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How to Reduce Fuel Gas Consumption

How to Reduce Fuel Gas Consumption

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How to Reduce Fuel Gas Consumption

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  1. How to Reduce Fuel Gas Consumption Paul Nelson Manager, Commercial Operations AltaGas Ltd. May 9, 2008

  2. Background • Natural gas is an essential fuel used in oil and gas production • Fuel usage in oil and gas production and processing accounts for approx. 9% of all raw gas produced (44,000 e3m3/d, or 1.6 Bcf/d) • Initial site specific studies shows potential for reduction • 10% reduction in fuel gas consumption would mean addition sales of 4.4 e6m3/d or 160 MMcf/d

  3. Benefits of Energy Efficiency • Economic benefit (potentially $500 million more sales, at $9/GJ) • Greenhouse gas reductions (3 million tonnes CO2e per year) • Extended life of facilities • Energy efficient operations are often more cost-effective operations

  4. Total Fuel Use in the Upstream Sector(incl. straddle, bitumen and injection) Source: ERCB

  5. Total Fuel Use in the Upstream Sector(excl. straddle, bitumen and injection) Source: ERCB

  6. Gas Plant Fuel Usage Source: ERCB

  7. Gathering System Fuel Usage Source: ERCB

  8. Gas Battery Fuel Usage Source: ERCB

  9. Fuel Gas Efficiency Committee • Formal Government/industry committee established May 2006, chaired by Alberta Energy • Mission statement: • To set direction and provide leadership to improve the upstream industry’s petroleum energy efficiency per unit of production and reduction of fuel gas use in oil and gas production, pipeline and gas processing facilities regulated by the ERCB

  10. Fuel Gas Efficiency Committee Members: • Alberta Department of Energy (chair) • Gas Processing Association Canada • ERCB • CAPP • SEPAC • Natural Resources Canada • Individual Producers and Midstreamers

  11. Result:Best Management Practices • Consultant has completed a series of documents for maximizing fuel gas efficiency in oil and gas production and processing operations • Funding shared between government and industry • Final product is 17 BMP documents • BMP’s will be publicly accessible

  12. Where Fuel Gas is Used Source: ERCB

  13. Gas Plant Fuel Usage Source: ERCB

  14. List of BMP’s

  15. Sample: Glycol Dehydrators

  16. Sample: Glycol DehydratorsContents

  17. Sample: Glycol DehydratorsLogic Diagrams and Graphs 4.4 Operational Adjustments Logic Diagram

  18. Sample: Glycol DehydratorsCase Studies

  19. How to Reduce Fuel Gas Consumption? Use Best Management Practices!

  20. Next Steps • BMP’s to reside on CAPP website, available for downloading • BMP material to be incorporated into industry training courses • Industry and government to monitor usage and to quantify impact of adoption of the BMP’s