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Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June 19, 2003
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Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Mar 28, 2015

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Page 1: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions

Dan Gurney, Product MangerStrategic Center for Natural Gas and Oil

Draft FY04-FY09 Plans / Roadmap

for 5 year plan

June 19, 2003

Page 2: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Mission and Strategy

Mission: Encourage Maximum Recovery and Use of Domestic Natural Gas and Oil Resources by Reducing the Cost of Environmental Compliance and Improving Environmental Protection thus Opening Access to New Supply

Provide new technologies that enable industry to reduce compliance costs and improve environmental protectionDevelop sound scientific data to support

cost effective, risk-based regulatory decisions by State and Federal agenciesImprove communication and technology transfer among industry, government, and the public

Page 3: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Determine Program Priorities

Basis Clear Federal Role Window of Opportunity Ability to Impact Impact of the Issues

Page 4: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions Structure

Page 5: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions Roadmap Past and Future

STRATEGICOBJECTIVES

•Foster partnerships with industry, government and others on technologies and policies to foster domestic oil and natural gas supplies

•Foster aggressive technology transfer

1990 1995 2000 2005 2010 2015 2020

Produced Water

Gas & Oil

FederalLands

Access

LegacyPrograms

(lower prioritypost FY03)

Outreach &Education

Potable Water from Produced Water

Regulatory Streamlining

Processing Heavy Crudes

Bio-Processing

Reduce Cost of Produced Water Management (nationwide) operations by 15%

Streamlining Permitting Processes

Communicate Best Practices

New Tech- Low Impact Small Footprint Exp/Drilling/Production

Hydraulic Fracturing

Air Emissions

Remediation Provide Tools for States to Expand Risk-Based Corrective Action by 25%

Regulatory Impact Analysis

CBM Water Issues

Fed Land Access Issues

Page 6: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions Roadmap FY04

FY04 STRATEGIC

OBJECTIVES

•Foster partnerships with industry, government and others on technologies and policies to foster domestic oil and natural gas supplies

•Foster aggressive technology transfer

2003 2008 2015 2025

Produced Water

Gas & Oil

Federal LandAccess

Air

Outreach

Modeling

Control & Techniques

Chemistry & Chemical Analysis

Regulatory Streamlining Permitting Processes

Federal

Public Communicate Best Practices

Technology

Mgt Analysis Technology & Applications

Remediation

Regulatory Impact Analysis

Gas & Oil Conventional

Environmental Barriers

Soil

Sound Science

CBM Water Issues

Page 7: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Rollup Petroleum Environmental Solutions Roadmap FY04-09

FY04-09 STRATEGIC

OBJECTIVES

•Foster partnerships with industry, government and others on technologies and policies to foster domestic oil and natural gas supplies

•Aggressive Technology Transfer

2003 2008 2015 2025

Produced Water

Federal LandAccess

Air

Outreach

Modeling

Control & Techniques

Chemistry & Chemical Analysis

Reduce Cost of Produced Water Management (nationwide) operations by 15%

Regulatory Streamlining Permitting Processes

Federal

Public Communicate Best Practices

Technology

Mgt Analysis Technology & Applications

Remediation

Regulatory Impact Analysis

Gas & Oil Conventional

Environmental Barriers

Soil

Sound Science

CBM Water Issues

Refining

Page 8: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions - Water Management 2003 2008 2015 2025

Approach & Analysis Toxicity, TMDL’s,Characterization, Disposal Land Use Applications, Impact Basins

Management Techniques Treatment, Cleanup, Interactions

Produced WaterCoal Bed Methane - Fate and Transport, Ground vs. Surface Effects

Beneficial Use, Best Management Practices, Modeling

Conventional Natural Gas - E&P Goals, Best Management Practices, Fate & Transport, Beneficial Use, Modeling

Oil – Separators, Best Management Practices, Fate & Transport,

Beneficial Use, Modeling

Page 9: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions - Federal Lands 2003 2008 2015 2025

Modeling

Analysis

Environmental Barriers

Streamlining & Regulatory Impact

Technology & Applications

Cooperation with Federal Agencies

Some Tasks Continue over Entire Program

Page 10: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions - Air 2003 2008 2015 2025

Modeling

Analysis

Environmental Barriers

Regulatory Impact

Technology & Applications

Some Tasks Continue over Entire Program

Page 11: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions 2003 2008 2015 2025

Air

Soil

SoundScience

Soil RemediationEnvironmental Barriers Regulatory Impact

Control & Techniques

Air ModelingAnalysis

Regulatory Impact

Environmental Barriers

Technology & Applications

RefiningRefining Bioprocessing

Refinery Efficiency Emissions Reduction

High Sulfur Heavy OilPotential Liquid Fuels

Sound Science Response to Regulation Support for Decision Makers Chemistry & Chemical Analysis Examination of Alternatives

Page 12: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions - Soil 2003 2008 2015 2025

Remediation

Environmental Barriers

Regulatory Impact

Control Technologies

Page 13: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions – Sound Science 2003 2008 2015 2025

Chemistry & Chemical Analysis

Response to Regulation

Support of Decision Makers

Examination of Alternatives

Page 14: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions – Outreach 2003 2008 2015 2025

Federal

State & Local Involvement

Public Involvement

Partnerships

Page 15: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions – Outreach & New Technologies 2003 2008 2015 2025

Federal

State & Local

Public In

Partnerships

Outreach

NewTechnologies

New Technologies

Page 16: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

2005 Develop low-maintenance, laboratory scale processes to treat produce water at lower cost.

Develop techniques and strategies beneficial reuse or sale of produces water.

1995 2000 2005 2010 2015

2010 Develop pilot-scale low-maintenance, lower-cost produced water treatment unit.

Goal: By 2015, reduce the cost of produced water management for oil and gas operations by 15%.

Produced Water Management

Issues/Barriers: Produced water characteristics vary significantly both between regions and within regions. It is unlikely that a given treatment technology will work for all applications.

Current produced water treatment technologies are either too expensive or are not robust enough for oilfield applications or both.

The economics of produced water treatment vary significantly from region to region.

Laws and regulations governing surface discharge and water rights may inhibit some beneficial use applications.

Page 17: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

1995 2000 2005 2010 2015

2010 Provide the tools for States to expand the use of Risk-Based Corrective Action by 25%.

2005 In conjunction with PERF, establish the scientific basis for clean-up parameters.

Goal: By 2005 reduce the cost of remediating soils contaminated with crude or refined product by 15% compared to 1990 approaches.

Remediation

Issues/Barriers: DOE cannot set the clean-up standards for remediation; we can only provide regulators with the scientific information to appropriate standards.

Clean-up technologies are fairly mature and the likelihood of a break-through that would significantly reduce cost is small.

Page 18: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

1995 2000 2005 2010 2015

2006 Provide data on the term effects of coalbed methane production on coal seam aquifers.

2009 Provide impact analyses of coalbed methane production on wildlife species of concern (such as threatened and endangered species) and , where necessary, develop mitigation strategies that allow development to proceed while protecting the environment.

2005 Resolve questions surrounding the environmental effects of hydraulic fracturing.

Goal: By 2010 provide the solutions to current environmental issues and questions that will allow a 25% increase in natural gas produced from coal seams.

Coalbed Methane (CBM)

Issues/Barriers: CBM development, especially in the West, is a fairly recent phenomenon and new issues may arise

Water issues surrounding CBM development, especially in the West, have become an emotionally charged and all barriers cannot be resolved through science or technology.

Hydraulic fracturing continues to be an issue despite strong evidence, endorsed by the EPA, that hydraulic fracturing does not cause contamination of underground sources of drinking water.

The NEPA process in Montana is moving slowly and once it is completed, litigation may cause further delays in CBM development.

2007 Develop best management practices for treating and/or discharging coalbed methane water to the surface.

2006 Provide fate and transport data to determine the environmental impacts of infiltration ponds in the Powder and Tongue River basins.

Page 19: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

1995 2000 2005 2010 2015

2005 Survey currently available bio-processing methods.

Goals: Biodegradation of chemical bonds or selective removal of heterotane (S,N) from crude oil (upgrade crudes) or refinery cuts offers potential to revolutionize refining with the possibility of reducing processing cost. Develop bio-technologies to economically upgrade crudes or remove sulfur from naptha boiling-range refinery cuts.

Bio-Processing

Issues/Barriers: The efficiency of bio-processing to upgrade crude or refinery cuts by removal of sulfur molecules has to improve by more than 108 to become competitive with current chemical processing .

The volume of water used for processing must be reduced by more than 105 over current laboratory volumes to be cost competitive. This is long-term, high-risk research.

2008 Develop methods to allow bio-processing from best available technology.

2010 Perform pilot-scale bio-processing of 25% of heavy crudes during the transport time between E&P and the refinery.

2015 Perform pilot-scale bio-processing of 50% of heavy crudes during the transport time between E&P and the refinery.

Page 20: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

2010 Develop dispersion models to reflect E&P contributions in nonattainment areas.

1995 2000 2005 2010 2015

2012 Develop more accurate and robust air chemistry models and integrate them with dispersion models.

2007 Develop scientific data to more accurately predict particulate matter precursor formation in SW Wyoming.

Air Emissions

Issues/Barriers: Visibility science and measures are being developed and are apt to change significantly in the near future.

Acceptance and implementation of new model may be slow because of current model is sometime written into state law or regulation.

More robust models will require greater computing power that may not be available or affordable for all regulatory agencies.

Goal: By 2012 develop and demonstrate air chemistry and dispersion models that accurately reflect the effect of E&P and processing operations on regional air quality and visibility.

Page 21: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

1995

2000 2005 2010 2015

Goal: By 2015, Improve the efficiency and yield of processing plentiful Western Hemisphere crudes by

Processing Heavy Crudes

Issues/Barriers: The Western hemisphere has huge volumes of heavy crudes that are high in sulfur, nitrogen, and heavy metals. Heavy oil is 12% of the total U.S. production and the U.S. imports increasing volumes of heavy crudes from Canada, Columbia, Mexico, and Venezuela.

2005 Select candidate heavy oils and match to U.S. domestic refinery.

2007 Characterize heavy oils of the Western Hemisphere.

2001 Establish pilot-scale operation of 50% of Western Hemisphere heavy crudes.

2009 Develop alternative processing technologies to allow heavy oil processing costs to be half of base year (2000) cost to light oil.

Page 22: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Questions ?

Dan Gurney

NETL Oil and Gas Environmental

Product Manager

1 West 3rd Street, Suite 1400

Tulsa, Oklahoma 74103

Telephone: 918 699 2063

Email: [email protected]

Facsimile: 918 699 2005

Page 23: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions Structure Alternative Organization Structure

Page 24: Petroleum Environmental Solutions Dan Gurney, Product Manger Strategic Center for Natural Gas and Oil Draft FY04-FY09 Plans / Roadmap for 5 year plan June.

Petroleum Environmental Solutions – Air, Soil and Sound Science 2003 2008 2015 2025

Modeling

Analysis

Environmental Barriers

Regulatory Impact

Technology & Applications

Remediation

Environmental Barriers

Regulatory Impact

Control & Techniques

Air

Soil

SoundScience

Chemistry & Chemical Analysis

Response to Regulation

Support for Decision Makers

Examination of Alternatives