLOPB (IA: joint federal
& provincial Board)
British
Columbia (IA)
Alberta EUB (IA)
Saskatchewan (Dept)
Manitoba (Dept)
Topics for Discussion
• Regulatory framework
• Themes for regulatory model success
• Roles of independent regulator
• CASA process – consultative approach
• Canadian Offshore
• Other Canadian initiatives
Global Review Regulation in 44 Countries
• Word Bank studied 44 oil producing countries
• Objective: determine how regulations and other
factors affected flare and venting volumes
• Findings: countries reducing flaring and venting
used
– Efficient regulation
– Incentives (fiscal policies and reform of energy markets)
Regulatory Framework Diagram
Government
sets policy
LEGISLATION
Government
Departments
(environmental
standards, leasing,
..)
Regulators
administer
policy
REGULATIONS
Industry
develops
projects
Public
Was it always easy?
• No – not easy! Wasteful flaring in Turner Valley
– "Hell’s Half Acre"; 200 MMCFD for a decade
– Challenges through the years
• Had far sighted political will and leadership
• Created EUB - independent and technical
– To be independent of political process / timetables
– To conserve / prevent waste of reserves
– To reduce impact on environment / society
– To enforce regulations, including shut-in oil if necessary
Who is the Alberta Independent Agency? (EUB)
• 9 Board Members – Government appointed
– 4 engineers, 2 lawyers, 1 accountant, 2 public
• 800 Staff
– engineers, geologists, technicians, accountants, lawyers,
135 field staff
– 143,000 producing wells, 373,000 km pipelines
• Key to effective independence
– "Nobody controls the Regulatory Authority but the
Regulatory Authority remains under control"
Energy Resources Conservation Act (ERCA)
• Section 2 — Purposes of Act
• Appraisal of the reserves and productive capacity
• Appraisal of the requirements for energy resources
• Conservation of, and to prevent the waste… energy
• Control pollution and ensure environment conservation
• Secure the observance of safe and efficient practices
• Recording…timely…useful dissemination of information
• Receive information, advice and recommendations
Atlantic Accord Implementation Act
• Accord Act Section 154 addresses "Waste" and Paragraph (f) deals
with gas flaring specifically: the escape or flaring of gas that could
be economically recovered and processed or economically injected
into an underground reservoir
• If, after the hearing , the Oil and Gas Committee is of the opinion
that waste as defined in paragraph 154(2)(f) is occurring in the
recovery of petroleum from a pool, the Committee may, by order,
direct the introduction of a scheme for the collection, processing,
disposition or re-injection of any gas produced from such pool
• Production and Conservation Regulations: The Chiefs may approve
the flaring or venting of gas during a production operation at a rate
and volume and for the period set out in the approval where the
flaring or venting does not constitute waste or an undue safety
hazard
• Development Plan Approvals
1996 vs. 2005 (flaring -72%, venting -59%)
Issue: 1996 @ 1.8 bcm and not declining
98
2,2
96.3%
Percentage utiltized
1,8
94
1,6
92
90
1,4
1,2
Percentage utilized
Volume flared
and vented
88
86
1
0,8
.67 bcm
1991
1992
1993 1994
1995 1996
1997
1998 1999
*bcm = billion cubic metres
Year 1996 - baseline for flaring
Year 2000 – baseline for venting
2000 2001
2002
2003 2004
2005
0,6
Flared and vented (bcm*)
2
96
Best Management Practices
• KEY — Build consensus on flaring solutions
– Clean Air Strategic Alliance (CASA)1
• industry, environmental NGOs, and Government
multistakeholder process
– Eventual elimination routine AG gas flaring
– Orderly transition .. balances .. stakeholders ..
• eliminate, reduce, and improve the efficiency of flares
• Regulatory backstop if voluntary failed
CASA Flaring Project Team (FPT)
• Series of Consensus CASA FPT Recommendations
– Decision tree with predetermined input controls
– Industry wide flaring reduction targets
• Latest Updated Recommendations
(EUB updated Directive 60)
– Flaring Absolute Cap = 50% 1996 Base Line (0.670 BCM)
– Must tie-in if Present Value is > $ -50k
– Decision tree extended: gas plant and non-assoc gas flares
– Conventional wells—shut in until tied in (72 hour tests)
– Fugitive emissions programs and implementing required
Newfoundland and Labrador
Offshore Petroleum Board
Hibernia Field
Gas Flared
Yearly Cumulative Totals And Daily Average Oil Produced
Gas Flared
Daily Average Oil Produced
1,000,000
35,000
900,000
20,000
500,000
15,000
400,000
300,000
10,000
25,000
540,000
480,000
20,000
420,000
Cumulative Gas Totals (10
5,000
100,000
0
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Year
White Rose Field
Monthly Cumulative Gas Flared
And Daily Average Oil Produced
360,000
15,000
300,000
240,000
10,000
180,000
120,000
5,000
60,000
0
0
2002
Daily Average Oil Produced
0
Dec-06
May-06
Year
Nov-06
2003
2004
Year
Daily Average Oil Production (m³/d)
2,000
Oct-06
4,000
6,000
Sep-06
6,000
12,000
Aug-06
8,000
18,000
Jul-06
10,000
24,000
Jun-06
12,000
30,000
Apr-06
14,000
36,000
Mar-06
16,000
42,000
Feb-06
18,000
48,000
Jan-06
54,000
Dec-05
20,000
Nov-05
Cumulative Gas Totals (10 3 m 3)
Gas Flared
60,000
0
Daily Average Oil Produced
3
200,000
Gas Flared
600,000
2005
2006
Daily Average Oil Production
(m³/d)
25,000
600,000
m 3)
700,000
Terra Nova Field
Gas Flared
Yearly Cumulative Totals And Daily Average Oil Produced
Daily Average Oil Production
(m³/d)
3 m3)
Cumulative Gas Totals (10
30,000
800,000
Other Strategies - Canadian Jurisdictions
• Facilitate discussions with stakeholders and industry
• Resolve regulatory barriers and economic barriers
• Adopt air quality guidelines, measurement, and
modeling
• Improve flare design and operations standards
• Require utilization unless flaring justified to
regulator
• Expand public notification and consultation
• Use flare hierarchy—eliminate, reduce, improve
• Re-licence facilities - deadline or permit cancelled
• Amend acts and regulations
Conclusions - What Worked
• Stakeholder consensus processes
• Industry-wide targets but assess each site
• Independent regulator—backstop provisions
• Clear and consolidated requirements
• Good measurement, reporting, monitoring
• Regular review of flaring and venting targets
• Improved public confidence in process
Policy and Regulatory Framework:
Flaring and Venting in Canada
Arden BERG
P. Eng. EUB Board Member
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The Norwegian Experience
Marta Sophie LINDE MELHUS
Norwegian Petroleum Directorate
Overview
• The Norwegian resource management to flare
• The international work
Norwegian CS
Norwegian energy policy:
- Combine the role of being a large
energy producer with a pioneering
position on environmental issues
The petroleum resources on the
Norwegian Continental Shelf (status 1.1.2006)
• 50 fields in production
• Produced reserves:
– 27 billion boe
• Remaining reserves and resources:
– 55 billion boe
• Daily production:
– 3.0 million boe liquid per day
– 8.2 billion SCF gas per day
• Share of GDP: 24.7 %
• Share of total export: 51.6 %
The resource management
• Flaring and venting are strictly regulated
from a resource management point of view
since the early days on the Norwegian
Continental Shelf, NCS (1971 → )
Historical view of the flaring on the NCS
Gas flaring (m3) per m3 sold o.e.
40
35
30
25
Gas export started
20
15
CO2 tax introduced
10
5
0
1975
1979
1983
1987
1991
1995
1999
2003
Gas flaring policy
• The Petroleum Act; Flaring and venting in excess of
the quantities needed for normal operational safety
shall not be allowed unless approved by the
Ministry”
– The Plan for Developement and Operation (PDO) needs an
approval from the Norwegian government/Storting
– A gas management system for each new field is implied
– Annual flare permits and annual production permits are
needed
• The CO2 Act; CO2 tax has to be payed for all gas to
fuel, flare and vented gas (about USD 0.1 per Sm3 gas)
The consequences of the policy
• Developement of integrated
gas transport systems
• Driving force to improved
oil recovery by gas
reinjection
• Environmental friendly
flaring technologies has
been developed
• Realization of smaller
oilfields on stream
Institutional co-operation
• Currently 12 projects ongoing with focus on:
– Legal, regulatory and contractual framework
– Resource assessment, promotion and licensing
– Government tools: PDO, Production Plans, Flaring Permits,
Abandonment Plans, etc
– Gas planning, Environmental Issues, CDM
– Supervision and auditing
– Data management
– Education and Training
• Assistance from Petroleum Safety Authority,
PETRAD and other Norwegian authorities and
companies
Institutional co-operation
• Exchange of experience, also on issues regarding
management of natural gas:
– Assistance to develop legal and regulatory framework
– Gas planning
– Technology transfer
– Health, safety and environment isues
– Training and other institutional support
• For more information you are welcome to visit the
NPDs web side:
www.npd.no
The Norwegian Experience
Marta Sophie LINDE MELHUS
Norwegian Petroleum Directorate
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Minimizing Flaring and Venting
in Established Markets
J. Michael MELANCON
Regional Supervisor
Production and Development
MMS, Gulf of Mexico OCS Region
U.S. Dept. of Interior
Source: Energy Information Administration (2004 data)
Cameroon
Gabon
Guinea
Equatorial
Ecuador
Angola
Brazil
Algeria
Iraq
Kingdom
United
Nigeria
Kuwait
Venezuela
Canada
Norway
China
Mexico
Iran
States
United
Russia
Arabia
Saudi
Million Barrels/Day
Oil Production
2005
• Oil Production
10
8
6
4
2
0
0
Iraq
Angola
Kuwait
Brazil
China
Mexico
Nigeria
Ecuador
Cameroon
Gabon
Equatorial Guinea
Source: Energy Information Administration (2005 data)
Venezuela
Saudi Arabia
United Kingdom
Norway
Iran
Algeria
Canada
Russia
United States
Billion Cubic Feet/Day
Gas Production
2005
• Gas Production
70
60
50
40
30
20
10
US Gulf of Mexico
1947
2006
GOM Production
(Bar height indicates volume)
Pipelines
• Pipeline Infrastructure
Flaring & Venting
2004
• Worldwide Flaring & Venting
80
60
40
Source: Energy Information Administration (2004 data)
Saudi Arabia
US (GOM)
US (non-GOM)
Norway
Canada
United Kingdom
Algeria
Venezuela
Iran
0
Kuwait
20
Brazil
Percent of Production
100
MMS Regulatory Program
•Flaring & Venting Categories
1.Continuous
• generally not allowed offshore U.S.
• small & uneconomic allowed
• lease use allowed
2.Intermittent (upsets)
• equipment failure/maintenance
• testing/unloading
ALL must be recorded on field records
and submitted to MMS monthly
MMS Regulatory Program
• How to Minimize Continuous
Flaring & Venting
– Prohibit permanent
flaring/venting of associated
gas
– Economic review of facilities
that continuously flare/vent
over threshold
– Require capture of gas if
equipment is cost neutral over
life of facility
(Courtesy of Christopher Richter)
US Offshore Law
OCS Lands Act
43 USC 1334(i)
• (No lessee)... shall be permitted to flare natural gas from
any well unless the Secretary finds that there is no
practicable way to complete production of such gas, or that
such flaring is necessary to alleviate a temporary
emergency situation or to conduct testing or work-over
operations
Intermittent Flaring
• How to Minimize Intermittent
Flaring & Venting
Properly maintain equipment
Install spare compressor capacity
Spare VRU on large platforms
Only low GOR wells during
incidents
– Shut-in facilities when necessary
– Monitor compliance
–
–
–
–
GOM Challenges
• Challenges
– ~87% of gas is vented instead of
flared – can’t see it
– Deepwater facilities can flare/vent
huge volumes in short time period
– Cannot inspect as many facilities in
deepwater due to long flight times
Future
• Future U.S. Improvements
– Drafting clearer regulations
– Require flare/vent meters on
major oil production facilities
– Separate flare vs. vent records
– Sending regulatory experts
offshore with inspectors
– Infrared video cameras to "see"
unauthorized venting
– Monitor from satellites
Infrared Video Camera
Infrared Video Camera
Flare boom
Infrared Video Camera
Naked Eye
Infrared Video Camera
Flotation Unit (treats produced water)
Naked Eye
Infrared Video Camera
Satellites
(Courtesy of
Goddard Space
Flight Center)
(Data from European Space
Agency World Fire Atlas)
Minimizing Flaring and Venting
in Established Markets
J. Michael MELANCON
Regional Supervisor
Production and Development
MMS, Gulf of Mexico OCS Region
U.S. Dept. of Interior
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François Régis MOUTON
World Bank GGFR Adviser
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Flares As Seen From The Sky
Dr. Christopher D. ELVIDGE
U.S. Department of Commerce
National Oceanic and Atmospheric Administration
National Environmental Satellite and Information Service
National Geophysical Data Center
Flares as seen from the sky
Post Forum Workshop
• How much gas is flared globally?
• How much gas is flared within individual
countries?
• What are the trends in gas flaring?
• Can progress in reduction in flaring be
independently confirmed?
Flares as seen from the sky
Post Forum Workshop
Why Not Estimate Gas Flaring Volumes
From Satellite Data?
• Open combustion produces a unique
signature that should be detectable by
satellite sensors.
• Systematic global observations of gas flaring
from satellites could provide independent
data on location of flaring, flaring volumes
and trends over time
Flares as seen from the sky
Post Forum Workshop
•
•
•
•
Visible
Thermal
•
•
•
•
•
•
•
•
•
The U.S. Air Force
Defense Meteorological
Satellite Program (DMSP)
Operational Linescan System (OLS) has a
unique capability to collect low-light
imagery. The primary mission of DMSP is
cloud detection and weather prediction.
But gas flares and other light sources are
also detected.
Polar orbiting
3000 km swath
Fourteen orbits per day
2.7 km ground sample distance (GSD)
Two spectral bands: visible and thermal
Nightly global coverage
Flown since 1972
Digital archive from 1992.
Will continue till ~2012
Flares as seen from the sky
Post Forum Workshop
Pros and Cons of DMSP
• The OLS sensor is
extremely sensitive to light
emitted by gas flares.
• Nightly observations make
it possible to include many
observations during a year.
• Global archive extending
back to 1992.
• NGDC has standardized and
largely automated annual
product generation.
• Lighting detected from
many other sources.
• No onboard calibration of
visible band.
• Gas flares not detected in
OLS thermal band data.
• Coarse spatial resolution.
• Clouds, sunlight and heavy
moonlight degrade the
quality of the observations.
Flares as seen from the sky
Post Forum Workshop
Nighttime Lights Annual Products
• Composites made using data from the thousands of orbits
collected in a year.
• Composites are screened to exclude:
– Clouds
– Sunlight
– Moonlight
– Solar Glare
– Missing / bad scan lines
• Composite image is the average digital number of the cloudfree light detections divided by the number of cloud-free
observations
• The “sum of lights index” tallies the image values within vectors
drawn to cover gas flares.
Flares as seen from the sky
Post Forum Workshop
• Processed time series of annual cloud-free composites
1992
F10
1993
F10
1994
F10
F12
1995
F12
1996
F12
1997
F12
F14
1998
F12
F14
1999
F12
F14
2000
F14
F15
2001
F14
F15
2002
F14
F15
2003
F15
2004
F15
F16
2005
F15
F16*
2006
F15
F16*
*
Processing not complete
Flares as seen from the sky
Post Forum Workshop
• Cloud-free Coverages From Satellite F16 In 2004
Flares as seen from the sky
Post Forum Workshop
• Average Digital Number of Lights Detected From
Satellite F16 In 2004
Flares as seen from the sky
Post Forum Workshop
The annual composites were intercalibrated based on sets of lights from
human settlements (avoiding gas flares and
fires). The primary assumption of the
inter-calibration is that in most areas
lights change very little over the course
of two years.
Flares as seen from the sky
Post Forum Workshop
• Convert To A One Km2 Equal Area Projection
(Mollweide)
Flares as seen from the sky
Post Forum Workshop
• Vectors are drawn
around flares
identified based on
their fuzzy, circular
appearance,
dynamic change
over time, and lack
of urban center in
DOE’s population
grid
Color composite image made with 2004 as red, 1998 as
green and 1992 as blue. Flares often yield vivid colors
due to changes in activity from year-to-year.
Flares as seen from the sky
Post Forum Workshop
• Gas flaring in the Gulf of
Mexico. Color composite
image made with 2004 as
red, 1998 as green and
1992 as blue. Flares
often yield vivid colors
due to changes in activity
from year-to-year
Flares as seen from the sky
Post Forum Workshop
• Gas flaring in West Africa.
Color composite image
made with 2004 as red,
1998 as green and 1992
as blue. Flares often yield
vivid colors due to
changes in activity from
year-to-year
Flares as seen from the sky
Post Forum Workshop
• Gas flaring in the North
Sea. Color composite
image made with 2004 as
red, 1998 as green and
1992 as blue. Flares
often yield vivid colors
due to changes in activity
from year-to-year
Flares as seen from the sky
Post Forum Workshop
• Gas flaring in the Middle
East. Color composite
image made with 2004 as
red, 1998 as green and
1992 as blue. Flares
often yield vivid colors
due to changes in activity
from year-to-year.
Flares as seen from the sky
Post Forum Workshop
• Gas flaring in the Russia.
Color composite image
made with 2004 as red,
1998 as green and 1992
as blue. Flares often yield
vivid colors due to
changes in activity from
year-to-year
Flares as seen from the sky
Post Forum Workshop
2004 Gas Flaring Calibration
30
Nigeria
BCM..
25
BCM =2.54E-05x
R2 =0.94
20
15
Iran
10
Angola
Iraq
5
0
0
400,000
Sum of Lights Index
800,000
Reference
BCM data
from
GGFR
2004 and
a set of
metered
flares in
West
Africa.
Flares as seen from the sky
Post Forum Workshop
• Standard deviations for the 2004 BCM estimates
generated from monthly nighttime lights for 2004.
Flares as seen from the sky
Post Forum Workshop
Global estimate of 2004 flaring
based on DMSP data is 175 BCM
(std. dev. = 26 BCM).
Flares as seen from the sky
Post Forum Workshop
2004 Gas Flaring Estimates From DMSP Data
35
30
BCM
Std. Dev.
Russia (excluding KM)
Khanty Mansiysky
25
BCM..
Nigeria
20
15
Iran
10
Iraq
4-5 BCM:
Kazakhstan
Algeria
Angola
Libya
5
2-4 BCM:
Saudi Arabia,
Qatar, China,
Indonesia,
Kuwait, Oman,
Gabon, North
Sea, UAE,
Uzbekistan,
Venezuela,
Malaysia
1-2 BCM:
USA, Egypt,
Turkmenistan,
Eq. Guinea,
Congo,
Cameroon,
Ecuador,
Syria
0.5-1.BCM:
Brazil,
Australia,
Mexico,
Canada,
Yeman, India,
Vietnam,
Colombia
< 0.5 .BCM:
Argentina,
PNG, DRC,
Thailand,
Bolivia,
Tunisia,
Sudan, Chile,
So. Africa,
Azerbaijan,
Peru, Brunei,
Norway,
Romania,
Chad,
Philippines,
Trinidad,
Myanmar,
Kyrgyzstan
0
0
10
20
30
40
50
60
Flares as seen from the sky
Post Forum Workshop
• Patterns in annual trends: steady
Cameroon Gas Flaring Estimated From DMSP Data
1.8
1.6
1.4
F10
F12
F14
F15
F16
1
0.8
0.6
0.4
0.2
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Australia Gas Flaring Estimated From DMSP Data
Year
1.2
1
F10
F12
F14
F15
F16
0.8
BCM..
BCM..
1.2
0.6
0.4
0.2
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Flares as seen from the sky
Post Forum Workshop
• Patterns in annual trends: sharp decline in
early 1990’s
Saudi Arabia Gas Flaring Estimated From DMSP Data
9
8
7
F10
F12
F14
F15
F16
5
4
3
2
1
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Libya Gas Flaring Estimated From DMSP Data
Year
12
10
F10
F12
F14
F15
F16
8
BCM..
BCM..
6
6
4
2
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Flares as seen from the sky
Post Forum Workshop
• Patterns in annual trends: declines
Syria Gas Flaring Estimated From DMSP Data
4
3.5
F10
F12
F14
F15
F16
2.5
2
1.5
1
0.5
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Year
Gabon Gas Flaring Estimated From DMSP Data
3
2.5
F10
F12
F14
F15
F16
2
BCM..
BCM..
3
1.5
1
0.5
0
1990
1992
1994
1996
1998
2000
Year
2002
2004
2006
2008
Flares as seen from the sky
Post Forum Workshop
• Patterns in annual trends: increasing flaring
Kazakhstan Gas Flaring Estimated From DMSP Data
8
7
F10
F12
F14
F15
F16
5
4
3
2
1
0
1990
1992
1994
1996
1998
2000
2002
2004
Year
2006
2008
China Gas Flaring Estimated From DMSP Data
3.5
3
2.5
BCM..
BCM..
6
F10
F12
F14
F15
F16
2
1.5
1
0.5
0
1990
1992
1994
1996
1998
2000
Year
2002
2004
2006
2008
Flares as seen from the sky
Post Forum Workshop
• Global flaring remains largely stable
Global Gas Flaring Estimated From DMSP Data
200
180
160
BCM..
140
F10
F12
F14
F15
F16
120
100
80
60
40
20
0
1990
1992
1994
1996
1998
2000
Year
2002
2004
2006
2008
Flares as seen from the sky
Post Forum Workshop
Conclusions:
• DMSP satellite data can provide estimates gas flaring volumes
at an accuracy of about +/- 15%.
• Global flaring remains largely stable from 1992 to 2006.
• The 2006 estimate from DMSP data is that global gas flaring
stands at 160 BCM.
• Trends can be observed for individual countries – with some
increasing, others decreasing.
• The satellite data complement in situ efforts to track gas flaring
volumes.
• There are several satellite systems with demonstrated capability
for flare detection. Cost and level of processing and analysis
effort will be factors to consider.
Flares as seen from the sky
Post Forum Workshop
Data and Results Will Be Posted At:
http://www.ngdc.noaa.gov/dmsp/download_gas_flares.html
Shape files for gas flare vectors
Spreadsheets for individual countries
Sum of lights in geotiff format
Cloud free coverages in geotiff format
For additional discussion contact [email protected]
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Round Tables
10h45 – 12h15
• Russia / Caspian Sea
Anastasiya ROZHKOVA
– Delibes room (level 1)
• Africa Gulf of Guinea
Dominique LALLEMENT
– Lulli room (level 1)
• Middle East / North Africa
Silvia PARIENTE-DAVID
– Berlioz room (level -1)
• Latin America
Francisco SUCRE
– Mozart room (level 1)
Closing Session
12h30 – 13h15
• Wrap-Up of round tables
13h15 – 14h30
• Cocktail lunch in Opera Room
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