Oil and Gas Methane Emissions in New Mexico
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Oil and Gas Methane ANALYSIS Emissions in New Mexico Renee McVay Research Analyst B.S. Chemical Engineering; M.S. Chemical Engineering; Ph.D Chemical Engineering Hillary Hull AUTHORS Manager - Research and Analytics B.S. Civil Engineering; M.S. Environmental Engineering David Lyon Scientist B.A. Biology; M.S. Forestry; Ph.D Environmental Dynamics Renee McVay Research Analyst B.S. Chemical Engineering; M.S. Chemical Engineering; Ph.D Chemical Engineering Hillary Hull Manager - Research and Analytics B.S. Civil Engineering; M.S. Environmental Engineering David Lyon Scientist B.A. Biology; M.S. Forestry; Ph.D Environmental Dynamics 4 Executive Summary 6 Emission Sources TABLE OF 8 Production By Land Type CONTENTS 10 Cost Analysis 13 References/Resources Image Source: NASA In 2014, scientists working on a NASA study discovered EXECUTIVE a 2,500-square-mile cloud of methane hovering over the Four SUMMARY Corners region of New Mexico – the largest concentration of methane anywhere in the nation. Subsequent studies indicated that much methane is leaking and identify the although the San Juan Basin includes primary sources of these emissions. other methane sources such as coal mines and geologic seepage, these Our analysis of recent peer-reviewed sources are not large enough to explain methane research and other data sources the bulk of emissions, and that oil and reveals that intentional emissions gas development is the largest source of (venting), equipment leaks and other emissions contributing to this massive unintentional sources (fugitive emissions), methane “hot spot.” and the combustion of gas (flaring) results in New Mexico’s oil and gas operatos Methane is the main component of natural emitting 570,000 tons of methane every New Mexico’s oil and gas – the energy resource used to generate year – equivalent to the climate impact of about 1/3 of our nation’s electricity and approximately 12 coal-fired power plants. gas operators are an important industrial, commercial and residential energy source. But the lack Financial Loss emitting 570,000 tons of oversight of New Mexico’s oil and gas of methane every industry has resulted in a substantial To put this in terms of natural gas value, the waste of an important domestic energy system wide venting, leaking, and flaring of year -- equivalent to resource and needless pollution that natural gas has resulted in New Mexico losing the climate impact of threatens the climate and public health. between $182-244 million worth of natural gas every year. These wasteful practices cause approximately 12 coal- Scientific Breakthroughs the state’s taxpayers to lose up to $27.6 million fired power plants. in taxes and royalty revenues per year – an Recent scientific studies have enhanced amount equal to the annual operating budget our understanding of methane emissions for the state’s Environmental Protection from the oil and gas industry. Using Division, or enough funding to allow the state measurements of component-, site-, to increase Pre-K enrollment by 50 percent and and basin-level emissions, scientists enroll an additional 5,000 kids in vital early can determine with more certainty how education programs. 4 New Mexico Methane Analysis Emission Sources Opportunity for Reductions Scientists estimate that a phenomena There are proven, low-cost fixes that are sometimes known as “super emitters” – already available that could eliminate up to malfunctioning equipment at a variety half of the oil and gas industry’s pollution by of oil and gas sites that cause abnormally simply plugging these leaks. high emission rates – are responsible for a significant portion of industry’s methane This report aims to clarify the scope of pollution. A 2015 study using NASA airborne New Mexico’s methane problem in order technology found that in New Mexico’s San to identify the greatest opportunities for Juan Basin, high emitting sites make up achieving emission reductions statewide. nearly half of the region’s total point source Natural gas that isn’t wasted can be used or emissions (Frankenberg et al). Another 2015 sold, to the benefit of New Mexico taxpayers. study found high methane emissions in Requirements to reduce methane waste and the Four Corners Region using an aircraft- pollution increase funding for important balance method and concluded that oil and state needs like education, roads, and gas emissions were likely the largest source bridges, and allow companies to create New (Smith et al). Mexico jobs of the future in clean, efficient energy production. “These wasteful practices cause the state’s taxpayers to lose up to $27.6 million in taxes and royalty revenues per year.” 5 New Mexico Methane Analysis Emissions by Source following data sources and methods: are excluded from inventories. For example, malfunctioning tank controls Table 1 on the following page gives an • 1) Associated gas venting & flaring, can cause a site to have much higher overview of estimated emissions for 2) compressors, 3) dehydrators, 4) emissions than would be estimated if 2015 in New Mexico, broken out by flares, 5) hydrocarbon tank flashing, controls are assumed to be operating source category. Emission estimates are 6) liquids unloading, 7) completions, properly. We adjust our NM production drawn from the EDF-compiled baseline workovers, and well testing emission estimates by 50% (excluding inventory, created by Dr. David Lyon, – GHGRP onshore production completions, workovers, well testing, an EDF Scientist, per the methodology emissions adjusted for non-reporters and liquids unloading) to account outlined below. Note that the “Flares” and scaled from basin to state level for similar emissions missing from category in this inventory just refers to using well counts and production data our component-based estimates. estimated emissions from flaring (i.e., Although our estimate of abnormal methane stemming from inefficient • 8) Pneumatic controllers condition emissions is based on data combustion); later in the analysis, a value – Adjusted GHGRP activity data; from the Barnett Shale, basin-level and for total gas sent to flare will be used to Allen et al.3 emission factors for source-level data from the San Juan better represent total wasted gas. Note operational and malfunctioning Basin support that O&G emissions are that local distribution emissions are not low-bleed, high-bleed, and substantially higher than inventory included in this inventory. The following intermittent-bleed devices estimates.8,9 general conclusions can be drawn from the table: • 9) Pneumatic pumps • 14) Gathering Stations – Adjusted GHGRP activity data; Allen – Marchese et al.10 estimate of 2012 NM • Upstream emissions from production et al.4 emission factors for pneumatic gathering station emissions adjusted and gathering and boosting are pumps by the ratio of 2015:2012 NM gas substantially larger than downstream production emissions from processing and • 10) Combustion Exhaust transmission and storage. – Adjusted GHGRP CO2 emissions; EPA • 15) Gathering Pipelines AP-425 emission factors – Based on GHGI EFs and NM gas • Within production, the largest producing well counts emission sources are pneumatic • 11) Produced Water tank flashing controllers, abnormal conditions, – Drillinginfo water production; EPA • 16) Gathering Blowdowns and leaks. Abnormal conditions are O&G Tool6 emission factors – Blowdowns are assumed to equal malfunctions or other issues that 10% of station operational emissions, cause unintentional, high emissions • 12) Equipment Leaks which is based on the national fraction that are often excluded from emission – Production site counts and Allen of blowdowns in Marchese et al.10 inventories. et al.4 emission factors; based on approach of Zavala-Araiza et al.7 • 17) Processing Data Sources – GHGI national emissions prorated by • 13) Production abnormal conditions gas production The EDF-compiled inventory is based upon –Zavala-Araiza et al.7 found that a custom analysis combining several data site-level emissions of Barnett Shale • 18) Transmissions & Storage sources including recent studies, the EPA well pads were 50% higher than – GHGI national emissions prorated GHG Reporting Program (GHGRP)1, and component-based estimates. These by gas production EPA GHGI estimates the EPA’s GHG Inventory (GHGI)2 national emissions were attributed to abnormal T&S station emissions from Zimmerle estimates of Petroleum and Natural Gas process conditions that are the likely et al.11, but excludes their emissions Systems methane emissions. Individual cause of sites with unintentionally high from uncategorized/super-emitters. We source emissions were estimated using the emissions. These emissions typically increase the GHGI-based estimate by 34% to account for these emissions. 6 New Mexico Methane Analysis SUPPLY CHAIN SEGMENT SOURCE 2015 NM EMISSIONS % OF NM CH4 EMISSIONS (MT CH4) BY SEGMENT Associated Gas Venting and Flaring 1,200 0% Equipment Leaks 54,000 15% Pneumatic Controllers 120,000 35% Pneumatic Pumps 3,500 1% Compressors 6,000 2% Combustion Exhaust 6,500 2% Onshore Production Dehydrators 580 0% Flares 1,500 0% Hydrocarbon Tank Flashing 7,700 2% Produced Water Tank Flashing 16,000 5% Liquids Unloading 22,000 6% Completions, Workovers & Well Testing 2,500 1% Abnormal Emissions 110,000 31% Total Production 360,000 100% Gathering Stations 98,000 72% Gathering and Boosting Blowdowns 10,000 7% Pipelines 28,000 21% Total Gathering and Boosting 140,000 100% Leaks 16,000 49% Compressors 7,900 24% Processing Pneumatic Controllers 49 0% Pneumatic Pumps 130 0% Other12 8,400 26% Total Processing 32,000 100% Leaks 18,000 43% Compressors 3,600 9% High Bleed Pneumatics 700 2% Intermittent Bleed Pneumatics 540 1% Transmission and Storage Low Bleed Pneumatics 25 0% Pipeline Venting 2,800 7% Other13 6,500 16% Uncatergorized/Super emitters 9,700 23% Total Transmission and Storage 42,000 100% Total Emissions 570,000 100% TABLE 1 Methane Emissions by Source 7 New Mexico Methane Analysis PRODUCTION A look at drilling on public, private BY LAND TYPE and tribal lands Table 2 shows the percentage of oil and lands, which are not included in the state natural gas production in New Mexico by trust lands.