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The Rationale
Rising Propane
Costs
Over the six year period of
1994 to February 2000 propane
costs have increased 29.2%
per gallon from 62.5 cents
per gallon in 1994 to 95.7
cents per gallon in 2000.
This increase of propane costs
drastically effects the cost
of production where purchased
propane or sweet gas is used
to drive chemical injection pumps at
sour gas wells.
Emissions
Current emissions in the oil
and gas industry are some
of the highest in any industry.
In 1992, US methane emissions
from the oil and gas industry
amounted to 3.3 million metric
tonnes. Emissions from the
oil and gas system were 40%
of all emissions from energy
sources and 12% of the total
methane emissions.
Table
1 – Methane Emissions
from U.S. Oil and Gas
Operations, 1987 –
1992
(Million Metric Tons of
Methane) |
| Source |
1987 |
1988 |
1989 |
1990 |
1991 |
1992 |
| Oil
& Gas Production |
|
|
|
|
|
|
| Natural
Gas Wellheads |
0.22 |
0.22 |
0.23 |
0.23 |
0.24 |
0.24 |
| Oil
Wells |
0.04 |
0.05 |
0.04 |
0.
04 |
0.04 |
0.04 |
| Gathering
Pipelines |
0.34 |
0.33 |
0.33 |
0.32 |
0.31 |
0.31 |
| Gas
Processing Plants |
0.08 |
0.08 |
0.08 |
0.09 |
0.10 |
0.10 |
| Heaters,
Separators, Dehydrators |
0.44 |
0.46 |
0.46 |
0.47 |
0.48 |
0.48 |
| |
|
|
|
|
|
|
| Total |
1.12 |
1.14 |
1.14 |
1.15 |
1.17 |
1.17 |
| |
|
|
|
|
|
|
| Gas
Venting |
0.47 |
0.55 |
0.54 |
0.58 |
0.65 |
0.64 |
| Gas
Transmission & Distribution |
1.33 |
1.34 |
1.35 |
1.37 |
1.38 |
1.39 |
| Oil
Refining & Transportation |
0.08 |
0.08 |
0.08 |
0.08 |
0.08 |
0.08 |
| |
|
|
|
|
|
|
| TOTAL
|
3.00 |
3.11 |
3.11 |
3.18 |
3.28 |
3.30 |
Gas
Venting
The Department of Energy estimates
that of the gas vented or
flared, 80% is flared and
20% is vented. This ratio
has now changed as the opposition
to the physical sight of flaring
has caused producers to decrease
flaring and increase venting.
Stripper wells are not included
in these estimates as they
produce less than 10 barrels
of oil per day and are unlikely
to have been reported by well
owners. Gas vented and flared
in Wyoming accounts for more
than half of all oil and gas
vented in the United States.
Flaring
Flaring is an expensive and
inefficient use of a natural
resource. When combustion
occurs, C02 emissions
are produced. Our airshed
is adversely affected by the emitting
of CO2, NOx
and SOx.
The following table on gas
flaring is a portion taken
from “Annual Estimates
of Global Methane Emissions:
1860 – 1994”. CH4
emissions are expressed in
Tg of methane (teragram; 1Tg
– 1012g)
Table
2 – Annual Estimates
of Global Methane Emissions
| Year |
Gas
Flaring |
| 1987 |
13.6 |
| 1988 |
14.1 |
| 1989 |
13.3 |
| 1990 |
16.0 |
| 1991 |
18.9 |
| 1992 |
16.8* |
*The drop in production from
1991 to 1992 is due to lower
demand at that time. Strict
government regulations and
international agreements such
as the Kyoto Accord are designed
to lower emissions and structure
the route for emission reduction.
If two Texsteam pumps are
installed on a sour gas well
(42%) that flows at one million
cmf/day, has a pressure of
1000 psi and liquid production
of 30m3/day, then
in one day, one flare will
emit 3.6298 tons of CO2
plus NOx and SOx.
The annual emissions for this
well site would be 1324.88
tons of CO2 plus
NOx and SOx.
Business growth and stability
rely on profit. With the EnviroDriveTM,
a larger percent of profit
is retained; outside costs
are minimized, resources are
utilized rather than wasted
and productivity is improved.
Health
Factors
Due to factors including environmental
safety and human safety, a
stronger enforcement of safety
regulations must be adhered
to at all times. By eliminating
the need to flare, many safety
issues (explosions, burns
and toxicity) are mitigated
and are no longer of such
grave concern.
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