Energy Tomorrow RSS Feeds: Environment

Companies Address Climate Change - 6/24/2009 11:10:38 AM

Wed, 24 Jun 2009 11:10:38 -0500

We all have a role to play in addressing the risk of global climate change, and that includes America’s oil and natural gas companies. The industry has invested $175 billion since 1990 toward improving the environmental performance of its products, facilities and operations—$582 for every man, woman and child in the United States.

Global climate policy has to be approached from the proper perspective.

Global climate change is extraordinarily complex and challenging because the main source of greenhouse gas emissions is the energy that heats our homes, powers our factories and offices, and gets Americans to school and work.

It is crucial that our nation have a climate policy framework that not only leads us in the right direction, but enables us to move forward with workable policies and practical, equitable solutions. Policymakers need to analyze carefully the impact of any climate policy on ordinary Americans, especially at this time of economic uncertainty.

To be workable, climate change policy should:

Be environmentally effective;
Be transparent and understandable to consumers;
Identify and prioritize the most cost-efficient ways to reduce emissions;
Avoid government selection of market “winners” and “losers;”
Provide access to all domestic energy sources, particularly natural gas, which has the lowest emissions per Btu;
Keep U.S. energy production competitive in the global marketplace to avoid “outsourcing” business jobs and emissions overseas; and
Avoid severe damage to the U.S. economy.

The U.S. oil and natural gas industry is spending billions of dollars developing new advanced energy technologies to reduce greenhouse gas emissions. Between 2000 and 2008, the industry invested more than $58 billion in new low and zero emissions technologies. This represents 44 percent of the $133 billion spent by all U.S. industries and the government combined.

We’re working hard to reduce greenhouse gas emissions.

These large investments are critical to provide the low-carbon energy we will need years from now. Oil and natural gas companies are at the forefront of:

Developing advanced energy technologies and new uses of clean-burning natural gas;
Researching, developing and marketing energy alternatives, including solar, geothermal, biofuels, fuel cells, hydrogen power and wind energy; and
Developing “carbon capture and storage” technology, or CCS, to reduce carbon dioxide (CO2) emissions by storing them underground.

In certain cases, injecting these gases for storage can also increase oil recovery. An oil company operates the largest CCS facility in North America but in order for CCS to advance, much more needs to be done. A legal and regulatory framework for long-term CO2 storage is still lacking. The use of CCS would facilitate the continued use of our nation’s vast plentiful coal and frontier hydrocarbon resources in an environmentally-friendly way.

Offshore Production - 6/2/2009 4:37:19 PM

Tue, 02 Jun 2009 16:37:19 -0500

Development of America’s energy resources is essential to ensure ample supplies.

The Gulf Coast region includes some 4,000 offshore platforms plus sub-sea production and pipeline systems in federal waters. The area also hosts dozens of refineries and natural gas processing plants, and hundreds of transportation and marketing facilities. One of the reasons there are so many oil and natural gas facilities in this area is that the nation’s energy policy limits exploration and production to the Central and Western areas of the Gulf of Mexico where people have welcomed energy development.

These operations are safe and environmentally responsible. They are regulated by rigorous standards that ensure their safe operation. Two seasons of devastating hurricanes in the Gulf of Mexico have demonstrated the oil and natural gas industry’s ability to develop the nation’s energy resources and, at the same time, protect the environment.

In 2005, just before Hurricanes Katrina and Rita roared through the Gulf, all offshore production platforms and drilling rigs were evacuated to protect workers and production was shut down. As a result, there were no lives lost and no significant offshore spills.

The brutal effects of those back-to-back storms had a significant and historic impact nationwide. They temporarily shut down oil and natural gas production when supplies were already stretched thin by an extraordinarily tight global supply and demand balance. And they devastated the communities that were home to thousands of men and women in the energy industry, many of whom ignored their own hardships and worked around the clock to restore production.

America has abundant energy supplies in other locations as well. Federal lands designated for multiple uses and federal waters in the Eastern Gulf and along our east and west coasts—comprising almost one-third of total U.S. land area and most of the Outer Continental Shelf (OCS)—contain the bulk of America’s undiscovered oil and natural gas.

According to the latest published estimates, the Outer Continental Shelf holds approximately 86 billion barrels of oil and more than 420 trillion cubic feet (TCF) of natural gas. That’s enough oil and natural gas to heat 133 million homes for 50 years. The OCS resources off the lower 48 states alone are enough to provide gasoline for 134 million cars and heating oil for 6.3 million homes for 15 years, plus enough natural gas to maintain current OCS production levels for over 115 years.

The total recoverable resources, using today's technology, are equivalent to the oil resources of Canada and Mexico combined and nearly three times their natural gas resources.

Hurricane Preparedness - 6/1/2009 2:57:34 PM

Mon, 01 Jun 2009 14:57:34 -0500

For the 2009 hurricane season, America’s oil and natural gas industry continues to build upon critical lessons learned from last year's major hurricanes, Gustav and Ike, as well as earlier record breaking storms, such as 2005's Katrina and Rita and 2004's Ivan.

The industry plays two primary roles in preparing for hurricanes:

First, to help gain a better understanding of the environmental conditions in and around the Gulf of Mexico during hurricane or tropical storm activity and then apply that knowledge to make offshore and onshore facilities less vulnerable.
Second, to facilitate industry reliability by fostering collaboration among member companies and with federal, state and local governments and with other industries.

Companies in all segments also continue to independently improve preparedness. They have, for example, reviewed and updated emergency response plans, established redundant communication paths and made pre-arrangements with suppliers to help insure they have adequate resources during an emergency.

The nation’s oil and natural gas industry also invests heavily in advanced technology to produce the energy our nation needs while protecting the environment. The industry is committed to safety and protecting the environment during hurricanes – in fact, from 1998 to 2007 the industry invested $101 billion in environmental protection, or nearly $335 for every person living in the U.S. And we continually strive to improve our record for this year’s hurricane season and beyond.

Above all, the industry is dedicated to ensuring the safety of its employees. Evacuations are provided from offshore facilities the minute a hurricane comes into radar. Employees are given the most up-to-date reports on storm status and its path of movement.

These combined efforts are critical since the Gulf of Mexico provides almost 30 percent of the oil and about 20 percent of the natural gas produced in the United States (approximately 70 percent of the oil supply comes from deepwater facilities). The Gulf Coast region is also home to almost half of U.S. refining capacity.

Hurricane Response and Market Effect - 5/28/2009 4:43:44 PM

Thu, 28 May 2009 16:43:44 -0500

The recent hurricanes that ripped through the Gulf of Mexico put a strain on U.S. oil and natural gas operations. Hurricanes Gustav and Ike led to the near-complete shutdown of the oil and natural gas infrastructure and production in the Gulf area, a major supplier of domestic energy.

As a result of the temporary loss of gasoline production and pockets of surging demand, fuel prices rose in some areas across the country. Many have asked: "Why should the price of gasoline increase in my area when we are nowhere near the hurricane-affected areas?" API has assembled this fact sheet to help consumers better understand the interconnected U.S. fuel supply system and what happens when a supply shock, such as a hurricane, occurs.

Refining Capacity
The Gulf Coast region of Louisiana, Mississippi and Texas is the heart of the nation’s oil and natural gas industry. It accounts for 46 percent of U.S. refining capacity and the Gulf of Mexico accounts for about 25 percent of the oil and 15 percent of the natural gas produced in the United States.

In advance of a tropical storm or hurricane, companies will evaluate and may decide to evacuate all non-essential personnel and begin the process of shutting down production, refining operations and pipelines. After a storm passes, companies must perform extensive inspections and damage evaluations to determine when it is safe to resume operations. Even if there is no damage, production cannot always resume immediately. For example, restarting a refinery is complicated and it may take several days to restore full production. The restoration of power supplies is crucial, and electricity disruptions are common after a hurricane. Refineries also can be hampered by a lack of crude oil feedstock if offshore production platforms or ports and pipelines have sustained damaged or loss of power supply.

Interconnected Petroleum Supply System
Refineries and pipelines originating in the Gulf Coast region are major suppliers to other parts of the nation which is why motorists in states far from Texas and Louisiana can feel the price effects of a hurricane.

According to the Energy Information Administration (EIA), half the gasoline used on the East Coast and half of the crude oil run in refineries in the Midwest are shipped from the Gulf Coast region of the United States. In 2007, 1.9 billion barrels of crude oil, 1.3 billion barrels of petroleum products and 547 million barrels of finished motor gasoline were transported from the Gulf area throughout the country using all modes of delivery, including pipeline, tanker and barge.

Market Response
When a hurricane disrupts refinery operations, the combination of an immediate loss of gasoline and diesel production and a lack of demand for crude oil can result in a two-tier market – the price of fuel can rise and the price of crude can fall. At the same time, there also can be pockets of rising demand for fuel.

As we saw in the aftermath of hurricanes Katrina and Rita, market forces and the cooperation of government and the oil and natural gas industry were the most effective path to a restoration of supplies. Obviously, when there is a disruption in supply and operations there are challenges in ensuring fuel is available to all customers. The industry seeks to resume normal operations as quickly and safely as possible to continue to meet consumer demand. The government also steps in to alleviate supply concerns by issuing multi-state fuel waivers which encourage imports, and by offering crude oil from the nation’s Strategic Petroleum Reserve.

Environmental Expenditures
During the powerful 2005 hurricanes Rita and Katrina, the oil and natural gas industry did not experience any significant spills from offshore facilities.

The nation's oil and natural gas industry invests heavily in advanced technology to produce the energy our nation needs while protecting the environment. The industry is committed to safety and environmental protection. From 1996 to 2006, the industry invested $95 billion in environmental protection, or nearly $319 for every person living in the United States. It is vital to understand the environmental conditions in and around the Gulf of Mexico and to apply that knowledge to make offshore and onshore facilities less vulnerable when hurricanes hit.

Safety
The oil and natural gas industry has developed standards to ensure the safety of personnel on drilling rigs and platforms leading up to and following a hurricane.

Days in advance of a tropical storm or hurricane moving toward or near their drilling and production operations, companies will evaluate the situation and may decide to evacuate personnel and may relocate drillships to a safe location. After a storm has passed, operators initiate "flyovers" of onshore and offshore facilities to evaluate damage from the air. Once safety concerns are addressed, operators will send assessment crews to offshore facilities to physically assess the damage. If facilities and supporting infrastructure are undamaged and ready to accept shipments, operators will begin restarting production and drilling rigs will commence operations.

Consumer Tips
When a hurricane threatens to disrupt fuel production, it is important for consumers to conserve energy and not change their buying habits.

According to FEMA, consumers in the path of a hurricane or tropical storm should they have a proper safety and evacuation plan and secure their homes. As a storm approaches, consumers around the country should conserve energy use in homes and vehicles and maintain regular buying habits which can help alleviate a sudden surge in demand.

Policy Choices Needed to Ensure Future Energy Security

-	Reduce barriers to increasing domestic supplies.	-	Refrain from new taxes that make it more expensive to develop our domestic supplies.
-	Encourage investment in long-term energy initiatives and advanced technologies.	-	Support the need to participate actively in global energy markets rather than isolate the U.S.
-	Encourage energy efficiency.	-	Rely on market forces to allocate products.

EEHI: The Energy Efficient Homes Initiative - 5/20/2009 10:45:21 AM

Wed, 20 May 2009 10:45:21 -0500

For the third consecutive year, America’s oil and natural gas industry and Rebuilding Together are working together to help increase energy efficiency in homes and help low-income homeowners save money by reducing their energy usage.

Rebuilding Together, the nation’s largest nonprofit organization working to preserve affordable homeownership, and the American Petroleum Institute, the primary trade association for the oil and natural gas industry, teamed up to create the Energy Efficient Homes Initiative in 2005. Through the Initiative, Rebuilding Together and API provide energy-efficient home repairs and modifications to low-income homeowners, lessening the burden of home utility costs.

Additionally, since 2005, the Initiative has:

Expanded its reach, doubling the number of rebuilds conducted nationwide;
Enabled homeowners and assisted living facilities across the nation to save thousands of dollars, thanks to a variety of energy-efficient techniques incorporated into their homes;
Afforded homeowners the ability to save as much as 30 percent on monthly energy bills;
Enhanced the quality of life of homeowners and helped educate volunteers on the value of energy efficiency; and
Facilitated the incorporation of energy-efficient measures in the more than 9,000 homes revitalized each year by Rebuilding Together.

Here is what two EEHI homeowners had to say about their experience:

“When the electric bill came this month and showed that we used nearly half the electricity (15kWh) we used during March 2006 (25kWh) with the exact same average daily temperature, we knew we could not put off your thanks any longer. What a wonderful surprise to go from $143 in January and $152 in February to $86 in March 2007!”
Homeowner, Hartford, Connecticut, 2007

“My new ‘Energy Star’ furnace and central air conditioning, for which funding was provided by API, will save a tremendous amount on my heating and cooling expenses. Now my home is warm in every room and in every corner! It makes no difference if the wind is blowing, the snow is falling and the temperature is below freezing.”
Homeowner, Montana, 2006

Rebuilding Together is the nation's largest nonprofit organization working to preserve affordable homeownership and revitalize neighborhoods by providing free home repair and modification services to those in need. With the help of everyday citizen volunteers, skilled trades people, the support of local business and major corporate partners, Rebuilding Together affiliates in America’s largest cities and smallest towns make life considerably better for thousands of low-income homeowners. In addition to its core home repair work, Rebuilding Together rehabilitates community centers and conducts home modification and repair programs that focus on aging in place, energy efficiency, veteran’s housing, and disaster recovery and reconstruction. Rebuilding Together is currently celebrating 20 years as a national organization and the completion of over 100,000 homes thanks to the efforts of more than 200 affiliates nationwide. For more information, visit www.RebuildingTogether.org.

The American Petroleum Institute is the primary trade association for the oil and natural gas industry in the United States. Representing one of the most technologically advanced industries in the world, API’s membership includes nearly 400 companies engaged in all aspects of the oil and natural gas industry, including the exploration, production, refining, transportation and marketing of crude oil, natural gas and related consumer products. For more information on the American Petroleum Institute, please visit its Web site at http://www.api.org.

EEHI Photos
We invite you to take a look at a few of our Energy Efficient Homes Initiative projects dating back to 2005 by viewing our online scrapbook below.
Note: Click on page edges to turn the page.

You Can Get Involved

Become a Sponsor: Rebuilding Together will use your contributions in your community or across the nation to incorporate energy efficiency improvements as they renovate and weatherize homes. Low-income homeowners will be able to save money and energy.
Volunteer: Find the contact information for your local affiliate by searching for state or zip code at www.rebuildingtogether.org and using the “Find an Affiliate” option.
Serve on an Affiliate Board of Directors: Help shape the program as it grows in your
community by providing your talents on the board of directors.

Energy Company Environmental Expenditures - 5/20/2009 9:57:57 AM

Wed, 20 May 2009 09:57:57 -0500

The U.S. oil and natural gas industry's business operations are divided into four major business sectors: exploration and production, refining, transportation and marketing. Following is a brief overview of how environmental expenditures have been allocated across these sectors.

Exploration and Production: The U.S. is the world's third-largest oil and natural gas producer, with nearly 910,000 producing oil and natural gas wells operating onshore and approximately 4,900 oil and natural gas platforms operating offshore in U.S. state and federal waters. These wells produce almost 1.9 billion barrels of oil and 23.5 trillion cubic feet of natural gas annually.
Refining: The nation's 149 refineries, which process more than 17 million barrels of crude oil every day, are upgrading their operations to produce ever-cleaner fuels and meet the growing variety of state and local mandates for fuel formulation.
Transportation: Petroleum products move from well to refinery to market through a network of tanker ships, pipelines, barges and tanker trucks. Among the industry’s key environmental investments in this segment: By 2015, all tankers and barges operating in U.S. waters will feature double hulls, which help to contain cargo and prevent spills in the event of a collision or grounding.
Marketing: There are more than 164 thousand service stations operating across the United States. In recent years, the petroleum industry has made a major investment to upgrade underground storage tanks and install leak detection devices, helping to protect communities and groundwater supplies.
Other: Non-sector specific corporate programs such as planting trees or junking old cars. Also includes Research & Development expenditures to reduce pollution and emissions.

Our Environment - 5/20/2009 9:55:14 AM

Wed, 20 May 2009 09:55:14 -0500

The environmental investments of the oil and natural gas industry represent a crucial aspect of today’s energy exploration process.

America’s oil and natural gas industry uses technologies to find resources in a clean and responsible manner. Through new seismic exploration and extended reach drilling technologies, geologists can see and survey underground oil and natural gas deposits more effectively than in days past. This improves exploration success rates while reducing surface disturbance and environmental impact. Electronic navigation and physical oceanographic systems also help safeguard our natural resources and are a large part of the reason why over the last decade, more than 99.9 percent of oil delivered by tankers has reached its destination in the U.S. without incident.

Vehicle Research - 5/20/2009 9:52:40 AM

Wed, 20 May 2009 09:52:40 -0500

For almost as long as oil has provided us with the fuels for transportation, industrial production and personal comfort, many consumers have wondered if or when the world might run out of oil. They acknowledge its importance to our quality of life and personal mobility, yet they worry that it is a finite resource. "Shouldn't we replace it with an alternative immediately?" some ask.

The issue of future energy supplies is complex and cannot be solved by simply deciding to switch from one form of energy to another. Nor will we solve our energy problems by pitting one fuel source against another. We clearly need all sources. And the facts indicate that our society does not need to rush into a decision. There is enough time to consider all of the energy options and to make reasoned decisions. The full implications of decisions about new fuels and vehicles should be considered as they are explored.

A review of the facts provides a sound starting point.

The U.S. Energy Information Administration (EIA) projects global oil alone is sufficient to supply increasing quantities to consumers worldwide each year for generations to come.

At the present time, there is no other energy source that is as efficient, versatile, or affordable as oil. It is used to power our cars, heat and cool our homes and workplaces and provides power for industrial operations. In addition, it is converted into thousands of consumer products that enhance our lives and economic growth, every day.

At some point in the future, technology might make available another form of energy that is even more efficient, cleaner and cheaper than oil. In that event, society might transition to it – not because we are running out of oil, but because consumers believe the new energy source is more affordable or is a better alternative. In the meantime, the EIA forecasts that petroleum-based fuels will continue to be the dominant energy source until at least 2025.

Fuel Choices - 5/20/2009 9:46:41 AM

Wed, 20 May 2009 09:46:41 -0500

We know consumers are conscious about the products they use. We also know that consumers like to have a choice in what they will buy. That’s why our companies began to deliver an impressive, new fuel that significantly reduces particulate emissions. It’s called Ultra Low Sulfur Diesel and it’s the cleanest diesel fuel supplied in the world today – with 97 percent less sulfur content.

This is just one of many significant improvements in vehicle efficiency and emissions reductions in recent decades.

Powering the Future - 5/20/2009 9:43:53 AM

Wed, 20 May 2009 09:43:53 -0500

Alternative sources of energy will grow dramatically over the next 20 years, but they alone cannot meet all of our needs. We need to embrace all forms of energy – including the oil and natural gas this country depends on for business and personal mobility.

Solar, wind, geothermal, and fuel cell technologies are among the numerous energy solutions that have garnered considerable interest in recent years. The oil and natural gas industry believes that each one has an important role to play in America's energy supply.

Solar, wind and geothermal technologies are producing electricity for homes and businesses. And it's believed that hydrogen to power fuel cell vehicles, could become a viable energy source in the future.

Those fuels are undoubtedly a viable part of tomorrow’s energy mix, but they do not represent the entire answer. In the year 2030, renewable ‘fuels of the future’ will only comprise nine percent of consumer demand. More than 60 percent of demand will continue to be fulfilled by oil and natural gas.

Someday technology might introduce a new source of energy to the marketplace that is even more efficient, cleaner and cheaper than oil and natural gas. In the meantime, we all need to work together to use existing energy resources wisely, that means continuing to invest in ways to make the exploration, production and use of oil and natural gas more efficient.

Energy and the Environment - 5/20/2009 9:39:15 AM

Wed, 20 May 2009 09:39:15 -0500

The oil and natural gas industry has worked hard to achieve a harmonious relationship with the environment and surrounding wildlife.

In fact, the industry has invested nearly $100 billion in emerging technologies that allow offshore operations to be cleaner, safer and more efficient. Through new seismic exploration and extended reach drilling technologies, our geologists can see and survey underground oil and natural gas deposits more effectively than in days past. This improves exploration success rates while reducing environmental impact. Electronic navigation and physical oceanographic systems also help safeguard our natural resources and are a large part of the reason why over the last decade, more than 99.9 percent of oil delivered by tankers has reached its destination in the U.S. without incident.

On the mainland, we now employ 4-dimensional seismic imaging to help locate oil underground. Our geoscientists watch multiple 3D screens that show the underground rock and, hopefully, oil reservoirs. Time is the fourth dimension in this equation – we overlay new images to see which direction the oil is moving. By following the flow, before we even scratch the surface, we can be more precise when extracting the oil. We can drill downward … then turn left or right for miles … and then go back up or down. This technique greatly reduces our impact on the land.

Deep drilling technology also offers other benefits. In one Wyoming field, for instance, engineers pull oil from depths of nearly five miles, and at volumes so high that only a few wells are needed to drain the reservoir.

Companies involved in local energy exploration have also reintroduced native plant species and created groundwater reservoirs to serve local antelope, deer and waterfowl. Fish and Game Departments from a variety of states have honored the industry for environmentally-sound practices, and environmental groups, such as The Nature Conservancy, have partnered with oil and natural gas companies to protect native habitats.

The preservation of nature – and of America’s energy future – remains paramount when exploring for natural resources.

See how the co-generation process works

Exploration Innovations - 4/21/2009 12:27:12 PM

Tue, 21 Apr 2009 12:27:12 -0500

Industry advancements in exploration are accelerating how energy sources are identified while the industry's record of extracting oil and natural gas safely and cleanly is maintained and improved.

3-D seismic technology and global satellite positioning enable geologists and engineers to pinpoint potential energy sources and "see" underground before drilling begins, dramatically improving the exploration success rate while greatly reducing surface disturbance and environmental impact
Advanced directional drilling technology allows access to an underground target the size of a closet thousands of feet deep and more than five miles from the drilling rig, making it possible to drill more wells from a single location
Improved drilling muds ease the friction and reduce the waste associated with drilling
Slimhole drilling permits re-entering existing wells to tap new reserves in mature fields reducing environmental impacts and expanding recovery from known reservoirs

Energy Efficiency - 4/21/2009 12:23:09 PM

Tue, 21 Apr 2009 12:23:09 -0500

The greatest “new” energy source available to use is the reduced demand brought about by greater energy efficiency and conservation. Significant progress has been made in the past and more is expected in the future.

We use about half as much energy today for every dollar of Gross Domestic Product as we did back in 1980. Looking forward, our nation must take energy efficiency more seriously. Our industry is doing its part. Through such technologies as combined heat and power, also known as cogeneration—the re-use of excess heat from refinery processes to produce additional energy—refiners are becoming more efficient, reducing both energy use and emissions.

The oil and natural gas industry has pledged to improve energy efficiency by 10 percent at refineries between 2002 and 2012, and we are making progress in meeting that goal. In fact, in 2006 alone, U.S. refiners saved the energy equivalent of taking 528,000 cars off the road.

To learn more about how U.S. energy providers support energy efficiency, click here (.pdf).

Industry Technology - 4/21/2009 11:52:24 AM

Tue, 21 Apr 2009 11:52:24 -0500

Oil and natural gas companies are on the leading edge of innovative technologies to find resources more efficiently and precisely, thereby reducing environmental impact. These technologies include 4-D visualization (using seismic imaging), directional drilling and deepwater drill ships. These new technologies are applied on land, in the deep waters of our oceans, and in the refineries that create products for consumers.

See how the co-generation process works

Future Fuels - 4/21/2009 10:48:46 AM

Tue, 21 Apr 2009 10:48:46 -0500

The oil and natural gas industry believes that we will need all energy resources – wind, solar, biofuels and others – to meet the world’s growing demand for energy supplies. The world needs a portfolio of resources, as well as advanced research into future sources and technologies.

Energy companies are conducting or funding a significant amount of research into alternative energy sources. They also have partnered with the federal government and the U.S. auto industry to examine and advance the research needed to develop technologies necessary to develop a full range of fuel efficient and affordable cars and light trucks.

There are several conventional and unconventional fuel sources that have the potential to provide future benefits:

Conventional sources – billions of dollars in research have helped and scientists develop cleaner, more efficient, and better performing fuels from crude oil:

Reformulated gasoline has led to significant reductions in ozone precursors and toxic emissions
The introduction of ultra-low sulfur diesel fuel is enabling the use of cleaner-technology diesel engines and vehicles resulting in significantly improved air quality
Some refineries are converting heavier, sour crude oil into low-sulfur gasoline, diesel and jet engine fuel and squeezing extra gallons from every barrel
Upgrading inferior oil sources (i.e. tar and oil sands) into refinery feedstocks shows promise
Turning waste and residue hydrocarbons into high-value products through gasification is yet another approach being considered

Frontier sources – research is also leading the way toward the development of new sources of energy:

Biofuels, such as ethanol and biodiesel, are being produced from corn, oil seeds, animal fats, and waste oils
Processes to convert woody biomass and other cellulosic feedstocks into transportation fuels are being actively investigated
Hydrogen, created by using natural gas, is being considered as a transportation fuel
Fuel cells that convert hydrogen and oxygen into water, and in the process produce electricity could be used for heating and cooling, as well as for transportation, in the future
Methane hydrates – methane gas frozen in ice crystals – could produce clean-burning energy for 1,000 years
Coal gasification produces liquids that show promise as transportation fuels
Processes that turn natural gas into a liquid fuel also can help to meet transportation demands. Even landfill gas is being converted into liquid fuel

Refining Innovations - 3/5/2009 1:09:58 PM

Thu, 05 Mar 2009 13:09:58 -0600

With the significant increases in energy demand in recent years, U.S. refineries have been running at nearly full capacity. Many refineries are using technological advances to get more out of each barrel of oil processed.

Refinery automation is integrating process and energy system controls to boost operating efficiency and product yields
New refinery emissions monitoring technology uses infrared lasers with advanced imaging systems to minimize releases
Solvent-extraction systems reduce waste using one-third the energy it takes to refine lubricating oil from crude oil
New process, equipment and catalyst technology advances are being used to meet new regulations requiring very low sulfur levels in gasoline and diesel fuel
Efficiency improvements at refineries are converting crude oil residue into low-sulfur diesel and jet engine fuel and squeezing extra gallons from every barrel
Low-sulfur gasoline produced by refineries generates up to 97 percent less emissions in one of today's new cars than in a 1970s vehicle
Ultra-low sulfur diesel fuel being produced today is making great strides in reducing particulate matter (soot) from diesel exhaust
Co-generation is helping refineries capture waste heat and use it to produce electricity, which can minimize the need to purchase power and help reduce greenhouse gas emissions. See how the co-generation process works

Transportation Innovations - 10/16/2008 10:02:50 AM

Thu, 16 Oct 2008 10:02:50 -0500

As with refineries, the pipelines and tankers that transport our energy products use advanced technology to meet increased demand safely and effectively.

"Smart pig" in-line inspection tools travel inside pipelines scanning for problems before they occur, thus contributing to safe and reliable operations
Aircraft equipped with infrared photography can locate pipeline problems before leaks occur
Electronic navigation used by tankers with side scan and multi-beam sonar technologies map shipping lanes and other waterways to enhance safety
Physical Oceanographic Real-Time System (PORTS) is being implemented in major U.S. ports to help vessels use the Internet to monitor oceanographic and meteorological data to move energy supplies safely and efficiently

A Proven Environmental Record - 10/16/2008 10:01:16 AM

Thu, 16 Oct 2008 10:01:16 -0500

Opponents of oil and natural gas development still raise questions about environmental impact. However, history provides a long record with ample evidence of the industry’s ability to develop resources safely, while protecting the environment on land and offshore.

For example, the industry’s leak prevention capabilities and performance were severely challenged by Hurricanes Katrina and Rita, which battered the Gulf and nearly 3,000 platforms directly in their paths. Some faced winds up to 200-mph and 100-foot seas. While other systems failed, the oil and natural gas industry weathered the storms without incident.

As former U.S. Interior Secretary Gale A. Norton noted:

"There is good news regarding offshore operations. Katrina and Rita – both reaching Category 5 strength as they spun through the Gulf and the heart of the offshore energy production caused no loss of life among offshore industry personnel or significant spills from any offshore wells on the Outer Continental Shelf (OCS). This bears repeating: We faced down two of the most devastating hurricanes ever to hit the Gulf of Mexico without one significant spill from any offshore well on the Outer Continental Shelf."

Cogeneration - 6/10/2008 3:11:28 PM

Tue, 10 Jun 2008 15:11:28 -0500

Cogeneration, or combined heat and power (CHP) has been a critical efficiency option for companies operating in the oil and natural gas sector. Generating the process steam and electricity that is frequently needed at our facilities simultaneously can yield efficiency rates far above the separate generation of electricity and steam. According to the EPA:

“The CHP system can produce the same electrical and thermal output at 75% fuel conversion efficiency as compared to 49% for separate heat and power. This is a 50% gain in overall efficiency, resulting in a 35% fuel savings.”

The oil and natural gas industry has invested heavily in CHP. According to the DOE, in 2001, the refining industry was the third largest co-generator in the manufacturing sector. In 1980 our industry had about 1.2 GW (gigawatts) of total CHP-based generating capacity. As of 2005, companies operating in the oil and gas sector had nearly 9.4 GW of capacity - greater than the electricity generating capacity of seventeen U.S. states.

Company Success Stories - 5/29/2008 11:24:39 AM

Thu, 29 May 2008 11:24:39 -0500

One company reduced C02 emissions through more efficient production of steam and electric power, by investing in 85 cogeneration facilities at some 30 company locations worldwide.
Through its energy-efficiency subsidiary - fourth largest in the U.S. – one company saved its customers 177 million kWh of electricity and 1.2 billion cubic feet of natural gas in 2005 alone.
One company implemented a five-year $350 million program to increase energy efficiency. In 2005, total primary energy consumption at this company was approximately two percent less than in 2004.
One company is investing $100 million to add 250 megawatts of cogeneration to a refinery to more fully use its refinery fuel gas - increasing refinery efficiency and reducing emissions.
Through a consistent focus on energy efficiency, one company has reduced its own energy consumption per unit of output by 24 percent since 1992.
Through voluntary efforts such as participation in the EPA Natural Gas STAR program, one company has reduced natural gas emissions by more than 20 billion cubic feet in the U.S. since 1991.
One company is working with Toyota and Caterpillar on separate programs to design high-efficiency, low-emission gasoline and diesel fuel/engine systems.
One company completed extensive upgrades to 16 Colorado state buildings that are expected to reduce energy costs at the facilities by 25-30 percent and save state taxpayers nearly $1 million annually and more than $20 million over the next two decades.
Partnering with the California Institute of Technology, one company is conducting a multi-million dollar research program that could open the door to a radical new way of producing solar cells, making the cost of solar electricity more competitive and increasing current efficiency levels.

10 in 10 Initiative - 5/29/2008 11:19:53 AM

Thu, 29 May 2008 11:19:53 -0500

API member refiners have set a voluntary goal to improve energy efficiency by 10 percent between 2002 and 2012, and are making progress to meet it through such technologies as using heat from their operations to produce additional energy – which reduces energy use and resulting emissions. Other technologies and changes in practice being used to meet this goal include advanced process controls, refinery optimization, investments in new, more efficient refinery facilities, retirement of non-competitive facilities and higher refinery utilization.

Despite increasing challenges to improve energy efficiency – including more stringent product specifications and heavier, higher-sulfur crude feedstocks - API member companies have collectively made significant refinery energy efficiency improvements since the adoption of the 10 in 10 initiative in 2003.

In 2006, improvements in energy efficiency at API member refineries – compared to the technology used in 2002 – produced energy savings equivalent to taking 531,000 cars off the road, or savings equivalent to the electricity used by more than 963,000 homes.

Increasing Efficiency - 5/27/2008 10:24:40 AM

Tue, 27 May 2008 10:24:40 -0500

America's oil and natural gas companies are making their operations cleaner and more efficient. They are also reinvesting industry earnings in new technology, new production, and environmental and product quality improvements that will meet tomorrow's energy needs.

The U.S. Department of Energy estimates that simple investments and behavioral changes can bring about a 20 percent increase in energy efficiency, with savings that can amount to almost $19 billion (in 2004 energy prices).
Computers and new refining technology have improved refining operations and efficiency. Though no refineries have been built in the last 30 years, the industry has added the equivalent of 16 refineries. This is an increase of 13 percent domestic refining capacity.
Efficiency efforts by oil and natural gas companies allow production with less waste, less electricity, and less greenhouse gas emissions.
Fewer wells have meant less wasted energy in drilling operations.

Cogeneration produces electricity and thermal energy efficiencies that can be more than twice that of the traditional approach of producing electricity and steam separately. It saves energy in refineries, in some instances, leading to excess electricity generated at the refinery that can be sold off-site for use by schools, hospitals and many other facilities.