Greenhouse Gas Reduction Strategy: A Team Approach To Resource Management
Authors: Ngai C.C. , Borchert G. , Ho K.T. , Lee S. , Leitch D. , Meleshko D. 
Published: December 2007

In spite of the conflicting evidence of global warming due to greenhouse gas emission, PanCanadian accepts the reduction of greenhouse gas as both a political and environmental reality. While PanCanadian is committed to participate in the government and industry sponsored voluntary climate change challenge, we are also acutely aware of its potential impact on our competitiveness considering our status as a hydrocarbon producer and exporter.

This paper describes a multi-discipline team approach to the challenge of reducing greenhouse gas. This includes identification of all greenhouse gas emission sources, listing the opportunities and relative impact of each remedial solution, and estimated cost associated with the reduction. Both immediate solutions and long term strategies are explored. This includes energy conservation, improving process efficiency and promoting environmental training and awareness programs. A number of important issues become evident in greenhouse gas reduction related to the exploration and production of hydrocarbons: depleting pressure and water encroachment in reservoirs; energy required for producing oil as opposed to producing gas; and public perception of flaring as compared with venting. A cost and benefit study of greenhouse gas reduction opportunities in terms of net present values is discussed. This paper describes a process that can be adapted by other producers in managing air emissions.

Introduction

While scientists cannot agree on the degree of global warming caused by greenhouse gas as a result of anthropogenic activities, it is generally accepted that:the level of CO2 will continue to rise;the trend of CO2 increase will continue even with the curtailment of CO2 emission;the global temperature will rise as a consequence of CO2 emissions.

What is greenhouse gas? Greenhouse gas (GHG) is defined as gases which contribute to global warming. They are identified as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and chlorofluoride carbons (CFC's). They are measured in terms of 100 year Global Warming Potential (GWP) and expressed in terms of kilo-tonne equivalent of carbon dioxide. While the majority of greenhouse gas effects are caused by the natural evaporation of water in the atmosphere, this paper limits the discussion to those mentioned previously.

For the Canadian oil and gas industry, given the projected growth in demand for energy, and the depleting reservoirs, the challenge proposed by the Canadian Federal Government to reduce our total greenhouse gas emissions to 1990 levels by the year 2000 may be difficult to meet. It is however agreed among most petroleum producers that much can be done to improve the energy efficiency of production processes.

There are in general two parts to this voluntary challenge program. Establish a registry of past quantifiable contributions and current measures of greenhouse gas reduction initiatives, and layout a future plan of action to reduce greenhouse gas emissions. It is this second requirement that a multi-discipline team was formed to develop a strategy to respond to the challenge.

Baseline Emission Distributions

Prior to forming the team, PanCanadian retained a consultant to examine sources of emissions from all production operations. The emissions at each facility were estimated using a commercial emission source simulation and environmental data management program. Production accounting statistics including regulatory reports, fuel purchased and electric power consumption were used in the program. Where emission data was not readily available, default values published in studies by CAPP (Canadian Association of Petroleum Producers) were used. These defaults are generally considered to provide reasonable estimates and represent average emission in the industry.

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