Fuel Gas Committee April 7 2009 _session_deck

Improving Energy Efficiency

Upstream Oil & Gas

Angelo Mangatal, Senior Industry Officer

Fuel Gas Committee

Calgary Alberta April 7, 2009

UPSTREAM OIL & GAS

Over $ 1 Billion per year for the Oil & Gas industry – 15% reduction in energy use = $ 780

million/yr

– 45% reduction in other emissions = $220 million/yr**

GHG emissions reductions = 29 Mt CO2e/yr

Excludes potential energy revenue or savings from cogeneration, Best Management Practices and other sources in the industry

• Sources: NRCan, Clearstone Engineering, AEUB ** Alberta only - Prepared by PTAC - Petroleum Technology Alliance Canada www.ptac.org

Obstacles to

Energy Efficiency

Energy Efficiency isn’t a major business focus

Energy losses are not measured

Resources are stretched

Risk – new technology and/or systems

can appear to hinder Oil and Gas production

What Can Companies Do? Where To Start?

4

Making Canada more

Energy Efficient

ecoENERGY Retrofit for Homes

ecoENERGY for Houses & Buildings

ecoENERGY for Industry CIPEC

ecoENERGY Retrofit

Small buildings and industry

Federal Budget Highlights

Council of Energy Ministers

Office of Energy Efficiency

(OEE) & CIPEC

Office of Energy Efficiency (OEE) - conserves energy, save money and contribute to a healthier environment.

Canadian Industry Program for Energy Conservation (CIPEC)

Works with all industry sectors to encourage investment , development and new methods for industrial processes that are more energy efficient.

The CIPEC Portfolio Tools

CanMost

Boiler Efficiency Calculator

Energy Savings Toolbox

(Audit Manual and Tool)

RETScreen Int’l

• Fans, and more

Training Dollars to $ense

(D2$ workshops)

Qualified Specialists

Customized

Workshops

Incentives & Assessments ecoEnergy Retrofit

Incentive

Process Integration

(PI) Study Incentive

Computational

Fluid Dynamic (CFD) Study Incentives

Information Sector Task Forces

Tip Sheets

Case studies

Source Books

Website

Heads Up CIPEC

Energy Savings Toolbox

Provides a step-by-step methodology to

help industry identify and capitalize on

energy savings.

Offers a detailed reference for

understanding and managing energy use

in every phase of an operation, from

designing and conducting an energy audit

to carrying out cost-benefit analyses.

Includes an extensive technical

supplement with spreadsheet tools for

costing, analysis and other related

calculations.

http://oee.nrcan.gc.ca/industrial/technical-info/index.cfm

“With the Energy Savings

Toolbox, Canadian

industry now has a start-

to-finish guide to

managing energy

consumption."

Our Suggested Approach

Action

RESULTS

Raise Awareness

Build

Capacity

Identify

Opportunities

CIPEC ENERGY 2009

Conference

November 2009 - look for updates TBA

“This is the premier industrial energy

efficiency conference in Canada”

“It’s a unique opportunity for energy

efficiency industry leaders to come

together, share best practices, network

and learn from one another.”

10

CIPEC/2020 and Beyond

Reduce GHG by 20% of 2006 levels by 2020

EE Potential Upstream Oil and Gas 2009

Why do you need data?

Data can justify:

Ideas - Policy – Programs – Initiatives

Company direction

Government direction

Where to find data?

Government: i.e. National Energy Use Database (NEUD)

Industry associations: CAPP, PTAC, CEPA

OEE Leading on EE

Issues

CIPEC is supporting various industry initiatives (e.g.

Energy Efficiency Potential Upstream Oil and Gas

Industry Sector

Shaping global energy standards - to complement ISO

9000 and ISO 14000

Other gov’t departments: Budget 2009 eliminates tariffs

on a range of machinery and equipment Class 29 provides 50% straight line ACCA for manufacturing and processing

equipment until 2010

Class 43.1 and 43.2 provide 30% or 50% ACCA (declining balance) for equipment

used in systems that generate electricity and/or produce heat for industrial

processes: i.e. recovering and re-using thermal waste; cogeneration, etc.

Canadian Renewable & Conservation Expense (CRCE) Covers intangible (soft) costs for Class 43.1/43.2 projects

Can be fully expensed in the year incurred or carried forward.

Where to Start?

Become a CIPEC

Leader!

Go to:

www.CIPEC.gc.ca

INDUSTRY FEEDBACK

NRCan Minister Raitt receptive to industry

Small Explorer's and Producers Association of

Canada(SEPA) – submissions to Department of

Finance

Cement Association – Meeting with the DM

re: Bio-fuels incentives, etc.

Slipstream CA (PTAC)

Contact Information:

Angelo Mangatal

Telephone 613-868-0104

[email protected]

http://oee.nrcan.gc.ca/industrial

Thank you!

More on Budget 2009 :

e.g. Tax Treatments

Class 29, 43.1/43.2 of the Income Tax Act Class 29 provides 50% straight line ACCA for

manufacturing and processing equipment until 2010

Class 43.1 and 43.2 provide 30% or 50% ACCA (declining balance) for equipment used in systems that generate electricity and/or produce heat for industrial processes by: recovering and re-using thermal waste

using specified waste-fuels

using cogeneration

Using renewable sources, including solar, wind and small hydro

Canadian Renewable & Conservation Expense (CRCE) Covers intangible (soft) costs for Class 43.1/43.2 projects

Can be fully expensed in the year incurred or carried forward.

Dollars to $ense Workshops

“Spot the Energy Savings Opportunities”

“Energy Monitoring and Tracking”

“Energy Master Plan”

“Energy Efficiency Financing”

BC Hydro- provides rebate to attendees

of NRCan workshops

Basic Energy

Efficiency Training

Customized workshops tailored to

companies and sectors

Training to Build Capacity

Boiler Efficiency Calculator evaluates boiler performance

CanMOST software program analyzes and compares the efficiency of three-phase electric motors; over 43,000 motors in the database

RETSCREEN assesses the financial viability and risk for various types of energy efficient and renewable energy technologies (RETScreen).

Energy Efficiency

Tools

NRCan downloadable software

18

National Energy Use

Database (NEUD)

Where does NEUD fit?

– Below is a segment of the departmental organization chart

NEUD mission

– Improve knowledge & understanding of where & how energy is used in all Canadian sectors

Natural Resources Canada

Office of Energy Efficiency

NEUD

Energy Efficient

Equipment Web Site

http://oee.nrcan.gc.ca/industrial/equipment/products/

ecoEnergy for Fleets

• Introduces fleets to

energy-efficient

practices that can

reduce fuel

consumption and

emissions through:

• Smart Driver Training

• Workshops

• Fuel Calculator

http://fleetsmart.nrcan.gc.ca/

Information &

Networking

Sector Task Forces

Employee Awareness Information

Case Studies

Best Practices and Benchmarking Guides

Twice monthly newsletter – “Heads Up

CIPEC”

Technical Videos

Conferences and Awards

Energy 2009 – Nov. 2009

Results:

$1 Million Saved

80,000 GJ Saved

Energy 2005

Energy Audit D2$ Workshop

Energy Audit

Heads-Up CIPEC

Customized

Workshops for

Staff

Combustion Analysis

Continuous Training

Linking the Pieces

Together

2005 2007

Aw

are

ne

ss/A

cti

on

Example: Ivaco Rolling Mills