Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
GROUP NO - 2
ADRITA KACHROO JINEN SHAH RAHUL IYER HARDIK DAMANIA ADITYA TIPLE KRUTI TURAKHIA
Authorities
Ministry of Oil & Natural Gas Directorate General Of Hydrocarbons
adequacy
Half yearly review of work programmes in Petroleum Exploration Licence (PEL) areas
Processing and review of all the PEL cases for the Ministry Cost monitoring, statutory payments to government, Profit sharing to government. Facilitating statutory & other clearances. Participation in arbitration matters. Advise Government on policy formulations. Issuance of essentiality certificates.
- Environment Protection Act, 1986 - Prior environmental clearance - Security Clearance from Ministry of Defense
Potential Emergencies
ATMOSPHERIC IMPACTS
Atmospheric issues are attracting increasing interest from both industry and government authorities worldwide. The potential impacts mainly arises due to exploration & production, refining operations etc. The primary sources of atmospheric emissions from oil and gas operations arise from:
Flaring,
venting and purging gases processes in diesel engines and gas turbines particulates from soil disturbance during construction
Combustion Airborne
The main areas of impact are ozone depletion, GHG emissions leading to increased global warming, NOx and SOx emissions, SPM emissions etc.
AQUATIC IMPACTS
The principal aqueous waste streams resulting from exploration and production operation are:
Produced Drilling Process
water
fluids, cuttings and well treatment chemicals wash and domestic wastes
Cooling
Spills
water
and leakage
The major impact of the waste streams arise from the toxicity, high pH and salt
TERRESTRIAL IMPACTS
Potential impacts to soil arise from two basic sources:
Physical
Contamination
The potential impacts arising from the poor design and construction includes soil erosion due to soil structure, changes in surface hydrology and drainage patterns, increased salination and habitat damage, reducing the capacity of the environment to support vegetation and wildlife etc.
ECOSYSTEM IMPACTS
Plant and animal communities may be directly affected by changes in their environment through variations in water, air and soil quality and through
disturbance by noise. Such changes may directly affect the ecology: for example,
habitat, food and nutrient supplies, breeding areas, migration routes etc. The effect is upsetting of the nutrient balances and microbial activity of the soil.
POTENTIAL EMERGENCY
of fuels, gases, oil, chemicals and hazardous materials Oil or gas well blowout Explosions Fires War & Sabotage Natural disaster and their implication on operation e.g. flood, earthquake, cyclone. The major impact of these emergency events include large GHG emissions, ozone depletion, changes in soil structure and character, habitat and vegetative damage.
Among all the different environmental impacts, the major focus lies on Atmospheric Impact caused by Oil & Gas Industry. One of the major sources of Atmospheric Impact caused by Oil and Gas Industry is the flaring and venting of gases. So the principle target for emission reduction is in this domain. Various technological initiative have been introduced to reduce emissions as a result of combustion process related to power production. More efficient gas turbines have been developed together with improved turbine maintenance regimes. Efficiency improvements may also result from gas turbine optimization considerations. Other technologies to improve fuel efficiency include: steam injection, combined cycle power generation, pump and compressor optimization, waste heat recovery and the application of energy conservation principles. Improvements in the technologies have resulted in reduced emission from the different sources. The reduction of GHG emissions directly leads to reduction of global warming. These process improvement/energy efficiency measures causing emission reduction can be directly accounted for and thus can be considered as CDM projects.
Others 44%
The Oil & Gas and Chemical industries are among the major emitters of GHGs.
GHGs trap heat energy in the Earth's lower atmosphere, like a thick blanket
This enhances the green house effect, resulting in commonly known Climate
Climate Change leads to: Rise in average global temperature (expected to go up by 1-4 Celsius in next 100 years) Changes in vegetation Increased storm surges Sea level rise (parts of Maldives & Bangladesh might submerge in next 50 yrs) Risks which will affect the profitability of the Oil & Gas industries
Global warming poses threat of sea level rise, hurricanes/ other natural calamities for especially those situated in the coastal regions. Coastal E&P facilities, Refineries can face huge damage due to cyclones and hurricanes
Business Risks
Extreme weather conditions resulting in increased energy cost, higher contingency requirement resulting in erosion of profit margins
Competitiveness Risks
Effect on Gross Refining Margin. As energy costs increase, Oil industries using conventional and carbon intensive energy sources will see a reduction in the GRM.
Regulatory risks
Carbon tax implementation on states by Central government can affect profitability of the Oil & Gas sector
Legally binding emission reduction targets for GHGs only for Annex-1 (i.e., developed ) countries Aim of reducing overall GHG emissions by at least 5.2% below 1990 levels in 2008-2012 commitment period
Kyoto protocol - Establishes three mechanisms to supplement national actions to achieve real, long term, measurable and cost effective GHG reductions:
Sale proceeds
Carbon Credits
Carbon credits are measured in terms of Certified Emission Reduction (CER) One CER equals 1 MT CO2 equivalent
Installation of compressors to recover low pressure (LP) gas and compress the same for further distribution Installation of ejector systems which uses the motive force to suck LP gases which were previously flared Installation of separators to separate gas at various pressures and recover very low pressure gas that was previously flared Up-gradation of process gas compressors (PGC) Optimal utilization of gas for internal consumption in gas lift wells/ gas re-injection Laying pipelines from gas rich areas to areas where there is scarcity of gas but greater demand (by identifying potential consumers).
A common grid of power is setup by achieving interconnectivity across various process and well platforms. This interconnectivity can be achieved by laying submarine cables and transferring surplus power (NG based) to the shore for sale. The project replaces more carbon intensive power source (DG based) to relatively cleaner (NG based) power.
Other Potential GHG abatement projects in Upstream Oil & Gas Sector
Facilities for reduction of gas flaring through ejectors/compressors/separators/pipeline etc. Waste heat recovery at oil production facilities. Energy efficiency improvement in gas processing plant Power factor improvement at oil installations Reduction in gas pipe leaks Fuel switch from fossil fuels to other cleaner fuels like natural gas
-Enhanced heat utilization through installation of centralized flash steam recovery system to recover steam condensate -Flash steam utilization in vapor absorption chiller to produce refrigeration effect -Better steam trap management to reduce heat loss -Improvement in the cogeneration/ self generation efficiency
Steam optimization by installation of Dry-ejector system instead of
steam-jet ejector in VDU In Dry-ejector system vacuum gas oil is used as motive liquid and circulated in the system. This reduces generation of LP steam which is required as motive fluid in conventional steam-jet ejector. An unique technology.
Potential GHG abatement projects in Downstream Oil & Gas Sector & Petrochemical Units
1. Energy efficiency Improvement in the existing systemcontd Installation of mist cooling tower instead of conventional cooling tower
A much lower cooling water temperature can be achieved through mist cooling tower. This improves heat recovery and reduces cooling water requirement hence lower pumping energy etc. Not a common practice in large-scale hydrocarbon industries.
Heat integration through the application of state-of-the-art pinch technology
Energy efficiency improvement through optimization of heat exchanger network in CDU/VDU/pre-heat train of distillation units etc. Optimization of HEN is performed using Pinch Analysis.
New generation refractory
Replacement of conventional refractory with ceramic fibre insulation to reduce heat loss in furnace
Few more potential areas in refinery units where CDM may be applicable
2. Flare recovery system utilization to cater to heat demand of refinery utilization in boilers/ Gas Turbine 3. Fuel switch projects Fuel switching in furnace, heater etc Fuel switch in the thermal energy generation system/ cogeneration/ self generation equipments Optimization in H2 recovery from off gases from CRU, VGO hydro-treater etc 4. Application of Advanced Processes Use of new generation catalysts which reduces coke deposition on the catalyst Application of energy-efficient Solvent De-asphalting technology instead of energy-intensive Cracking/Coking technology
CARBON TRANSACTIONS
carbon transactions are purchase contracts whereby one party pays another party in exchange for a given quantity of GHG emission reductions, either in the form of allowances or credits that the buyer can use to meet its compliance objectives vis--vis greenhouse gas mitigation.
Payment for emission reductions can be made using one or more of the following forms: cash, equity, debt, or in-kind contributions such as providing technologies to abate GHG emissions.
Carbon Transactions
Ensures guaranteed carbon revenue Advance possible, but modalities still uncertain Could be fixed price or market-linked Possible to put floor and ceiling Guaranteed quantity or best effort basis Transaction on issuance of CERs Till today, has resulted in better rate Has been more popular in India so far Usually when large quantum of CERs available (say >100,000 p.a.)
Spot transaction
Summary
Climate change and global warming: major threat to the Oil & Gas industries. The Oil & Gas sector will be a significant part of an evolving solution to the CO2 challenge and certainly drive the ushering of a cleaner hydro carbon age in future. Companies have already started pursuing strategies to position themselves in the cleaner, more sustainable and low carbon growth trajectory by conscious reorganization of their product portfolio and restructuring of their multi-location operations. Big Oil Companies like British Petroleum is planning to invest USD 8 billion in low carbon power and alternative energy business over the next decade and aims at USD 1 billion of operating profit by 2015 from this business only. Adoption of the right strategy for mitigating long term climate change risks can provide distinct competitive advantage. Companies seeking to develop their strategies should first analyze their value-at-stake or value-at-risk under a variety of scenarios from current and emerging policies to reduce carbon emissions.
References
http://www.ibef.org/download/Oil_and_Gas50112.pdf http://www1.ifc.org/wps/wcm/connect/554e8d80488658
THANK YOU