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Enhancing Natural Gas Operations: STAR Program Insights from United States Production Company

The United States Production Company (USP) shares its involvement in the Natural Gas STAR Program, highlighting initiatives that contribute to methane emissions reduction and operational efficiency. Established in 2003, USP oversees extensive oil and gas production across 11 states and the Gulf of Mexico. Key strategies include the installation of plunger lifts to minimize venting, replacing high-bleed gas pneumatics to reduce methane emissions, and implementing advanced Environmental Vapor Recovery Unit (EVRU) technology. These efforts exemplify USP's commitment to environmental stewardship and sustainable practices.

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Enhancing Natural Gas Operations: STAR Program Insights from United States Production Company

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  1. United States Production Company Natural Gas STAR Program Involvement and Experience September 21, 2004

  2. Overview • USP Background • Communication and buy-in • Data Collection • Reduction Opportunities: • Plunger Lifts • Replacement of high-bleed gas pneumatics • Environmental Vapor Recovery Unit

  3. Background - US Production Company (USP) • Formed in 2003 • Previously 2 separate organizations (US East and US West) • Consists of oil and gas production operations • Approx. 680 billion cf of gas in ‘03 • Approx. 80 million bbls of oil in ‘03 • Produces in 11 states and Gulf of Mexico • Employs approximately 2500 people • Would rank 37th on Fortune 500 as a stand-alone company Flare - WY Electric-driven Injection Pump - Salt Creek

  4. Background - USP Production

  5. Background - US Production Company • Facilities include: • Gas plants • Compressor stations • Offshore platforms • Drilling rigs • Tank batteries • Operational Scope • Primary/Secondary/Tertiary Oil • Heavy oil • Tight gas • Depths to 17,000 ft • Vertical & horizontal wells Nine Mile Point Platform - South Texas Labarge Drilling Operation, WY

  6. Communication and Data Collection • Challenges • Size • Job rotation • Approach • Brainstorming session with air team: • Newsletter article • Meetings with facilities engineers • Field trips • Project database • Tracking tool

  7. Plunger Lift Installation • Many low-pressure gas wells must be vented periodically to prevent backpressure • Installation of artificial lift such as plunger lifts eliminates or reduces venting • Increasing number of plunger lift installations • In 2003, achieved methane reduction credit due to these installations • Must be evaluated on individual basis to determine reduction amount, if any

  8. Replacement of High-Bleed Gas Pneumatics • Gas-driven pneumatics are one of largest sources of vented methane emissions • Retrofit project at Sarita field realized savings of 40,000 kcf/yr with a quick payback • Conducted company-wide study to determine whether any field still contain gas-driven pneumatics • Most already replaced • Discovered 3 fields still using • Plan to evaluate cost/benefit of replacement options

  9. Environmental Vapor Recovery Unit Technology (EVRU) • Traditional Vapor Recovery Unit (VRU) • Compressor driven: • Reliability issues • Maintenance requirements • Resistance

  10. Environmental Vapor Recovery Unit Technology (EVRU) • Environmental Vapor Recovery Unit (EVRU) • New technology • Operates on the Venturi Principle (no compressor involved) • Requires: • High-pressure motive gas stream • Low to intermediate pressure system to send gas • EPA issued Environmental Technology Verification Report EVRU - Mariposa Compressor Station

  11. Environmental Vapor Recovery Unit Technology (EVRU) • Advantages • Operational • Requires no fuel • Requires little space • Can be skid or pipe-mounted • Efficiency • Almost 100% efficient (VRU - 95% efficient) • Maintenance • Essentially no maintenance (no moving parts) • Implementation • Quicker - buy-in and shorter delivery time • Compliance • Reduced risk of noncompliance • Reliable and emissions-free EVRU - Mariposa Compressor Station

  12. Environmental Vapor Recovery Unit Technology (EVRU) • System evaluated for use and implemented at Mariposa Compressor Station • $11,000/yr. operating expense savings • Payback period approx. 14 months vs. 7 months for VRU • Due to higher capital cost of EVRU • Able to justify due to other benefits • Reduced operating and maintenance costs • Reduced downtime EVRU - Mariposa Compressor Station

  13. United States Production Company Natural Gas STAR Program Involvement and Experience September 21, 2004

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