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Petroleum Environmental Solutions

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

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Petroleum Environmental Solutions

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

  2. Mission and Strategy Mission:Encourage Maximum Recovery and Use of Domestic Natural Gas and Oil Resources byReducing 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 andimprove environmental protection Develop sound scientific data to support cost effective, risk-based regulatory decisions by State and Federal agencies Improve communication and technology transfer among industry, government, and the public

  3. Determine Program Priorities • Basis • Clear Federal Role • Window of Opportunity • Ability to Impact • Impact of the Issues

  4. Petroleum Environmental Solutions Structure

  5. Foster aggressive technology transfer • Foster partnerships with industry, government and others on technologies and policies to foster domestic oil and natural gas supplies Petroleum Environmental Solutions Roadmap Past and Future 1990 1995 2000 2005 2010 2015 2020 Reduce Cost of Produced Water Management (nationwide) operations by 15% Potable Water from Produced Water Produced Water Gas & Oil CBM Water Issues Hydraulic Fracturing Fed Land Access Issues Federal Lands Access New Tech- Low Impact Small Footprint Exp/Drilling/Production Streamlining Permitting Processes Regulatory Impact Analysis Regulatory Streamlining Legacy Programs (lower priority post FY03) Remediation Provide Tools for States to Expand Risk-Based Corrective Action by 25% Air Emissions Processing Heavy Crudes Bio-Processing Outreach & Education Communicate Best Practices STRATEGIC OBJECTIVES

  6. Foster aggressive technology transfer • Foster partnerships with industry, government and others on technologies and policies to foster domestic oil and natural gas supplies Petroleum Environmental Solutions Roadmap FY04 2003 2008 2015 2025 Produced Water Gas & Oil CBM Water Issues Gas & Oil Conventional Federal Land Access Regulatory Impact Analysis Regulatory Streamlining Permitting Processes Environmental Barriers Air Technology & Applications Mgt Analysis Modeling Remediation Soil Control & Techniques Sound Science Chemistry & Chemical Analysis Technology Outreach Federal Public Communicate Best Practices FY04 STRATEGIC OBJECTIVES

  7. Aggressive Technology Transfer • Foster partnerships with industry, government and others on technologies and policies to foster domestic oil and natural gas supplies Rollup Petroleum Environmental Solutions Roadmap FY04-09 2003 2008 2015 2025 Produced Water CBM Water Issues Gas & Oil Conventional Federal Land Access Regulatory Impact Analysis Regulatory Streamlining Permitting Processes Environmental Barriers Technology & Applications Mgt Analysis Sound Science Modeling Air Remediation Soil Control & Techniques Chemistry & Chemical Analysis Refining Technology Federal Outreach Public Communicate Best Practices FY04-09 STRATEGIC OBJECTIVES Reduce Cost of Produced Water Management (nationwide) operations by 15%

  8. Petroleum Environmental Solutions - Water Management 2003 2008 2015 2025 Approach & AnalysisToxicity, TMDL’s,Characterization, Disposal Land Use Applications, Impact Basins Management Techniques Treatment, Cleanup, Interactions Produced Water Coal 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

  9. 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

  10. Petroleum Environmental Solutions - Air 2003 2008 2015 2025 Modeling Analysis Environmental Barriers Regulatory Impact Technology & Applications Some Tasks Continue over Entire Program

  11. Petroleum Environmental Solutions 2003 2008 2015 2025 Sound Science Response to Regulation Support for Decision Makers Chemistry & Chemical Analysis Examination of Alternatives Sound Science Air Modeling Analysis Regulatory Impact Environmental Barriers Technology & Applications Air Soil Remediation Environmental Barriers Regulatory Impact Control & Techniques Soil Refining Bioprocessing Refinery Efficiency Emissions Reduction High Sulfur Heavy Oil Potential Liquid Fuels Refining

  12. Petroleum Environmental Solutions - Soil 2003 2008 2015 2025 Remediation Environmental Barriers Regulatory Impact Control Technologies

  13. Petroleum Environmental Solutions – Sound Science 2003 2008 2015 2025 Chemistry & Chemical Analysis Response to Regulation Support of Decision Makers Examination of Alternatives

  14. Petroleum Environmental Solutions – Outreach 2003 2008 2015 2025 Federal State & Local Involvement Public Involvement Partnerships

  15. Petroleum Environmental Solutions – Outreach & New Technologies 2003 2008 2015 2025 Federal State & Local Outreach Public In Partnerships New Technologies New Technologies

  16. Produced Water Management Goal: By 2015, reduce the cost of produced water management for oil and gas operations by 15%. 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. 2010 Develop pilot-scale low-maintenance, lower-cost produced water treatment unit. 2015 1995 2005 2010 2000 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.

  17. Remediation Goal: By 2005 reduce the cost of remediating soils contaminated with crude or refined product by 15% compared to 1990 approaches. 2010 Provide the tools for States to expand the use of Risk-Based Corrective Action by 25%. 2005In conjunction with PERF, establish the scientific basis for clean-up parameters. 2015 1995 2005 2010 2000 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.

  18. Coalbed Methane (CBM) 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. 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. 2006Provide fate and transport data to determine the environmental impacts of infiltration ponds in the Powder and Tongue River basins. 2006 Provide data on the term effects of coalbed methane production on coal seam aquifers. 2015 1995 2005 2010 2000 2007 Develop best management practices for treating and/or discharging coalbed methane water to the surface. 2005 Resolve questions surrounding the environmental effects of hydraulic fracturing. 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.

  19. Bio-Processing 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. 2010 Perform pilot-scale bio-processing of 25% of heavy crudes during the transport time between E&P and the refinery. 2005 Survey currently available bio-processing methods. 2015 1995 2005 2010 2000 2008 Develop methods to allow bio-processing from best available technology. 2015 Perform pilot-scale bio-processing of 50% of heavy crudes during the transport time between E&P and the refinery. 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.

  20. AirEmissions 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. 2012 Develop more accurate and robust air chemistry models and integrate them with dispersion models. 2007Develop scientific data to more accurately predict particulate matter precursor formation in SW Wyoming. 2015 1995 2005 2010 2000 2010 Develop dispersion models to reflect E&P contributions in nonattainment areas. 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.

  21. Processing Heavy Crudes Goal: By 2015, Improve the efficiency and yield of processing plentiful Western Hemisphere crudes by 2007 Characterize heavy oils of the Western Hemisphere. 2001 Establish pilot-scale operation of 50% of Western Hemisphere heavy crudes. 2015 2005 2010 2000 1995 2009 Develop alternative processing technologies to allow heavy oil processing costs to be half of base year (2000) cost to light oil. 2005 Select candidate heavy oils and match to U.S. domestic refinery. 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.

  22. Questions ? Dan Gurney NETL Oil and Gas Environmental Product Manager 1 West 3rd Street, Suite 1400 Tulsa, Oklahoma 74103 Telephone: 918 699 2063 Email: dan.gurney@npto.doe.gov Facsimile: 918 699 2005

  23. Petroleum Environmental Solutions Structure Alternative Organization Structure

  24. Petroleum Environmental Solutions – Air, Soil and Sound Science 2003 2008 2015 2025 Modeling Analysis Air Environmental Barriers Regulatory Impact Technology & Applications Remediation Soil Environmental Barriers Regulatory Impact Control & Techniques Chemistry & Chemical Analysis Sound Science Response to Regulation Support for Decision Makers Examination of Alternatives

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