Oil and Gas companies face a number of challenges that are unique to the industry, primarily due to the large number of facilities and wellsites involved, and the ever-increasing reporting requirements being introduced by the various regulatory agencies.
Managing Corporate Risk and Planning for the Future
In order to reduce your company’s corporate risk and adhere to the evolving emissions reporting and reduction regulations, you need a robust system and processes that provide information you can rely on in order to make strategic decisions regarding your operations. This means, firstly, taking over the care and control of your company’s data by reducing your reliance on spreadsheets and consultants. Taking control of your company’s data reduces corporate risk and provides business continuity. This ensures that all current and historical data is secure and readily available in the event of changes in your consultants or your team.
Our Solutions: EMPOWER SuiteTM
Methane/GHG Inventory Management and Reporting
In addition to the new federal carbon pricing, both the federal and provincial governments have announced aggressive targets for the reduction of methane from the oil and gas sector. Under its updated Directive 060, Alberta also requires detailed reporting of vented and fugitive methane emissions down to the facility level (starting with the 2019 operating year). The utilization of a comprehensive emissions management system to manage and report on methane and the other GHGs is now a necessity for all oil and gas companies and GHG emissions has become an important Key Performance Indicator (KPI) for both companies and investors.
Fuel, Flare, and Vent Estimation and Reporting
Increased attention has been given over the last number of years from provincial regulators to ensure that oil and gas companies have the necessary systems and processes in place to accurately measure and report production data from their operations. This includes increased rigor in how combusted fuel gas, flared and vented (FFV) volumes of natural gas are estimated and reported to government agencies.
The vast majority of methane emissions from the oil and gas industry are from a multitude of small unmetered vent sources that are spread out across a company’s operations. Establishing consistent, transparent, and auditable controls over the collection and reporting of FFV information has become increasingly burdensome for Operations, Measurement, and Production Accounting personnel, and requires systems and processes to manage this data.
Fugitive Leak Tracking and Reporting
The newly announced methane reduction regulations require fugitive emission surveys to be conducted at your facilities anywhere from one to three times per year. In addition to the surveys, identified leaks need to be repaired within 30 days and documented. This large increase in data that will be generated (including leak records, leak rates and repair dates) will need to be incorporated into your emissions inventory for reporting purposes. Your emissions management system will need to determine a theoretical leak start date, and then utilize the leak rate, date of repair and a representative gas composition in order to properly estimate and report methane emissions from fugitive equipment leaks.
Our Solutions: Emission ManagerTM and its Fugitive Leak Data Upload Utility
National Pollutant Release Inventory Reporting
Annual reporting to the NPRI of criteria air contaminants (CACs) generated from fuel combustion and flaring from upstream oil and gas facilities has been in place since 2003. However, for the 2018 operating year and onwards, significant changes were introduced by Environment and Climate Change Canada (ECCC) for this sector. Now, if any one of the CACs exceed its reporting threshold, then all CACs must report. In addition, volatile organic compounds (VOCs) and benzene emitted from ALL sources at the facility (combustion, flaring, fugitive, venting and storage) must now be estimated and reported. This has had a major impact on how emissions data must be managed by an oil and gas company.
Multi-Sector Air Pollutant Regulation (MSAPR) Compliance Management
This regulation requires the registration of your company’s pre-existing reciprocating engines above 250 kW and any newer (“modern”) engines above 75 kW with Environment and Climate Change Canada (ECCC). Additionally, there are new NOx emission thresholds, NOx emission testing requirements and annual compliance reporting starting in 2021 that must be undertaken for your company’s fleet of reciprocating engines. A robust compliance management system is required to effectively administer and monitor compliance of your company’s engine inventory.
Our Solutions: NOx ManagerTM
Glycol Dehydrator Management
The quantity of benzene that is allowed to be emitted from the operation of your company’s glycol dehydrators is regulated by provincial authorities. As a result, Dehydrator Engineering and Operations Sheets (DEOS) must be posted at each dehydrator and must be based on operating and analytical data that are required to be updated annually. In addition, the benzene and methane emissions generated from your company’s glycol dehydrators must be reported annually. Companies benefit from software that can manage the workflow of gathering the updated information, modeling the emissions, generating the DEOS and preparing the annual inventory report for submission to the government.
Our Solutions: Dehy ManagerTM
Regulatory Document Management
Timely access to facility licence and application information is critical for oil and gas companies to understand current operations and plan for the future. Some of the groups that require easy access to this regulatory information include Regulatory, Environment, Facility Engineering, Operations, and Land Management. The information contained in these documents is required for reviewing facility limits, planning for expansions, as well as for audits, inspections, acquisitions, and divestitures.
Our Solutions: Regulatory Document ManagerTM
Environmental Project Management
Oil and gas companies benefit greatly by having an easy-to-use software that streamlines the overall project management, budgeting and tracking of activities/invoicing for all their environmental projects at their wellsites and facilities, regardless of where they are at in their life cycle (operating, suspended or in the process of being abandoned and reclaimed). The ability to collaborate with your environmental consultants and to monitor their progress on your active projects through a centrally accessible, web-based application is a key feature of administering an effective control system over your environmental projects.
Our Solutions: Environmental Project ManagerTM
Environmental Performance Monitoring and Stakeholder Relations
If your company and its Directors are interested in going beyond the minimum standard of environmental compliance, then you are probably being tasked with reporting emissions and other environmental monitoring data under any one or all of the following:
- Corporate Responsibility and Sustainability Reporting
- Carbon Disclosure Project (CDP) Reporting
- Dow Jones Sustainability Index
This type of stakeholder reporting typically includes the generation of key performance indicators (KPIs) that include not only emissions data generated from your company’s operations, but a calculation and year over year comparison of your company’s environmental performance on an emissions intensity basis (overall GHG emissions per unit of product delivered).