Best Practices for Emissions Monitoring in the Energy Sector
The Energy Transition is underway. The move to decarbonize the global energy system by shifting away from fossil fuels to adopting greater use of renewable energy sources is being driven by multiple key stakeholders, including regulators, legislators, investors and the public.
As a result, the Energy industry including E&P upstream producers, oilfield service companies and midstream transporters, have come under pressure to reduce emissions across the entire energy supply chain. At the center of the Energy Transition is a drive to reduce emissions of Greenhouse Gasses (GHG) (i.e., methane (CH4) and carbon dioxide (CO2)) and other substances released to the atmosphere from unintended leaks and system processes (aka fugitive emissions).
Before a leak can be fixed, however, it must be found, which is why emissions monitoring has emerged as an important capability to master to meet both existing and future environmental performance regulations and standards.
In our white paper Best Practices for Emissions Monitoring in the Energy Sector, we cover the essential role of natural gas in meeting future energy needs and the best practices operators can employ to develop an effective emissions monitoring and mitigation strategy.
Rise of the Renewables
Renewable energy sources, primary solar and wind power generation, typically get the most attention when it comes to Energy Transition priorities because they have no operational emissions. The U.S. Energy Information Agency forecasts that renewables will supply only 20% of total energy demand by 2050. The implication is clear – renewable energy sources alone cannot be relied upon to satisfy future energy demand.
The Enduring Role of Natural Gas
Natural gas is expected to play an essential role in providing clean, affordable and reliable energy for the foreseeable future. EIA forecasts dry natural gas will continue to supply most of the energy production in the U.S. through 2050.
Primary reasons for the dominance of natural gas in the U.S. energy portfolio include:
- Emissions reduction from power plant coal-to-gas switching.
- Natural gas is readily available in most markets for heating and cooling buildings, including residences, businesses, commercial buildings and manufacturing facilities.
- Natural gas is plentiful in North America, providing a large supply of energy in a politically stable and relatively business-friendly region.
- Every kilowatt hour of baseload power generated by renewables must be backed-up with reliable fossil fuels, chiefly natural gas.
The Importance of Emissions Monitoring
One downside of natural gas is that its primary component, methane, is considered to be a more potent GHG than carbon dioxide. Some sources estimate that over a 20-year period, methane is 80 times more effective at warming than CO2. As a result, reducing fugitive emissions of methane from energy systems, typically the result of unintended leaks and venting, is a strategic environmental performance initiative.
The essential question for Oil & Gas operators is – Where are the leaks and what are the actual levels of emissions from my operations? These are the questions emission monitoring.
Emissions Monitoring Methods
There are two broad classifications of emissions monitoring methods, including Continuous and Scheduled types.
Continuous emissions monitoring methods include blind sensors, AI-enabled Optical Gas Imaging (AI-OGI) and lasers. These methods can monitor well sites and facilities around the clock.
Scheduled emissions monitoring methods, in contrast, monitor emissions from production and transportation infrastructure at a point in time. Scheduled methods include aircraft, drones, handheld IR cameras and satellites.
Best Practices for Emissions Monitoring in Oil & Gas
We identified seven factors representing the best practices for emissions monitoring for Oil & Gas production and transportation operations.
- Define your emissions monitoring and reporting goals and adopt the tools and processes to meet your near-term and long-range strategic objectives.
- Keep monitoring equipment maintained and clean to ensure proper operation.
- Use AI-Enabled OGI technology for the best results and data.
- Mobility, all monitoring methods should have a high degree of portability.
- Tailor the mix of emissions monitoring tools to your operations.
- Adopt methods and practices that prioritize data validity, traceability and that can be independently reproduced and verified.
- Establish a single source of truth for all emissions data.
Benefits of Emissions Monitoring in Oil & Gas
Benefits of a well-designed and managed emissions monitoring program for your Quantification, Monitoring, Reporting and Verification (QMRV) program include:
- Maximize ROI, good environmental performance is good business.
- Improve environmental performance.
- Increase revenue and resource conservation.
- Evidence environmental performance.
- Generate actionable and auditable data.
- Improved access to capital.
- Make M&A activity easier.
- Leverage carbon credits.
- Enhance mechanical integrity and uptime.
- Improved safety profile.
- Capitalize on certified gas markets.
The Encino Advantage
Encino is a pioneer in emissions monitoring in the Energy sector, providing clients with a complete range of environmental services.
We view ourselves as an oilfield services company, dedicated to helping Oil & Gas operators improve their environmental and economic sustainability for providing the world with reliable and affordable energy.
Contact us today at (281) 201-3544 or support@encinoenviron.com for a free consultation and evaluation of how Encino can help you achieve environmental performance that generates economic results.
About Encino Environmental Services
Formed in 2010 and headquartered in Houston, Texas, Encino Environmental Services, LLC is an emissions performance testing and monitoring firm that specializes in environmental consulting, combustion analysis, LDAR (leak detection and repair), CEMS (continuous emissions monitoring systems), Satellite methane emissions monitoring and advanced environmental data platforms for the measurement and minimization of emissions to support regulatory compliance and ESG strategies and objectives. The Company operates across the U.S. covering all major oil and gas basins and select international markets.
