Operators cutting methane emissions

Feb. 10, 2015
Cuts in methane emissions from oil and gas production ought to be combined with aggressive efforts to curb excessive carbon dioxide releases, producers and others said during a December event.

Cuts in methane emissions from oil and gas production ought to be combined with aggressive efforts to curb excessive carbon dioxide releases, producers and others said during a December event.

Speaking at the Center for Strategic and International Studies (CSIS) in Washington, DC, a Royal Dutch Shell PLC spokesman said Shell is working voluntarily on reducing methane emissions.

"We also recognize that voluntary efforts by a handful of companies aren't going to be enough," said Greg Guidry, Shell executive vice-president for unconventional resources in the Americas.

Shell would like to see the US Environmental Protection Agency and other federal agencies take a targeted, thoughtful approach to curbing methane emissions from identified upstream sources, he said.

"If EPA is committed to a regulatory approach, we believe it should avoid a broad regulation that would impose unnecessary costs," Guidry said.

Coalbed methane in the San Juan basin is a different situation from emissions elsewhere, he noted.

Pioneer Natural Resources Co. is adjusting operations to comply with new air regulations and participating in industry emissions studies, said Carrie Reese, the firm's environmental compliance manager.

"Our goal is to reduce emissions beyond what regulations propose," she told CSIS. "We implemented green well completion before it was required. New wells typically are connected to pipelines before completion.

"We also extended leak detection to pipelines, batteries, wells, and compressor stations," she said.

In a January note about its activities, EPA acknowledged "voluntary efforts to reduce emissions in a comprehensive and transparent manner have the potential to yield significant methane reductions in a quick, flexible, and cost-effective way."

Achieving significant reductions through voluntary industry programs and state actions could reduce the need for future regulations, EPA added.

Controllers cited as emissions source

Studies have identified pneumatic controllers as a potential source of methane emissions, Reese said. Pioneer uses compressed air instead of natural gas to run pneumatic controllers in some areas.

"We realize that with additional production comes a potential for more emissions," Reese said. "We want to strike a balance between regulation and production."

In addition, Pioneer tries to generate data to improve national emissions estimates.

David Allen, director of the University of Texas at Austin's Energy and Environmental Resources Center, said the availability of information on emissions has grown dramatically over several years.

Researchers used aerial and ground-level monitoring to help determine liquid unloadings and pneumatic controllers are dominant wellhead emissions sources.

UT-Austin and URS released a report on Dec. 9, 2014 (see story p. 14).

"The more we can sample and understand where the problems are, the better it is," said Allen. "Many companies have begun sampling their own operations."

The EPA reported methane emissions from the oil and natural gas industry has decreased by 12% in 2014 compared with 2011. The largest reductions in emissions came from hydraulically fractured gas wells.

EPA expects to see additional emission reductions as 2012 standards for the oil and gas industry become fully implemented. Emissions are tracked through the Greenhouse Gas Reporting Program.

Steven Hamburg, chief scientist at the Environmental Defense Fund, said equipment types identified as likely emissions sources would not necessarily benefit from broad national regulations.

"In the case of pneumatic controllers, a third of the devices perform well with no emissions," he said. "We have better information now. There are different flavors of pneumatics, for example."

Allen and Hamburg each noted regional differences exist in emissions, saying national policymakers need to recognize that.

"There are regional differences from regulation as well as geology," said Allen. "I think we're approaching a point where we can deploy monitoring networks to help us identify wells that are turning into problems and correct problems before they happen."

Colorado went first

Colorado became the first US state in February 2014 to adopt regulations aimed at controlling methane emissions from upstream oil and gas operations, said Martha Rudolph of Colorado's Public Health and Environment Department (PH&E).

"Up to 98% control of hydrocarbon emissions from underground tanks is required now, which puts us down closer to the levels we want," she said. "This regulation created a pretty robust initial monitoring system that can be extended into other areas."

Gov. John W. Hickenlooper (D) proposed the state adopt regulations to control methane emissions during a 2012 speech at a Colorado Oil and Gas Association event.

Consequently, PH&E staffers worked with about 100 stakeholders, Rudolph said. The state encouraged small groups to develop proposals, so three oil and gas producers worked with EDF to provide the basis for rules that were adopted.

"Relations between communities, industry, and other stakeholders already existed, which helped us develop the requirements," Rudolph said.

American Gas Association Pres. David K. McCurdy said the nation's more than 200 investor-owned local distribution companies are reducing emissions by upgrading pipelines to make them safer.

"Since 1990, emissions have fallen 22% as our members added more than 600,000 miles of distribution pipelines," he said.

State public utility commissioners will need to strike a regulatory balance if gas prices remain low, McCurdy said.

"Unlike producers, our members are the public face of gas. They interface with the consumer," he said.

Accurate emissions data will help build an understanding of where future improvement is needed, he said.

Washington State University is working on a study to quantify emissions through local gas systems, McCurdy said.