VP Onshore Hydrocarbons, Americas
Advisian, A Worley Group
10:20 - 10:45
Thursday, 19 September 2019
S2.7 Are We Spending Capital on the Right Emissions Reduction Strategies?
Companies are spending millions of dollars on emissions reduction programs based on what government agencies have identified as “high emitters”. As a sector, much time and effort has been spent on upgrading and/or replacing the high bleed instruments in an effort to be in compliance with regulators requirements. What is frustrating the industry is that the baseline emission levels appear to have been developed arbitrarily using general assumptions and without substantiation or field verification.
Significant capital is being invested to “buy” into government programs, such as carbon off-set programs which are set to allow for financial credits and with a goal of making an impact on emissions. The big questions to ask:
- “What are we really making an impact on?” - is industry simply working through a process to show on paper that they are reducing emissions, or are we creating a realistic baseline and an informed understanding of what measures need to be implemented to make a true impact.
- “What is all the fuss about?” – are we implementing polices and programs that represent only a small percentage of the overall emissions problem.
- Are we spending capital on reducing emissions on instrumentation that didn’t exist in the first place?
In North America, we have focused our attention on venting, and more specifically, on compression venting as the main culprit. However, our organization has conducted studies that clearly show otherwise. A further look into tank venting and casing gas vents may prove that they are perhaps bigger emitters and provide greater payback.
This presentation will present case studies that look at the materiality of information being provided to industry; the misalignment of assumptions in what is considered “high-bleed’ instrumentation; and, the financial risks that corporations face as baselines are further developed and defined, and government regulators continue to juggle politics over policy.