Midstream Operations Research Articles

Emissions and Air Quality Implications of Upstream and Midstream Oil and Gas Operations in Mexico

Mexico approved amendments to its constitution in December 2013 that initiated transformational changes to its energy sector. This study developed a 2016 bottom-up emissions inventory for volatile organic compounds (VOCs), nitrogen oxides (NOx), sulfur dioxide (SO2), carbon monoxide (CO), and fine particulate matter (PM2.5) from upstream and midstream sector sources, including onshore and offshore well sites, gas flaring, natural gas processing facilities, and natural gas compressor stations, throughout Mexican basins. Crude oil storage tanks at onshore oil well sites and venting and fugitive sources at offshore oil production sites were the primary sources of VOC emissions. Key contributions to NOx, CO, and PM2.5 emissions were from internal combustion engines at offshore oil well sites and midstream operations. SO2 emissions were associated with onshore and offshore gas flaring and boilers and process heaters at natural gas processing facilities. Application of the inventory with the Comprehensive Air Quality Model with Extensions (CAMx) indicated that oil and gas production operations could contribute to ozone and PM2.5 concentrations in Mexican and U.S. states under favorable transport patterns. This study provides a foundation for assessing the implications of Mexico’s future energy policies on emissions and domestic and cross-border air quality and public health.

A comprehensive study on artificial intelligence in oil and gas sector.

The authors investigate how artificial intelligence modifies a huge piece of the energy area, the oil and gas industry. This paper attempts to evaluate technical and non-technical factors affecting the adoption of machine learning technologies. The study includes machine learning development platforms, network architecture, and opportunities and challenges of adopting machine learning technologies in the oil and gas industry. The authors elaborate on the three different sectors in this industry namely upstream, midstream, and downstream. Herein, a review is presented to evaluate the applications and scope of machine learning in the oil and gas industry to optimize the upstream operations (including exploration, drilling, reservoir, and production), midstream operations (including transportation using pipelines, ships, and road vehicles), and downstream operations (including production of refinery products like fuels, lubricants, and plastics). Enhanced processing of seismic data is illustrated which provides the industry with a better understanding of machine learning applications. Basing on the investigation of AI implementation prospects and the survey of subsisting implementations, they diagram the latest patterns in creating AI-based instruments and distinguish their impacts on speeding up and de-gambling measures in the business. They examine AI proposition and calculations, just as the job and accessibility of information in the portion. Furthermore, they examine the principal non-specialized difficulties that forestall the concentrated use of man-made brainpower in the oil and gas industry (OGI), identified with information, individuals, and new types of joint effort. They additionally diagram potential situations of how man-made reasoning will create in the OGI and how it might transform it later on (in 5, 10, and 20 years).

Development of a process safety‐based, process design RAGAGEP for gas processing midstream facilities

AbstractThe fracking boom in the US led to an enormous task—the safe handling and processing of massive amounts of gas extracted as a byproduct of oil production. Process safety is often an afterthought in midstream operations since many midstream facilities are constructed and operated by the drilling companies which are excluded from PSM coverage by the oil and gas well drilling and servicing exemption, 29 C.F.R. §1910.119(a)(2)(ii). Nonetheless, many midstream companies have begun to apply the best practice of conducting process hazard analyses (PHAs) and layer of protection analyses (LOPA) on PSM and non‐PSM covered facilities alike, to improve company process safety and operational integrity. However, if company internal standards are not applied, the application of extensive process safety practices that were originally intended for larger operations such as refineries could impede the adoption of process safety, and may lead to inefficient use of time and resources. This paper will look at actual examples of how one major midstream company developed an internal design standard that could be used toward the development of a midstream gas processing‐specific process design RAGAGEP. The objective of this RAGAGEP would be to streamline design, simplify risk assessments/hazard analyses and improve efficiency and consistency of process safety implementation.

Estimation of methane emissions from the U.S. ammonia fertilizer industry using a mobile sensing approach

To date, estimation of greenhouse gas (GHG) emissions from the natural gas (NG) value chain have focused on upstream (production) and midstream (gathering, transmission, and storage) operations. In this study, we estimate methane emissions from an important downstream consumer of NG, the ammonia fertilizer industry, which commonly uses NG as a feedstock and a fuel for the production of ammonia and other upgraded products. Using a Google Street View (GSV) car equipped with a high-precision methane analyzer, we adopted a mobile sensing approach to measure methane mixing ratios along public roads that are downwind of the ammonia fertilizer plants. Useful data were collected from six plants, which represent >25% of the total number of U.S NG-based ammonia fertilizer plants, and use >20% of the total NG consumption by this industry. Based on the measured data, a source characterization model was applied to estimate the methane emission rates from the upwind plants. Assuming that the estimates are representative of emissions during normal operations of a plant, we calculated the NG loss rate (i.e. the ratio between NG emission rate and NG throughput). If the sampled plants are representative of the U.S. ammonia fertilizer industry, the industrial-averaged NG loss rate (± standard deviation) is estimated to be 0.34% (±0.20%), and the total methane emissions (± standard deviation) from this industry are estimated to be 29 (±18) Gigagram per year (Gg CH4/yr) in 2015–2016. This is significantly higher than the reported methane emissions of 0.2 Gg CH4/yr from the U.S. EPA’s Facility Level Information on Greenhouse Gas Tools (FLIGHT). This study begins to fill an important knowledge gap in quantifying methane emissions along the NG value chain, and demonstrates the capability of mobile sensing for characterizing airborne emissions.

Black powder formation by dewing and hygroscopic corrosion processes

The presence of black powder in natural gas pipelines can lead to equipment erosion, valve failure, instrumentation malfunction, and increased pressure drop. However, despite its impact on downstream and midstream operations, black powder production is poorly understood. In the present work, black powder formation as a result of corrosion was investigated by simulating sales gas conditions in a glass cell. Steel specimens were systematically exposed to a range of CO2, H2S, and O2 partial pressures at differing water condensation rates. The potential for hygroscopic material assisting black powder formation was also investigated. Friable corrosion products found in dewing conditions consisted of siderite (FeCO3), mackinawite (FeS), and hematite (Fe2O3). The expected mass of corrosion products, as determined from experimental corrosion rates, are in line with the high levels of black powder that can be experienced. The presence of hygroscopic NaCl crystals facilitated corrosion at relative humidities as low as 33%.

Impact of Changes in Oil and Gas Production Activities on Air Quality in Northeastern Oklahoma: Ambient Air Studies in 2015-2017.

A total of three ground-based ambient air studies were conducted in February through March of 2015, 2016, and 2017 at the Phillips 66 Research Center in northeastern Oklahoma. C2-C12 nonmethane hydrocarbons (NMHCs) were measured using whole-air sampling and gas chromatography-mass spectrometry. In 2016 and 2017, online methane and ethane measurements were also conducted. Strong methane-ethane correlation identified oil and gas (O&G) upstream and midstream operations to be the primary methane source. C2-C5 alkanes were the dominant NMHCs whose average mixing ratio peaked in 2016 before dropping in 2017. This observation is attributed to regional O&G upstream operations, which peaked in 2015. Mean mixing ratios of C2-C5 alkanes ranged from 0.99 to 16.99 ppb. Measured ratios of i-C5/ n-C5 were 0.97 ± 0.03, 1.18 ± 0.04, and 1.06 ± 0.02 in 2015, 2016, and 2017, respectively, indicating that O&G upstream and midstream operations were their primary source. Photochemical age was estimated using observed ratio between hexane and propane. Emission ratios of NMHCs at zero photochemical age were calculated, which resembled the composition reported in the literature for natural gas field condensate tank flashing. Back-trajectory analysis showed that hydrocarbon-rich plumes came from the south and west directions, where O&G upstream and midstream operations are abundant. High OH reactivity values were calculated from C2-C6 alkanes mixing ratios, with the average reactivity for the 3 years being 1.55, 1.88, and 1.16 s-1. This indicates that VOC emissions from O & G operations may contribute to ozone production.

An evaluation of mid-stream operation in Hong Kong

Purpose Mid-stream operation has had a significant role in Hong Kong’s economic development since the 1960s. Prior to the building of container terminals in Hong Kong, cargo was mainly loaded onto and discharged from ocean-going vessels by mid-stream operations and then shipped to Europe and North America. This paper aims to reinforce mid-stream operation is considered a “must” in supporting the substantial growth of maritime industry and strengthening Hong Kong’s role as an entrepôt. Design/methodology/approach The authors undertake a historical review of the evolution of Hong Kong’s mid-stream operation over the past half-century and investigate the future of mid-stream operation in light of the Hong Kong Special Administrative Region government’s policy of allocating Public Cargo Working Areas through an open auction process. Semi-structured, in-depth interviews are also undertaken in this study. Findings The emergence of container terminals generated competition for cargo between container terminals and mid-stream operators. In addition, the Hong Kong Special Administrative Region government’s policy of allocating Public Cargo Working Areas to mid-stream operators through an open auction process intensified negative influences on the survival of the mid-stream operation sector. Originality/value To date, mid-stream operation has been abandoned nearly everywhere except in Hong Kong. Yet, Hong Kong’s container system has become the most advanced in the world. The authors explain how and why mid-stream operation still plays such a key role in Hong Kong and how to enhance its sustainability. The authors also discuss the academic and managerial implications of their findings.

Design and Implementation of Comprehensive Tank Overfill Protection Program

Summary Protecting human health and protecting the environment are essential requirements in today's exploration and production (E&P), refining, and petroleum marketing workplaces (pipelines and terminal facilities). Preventing tank overfills at above-ground, atmospheric storage tanks is essential, for "overfills" and the attendant consequences (e.g., potential volitization and groundwater/soil contamination) pose significant risk to the safety of workers, surrounding communities, and the environment itself. Overfill incidents demonstrate the need, and urgency, for tank-overfill-protection (TOP) measures to be evaluated and, as determined, undertaken. The design and implementation of a TOP program offers potential benefits for E&P in the environmental, human-health, community-welfare, and safety performance areas. E&P operations do not necessarily involve the numbers of atmospheric tanks that are involved in, say for example, midstream (pipeline) operations; nonetheless, safety and environmental contamination are issues of concern. There are common attributes of a comprehensive overfill protection that can be applied to E&P settings. A TOP program for a large pipeline organization--consisting of more than 800 above-ground, atmospheric storage tanks (Class 1 through 3 liquids), at more than 90 facilities--was recently developed and implemented, and is currently undergoing its first year of compliance and assurance (C&A) evaluation. This program was comprehensive in nature, containing its own unique objectives and distinctives. The comprehensive approach and method undertaken provided major benefits to the organization and successful and long-term implementation. Such benefits apply to large-scale programs and projects alike and include the following: Defined management philosophy/vision Organizational commitment Strengthened accountability Identification of systemic gaps Consistency in policies, standards, and operations Long-term C&A The results yield enhanced operations, risk reduction, and improved safety, all of which were evidenced in the TOP program. There are two aspects to an overfill-protection program. The first is the "programmatic" aspect, which addresses the various program features [i.e., policy development, standards and procedures, roles and responsibilities, program management (PM) functions] and various content features of the overfill policy to be implemented. The second aspect deals specifically with overfill equipment, to include equipment identification and related engineering, procurement, and construction (installation) activities, as well as any necessary electrical and instrumentation upgrades at a facility. The programmatic aspect, in a proactive and preventive sense, is deemed the most protective regarding tank-overfill events. This paper addresses a "conceptual model" for an overfill-protection program, based on this recent industry example. Key portions of the programmatic and overfill-equipment aspects will be addressed.

A review and technical summary of the AAPG/Associación Mexicana de Geólogos Petroleros Hedberg Research Conference on heavy oil: Origin, prediction, and production in deep waters

A joint AAPG/Associacion Mexicana de Geologos Petroleros (AMGP) Hedberg Research Conference was held to examine issues associated with heavy oil in deep water. This article reports on the meeting highlights. Deep-water exploration has become increasingly important over the last three decades. For the deep-water environment to be economically viable, these accumulations need to be both volumetrically significant and capable of maintaining high production rates. Largely independent of the rise in crude oil price, there has been an increasing number of economically viable deep-water discoveries, where the resource base now exceeds 100 billion bbl oil equivalent. A significant percentage of this resource is heavy oil, with heavy oil dominating the resource base in such settings as offshore Mexico and Brazil. Economic success in both exploration and commercialization requires integration across disciplines as well as across the value chain, integrating the upstream, midstream, and downstream operations. Basin models were commonly used as the integration tool for exploration programs. The exploration risks associated with the deep-water environment tend to be higher, in part as a result of oil quality. Risk reduction can be partially accomplished through a better understanding of the factors that control oil quality, including source rock facies, thermal maturity, and the alteration and migration histories. Although several factors may impact crude quality, the consensus was that biodegradation was the dominant factor controlling quality in most deep-water regions, Mexico being an exception, where source rock character has an important function. Biodegradation is controlled by such factors as charge and thermal history and the geometry of the oil-water contact. Where source facies is a key factor in establishing the presence of heavy-oil migration, distances tend to be more limited. Mixing of oils also appears to be an important factor in determining oil quality, often improving or maintaining oil quality, with the introduction of light oils into biodegraded oil. The production of these heavy oils introduces several challenges above and beyond those associated with similar accumulations onshore and in shallow waters. Lessons learned from these settings can, however, be very useful when working in the deep-water setting. The value of continuous data collection and updating reservoir models was made clear in case studies from both Angola and Brazil, where phased development or reservoir model recycling permitted the more efficient use of capital. Also of importance is the need for long-term planning because of the long lives of heavy-oil accumulations.

Husky Energy Inc.

AbstractOil and Gas (MIC: 14.2 SIC: 1311 NAIC: 211111)Husky Energy is a Canadian integrated energy and energy‐related company with operations in upstream, midstream and refined products. Co.'s upstream business includes the exploration for and development and production of crude oil and sulfur. Co.'s midstream operations include the upgrading of heavy crude oil into synthetic crude oil and the marketing of crude oil, natural gas and petroleum coke. Refined products comprise the refining, marketing and distribution of gasoline, diesel and ancillary services. As of Dec 31 2006, Co. had total net proved crude oil and natural gas liquid reserves of 647 million barrels and total of net proved natural gas reserves of 2,143 billion cubic feet.