Arun Karupaiah, Celeros Flow Technology, outlines how OEM equipment manufacturers and specialist engineering companies are providing practical technological solutions and additional support to help mitigate fugitive emissions.
Fugitive emissions are a longstanding challenge for the oil and gas industry. They can occur at all stages in the hydrocarbon value chain. At the well, gases can escape through the casing during operations or through the soil after a well has been completed. During transportation, gases can escape at valve fittings or small leaks in pipes. Such emissions include unintentional releases of gases like methane (CH4) and carbon dioxide (CO2) through leaks, uncontrolled venting, equipment malfunctions, or during maintenance activities. The complexity and scale of oil and gas operations, combined with the diverse sources of emissions (such as wellheads, pipelines, and storage tanks), have made it difficult to identify, monitor, and manage emissions effectively.
In the past, the key drivers for reducing emissions were primarily around maximising production and ensuring safety. Now, growing awareness of the mechanisms of climate change is increasing the regulatory pressure to reduce fugitive emissions in order to decarbonise the energy sector and achieve global environmental sustainability goals.
This article explores the multiple drivers for fugitive emissions reduction and explains how technological advancements, including improved valve and seal designs, are being developed to aid upstream oil and gas operations to dramatically reduce leakage – delivering enhanced environmental compliance, operational efficiency, and cost savings.
Environmental drivers
Despite the rapid development of alternative energy sources, it is widely accepted that fossil-based fuels such as natural gas will be required for many years to come. Fugitive emissions pose a serious challenge that, if not addressed, will diminish the role of natural gas in the future energy system.
Methane – the primary component of natural gas – is a leading contributor to global warming. When it leaks into the atmosphere, it creates a powerful greenhouse gas effect, contributing to global temperature rises that in turn cause glacial deterioration, sea level rise, and more extreme weather events. Indeed, the greenhouse gas potential of methane is 86 times more than that of CO2 over a 20 year timeframe.
According to the US Environmental Protection Agency, the production segment (including exploration, offshore production, and gathering and boosting) accounts for 60% of the total methane emissions from the oil and natural gas industry. Clearly there is considerable room for improvement – but reducing environmental impacts is not the only reason to target fugitive emissions.
Operational and financial drivers
Leaking gases represent lost product, which translates into financial losses. Research indicates that the upstream oil and gas sector could save in excess of US$30 billion by eradicating fugitive emissions. To put this into context, upstream fugitive emissions cost more than the entire GDP of countries such as Cambodia, Zimbabwe, or Jamaica. This represents an enormous opportunity to improve resource efficiency and prevent product wastage, which will boost profitability.
Within the wider value chain, tackling fugitive emissions can also address concerns raised by institutional investors that the credibility of natural gas is being undermined, contributing to costly license-to-operate risks. Natural gas consumers, worried about their own carbon footprint, may also feel reassured that the industry is doing all it can to be environmentally responsible – ultimately helping to retain market share for longer.
Operational and financial considerations therefore have a direct link to reputation management for individual operators and the oil and gas industry as a whole. Demonstrating a commitment to environmental stewardship through reducing fugitive emissions enhances reputation and fosters trust and goodwill among stakeholders, including investors, customers, and local communities.
Safety aspects
Fugitive emissions can pose serious health risks to workers and nearby communities. CO2 is naturally present in the air we breathe and is not harmful to health at low concentrations. It is not a flammable gas and does not support combustion. However, exposure to sufficient quantities can cause headaches, dizziness, confusion, and loss of consciousness. Since CO2 is heavier than air, fatalities from asphyxiation are a real risk where higher concentrations of the gas have entered confined spaces such as tanks, sumps, or cellars and have displaced the oxygen. It is also possible for CO2 to accumulate outside in trenches or depressions following leaks or a pressurised release where the CO2 is colder than the surrounding air.
Safety risks associated with methane may occur anywhere it is extracted, produced, or used. Like CO2, high levels of methane gas can reduce the amount of oxygen available to breathe. Effects include mood changes, slurred speech, vision problems, memory loss, headache, nausea, vomiting, and facial flushing. In severe cases, methane exposure can affect your breathing and heart rate, leading to balance problems, numbness, and unconsciousness. High doses or long exposure time can be fatal. In addition, skin or eye contact with liquefied methane released under pressure may cause frostbite. Reducing fugitive emissions therefore helps ensure a safer working environment and reduces potential health hazards. This in turn improves worker wellbeing and efficiency because there will be fewer hours lost to illness.
Regulatory landscape
The upstream oil and gas sector is no stranger to regulatory compliance, as well as the financial and legal consequences involved. In addition to licence-to-operate rules and safety regulations, stricter environmental regulations and policies are now coming into play, making the reduction of fugitive emissions a crucial part of any upstream planning and operational strategy.
One of the most recent legislative changes is the amendment to the US Clean Air Act (IRA Section 60113), which introduces a new section 136 on ‘methane emissions and waste reduction incentive program for petroleum and natural gas systems’. Section 136 appropriates US$1.55 billion to provide financial and technical assistance for methane monitoring and mitigation. The aim is to encourage better reporting of greenhouse gas emissions by the owners and operators of petroleum and natural gas facilities so that better data is available for research and innovation that will ultimately lead to a reduction in air pollution.
Section 136 also sets methane emissions thresholds for petroleum and natural gas production, processing, transmission, and storage facilities and gives the EPA Administrator the power to impose and collect fines where these thresholds are exceeded. The methane emissions charge starts at US$900/t of methane emitted above the set threshold in 2024 and rises to US$1200 in 2026.
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