Climate Change: Implication of Oil Exploitation in Ghana
BYDr. George Faah
(Regent University College of Science and Technology)(Regent University College of Science and Technology)
November, 2010
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Presentation OutlinePresentation Outline
• Introduction– Flaring and Venting as a Source of GHG EmissionsFlaring and Venting as a Source of GHG Emissions
• Technology Solution to Reduce Gas Flaring VolumesVolumes
• Best Practices (Norway, Canada and the US)
• Recommendations and Conclusions
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IntroductionIntroduction• Associated Natural Gas is a Product of Oil E t ti PExtraction Process
• It is a mixture of Methane (CH4) and other HC mainly ethane propane butane and pentane itmainly ethane, propane, butane and pentane, it also contains water vapor, H2S and CO2
• Options are:Options are:1. Tap and use as a valuable resource (if possible)2. Burn (Flaring)( g)3. Release it directly into the atmosphere (Venting)4. Re‐inject and store it underground
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Introduction Cont…..Introduction Cont…..
Nobody at this point I believe has any doubtNobody at this point, I believe, has any doubt that gas flaring and venting harms the environment and wastes valuable resources Gasenvironment and wastes valuable resources. Gas flaring and venting also deprives developing countries of an energy source that is cleaner andcountries of an energy source that is cleaner and often cheaper than others available, and it reduces potential tax revenue for governmentsreduces potential tax revenue for governments and market opportunities for industry.
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Estimated Flare Vol. from Satellite
Data(2005‐2009)
It is clear that the estimated 140‐170 bcm of flared gas is sufficiently large to justify mitigation for both environmental and in some cases economic reasonseconomic reasons
Source: NOAA‐NGDC Website and GGFR Jan‐July 2010 News letter
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Gas Flaring DataGas Flaring DataFrom the estimated figures
• In 2009 Russia and Nigeria accounted for 42% of Global• In 2009 Russia and Nigeria accounted for 42% of Global flaring
• Global gas flaring estimates for 2009 was 146 bcm, hi h i 4 9% 32% d 23% f h W ld h EU dwhich is 4.9%, 32% and 23% of the World, the EU and
the US gas consumption respectively.• This is also equivalent to 278m tons of CO2e which is qless than 1% of total world emission in 2008 (30,377 million metric tons) EIA, 2008
• The Volume of global gas flaring has remainedThe Volume of global gas flaring has remained relatively stable in the range of 140 to 170 bcm from 1994‐2009
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Reasons for High Flaring and Venting
• Safety Concerns
Reasons for High Flaring and Venting
Safety Concerns
• Financial Barriers to Implementing Flare Reduction ProjectsReduction Projects
• Low Domestic Gas Prices
• Lack of incentives and
• Efficient Regulation on Flaring Actionsg g
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Reasons for High Flaring and Venting
• Associated Gas is also flared Because it is
Cont……
economically not feasible to remove sulphur and other contaminants, and to pressurize and transport the commercial product to thetransport the commercial product to the customer.
• Use by industry, households or utility also requires a distribution system (extra cost)
• The remote location of oil fields and offshore platforms from energy consumption makes itplatforms from energy consumption makes it impractical to build pipelines or electricity transmission line to utilize it.
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Reasons for High Flaring and Venting
• Absence of an efficient and effective
Reasons for High Flaring and Venting
Absence of an efficient and effective regulatory framework and powerful authorities to enforce regulationauthorities to enforce regulation– Gas flaring reduction effort have been proven successful in countries that have a strongsuccessful in countries that have a strong cooperation between the Government and the oil and gas companies where technologies have been complemented by supportive Gov’t policies
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Potential for Associated Gas UsePotential for Associated Gas Use
• World Natural Gas Production in 2009 was approx. 2,987 billion cubic meters(bcm) whilst consumption was 2,940 bcm (Source: B.P Statistical Review of World Energy 2010)
• Projection by International Energy Agency (IEA) show an increasing demand for natural gas by 1.5% per year through 2030 (Source: IEA, World Energy Outlook, 2009)
• Current figures shows that natural gas represents about 23.1% of total world energy demand
• Therefore, better exploitation of natural gas resources, especially those underutilized in West Africa would be a p ysignificant way to meet the world’s s increasing natural gas demand
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Potential for Associated Gas Useh l
• Conversion to other usable forms example
Technology OptionsConversion to other usable forms, example– LPG (Liquefied Petroleum Gas)
LNG (Liquefied Natural Gas) [Refrigerating the gas– LNG (Liquefied Natural Gas) [Refrigerating the gas to about ‐162⁰C] potential Europe and US market
– CNG (Compressed Natural Gas) [Compress the natural gasCNG (Compressed Natural Gas) [Compress the natural gas to much lower volume about 1/200 original volume]
– NGH (Natural Gas Hydrate) [Crystallized Natural Gas(solid)]
– GTL (Gas to Liquid) [Converting Methane gas to transportation fuels, Naphtha and other specialty liquid chemicalschemicals
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Potential for Associated Gas Useh l
• An overall comparison of all available alternatives is
Technology Optionsp
difficult to make, site‐specific assessments are recommended in order to choose the best practice C ti l f th tili ti t h l i• Comparatively none of the gas utilization technologies and methods discussed are economical if the associated gas volumes are below 10 million cubic gmeters per day and the oil field is located more than 2,000km from the closest market
• In that case IEA recommends economic incentives and• In that case IEA recommends economic incentives and governmental regulations to prevent flaring activities.
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Potential for Associated Gas Useh l
• If production is more than 10 mcm per day
Technology Options Cont…If production is more than 10 mcm per day but distance is more than 2,000km. There are other options to utilize the gas including LNGother options to utilize the gas including LNG or GTL plants and transporting the liquid produced via tankers to the market locationsproduced via tankers to the market locations
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Examples of Best PracticesExamples of Best Practices
• Norway: Reduction of flaring gasNorway: Reduction of flaring gas – Through successful implementation of regulation and close cooperation between authority andand close cooperation between authority and industry
– No flaring is allowed without approval from NPDNo flaring is allowed without approval from NPD except for safety during normal operations.
– The use of incentives and penalties, such as CO2 p ,tax on emissions
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Examples of Best Practices
• Canada Reduction Effort
Cont……Canada Reduction Effort– Total associated gas production in 2007 was 23.7bcm, of which 94% was utilized in domestic heating power g pgeneration, commercial and industrial use
– Associated gas are re‐injected in some oil fields
– Well developed pipeline and transportation in Canada and the US allows distributing the associated gas to N. America MarketAmerica Market
– Flaring is regulated by individual provinces rather than the Federal Gov’tthe Federal Gov t
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Examples of Best Practices
• US Reduction Effort
Cont……US Reduction Effort– Although GHG are not regulated in the US, other constituents of Associated gas are strictlyconstituents of Associated gas are strictly regulated by the EPA
– Companies are required to report gas flaringCompanies are required to report gas flaring volumes
– The well established gas pipeline system and high g p p y gnational demand for gas makes it economically feasible to use associated gas rather than flaring
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ConclusionConclusion
Finally, I urge all stakeholders to see the gas flaring y, g g gand venting issue, not only in its technical and economic dimensions, or as that little stone inside our shoe that we need to throw away in order toour shoe that we need to throw away in order to feel more comfortable. But rather, look at the gas flaring reduction challenge as an opportunity for
ki t t ib ti t tmaking a concrete contribution to poverty alleviation and climate change mitigation, by improving energy efficiency and expanding access p g gy y p gto a cleaner source of energy for the people who most need it.
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