GHG Emissions: Evaluation, Reduction, and Reporting

Abstract

The objective of this paper is to provide a systematic approach to verify and validate Greenhouse Gas (GHG) emissions for a typical Gulf of Mexico (GoM) offshore oil and gas production facility. The paper discusses ways to reduce GHG emissions at the facility level and examines an approach to assess an energy company's emission reporting methods and, where applicable, its target to achieve net zero emissions. The paper reviews the regulatory framework for GHG emissions reporting and estimation guidelines. It identifies emission sources for a typical offshore facility and groups these emission sources into defined categories. A simplified model is created to estimate total emissions for offshore facilities. The model results are used to evaluate inherent uncertainty in emissions estimation techniques and also provide a basis to reduce emissions. Furthermore, the paper reviews sustainability reports of select energy companies, and analyzes these companies’ reporting methods, targets, and strategies to reduce emissions at the corporate level. In summary, the paper provides insights and guidance in estimating GHG emissions at the offshore facility level and subsequent reporting at the company corporate level with the following: Review of the regulatory framework, estimating methods, and reporting for an offshore facility level emissions. Organize emission sources into defined categories in order to comprehend major emission sources for an offshore facility. Analyze inherent uncertainty in emissions estimation. Discuss ways to reduce emissions at the facility level and its limitations. Analyze select energy companies’ corporate sustainability reports and cover ways to standardize emissions reporting so it is easier to evaluate and compare a company's performance with its peers. Identify energy company strategies and associated risks to achieve net zero emissions.