1. Discovering New Opportunities for Reducing Methane Emissions Lessons Learned from Natural Gas STAR Producers Technology Transfer Workshop ExxonMobil Production Company, American Petroleum Institute and EPA’s Natural Gas STAR Program September 21, 2004

2. Page 2 Reducing Emissions, Increasing Efficiency, Maximizing Profits New Opportunities: Agenda  Methane Losses  Methane Recovery  Creative Technology Combinations  New Technology Developments  Discussion Questions

3. Page 3 Reducing Emissions, Increasing Efficiency, Maximizing Profits Methane Losses  89 Bcf methane lost to atmosphere annually from natural gas production  60 Bcf methane lost to atmosphere annually from oil production  Both after 26 Bcf of Gas STAR savings  Gas prices at all-time highs!  Mitigating the remaining losses is becoming more and more profitable

4. Page 4 Reducing Emissions, Increasing Efficiency, Maximizing Profits Where are the Opportunities?  Production emissions sources Pneumatic Devices 59 Bcf Dehydrators and Pumps 14 Bcf Meters and Pipeline Leaks 11 Bcf Gas Engine Exhaust 12 Bcf Well Venting and Flaring 12 Bcf Storage Tank Venting 23 Bcf Other Sources 18 Bcf Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990 - 2002

5. Page 5 Reducing Emissions, Increasing Efficiency, Maximizing Profits Methane Recovery  Revisit Natural Gas STAR opportunities that are now more economic with rising gas prices  Consider combinations of known opportunities that are collectively economic  Identify new areas for profitable methane emissions reductions

6. Page 6 Reducing Emissions, Increasing Efficiency, Maximizing Profits Revisit Natural Gas STAR Opportunities  Producer Partner Reported Opportunities u Evaluate or re-evaluate Natural Gas STAR practices and technologies u Newly published Partner Reported Opportunities

7. Page 7 Reducing Emissions, Increasing Efficiency, Maximizing Profits Consider Technology Combinations: Capture Pneumatic Gas  Emissions: pneumatic devices u Also dehydrator vents and casinghead gas  Recovery: Vapor recovery unit (VRU) u Also compressor suction and fuel gas  Savings = Gas value - piping installed cost  Small installed costs  Negligible O&M costs

8. Page 8 Reducing Emissions, Increasing Efficiency, Maximizing Profits Capture Pneumatic Gas  Cost estimate for routing to VRU u 100 ft of half inch stainless steel tubing u @ $10 installed/ft = $1,000  Gas Value u 525 Mcf/yr per source (1 cf/m) u @ $3/Mcf = $1,575/yr  8 month payback

9. Page 9 Reducing Emissions, Increasing Efficiency, Maximizing Profits New Technology Developments: Inexpensive Sensing Technologies  Objective: Cost-effective (profitable) automated leak detection  Sensor alerts operators when monitored component emits enough fugitives to warrant repair  Valve stem seals, compressor rod packing, pressure safety valve, blowdown vents Leak notifies you =+ Cheap Alarm Adsistor Ring Environmental Systems Inc.

10. Page 10 Reducing Emissions, Increasing Efficiency, Maximizing Profits DI&M by Leak Imaging  Real-time visual image of gas leaks u Quicker identification & repair of leaks u Screen hundreds of components an hour u Screen inaccessible areas simply by viewing them

11. Page 11 Reducing Emissions, Increasing Efficiency, Maximizing Profits Infrared Gas Imaging Technology  Shoulder- and/or tripod- mounted u Hand-held prototype  Aerial surveillance applications  Require battery and/or power cord  Most very large leaks (> 3cf/hr) clearly seen

12. Page 12 Reducing Emissions, Increasing Efficiency, Maximizing Profits pVisible light image of leaking component pInfrared image of leaking component pGas plume motion clearly shows leak Infrared Gas Imaging Technology Source: Texas council on Environmental Quality Study

13. Page 13 Reducing Emissions, Increasing Efficiency, Maximizing Profits Infrared Gas Imaging  Video recording of fugitive leak found by infrared camera

14. Page 14 Reducing Emissions, Increasing Efficiency, Maximizing Profits Discussion Questions  What idea interests you most?  What are the barriers (technological, economic, lack of information, regulatory, focus, manpower, etc.) that are preventing you from launching feasibility studies and/or pilot projects?