Upstream oil and gas companies play an important role in the global energy market. But as financial, regulatory, and public pressures increase, upstream oil and gas companies must find new ways to detect, diagnose, and repair leaks quickly and effectively.
Fortunately, new technologies are enabling oil and gas operations to become more responsive to leaks while reducing costs and minimizing the volume of wasted product.
In this article, the first in a series on leak detection and repair (LDAR), we’ll highlight the growing need for effective LDAR programs in the upstream oil and gas sector. To learn more and see how continuous, Touchless™ Monitoring solutions can be used, register to download our recent white paper: Overcoming the Challenges of Leak Detection and Repair.
The Impact of Fugitive Emissions
Fugitive emissions can be defined as “the unintentional and undesirable emission, leakage, or discharge of gasses or vapors,” such as methane, volatile organic compounds (VOCs), or other pollutants.
According to the International Energy Agency (IEA), more than 260 billion cubic meters of natural gas is wasted each year through flaring or leaks. While leaks can occur at any stage of production, they are most commonly found in pressure-containing equipment such as valves, flanges, pumps, piping, or compressors.
The Need for Leak Detection and Repair
Effective LDAR programs use a variety of methods to monitor equipment, detect leaks, prioritize repairs, and stop the release of gas as quickly as possible.
Upstream oil and gas companies are under mounting pressure from various sources to reduce leaks and conduct repairs more effectively.
Emission Reduction
Methane is among the most commonly leaked gas from upstream oil and gas operations. Though shorter-lived than carbon dioxide (CO2), methane has a warming potential that is more than 80 times greater over a 20-year period.
A recent Government of Canada report found that nearly 40 percent of total methane emissions can be attributed to the oil and gas sector, with much of this coming from upstream activities such as exploration, drilling, production, and field processing.
Government Regulation
Governments around the world, including Canada and the US, are implementing additional policies and regulations to reduce emissions and hit Net Zero targets within the coming decades.
In the US, for example, the Inflation Reduction Act will begin charging facilities that emit over 25,000 metric tons of CO2 equivalent per year, starting at US$900 in 2024 and increasing to $1,500 in 2026.
If those fines were already in place, a recent leak in the US would have incurred a cost of $220,000 per hour.
Investor Pressure
Pressure to reduce emissions is not just coming from the government. Increasingly, shareholders and other institutions are demanding that the companies they invest in reduce the environmental impact of operations.
Shareholders of major oil and gas companies are already using their voting rights to speak out against a perceived lack of climate action, and recent climate-related resolutions are continuing to draw growing support among investors. Generally, these actions align with a larger shift away from polluting industries that are not seen to be acting on their environmental commitments.
Safety of Personnel
Undetected leaks can create significant safety risks for both personnel and the surrounding communities. Large volumes of undetected flammable gas can lead to catastrophic fires or explosions that can severely damage equipment and injure or kill employees.
A Better Approach to Leak Detection and Repair
Undetected leaks can have severe financial, regulatory, and legal consequences, especially as governments, investors, and the public increase pressure on facilities to reduce GHG emissions and minimize the environmental impact of operations.
Instead of relying on periodic inspections or costly alternatives such as aerial monitoring, upstream oil and gas companies can implement Touchless™ Monitoring solutions. Fixed optical gas imaging (OGI) sensors continuously monitor equipment, assets, and facilities and automatically detect leaks, spills, flames, or other anomalies that indicate a fault.
Touchless™ Monitoring solutions leverage advanced artificial intelligence to quantify the volume of the leak. Colorized plumes make it easy for operators to visualize the issue and identify the source, greatly simplifying repairs and reducing risks to on-site personnel. The sensors are not weather-dependent and can detect gas at night or penetrate through fog or smoke.
By removing the time between inspections, companies can quickly detect, diagnose, and repair leaks. Automated software immediately alerts the operations team to initiate a response plan and notify on-site staff, vacate the area, shut down equipment, and dispatch technicians.
To learn more about leak detection and repair and the role of continuous remote monitoring, download our recent white paper: Overcoming the Challenges of Leak Detection and Repair.