Development of a Consistent Approach to Estimating Greenhouse gas Emissions for the Petroleum Industry

Abstract

Abstract As petroleum companies throughout the world work to improve their understanding of potential contributions to human induced climate change, developing an inventory of greenhouse gas (GHG) emissions is an important step for each company. In order to achieve consistent, meaningful data, it is important that petroleum companies have consistent definitions of what is included in the inventory, and use consistent methodologies for calculating the emissions. The International Petroleum Industry Environmental Conservation Association (IPIECA), the International Association of Oil and Gas Producers (OGP) and the American Petroleum Institute (API) have taken the lead in developing guidance for reporting of GHG emissions. A recently-completed IPIECA-led effort has led to the development of the Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions, which focuses on petroleum industry accounting and reporting of GHG emissions at the facility through the corporate level. The Guidelines were coordinated with API's Compendium of Greenhouse Gas Emissions Estimation Methodologies for the Oil and Gas Industry. The API Compendium has been developed to provide a consistent set of emission estimation methodologies for the petroleum industry. API is also providing a tool for estimating emissions, the SANGEA™ Energy and Emissions Estimating System. This paper will describe highlights of the Guidelines, the Compendium, and provide examples of how these documents can be used with the SANGEA™ software tool to develop a meaningful estimate of emissions from petroleum industry operations. Results, Observations and Conclusions: A credible, systematic approach, as embodied in the Petroleum Industry Guidelines and the API Compendium, provides strategic value to the petroleum industry as we address the climate change issue. By working towards a consistent standard for greenhouse gas emissions estimating, our industry improves its credibility and provides a foundation for future cooperative efforts among petroleum industry companies, regulators and other industries to address this important issue. Introduction Worldwide, petroleum companies are responding to concerns about climate change. An important first step to address the climate change issue is to understand the magnitude of greenhouse gas emissions from petroleum industry operations by creating an emissions inventory. In order to quantify emission sources, emissions estimating methodologies are needed, and the boundaries of the inventory must be defined. At present, several standards/protocols/guidelines are available to define the boundaries and provide emissions estimating methodologies for greenhouse gases. These standards are broadly applicable to many industries, where ownership arrangements are not complex and the majority of greenhouse gas emissions arise from the combustion of commercial fuels and/or use of electricity. However, the petroleum industry has unique processes and emission sources, as well as unique ownership and operating arrangements, which have driven the development of industry-specific accounting and reporting guidelines and estimating methodologies.