Cost Effec*ve Well Site Facili*es Canada Congress GHG ... · River gas, Cardium oil Significant...
Transcript of Cost Effec*ve Well Site Facili*es Canada Congress GHG ... · River gas, Cardium oil Significant...
Cost Effec*ve Well Site Facili*es Canada Congress GHG Emissions Reduc*on in a Small Private Co.
Feb27,2019
TABLE OF CONTENTS
Feb27,2019.WSFC 2
GHGEMISSIONSREDUCTIONINTIATIVES
PURPOSEOFTHEPRESENTATION
CARBONOFFSETCREDITPROGRAM
MOTIVATION
Q&A
Purpose of the Presenta*on
Feb27,2019.WSFC 3
1. IntroduceModernResourcesInc.andourmoKvaKonforpursuingGHGreducKon
2. PresentourprogramsandiniKaKves3. Reviewlessonslearned
MOTIVATION Who is Modern Resources?
Modern Elements of Value
5
SuccessinaLowPriceEnvironment Modern
EnvironmentalLeader ! Safe,clean,lowliability(LMR18);163wells,133producing
Commodity&PlayDiversificaKon ! Premiumresourceplays:Spirit
Rivergas,Cardiumoil
SignificantResource1 ! 2Preserves=222mmboe2PBTNPV10=~$1.1billion
Scalable,FocusedAsset !
274,000netacres(~100%WI2)641grosslocaKons;335gasand306oil
TopTierF&D3 ! $0.57/mcfeSpiritRiverRich$9.35/boeCardiumTier1
LowOperaKngCost4 ! $4.36/boecorporate$0.39/mcfeSpiritRiver
StrongBalanceSheet4 ! $90mmavailablecapital(ELOC+bankline)
OwnedInfrastructure ! 125mmcf/dprocessingcapacity
AccesstoMarket ! FirmNGTLcalibratedtoproducKon
1 12/31/17McDanielreservesreport;Forecastpricing2 EffecKveWIforacKvedevelopmentareas–actualavg.WI~85%3 Halfcycleeconomics–seepgs.10&12;Cardiumismidpoint4 Q3/18financialresults
Wapi%
GreaterKakwa
PembinaPeaceLiquidsPipeline
MarketPipelines(NGTL,Alliance)
ModernPipelines
Jupiter
Cenovus
Tou
NuVista
Husky7Gen
WCP
DesignedtoProsperinthe‘Modern’ResourceWorld
0.0 2.0 4.0 6.0 8.0 10.012.014.016.018.0
ImportedLNG
UnconvenOonalMarcellusShale
UnconvenOonalTightGas
UnconvenOonalBarneSShale
ConvenOonalOnshore
U.S.AverageDomesOcNaturalGas(2010)
UnconvenOonalCoalBedMethane
ConvenOonalAssociated
ModernResources
ConvenOonalOffshore
gCO2e/MJ
NaturalGasProducOon
FieldTransportandProcessing
6
Environmental Advantage – Low Carbon Intensity
ModernCardium
LowEmissions=CarbonSecuritySource:ARCFinancial
GasPlays OilPlays
KgCO2e/barrel
ProducOonandUpgrading
OilandProductTransportandRefining
NorwayEkofysk
KuwaitBurgan
TexasSpraberry
CaliforniaMidwaySunset
VenezuelaMereyBlend
IranAbuzar
0 100 200 300
MOTIVATION – New/Upcoming Regula*ons
Feb27,2019.WSFC 7
Modern Resources Inc. GHG Emissions Reduc*on Ini*a*ves
Modern Ultra Low Emissions “MULE”
Sites
MULE Sites – Electric Chemical Pump
Feb27,2019.WSFC 10
MULE Sites – Pneuma*c Systems
11
NEW–AirAcOvatedEquipmentGHGReducKonof149tonnesCO2equivalentReduced:• FugiKveEmissions• OperaKngandMaintenanceCosts
ModernTechnologyElimina%ngFugi%veEmissions
ElectricAirCompressors0m3/dFugiKveEmissions
NEW
PneumaKclevelController,2perpkg
PneumaKcDumpValve,2perpkg
PneumaKcControlValveActuator,2perpkg
OLD–MethaneAcOvatedEquipment
~30m3/day
CombinedFugiKveEmissions
MULE Sites - Electric Valve Actua*on
Feb27,2019.WSFC 12
MULE Sites – Commercial Solar Panel Array
Feb27,2019.WSFC 13
MULE Sites– Methanol Fuel Cells
14
PropaneThermoelectricGenerators
MethanolFuelCells
85%ReducKoninGHGEmissions.CO2ReducKonEquivalenttodrivinganaveragecar1,200kmpermonth1
Innova%veSolu%onsReducingCarbonEmissions
Reduced:• Emissions• OperaKngCosts• Trucking
OLD
NEW
MethanolfuelconsumpKononlywhenpowerdemandexceedsprimarysupply(solarpanels)
ConKnuousfuelconsumpKon+CO2emissions
OTHER INITIATIVES
Reduc*on/Elimina*on Solu*ons
Feb27,2019.WSFC 16
Reduc*on/Elimina*on Solu*ons
Feb27,2019.WSFC 17
Reduc*on/Elimina*on Solu*ons
Feb27,2019.WSFC 18
Reduc*on/Elimina*on Solu*ons
Feb27,2019.WSFC 19
Natural Gas Powered Rigs
20ImprovingEmissions,SafetyandCosts
• ReducedDieselFuelConsumpKon~40,000lpermonth
• ReducedCO2of27tonnesperwell• ReducedNOx,SOxupto80%• ReducedFuelTruckingandtransfers• EnabledbyModerninfrastructure
NaturalGasFuelSupplyLine
Tes*ng to Pipeline
21EmissionsEliminated-EnergyConserved
• FlaringofNaturalGasVirtuallyEliminated• ReducedCO2eof252tonnesperwell• Equivalenttoremovingover50cars• Gassenttosales-RevenueSource• EnabledbyModernInfrastructure
NEW–TesttoPipelineOLD–TesttoFlare
NoFlare
OperaKonspriortoModernInfrastructureconstrucKon
TOTAL FIELD METHANE EMISSIONS SURVEY
Methane Emissions Survey
Feb27,2019.WSFC 23
PneumaKcs54%Leaks
33%
Tanks8%
CompressorSeals3%
OtherVents2%
TotalAnnualMethane
TotalAnnualMethaneEmissions(priortoinspecKon):1,596e3m3/year(26,774tCO2e)
OneverylargeleakidenKfiedandresolvedrapidlybyoperaKons
UnknownstartdateofleakEsKmatedat~6,000tCO2e/yearannual~353e3m3/year
CARBON OFFSET CREDITS
CARBON OFFSET CREDITS
Feb27,2019.WSFC 25
• Nocreditsforprojectsthatarenotinyourplan
• Developmentforecastmustbeincluded
• UnderstandtheplanrequirementsbeforewriKngyourplan
• BigDocument
• Veryspecifictreatmentofthedetails
• AvoidRe-wriKng
• ProgramAudit
• AggregatorVSMaintainingOwnershipoftheCredits
A“ProjectPlan”mustbesubmiredandapprovedtoqualifyforcarboncredits
Project Plan
Feb27,2019.WSFC 26
EMISSIONS REDUCTION CALCULATOR
Feb27,2019.WSFC 27
EMISSIONS REDUCTION CALCULATOR
Feb27,2019.WSFC 28
Tracking/Documenta*on
Feb27,2019.WSFC 29
Tracking/Documenta*on
Feb27,2019.WSFC 30
Q&A