Petroleum Industry Guidelines for CCS Emission Reductions

1
Petroleum Industry Guidelines for CCS Emission
Reductions

• UNFCCC SB Meeting
• IPIECA Side Event
• May 8, 2007
• Bonn, Germany

2
Background- Industry Guidelines

• Petroleum Industry Guidelines for Reporting GHG
  Emissions
• Compendium of Greenhouse Gas Emissions Estimation
  Methodologies for the Oil and Gas Industry (API
  GHG Compendium)
• Petroleum Industry Guidelines for GHG Emission
  Reduction Projects

3
Project Guidelines Objectives

• Identifying, assessing, and developing candidate
  projects that would lead to credible emission
  reductions
• Develop a framework for assessing emission
  reductions associated with specific project
  families, including references to relevant
  methodologies or Guidelines
• Attempt to be regime neutral

4
Progress To Date

• General Project Guidelines
• Section 1 Introduction
• Section 2 Overarching Principles
• Section 3 Policy Considerations
• Section 4 Overview of Project Families
• Section 5 Cogeneration Project Family

• Section 6 Carbon Capture and Storage
• Planned Project Families
• Section 7 Flare Reduction
• Section 8 Fuel Switching
• Section 9 Energy Efficiency

5
Key Messages from General Project Guidelines

• Care must be taken in selecting the baseline
  scenario
• Common practice or benchmarks can provide useful
  baselines but site specific issues may limit
  application to oil industry projects
• Policy decisions can significantly effect
  quantification and eligibility of reductions
• Excessive monitoring must add value for
  regulator and business

6

• Carbon Capture and Storage

7
CCS Project Guidelines Experts

• Chair
• Frede Cappelen, Statoil
• CCS Experts

• Gemma Heddle, Chevron
• Haroon Kheshgi, ExxonMobil
• Theresa Hochhalter, ExxonMobil
• Charles Christopher, BP
• Iain Wright, BP
• Mike McMahon, BP
• Wishart Robson, Nexen

• Anthony Webster, HESS
• Brigitte Poot, Total
• Luc de Marliave, Total
• Tom Mikus, Shell
• Wolfgang Heidug, Shell
• Luke Warren, IPIECA
• Karin Ritter, API
• Terri Shires, URS (consultant)

8
CCS Chain of Processes
Explicitly excludes ocean storage
9
Baseline Scenario
10
Assessment Boundaryover the whole CCS chain
EOR
11
Potential Emission Sources
Capture (1)
Injection (3)
Storage (4)

• With appropriate site selection and good
  operational practice, emissions from storage
  sites are likely to be very small, and require
  site-specific monitoring systems to provide
  assurance of secure storage.

Transport (2)
Emissions from these sources can be estimated
using methods from the API Compendium of GHG
Emission Estimation Methodologies for the Oil and
Gas Industry
12
Project Illustration of CCS in Saline Formation
13
Baseline Illustration of CCS in Saline Formation
14
Project Illustration of CO2 Capture, Transport
and Injection for EOR Operations
15
Baseline Illustration of CO2 Capture, Transport
and Injection for EOR Operations
16
Project Illustration of Acid Gas Storage
Operations
17
Baseline Illustration of Acid Gas Storage Project
18
CCS Emission Reductions

• Quantify project emissions along the whole CCS
  chain capture, transport, injection and storage,
  
• Emissions from the end-use of oil or gas produced
  as a consequence of CO2 storage (EOR) are not
  addressed
• Calculate the emissions that would have occurred
  without carbon capture, but with the same output
• Electricity generated in MW-hrs
• Natural gas processed for CO2 removal
• Reduction Baseline emissions Project emissions

19
CO2 captured or injected vs. avoided or reduced
20
Monitoring Considerations

• Variety of methods available
• Many well established in the oil and gas sector
• Must be tailored to site specific characteristics
• Monitoring should evolve with improving
  technologies and risk management
• Pre-operational evaluation is key to site
  selection
• Size and properties of the reservoir needed for
  initial risk assessment, monitoring plan, and
  risk management plan
• Understanding of background emissions
• Operational monitoring provides information for
• Emission estimation
• Modeling update, providing basis for confidence
  in longer-term predictions
• Risk management

21
Illustrations of Monitoring Techniques
22
CCS Guidelines - Key Messages

• CCS offers significant potential for reducing GHG
  emissions
• The assessment of project emissions reductions
  should include the entire CCS chain
• Capture, transport, injection and storage.
• Existing oil and natural gas industry experience
  and expertise provide a basis for confidence in
  CCS
• Good practices in monitoring are especially
  important for CCS to be a safe and secure GHG
  emission reduction option
• Monitoring should be based on a site-specific
  risk assessment

23
Path Forward

• Final CCS Guidelines by May 2007
• Final General Project Guidelines
• Now available
• Thank You!