Opportunities for Methane Emissions Reductions in Natural Gas Production

Similar documents
Reducing Methane Emissions from Production Wells: Reduced Emission Completions in Gas Wells; Smart Automation of Gas Well Plunger Lifts

Natural Gas STAR Methane Challenge Program: Supplementary Technical Information for ONE Future Commitment Option

Hydraulic Fracture Pollution Capture: Oil & Gas Production Air Regulations

Vapor Recovery Units: Agenda

EPA Greenhouse Gas Mandatory Reporting Rule. Onshore Petroleum & Natural Gas Production

NRRI Colloquium July 11, 2015 Answering Questions about Methane Emissions from the Natural Gas Sector

EPA's Proposed Air Pollution Standards for the Oil and Natural Gas Sector Preliminary Analysis September 2011

April 25, 2006 Villahermosa, Mexico. Compressors: Agenda

Focus on Hydraulic Fracturing

Oil and Natural Gas Sector Liquids Unloading Processes

Methane Emission Factor Development Project for Select Sources in the Natural Gas Industry. Task 1 Report

Complying with NSPS Regulations Governing Air Emissions from Natural Gas Well Sites

Methane Emission Factor Development Project for Select Sources in the Natural Gas Industry. Draft Task 1 Report

Methane Emissions in the Natural Gas Life Cycle and Implications for Power Generation: Update on Emission Studies

Greenhouse Gas Reporting Program Petroleum and Natural Gas Systems 2012 Data Summary

This Series of Guides Addresses:

A PENNSYLVANIA FRAMEWORK OF ACTIONS FOR METHANE REDUCTIONS FROM THE OIL AND GAS SECTOR

Shale Projects Becoming Globally Important U.S. Shale Oil & Gas Experience Extrapolates Globally

Well Pad Automation Improves Capital Efficiency and Reduces Fiscal Risk Michael Machuca* Emerson Process Management

Rule 326: Mechanical Integrity Guidance

40 CFR 98 Subpart W Petroleum and Natural Gas Systems

Enhanced Oil Recovery Institute IOR/EOR Conference Jackson, Wyoming September 10 & 11, 2012

How to Develop a Methane Emissions Feasibility and Measurement Study

Natural Gas A Game Changer

Natural Resources Canada Office of Energy Efficiency 580 Booth Street Ottawa, Ontario K1A 0E4

GREENHOUSE GAS LIFE-CYCLE EMISSIONS STUDY: Fuel Life-Cycle of U.S. Natural Gas Supplies and International LNG

Oil and Gas Regulations and TCEQ Lessons Learned

Extending value through field redevelopment

Common Oil & Gas Environmental Issues

Colorado Oil and Gas Conservation Commission

Reducing Lost and Unaccounted for Natural Gas in Distribution Systems

3 rd Shale Play Water Management Marcellus and Utica COLLABORATION CASE STUDY

Producing a well. Folie 1

Greenhouse Gas Reporting Program

WELL CONTROL THE RISING EAST NOVEMBER/DECEMBER INTERNATIONAL ASSOCIATION OF DRILLING CONTRACTORS Drilling

U.S. energy independence: Bakken helping pave the way

J-W Operating Company Corporate Objectives

Case 1:15-cv WJ-SCY Document 16-7 Filed 05/11/15 Page 1 of 42. Exhibit 6. Susan Harvey Declaration

Reducing Lost and Unaccounted for Natural Gas in Distribution Systems

Shell Canada Limited. Shell s Comments for Phase 4: Oral Proceeding Related to Alberta Energy Regulator Proceeding No

Overview of Offshore Well Completions

Coiled Tubing for Downhole Applications

SHELL ONSHORE OPERATING PRINCIPLES

Air Quality and Greenhouse Gas Issues for the Oil and Gas Sector ERM 2015 Webinar Series

Oil and Gas Development in Lubbock. How changes to the Lubbock Drilling Ordinance can impact YOU

Solid-Expandable Systems. The Key to Economical Recovery in Mature Fields

Scotia Howard Weil Energy Conference

Life-Cycle Assessment of Greenhouse Gas Emissions from Shale Gas Extraction in Scotland. Clare Bond, University of Aberdeen.

RAILROAD COMMISSION OF TEXAS. Barry T. Smitherman, Chairman David Porter, Commissioner Buddy Garcia, Commissioner

Technology For Enhancing Marginal Well Profitability

Effects of Enhanced Oil Recovery on Production Engineers, Elm Coulee Field, Bakken Reservoir, Richland County, Montana

2015 Global Petroleum Technologies Limited.

CSG Drilling & Completions

Shale Development: Understanding and Mitigating Risks Associated with Well Construction and Hydraulic Fracturing

SPE Introduction. Objectives. There are three primary objectives of this new pumping method:

Description [in natural gas volume] Emissions estimated from size of breach / pressure / duration calculation

Water Issues Relating to Unconventional Oil and Gas Production

Managing the Risks of Shale Gas Identifying a Pathway toward Responsible Development

Successful Completion Optimization of the Eagle Ford Shale

RECOPOL. Reduction of CO 2 emission by means of CO 2 storage in coal seams in the Silesian Coal Basin of Poland RECOPOL

Marcellus Shale Water Group

2011 Oil and Gas Emission Inventory Enhancement Project for CenSARA States

DEVELOPMENT OF 2010 OIL AND GAS EMISSIONS PROJECTIONS FOR THE DENVER-JULESBURG BASIN

DAVID SPEARS STATE GEOLOGIST

Transmission Pipeline Opportunities. Advancing Project Development in India through Public Private Partnerships

Petroleos Mexicanos Report. Oil and Gas Subcommittee Meeting

Environmental, Economic, and Technological Effects of Methane Emissions and Abatement

Introduction to Artificial Lift

Plasma Pulse Technology (PPT) A Reservoir Stimulation Technology for! Enhanced Hydrocarbon Recovery!

Winter U.S. Natural Gas Production and Supply Outlook

Outline. Senate Bill 4 Overview

HYDRAULIC LIFT SYSTEMS. Effective Solutions for Long-term Recovery

CENTRIFUGAL SEPARATORS FOR INDUSTRIAL APPLICATIONS

Hydrogen Sulfide: Issues and Answers Workshop. December 7, 2005 Farmington, New Mexico San Juan College

Cross-Sector Methane Emission Reduction Opportunities. Advancing Project Development in India through Public Private Partnerships

Permian Field Tour. Occidental Petroleum Corporation. October 11, 2017

Green Energy Oilfield Services, LLC

Hydraulic Fracturing Principles and Operating Practices

Oil and Gas Drilling Linked to Air Pollution. Fracking Provides Many Opportunities For The Release Of Air Pollutants.

Geothermal Power Plant

Santa Barbara County APCD

Effective Use of Partial Monolayer Proppants to Enhance Production in a Tight Gas Reservoir.

Responsible Environmental Management of Oil and Gas Activities in New Brunswick Recommendations for Public Discussion

Plugs and Profiles. Types Running Pulling Problems

Case Studies in Energy Efficiency and Water Conservation Projects

Aquatech Energy Services

Improved Production from Horizontal Wells in the Bakken

Bakken Pad Drilling Greater Resource Potential with a Reduced Environmental Footprint

Synthesis of recent ground-level methane emission measurements from the U.S. natural gas supply chain

Economic Analysis of Methane Emission Reduction Opportunities in the Canadian Oil and Natural Gas Industries

U.S. Crude Oil and Natural Gas Proved Reserves, Year-end 2015

Objective- to apply for fulltime well test / Flow back position; Supervisor; Field Supervisor; Operations Manager.. Summary of Qualifications:

Bureau of Land Management Oil and Gas Program

Screenless Sand Control Completions. New dimensions in sand management

Coal and Natural Gas The Evolving Nature of Supply and Demand

Injection Wells for Liquid-Waste Disposal. Long-term reliability and environmental protection

Dan Kelly. June 14, 2013

Remotely Operated Cementing Methods for Drilling with Liner Installations. Steve Rosenberg, Global Drilling Reliability Manager

ElectroChemTM Advanced EDR

Hydraulic Fracturing. Sustainable Development Initiatives. Greg Manuel Senior Staff Engineer Sustainable Development November 12, 2013

Transcription:

Opportunities for Methane Emissions Reductions in Natural Gas Production Ministerio de Minas y Energia Ministerio de Ambiente, Vivienda y Desarrollo Territorial Occidental Oil & Gas Corporation and Environmental Protection Agency, USA October 6, 2005

Methane Emissions Reductions: Agenda South American Oil and Natural Gas Industry Overview Roger Fernandez, U.S. EPA Reduced Emission Completions (Green Completions) Gerald Alberts, Williams Smart-Well Automation Don Robinson, ICF Consulting Discussion Questions

South American Oil and Natural Gas Industry Overview Agenda South American Oil and Gas Statistics Columbian Methane Emissions Major Emission Sources Emission Reduction Opportunities Consumption Production Emissions

South American Oil and Gas Statistics: Production Colombia represents 9% of South American production Other 561 mboe/d Argentina 1,449 mboe/d Venezuela 3,437 mboe/d Brazil 1,913 mboe/d Inventory of Oil and Natural Gas provided by Energy Information Administration (EIA) Colombia 705 mboe/d mboe/d = 1000 barrels of oil equivalent per day

South American Oil and Gas Statistics: Consumption Colombia represents 7% of South American consumption Argentina 945 mboe/d Other 811 mboe/d Venezuela 1,035 mboe/d Brazil 2,392 mboe/d Inventory of Oil and Natural Gas provided by Energy Information Administration (EIA) Colombia 371 mboe/d mboe/d = 1000 barrels of oil equivalent per day

Colombian Methane Emissions Estimates Oil and gas production contribute 44% of methane emissions Transmission 2,241 MMcf Distribution 583 MMcf Oil Downstream 37 MMcf Production 2,548 MMcf Processing 324 MMcf

Major Emissions Sources Production % of Total Sector Emissions Transmission % of Total Sector Emissions Pneumatic Devices 41% Reciprocating Compressors 42% Well Venting and Flaring 12% Pneumatic Devices 11% Dehydrators and Pumps 9% Engines 11% Gas Engine Exhaust 8% Centrifugal Compressors 8% Processing % of Total Sector Emissions Distribution % of Total Sector Emissions Reciprocating Compressors 48% M&R Stations 25% Engines 20% Unprotected Steel Mains/Services 18% Centrifugal Compressors 16% Regulators 16% Blowdowns 6% Cast Iron Mains 12% Inventory of US Greenhouse Gas Emissions and Sinks, 1990-2003

South American Emission Reduction Opportunities Significant emissions reductions can be achieved at low cost $250 Abatement Option Cost ($/TCO2E) $200 $150 $100 $50 Colombia Argentina Mexico Venezuela $0 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 Emissions Reductions (MMTCO 2 E)

Reduced Emission Completions (Green Completions) Agenda Green Completions Flowback Skids Piceance Well Completions Green Completion Economics Conclusion

Green Completions Technology used to recover gas that is otherwise vented or flared during the completion phase of natural gas well At Williams, Green Completion technology is a flowback separator skid leased from Breco Flowback skids used to separate sand, water and gas

Breco Flowback Skid Sand Vessel Gas Vessel

Flowback Skid When Is It Used? Used after each zone is facture stimulated (frac d) Used when all zones are fractured and waiting for workover rig to drill out plugs for final completion (Up to 10 days) When production well is located near gathering system Wildcat and step-out wells are not completed with green completion technology One Month = time wells at typical 4-well pad are routed to flowback skid

Flowback Skid - Operation Sand Vessel separates sand from field gas Gas Vessel separates gas from water used for hydrologic frac ing Gas routed to sales line Sand dumps to drill pit manually Water dumps to media tanks automatically Water is filtered and reused for future frac jobs Flowback skid operates at 20 to 40 psi greater than gas gathering line pressure which is about 260 to 320 psi in Piceance Basin

Flowback Skid Wellhead Equipment

Flowback Skid Drilling Pit and Water Tanks

Piceance Well Completions Well Completion Type = Mechanical Isolation Perforate casing prior to Stage 1 makes fracture stimulation possible Frac Stage 1 Flowback well, first 12 hrs water, afterwards routed to Breco skid Set plug to isolate frac stage REPEAT for each stage (avg. 5 to 6 stages/well) Plugs drilled out by Workover Rig Producing to flowback skid during time after fracing and before plugs drilled out

Piceance Well Completions Williams Fork formation low permeability tight lenticular sandstone (10% porosity, permeability range of 0.001 md to 0.0100 md) Wells drilled to avg depth 6,500 ft to 9,000 ft Flow pressures range from 1,500 to 2,500 psi Fracture stimulation needed to make well economical Frac about 5 to 6 stages per well 32 = Average number of days each well on Breco Flowback Skid for typical 4 well pad

Piceance Well Completions Risks Associated with Green Completions 1 Wellbore/Reservoir Risk Fluids pumped downhole must be recovered as quickly as possible Flowing fluids to flowback skid results in decreased flowback rates Wellbore damage by fluids can diminish production 2 Operational Risk When plugs drilled out well flows to remove cuttings and reduce head pressure Flowing to Breco skid increases backpressure/decreases flow

Piceance Well Completions Risks Associated with Green Completions, con t 3 Safety Flowing gas, condensate, water, and sand during completion cause pipe and vessel washouts Elbows reinforced with high strength metal Breco person visits each location every 1 to 1.5 hrs to catch leaks before they become washouts

Flowback Skid Washout Safety Feature ABRASION RESISTENT

Flowback Skid - Safety WASHOUT

Green Completion Economics Year Total Number of Well Spuds No. of Spuds Not Completed or Completed Without Flowback* Actual Number of Flowback Completions Actual Completion Gas Generated (MMscf) Actual Completion Gas Vented/Flared (MMscf) Flowback Gas Recovere d (MMscf) Flowback Gas Recovered (%) 2002 75 14 61 599 112 487 81.3 2003 80 9 71 1348 152 1196 88.8 2004 253 34 219 5635 757 4878 86.6 2005 134 1 133 2864 21 2843 99.3 Total 542 58 484 10445 1042 9403 90.0 Flowback Revenue/Cost Analysis Year Total Revenue (MM$) Recovery Cost (MM$) Net Savings (MM$) Actual Methane Generated (MMscf) Flowback Methane Recovered (MMscf) Potential Methane Flared (MMscf) Potential Methane Vented (MMscf) 2002 1.28.22 1.06 533 434 89 11 2003 6.32.89 5.43 1200 1065 1200 15 2004 27.87 2.85 25.02 5017 4343 600 74 2005 10.97 2.84 8.13 2550 2531 17 2 Total 46.45 6.80 39.65 9301 8373 826 102 *Newly drilled wells may not have been completed at the time of this report. These will be reconciled during the 1 st quarter each year. It is estimated that greater than 99% of all well spuds are completed using the flowback recovery unit.

Green Completion Economics continued AVERAGE PER WELL FLOWBACK STATISTICS Average Number of Days of Flowback = 32 Average MMscf Gas Recovered During Flowback = 22.3 Average MMscf Gas Flowback Recovered/Day = 0.69 Average Revenue Per Flowback ($) = $109,967 Average Cost Per Flowback ($) = $ 16.015 Average Net Saving Per Flowback ($) = $ 94, 474 CH 4 recovered in 2004 = 4,343 MMscf Estimated Mean Methane Concentration Gas: 89.043 vol. %

Conclusion Reduce methane emissions, a potent GHG Well completion type determines viability of green completion technologies Produced water and stimulation fluids from green completions are recycled Eliminate citizen complaints associated with flaring Increase Economic Value Added

Smart-Well Automation Agenda Methane Losses Methane Recovery Methane Savings Is Recovery Profitable? Source: Weatherford

Methane Losses from Plunger Lifts Conventional plunger lift systems use gas pressure buildups to repeatedly lift columns of fluid out of well Fixed timer cycles may not match reservoir performance Cycle too frequently (high plunger velocity) Plunger not fully loaded Cycle too late (low plunger velocity) Shut-in pressure can t lift fluid to top Gas slippage around plunger and fluid (waste of motive energy) Source: Weatherford

Conventional Plunger Lift Operations Manual, on-site adjustments tuned plunger cycle time to well s parameters Not performed regularly Do not account for gathering line pressure fluctuations, declining wells, plunger wear Manual vent to atmosphere when plunger lift is overloaded

Methane Recovery from Smart-Well Automation Smart automation continuously varies plunger cycling to match key reservoir performance indicators Well flow rate Measuring pressure Successful plunger cycle Measuring plunger travel time Plunger lift automation allows producer to vent well to atmosphere less frequently

Automated Controllers Low-voltage; solar and battery powered Monitor well parameters Adjust plunger cycling Source: Weatherford Remote well management Continuous data logging Remote data transmission Receive remote instructions Source: Weatherford

Plunger Lift Cycle

Methane Savings Methane emissions savings a secondary benefit Optimized plunger cycling to remove liquids increases well production by 10 to 20% 1 Additional 10% 1 production increase from avoided venting 500 Mcf/yr emissions savings for average well 1 Weatherford

Other Benefits Reduced manpower cost per well Continuously optimized production conditions Remotely identify potential unsafe operating conditions Monitor and log other well site equipment Glycol dehydrator Compressor Stock Tank VRU

Is Recovery Profitable? Smart automation controller installed cost: ~$15,500 Conventional plunger lift timer: ~$7,000 Personnel savings: double productivity Production increases: 10% to 20% increased production $ Savings per year = (Mcf/yr) x (10% increased production) x (gas price) + (Mcf/yr) x (1% emissions savings) x (gas price) + (personnel hours/yr) x (0.5) x (labor rate)

Contacts Roger Fernandez, U.S. EPA (202) 343-9386 fernandez.roger@epa.gov Gerard G. Alberts, Williams (303) 572-3900 Jerry.albersts@williams.com Don Robinson, ICF Consulting (703) 218-2512 drobinson@icfconsulting.com Program website: www.methanetomarkets.org

Discussion Questions To what extent are you implementing these options? How could these options be improved upon or altered for use in your operation(s)? What are the barriers (technological, economic, lack of information, regulatory, focus, manpower, etc.) that are preventing you from implementing these options?