Consumer Energy Alliance: Flaring Solutions, Issues and Technologies Workshop Background Brief on Air Quality and Emissions Regulations

Transcription

1 Consumer Energy Alliance: Flaring Solutions, Issues and Technologies Workshop Background Brief on Air Quality and Emissions Regulations Jack Belcher, CEA Exec. Vice President January 14, 2015

2 About CEA Founded in 2006, CEA is the Voice of the Energy Consumer 240 Corporate Members 400,000+ Individual Members 20 state-based grassroots organizations Weekly contact with State Governors, Legislators & Federal Officials Effective earned media operation 2

3 Presentation Overview 1. Regulatory Environment 2. Key Federal and State Environmental Issues Federal Methane Strategy State Regulations on Air Quality 3. Technology Solutions 3

4 Regulatory Environment Onshore boom Increasing actions at the state and local level to ban or limit the practice of hydraulic fracturing and associated activities Infrastructure build-out Difficult permitting and lease stipulations 4

5 Issues: Strategy to Reduce Methane Emissions Administration Strategy to Reduce Methane Emissions EPA to assess methane emissions from the oil and gas sector Further action? (end of 2016) Climate legacy 5

6 Issues: Strategy to Reduce Methane Emissions - Background Clean Air Act requires new source performance standards (NSPS) best system of emission reduction best system of emission reduction Periodic 8 year review; review and revise (technology, processes, practices, cost-effecticve) Previous NSPS 1985 Air toxics standards 6

7 Issues: EPA s Area of Focus EPA white papers Compressors Emissions from completed and on-going production at hydraulically fractured wells Leak detection Liquids unloading Pneumatic devices 7

8 Issues: Strategy to Reduce Methane Emissions - Rulemaking 2012 NSPS and NESHAP Reviews for Oil and Natural Gas Sector Fugitive emissions Rule targets VOCs, air toxics and establishes requirements for: Natural gas well sites Natural gas gathering and boosting stations Gas processing plants Natural gas transmission compressor stations 8

9 Issues: State Regulations on Air Quality State rules in the absence of federal regulations Citizen concerns about air quality Control requirements State monitoring programs Flaring maximums 9

10 North Dakota Minimize the amount of natural gas flared No more than 15% of natural gas within two years and down to 10% in six years Targets will result in lower production Implement new capture technologies Grow infrastructure / implement onsite 10

11 Texas Eagle Ford shale (South Texas) Air quality monitoring programs No further regulations are expected at this time Data from the monitoring program may prompt action 11

12 Colorado DJ Basin production has skyrocketed Hydraulic fracturing Colorado Air Rule Federal Model 12

13 High Onshore Threats and Opportunities Proactively managed Continuous monitoring Operating Incident (-) Crude Exports (+) Punitive Taxes (-) Onshore Federal Access (-) GHG Emissions/Rule (-) Increased Condensate Exports (+) Air Quality (-) Inability to build Infrastructure (-) Methane Emissions / Flaring (-) LNG Exports (+/-) Hydraulic Fracturing (+/-) Urbanization: Well bore integrity (-) Noise pollution, traffic, Royalty Rates (-) Earthquakes/Seismology (-) other nuisances from Threats to Seismic Acquisition (-) Zoning issues (-) Renewable Portfolio Standards (+) development (-) Endangered Species Act Water Pollution Issues (-) (-) Medium Lack of: Union support Local workforce development Industry Opposition (-) Ballot Initiatives (-) Water Scarcity Issues (+/-) Active Attention & Preparation Potential Impact Low Industry Alignment (+/-) Changing demographics (less supportive of industry) (+/-) Periodic Assessment Low Likelihood of Occurrence Medium High 13

14 Technology Solutions

15 Solutions: Emissions Strategy: Use of Green Completions VOC rules for oil and gas storage tanks NSPS to reduce VOC emissions by 95% Green completions 15

16 Solutions: Use of Natural Gas in Field Operations Improving economics of efficiency Fuel-switching Federal scrutiny on natural gas production and transportation systems (methane rules, etc.) Department of Energy (DOE) new standards for natural gas distribution and transportation infrastructure 16

17 Thank you! Questions??? Jack Belcher