115page
Contents
1. Executive Summary .................................................................................................................... 1‐1
2. Introduction ............................................................................................................................... 2‐1
2.1. Goals and Approach of the Study .............................................................................................. 2‐1
2.2. Overview of Gas Sector Methane Emissions ............................................................................. 2‐2
2.3. Climate Change‐Forcing Effects of Methane ............................................................................. 2‐5
2.4. Cost‐Effectiveness of Emission Reductions ............................................................................... 2‐6
3. Approach and Methodology ....................................................................................................... 3‐1
3.1. Overview of Methodology ......................................................................................................... 3‐1
3.2. Development of the 2011 Emissions Baseline ........................................................................... 3‐2
3.3. Projection to 2018 ..................................................................................................................... 3‐4
3.4. Identification of Targeted Emission Sources ............................................................................. 3‐6
3.5. Selected Mitigation Technologies ............................................................................................. 3‐9
3.6. Source Categories Not Addressed ........................................................................................... 3‐23
4. Analytical Results ....................................................................................................................... 4‐1
4.1. Development of Emission Control Cost Curves ......................................................................... 4‐1
4.2. Emission Reduction Cost Curves ................................................................................................ 4‐2
4.3. Co‐Benefits .............................................................................................................................. 4‐11
5. Case Studies ............................................................................................................................... 5‐1
5.1. Wet Seal Compressor Degassing for Centrifugal Compressors ................................................. 5‐1
5.2. Dry Seal Replacement/Retrofit .................................................................................................. 5‐2
5.3. Wet Seal Degassing Capture Systems ........................................................................................ 5‐2
5.3.1. Economic Analysis of Installing Wet Seal Degassing Capture Systems ........................ 5‐3
5.4. Liquids Unloading ...................................................................................................................... 5‐6
5.4.1. Background ................................................................................................................... 5‐6
5.4.2. Plunger Lifts .................................................................................................................. 5‐7
5.4.3. Additional Options for Removing or Remediating Liquids Problems ........................... 5‐9
5.4.4. Liquids Issues in Horizontal Wells ............................................................................... 5‐12
6. Conclusions ................................................................................................................................ 6‐1
Appendix A. Additional Sensitivities .................................................................................................. A‐1
Appendix B. Development of the 2011 Emissions Baseline ................................................................ B‐1
Appendix C. Emission Projection to 2018 .......................................................................................... C‐1
Appendix D. Methane Mitigation Technologies ................................................................................. D‐1
Figures
Figure 1‐1 ‐ Marginal Abatement Cost Curve for Methane Reductions by Source ................................... 1‐2
Figure 2‐1 ‐ Natural Gas Industry Processes and Example Methane Emission Sources ............................ 2‐3
Figure 3‐1 – Emission Projection to 2018 – (Including Offshore) .............................................................. 3‐5
Figure 3‐2 ‐ Distribution of Emissions in 2018 ........................................................................................... 3‐5
Economic Analysis of Methane Emission Reduction Opportunities in the U.S. Onshore Oil and Natural Gas
Industries
ICF International iv March 2014
Figure 3‐3 ‐ EIA Oil and Gas Regions .......................................................................................................... 3‐6
Figure 3‐4 ‐ 2018 Projected Onshore Emissions ........................................................................................ 3‐8
Figure 3‐5 ‐ Reciprocating Compressor Rod Packing ............................................................................... 3‐13
Figure 3‐6 ‐ Wet Seal Compressor Schematic .......................................................................................... 3‐15
Figure 3‐7 ‐ Plunger Lift Schematic .......................................................................................................... 3‐17
Figure 4‐1 ‐ Example MAC Curve ............................................................................................................... 4‐2
Figure 4‐2 – National Aggregate MAC Curve for Baseline Technology Assumptions ................................ 4‐3
Figure 4‐3 ‐ Distribution of Emission Reduction Potential ......................................................................... 4‐5
Figure 4‐4 ‐ Emission Reduction by Industry Segment .............................................................................. 4‐6
Figure 4‐5 – Emission Reductions for the Gas Production Segment ......................................................... 4‐7
Figure 4‐6 ‐ Emission Reductions for the Oil Production Segment ............................................................ 4‐8
Figure 4‐7 ‐ Emission Reductions for the Gathering and Boosting Segment ............................................. 4‐9
Figure 4‐8 ‐ Emissions Reductions for the Gas Transmission Segment ..................................................... 4‐9
Figure 4‐9 ‐ National Aggregate MAC Curve with Baseline Technology Assumption and
Economy‐Wide Value Recognition ......................................................................................... 4‐10
Figure 4‐10 ‐ National Aggregate MAC Curve by Region ......................................................................... 4‐11
Figure 4‐11 – Co‐Benefit Reductions of VOCs and HAPs ......................................................................... 4‐12
Figure 4‐12 ‐ VOC Reduction Co‐Benefits ................................................................................................ 4‐12
Figure 4‐13 ‐ Hazardous Air Pollutant Co‐Benefits .................................................................................. 4‐13
Figure 5‐1 ‐ Dry Seals on a Centrifugal Compressor .................................................................................. 5‐2
Figure 5‐2 Wet seal degassing recovery system for centrifugal compressors (Source U.S.
EPA) .......................................................................................................................................... 5‐3
Figure 5‐3 ‐ Plunger Lift Schematic ............................................................................................................ 5‐7
Figure 5‐4 ‐ Installation of Velocity Tubing Serving to Reduction the Cross Section Area of
the Production Tubing ............................................................................................................ 5‐11
Figure 5‐5 ‐ Different Types of Horizontal Wells ...................................................................................... 5‐13
Tables
Table 3‐1 ‐ Summary of 2011 Methane Emissions Baseline ...................................................................... 3‐3
Table 3‐2 ‐ Highest Emitting Onshore Methane Source Categories in 2018 ............................................. 3‐7
Table 3‐3 ‐ LDAR Hourly Cost Calculation ................................................................................................ 3‐10
Table 3‐4 – Cost Calculation – Quarterly LDAR ........................................................................................ 3‐12
Table 3‐5 ‐ Assumptions for Rod Packing Replacement .......................................................................... 3‐14
Table 3‐6 ‐ Summary of Mitigation Measures Applied ............................................................................ 3‐21
Table 3‐7 ‐ Summary of Mitigation Measure Characteristics .................................................................. 3‐22
Table 4‐1 – Annualized Cost and Reduction and Initial Capital Cost ......................................................... 4‐4
Table 4‐2 ‐ Initial Capital Cost by Industry Segment .................................................................................. 4‐7
Table 5‐1 ‐ Degassing Recovery System Estimated Installation and Equipment Costs ............................. 5‐4
Table 5‐2 ‐ Wet Seal Degassing Recovery System Costs and Savings for One Compressor ...................... 5‐6
Table 5‐3 ‐ Wet Seal Degassing Recovery System Costs and Savings for Four Compressors
at a Station ............................................................................................................................... 5‐6
Table 5‐4 ‐ Reported Capital and Operating Cost Ranges for Installing Plunger Lift
Systems .................................................................................................................................... 5‐9