Guest Editorial: The Engineering Approach to Carbon-Emissions Management

Abstract

Every engineer and manager knows that you can only improve performance that you measure and track. That is why we have key performance indicators (KPIs). Similarly, we can only optimize what we can predict. If we really want to lower carbon emissions, we will need to implement a consistent method of measuring and tracking the right data. There are challenges in improving what we track because tracking comes from so many sources. We need to work on optimizing what we predict if we are going to start making high-value decisions around emissions. Carbon emissions occur during all phases of the hydrocarbon extraction industry right through to the final use of the product. We call the total life cycle of emissions “well to wheels.” SPE members are generally focused on one phase of the carbon emissions. The largest contribution is the combustion and use of produced oil, from refinery to wheels. This is typically about 350–400 kg of CO2 equivalent per barrel. We use CO2 equivalent to include the greenhouse-gas (GHG) impact of methane. Then, there is the energy and carbon expenditure of producing that hydrocarbon, well to refinery. This includes drilling, completions, production, and transportation. Carbon emissions from the wells to refinery vary from less than 25 kg to more than 300 kg CO2 equivalent per barrel, averaging about 100. Flaring and fugitive emissions are generally the largest contributors to these emissions. Environmental, social, and governance (ESG) activism is driving changes in behavior for public investors, private investors, lenders, and management teams. When will the measuring be done? Who will set the industry standards? How will the model be developed? Carbon emissions from shale production vary dramatically and are also driven by flaring and fugitives. While flaring is preferable to venting, most low-volume flares are inefficient. Operators flare for a variety of reasons including lack of pipeline capacity, upsets, and low value for natural gas. Fugitive emissions also enter the equation. Fugitive emissions are any leakage or irregular release to the atmosphere of natural gas. This can be caused by human error, mechanical operations (such as pneumatic actuators), or faulty equipment. Fugitive emissions and flaring both factor into the well-to-reservoir carbon footprint. Many operators already report the carbon intensity of their activities, usually prior-year activities. Carbon intensity is the carbon emissions per unit of energy or per barrel. A variety of regulatory bodies and others argue the definitions of such reporting. We are arguing for reporting estimated carbon intensity of reserves.