Energy Tomorrow RSS Feeds: Environment

Offshore

2010-11-15T12:09:53+00:00

Approximately 70 percent of the earth’s surface is water, and many oil and natural gas reserves are beneath the world’s oceans and seas. Exploring in the deepwater environment is punishing, and the challenges are enormous, including near freezing temperatures, crushing pressure and powerful waves. To face these challenges, America’s oil and natural gas companies have developed many new offshore platform technologies to unlock oil and natural gas deposits that were previously inaccessible.

High technology floating drill ships are the deepest operating platforms. They can drill in 10,000 feet of water — almost two miles down. America’s oil and natural gas companies can reach resources in water three times as deep as what was accessible 10 years ago.
Dynamic positioning technology creates a high tech link between the ship’s thrusters and global positioning satellites to keep the drill ship accurately positioned over the well without anchors. In the deepest waters, the drilling equipment that penetrates the seafloor is installed and maintained by robotically controlled, remotely operated vehicles.

The Gulf of Mexico accident and oil spill are tragic. The industry remains committed to determining what happened so precautions can be taken to avoid another tragic accident and energy can be produced safely and reliably. Offshore drilling in the Gulf of Mexico plays an important role in meeting growing demand for oil and natural gas, and deepwater production will play an increasingly important role in the future.

About 30 percent of the nation’s total domestic oil production and 13 percent of domestic natural gas production comes from the Gulf of Mexico, where a majority of the nation’s offshore development takes place. Deepwater development represents the “new frontier” in offshore oil and natural gas development. Approximately 70 percent of the oil and 36 percent of the natural gas in the Gulf come from deepwater exploration.

Exploration for and production of oil and natural gas in the Gulf of Mexico support hundreds of thousands of jobs and are a key factor in U.S. technological leadership in the global energy economy.

According to the latest published estimates, the Outer Continental Shelf (OCS) holds approximately 86 billion barrels of oil and more than 420 trillion cubic feet 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.

Our companies are working to improve the technologies that enable us to access the energy we need offshore in a safe and reliable way.

The industry formed two task forces to address issues related to offshore equipment and offshore operating practices, and is coordinating with the independent presidential commission investigating the spill.

Refining

2010-11-15T12:09:39+00:00

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

Exploration

2010-11-15T12:09:06+00:00

Industry advancements in exploration are accelerating how energy sources are identified and produced.

• 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

Transportation

2010-11-15T12:09:02+00:00

In recent decades, great improvements in vehicle efficiency and emissions reductions have been made. Changes that energy companies made to gasoline and diesel fuels enabled and enhanced some of these advances. Despite a much greater number of cars and trucks on American roads, the combination of technologies has resulted in improved air quality.

For example, fuel cell vehicles that operate on hydrogen are envisioned as one long-term alternative to conventional autos—if the remaining technical, safety and economic hurdles are overcome.

While time is needed to pursue such breakthroughs, the auto and energy industries are making advancements in the internal combustion engine, cleaner-burning and alternative fuels, improved emissions control devices, and new powertrain technologies such as hybrids.

Also, U.S. refiners have made many major changes in gasoline and diesel over the past three decades, which have contributed to improvements to air quality. As fuels have become more complex, refiners must provide nearly 20 different types of gasoline formulations to meet federal clean-air standards in different areas of the country.

One key area of change has been in the reduction of fuel sulfur. And as crude sulfur levels continue to increase, refiners are investing approximately $8 billion in additional sulfur removing hydroprocessing technology to meet this decade’s new gasoline and diesel fuel (Tier 2) specifications.

For example, a new car using Tier 2 gasoline and equipped with the most advanced emissions reduction technology will:

Produce 99 percent fewer emissions than a new 1970 vehicle

Reduce nitrogen oxide emissions, a key precursor to smog, by more than three million tons in 2030

Be equivalent to taking 164 million cars off the road

Numerous other enhancements to the quality of gasoline were introduced. Lead was phased out, vapor pressure reduced, oxygenates added, Phase I and II federal reformulated gasoline (RFG) and California Cleaner Burning Gasoline (CBG) were all successfully introduced and sulfur was removed from both gasoline and diesel fuel.

EEHI: The Energy Efficient Homes Initiative

2010-11-15T12:06:47+00:00

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.

Increasing Efficiency

2010-11-15T12:06:26+00:00

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.

Company Success Stories

2010-11-15T12:06:21+00:00

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.

Cogeneration

2010-11-15T12:06:17+00:00

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.

A Proven Environmental Record

2010-11-15T12:05:23+00:00

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."

Expenditures

2010-11-15T12:03:09+00:00

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.

Companies Address Climate Change

2010-11-15T12:02:46+00:00

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.

Vehicle Research

2010-11-15T12:01:31+00:00

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.

Future Fuels

2010-11-15T12:00:54+00:00

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

Industry Technology

2010-11-15T11:57:04+00:00

Oil and natural gas companies are on the leading edge of innovative technologies to find resources more efficiently and precisely, thereby reducing environmental impact. Some technological advances 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.

Today, after decades-long investments of hundreds of billions of dollars, technology is enabling America’s oil and natural gas companies to access more resources with significantly less impact on the environment. The Gulf of Mexico accident and oil spill are tragic. The industry remains committed to determining what happened so precautions can be taken to avoid another tragic accident and energy can be produced safely and reliably. Companies remain hard at work reducing greenhouse gas emissions and improving environmental performance. For example:

Between 2000 and 2008, the industry invested more than $58 billion in new low and zero emissions technologies.

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

The industry has invested nearly $100 billion in emerging technologies that allow offshore operations to be cleaner, safer and more efficient. In the wake of the Gulf incident, the industry formed two task forces to address both short- and long-term issues related to offshore equipment and offshore operating practices, and is coordinating with the independent presidential commission investigating the spill.

Many refineries are using technological advances to get more out of each barrel of oil.

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.

Our Environment

2010-11-15T11:56:30+00:00

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.

Energy Efficiency

2010-11-15T11:56:22+00:00

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.

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

Powering the Future

2010-11-15T11:55:13+00:00

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.

Fuel Choices

2010-11-15T10:00:12+00:00

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.

Industry Safety

2010-11-15T08:58:42+00:00

Safety is a top priority of the oil and natural gas industry. We have a strong safety performance record, which is continuously improved with new and reformed industry standards. Whether drilling offshore or exploring onshore resources, we pride ourselves in taking every precaution necessary to preserve the safety of our people and the environment in which we work.

Historical Success of Industry Standards

Offshore oil and natural gas development has been safely conducted for more than 60 years. Within that time, more than 42,000 wells have been drilled. Despite working with heavy equipment, hazardous materials and frequent high temperatures, the oil and natural gas industry has a strong safety record.

The industry follows and constantly improves best practices for safe offshore operations, such as: training, operational procedures, regulations, industry standards and technology. It also works closely with local, state and federal regulators – including the U.S. Coast Guard and The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), within the Department of the Interior – to ensure a strong focus on safety.

Leader in Safety

The American Petroleum Institute (API) has produced dozens of standards related to offshore operations as well as recommended practices that help protect workers and the environment, including those for blowout prevention systems and well control operations. The industry has helped create more than 235 exploration and production standards that improve operational safety. The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) and the U.S. Coast Guard often incorporate industry standards into their regulations, giving them the force of law.

Contingency plans are developed on national, regional and local levels. API is a national leader in setting industry standards, as highlighted by the recent establishment of the Center for Offshore Safety. The Center will promote the highest level of safety for offshore operations, through an effective program that addresses management practices, communication and teamwork. The Center’s goal is to enhance industry safety and environmental performance.

In conjunction with BOEMRE and the U.S. Coast Guard, tens of thousands of offshore facility inspections occur each year. Additionally, offshore operators and contractors have comprehensive management programs that assess safety and environmental hazards system-wide to establish procedures, work practices, training programs and equipment requirements for continuous improvement.

More information:
The industry continually strives to build upon its record of safety and develop the advanced technology and operations necessary to supply Americans with the energy they need – safely, efficiently and with the smallest environmental footprint possible. For more information, visit API’s Spill Prevention and Response website, which discusses the oil and natural gas industry’s safety measures, responsibilities and technology in greater detail.

Hurricane Preparedness

2010-11-15T07:12:36+00:00

Safety

America’s oil and natural gas industry is committed to protecting the environment, continuously improving its hurricane preparation and response plans, and promoting and protecting the safety of its employees.

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

Market Response

In spite of precautions taken by the industry, major hurricanes in the Gulf of Mexico can still strain U.S. oil and natural gas production. When a hurricane disrupts refinery or pipeline operations, the immediate loss of gasoline and diesel production, can result in a two-tier market—meaning the price of fuel can rise while the price of crude can fall. At the same time, there can also be pockets of rising demand for fuel.

Market forces and the cooperation of government and the oil and natural gas industry are often the most effective paths to restoring supplies taken off line by hurricanes. 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 that encourage imports and lending crude oil from the nation’s Strategic Petroleum Reserve.

Interconnected Petroleum Supply System

The Gulf Coast region of Louisiana, Mississippi, Alabama and Texas is the heart of the nation’s oil and natural gas industry. It accounts for about 30 percent of the oil and 11 percent of the natural gas produced in the United States, and nearly half of U.S. refining capacity. Because refineries and pipelines originating in the Gulf Coast region are major suppliers to other parts of the nation, motorists in states far from Texas and Louisiana can sometimes feel the price effects of a hurricane.

According to the Energy Information Administration, half the gasoline used on the East Coast and half of the crude oil run in refineries in the Midwest are shipped from the U.S. Gulf Coast region of the United States. The country relies on pipelines, barges and tankers to deliver crude oil and refined petroleum products reliably to where they are needed throughout the country. In order for pipelines to move these commodities they must have a steady supply to push forward what is already in the lines and electric power to run the pumps that move the commodities along.

Spill Prevention and Response

2010-11-15T02:10:37+00:00

Prevention
Each day, the oil and natural gas industry safely delivers millions of gallons of oil and natural gas to fuel the American economy and way of life. Offshore oil and gas exploration and production have been conducted in the United States since the 1940s, and the industry has a long history of leadership and demonstrated safety performance.

Under federal law, all companies with offshore facilities must file oil spill contingency plans with The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), formerly the Minerals Management Service (MMS), and emergency response plans with the U.S. Coast Guard. Companies must ensure that spill response equipment is available and properly maintained, and that employees are adequately trained. Federal and state agencies conduct drills and inspections to ensure response capabilities are maintained at a high level.

Additionally, specialized spill prevention equipment, such as blowout preventers, are installed at the wellhead during the drilling phase to control pressure in the well should there be an unexpected rise in pressure or a loss of well control. Blowout preventers are critical to offshore safety and are inspected and tested regularly.

While incidents are extremely rare -- if the amount of oil produced or imported each year was equivalent to the amount of water in a backyard swimming pool, the amount spilled each year would be less than half of a teaspoon -- we think that one incident is still too much and are committed to getting to zero spills.

Following the Gulf oil spill, the industry has taken several steps to improve our safety mechanisms including joining forces to build and deploy a rapid-response containment system that will be available to capture and collect oil from future blowouts in the Gulf. Additionally, the industry has founded the Center for Offshore Safety which draws on the lessons learned from successful and existing safety programs, applying the best elements of these programs to accommodate the unique challenges of offshore oil and natural gas operations.

Response
New technologies and better training continue to yield improvements when it comes to conserving valuable energy resources and protecting our nation's health and environment through spill prevention. Spills are rare, but when they do happen, the oil and natural gas industry and U.S. government work together to employ the world’s leading response capabilities to minimize environmental harm.

The industry’s primary response objectives are to:

Prevent the spill from moving on shore
Reduce the impact on marine life
Speed the degradation of any unrecovered oil

Companies use several approaches to remediate the spill, which can include using booms to divert or contain oil recovered via skimmers, the use of dispersants and sorbents, and in situ burning (ISB) of the spill. The industry spends many millions of dollars annually funding the entities that rapidly deploy spill response vessels, skimmers, booms and dispersants should a spill occur. The industry is committed to a goal of zero injuries and zero incidents. Every incident or release is incentive to improve technology, training, operations procedures, and industry standards and best practices.