Greenhouse Gas MRR Overview for O&G (Subpart W) May 2011

Transcription

1 Greenhouse Gas MRR Overview for O&G (Subpart W) May 2011

2 Who Is Newfield Exploration? Newfield is a growing independent oil and natural gas company with a balanced program of exploration, production and acquisitions. We are traded on the New York Stock Exchange under the ticker NFX. THE FACTS Proved Reserves: 2.9 Tcfe, 70% natural gas, 93% domestic Enterprise Value: ~$7 billion Office Locations: Houston, Texas (Headquarters), Tulsa, Oklahoma; Denver, Colorado; Kuala Lumpur, Malaysia; Beijing, China Areas of Operation: Mid-Continent, Rocky Mountains, Onshore Gulf Coast, Gulf of Mexico, offshore Malaysia and China Employees: >1,000 2

3 Where are Newfield s Assets? M O N T A N A N O R T H D A K O T A ROCKY MOUNTAINS S O U T H D A K O T A W Y O M I N G U T A H C O L O R A D O MID-CONTINENT N E W M E X I C O O K L A H O M A EAST TEXAS INTERNATIONAL AREAS Offshore Malaysia Offshore China VAL VERDE BASIN T E X A S LOUISIANA SOUTH TEXAS GULF OF MEXICO 3

4 Overview of Dates History of Subpart W: Originally Proposed in April 2009 Proposed in Federal Register Aril 12, 2010 Final Rule signed November 8, 2010 Final in Federal Register November 30,

5 Overview of affected operations Who is affected: Offshore Production Onshore Production Natural Gas Processing Natural Gas Transmission Compression Underground Storage LNG Storage LNG Import and Export Equipment Distribution 5

6 Applicability Total Facility Emissions are greater than or equal to 25,000 metric tons per year CO2e. Gases to be reported: CO2 GWP = 1 CH4 GWP = 21 N2O GWP = 310 6

7 Overview of important dates Required to start gathering data January 1, 2011 GHG Monitoring Plan developed by April 1, 2011 Best Available Monitoring Method until July 31, 2011 First report due March 31,

8 Sources and Activities Pneumatic Devices Pneumatic Pumps Acid Gas Removal Dehydrators Glycol Desiccant Well Venting for liquids unloading Well completions and workovers With and without hydraulic frac Gas emitted from produced oil sent to atmospheric tanks Well Testing Associated Natural Gas Venting Flares Compressors Equipment leaks External Combustion 8

9 GHG Definition: Facility Onshore petroleum and natural gas production means all equipment on a well pad or associated with a well pad (including compressors, generators, and any storage facilities) and portable non-self-propelled equipment on a well pad or associated with a well pad, to include drilling and completion equipment (including well drilling and completion equipment, work over equipment, and leased rented or contracted equipment) used in the production, extraction, recovery, lifting, stabilization, separation or treating of petroleum and/or natural gas. 9

10 Definitions Continued (including condensate). This equipment also includes associated storage or measurement vessels and all enhanced oil recovery (EOR) operations using CO2, and all petroleum and natural gas production located on islands, artificial islands, or structures connected by a causeway to land, an island, or artificial island. 10

11 GHG Facility Definition 11

12 GHG Definition: Field Field means oil and gas fields identified in the United States as defined by the Energy Information Administration Oil and Gas Field Code Master List 2008 Lists by 12

13 Examples Applicability tool that will allow you to customize for your operations and give rule of thumb for data collection: 13

14 Examples Example 1: 20 Well Unloading events 500 Bbls Oil Flash Gas 500 Bbls Condensate Flash Gas Associated Gas from produced hydrocarbons (GOR30, OF) 100 Wells with Pneumatic devices, e.g. pumps, meters (GOR 23, 0.25 OF) 1 Workover rig with frac (0.1 OF) 10 wellhead compressors Onshore Production Total CO2e: 25,000 Tons/year 14

15 Examples Example 2: 5 Well Unloading events 200 bbls Oil Flash Gas 200 bbls Condensate Flash Gas Associated Gas from produced hydrocarbons (GOR30, OF) 100 Wells with Pneumatic devices, e.g. pumps, meters 3 workover rig with frac to include frac engines (0.1 OF) 5 well head compressors Onshore Production Total CO2e: 37,500 Tons/year 15

16 Examples Example 3: 10 Well Unloading events 500 bbls Oil Flash Gas 500 bbls Condensate Flash Gas Associated Gas from produced hydrocarbons (GOR30, OF) 250 Wells with Pneumatic devices, e.g. pumps, meters Onshore Production Total CO2e: 14,500 Tons/year 16

17 Summary Affects on shore production Facility definition Basin Map Field Applicability Tool Data gathering required Jan BAMM Jul st Report due March

18 Ernie Johnson Newfield Exploration, Inc. (918)