Maureen Lorenzetti
Washington Editor
WASHINGTON, DC, Feb. 13 — The American Petroleum Institute Wednesday pledged that its members' refineries are going to be 10% more energy-efficient by 2012 to meet the goals of a new White House voluntary greenhouse gas (GHG) program.
API Pres. Red Cavaney said making oil refineries more efficient would curb the industry's production of GHGs such as methane and carbon dioxide.
"The president has the right idea on climate change," said Cavaney. "We are committed to using our new technologies to help him meet his goals for reducing greenhouse gas intensity."
The Department of Energy Feb. 12 launched President George W. Bush's "Climate VISION" (Voluntary Innovative Sector Initiatives: Opportunities Now)—a voluntary, public-private partnership that the White House says will pursue cost-effective initiatives that reduce US GHG emissions. Climate VISION will be administered through DOE's policy and international program.
As part of the DOE effort, the American Petroleum Institute said it is introducing a new system for measuring and aggregating emissions in both upstream and downstream operations.
API's climate change initiatives were announced at a DOE ceremony; other groups from the automotive, chemical, and electric industries also are participating in "Climate VISION".
API officials said the industry has already spent 2 years developing a consistent method for measuring and aggregating its greenhouse emissions in all industry sectors. At the DOE event, the association pledged to annually report the GHG intensity of its members' operations, allowing "a clear and accurate benchmark for measuring progress in addressing climate change," Cavaney said.
Climate challenge program
API officials said member companies participating in its "Climate Action Challenge" will develop plans to reduce, sequester, offset, or avoid their GHG emissions. Refiners, for example, pledged to improve their energy efficiency by 10% by 2012. Other cost-effective ways to reduce GHG intensity, will include:
-- Reducing methane venting and flaring from exploration and production operations.
-- Expanding use of combined heat and power units at refineries and oil and gas production facilities.
-- Reducing methane emissions from transportation and distribution of natural gas.
-- Reducing CO2 venting at amine acid gas separation plants.
-- Expanding carbon capture and storage, including sequestration.
-- Improving the energy efficiency of their operations.
-- Increasing participation in voluntary government programs
API said its members will also explore greater investment in other "promising approaches" for mitigating GHG emissions, including:
-- Extending natural gas operations and natural gas technologies.
-- Gasifying refinery residuals for use in cogeneration.
-- Using alternative technologies.
-- Producing alternative and advanced energy and fuel products.
-- Participating in conferences and workshops to learn of other GHG-reduction options.
API also expects companies that participate in research and development will include GHG emissions control in their planning. Areas of focus may include energy-efficient technologies, alternative energy technologies (e.g., hydrogen, wind, solar, geothermal), alternative motor fuels and vehicles (e.g., Freedom Fuel and other fuel cell transportation technologies), and CO2-capture technologies such as those applied to gas turbine exhaust or involving sequestration or use in enhanced oil and gas recovery, API said.
Other views
Environmental groups and some Democratic lawmakers were critical of the DOE plan, saying it is more style than substance.
"Perhaps it's a good thing that President Bush has finally indicated an interest in having a climate change policy. However, a policy that doesn't improve on what likely is going to happen anyway isn't much of a strategy," said Sen. Jeff Bingaman (D-NM), ranking member of the Senate Energy and Natural Resources Committee. "The president's voluntary target of an 18% reduction in greenhouse gas emissions intensity over the next decade sounds impressive—until you look at the data. This approach will allow climate-altering pollution to continue climbing as long as it increases more slowly than the economy. The voluntary commitments announced today would meet a goal no more aggressive than business as usual. "
DOE officials are soliciting industry comment on ways to change its current voluntary GHG emissions reporting system to improve accuracy; the department's independent statistical arm, the Energy Information Administration, hopes to unveil a proposed rulemaking at the end of this year and issue a final rule in 2004.
But DOE and the oil industry continue to resist calls for a mandatory GHG registry designed to monitor emissions levels. They argue that a registry might not be accurate because industry groups have no uniform way of measuring emissions.
