Upstream Operator Improves Energy Efficiency and GHG Management Performance Gaps with Benefits Estimated at 48M USD/yr

Solomon’s PEP helped client improve energy efficiency and create a unified way to monitor and report sustainability metrics in upstream assets.

UPSTREAM OPERATOR WITHOUT UNIFIED WAY TO MONITOR & REPORT SUSTAINABILITY METRICS

A middle eastern upstream was challenged with poor energy consumption and not having a unified way to monitor and report their sustainability metrics. The upstream operator approached Solomon with a desire to improve energy efficiency and consumption at three of their assets and create a standardized method to monitor and report on sustainability. Solomon used its Sustainability PEP as a solution to define shortand long-term actions to improve energy efficiency and evaluate and standardize metrics related to sustainability, Greenhouse Gas (GHG) emission management, and Health Safety Environment (HSE).

PHASE 1 – BENCHMARKING EII, GHG EMISSIONS & HS/PSM KPIS

Solomon’s proprietary global onshore high water cut peer database was used to evaluate and benchmark performance of the operator’s three assets. Each asset was evaluated against top peers on their operational, maintenance, technical, and energy efficiency performance to set a performance baseline. Once the baseline was set and agreed on, Solomon calculated the Energy Efficiency Index (EII), Carbon Emissions Index (CEI), and GHG metrics for each asset and compared results against similar peers. The benchmark identified that compressors and pumps took up over 90% of total energy consumption for each of the three assets. Through this analysis, performance gaps in energy efficiency and GHG emission management were identified and used to set improvement targets.

PHASE 2 – PERFORMANCE ASSESSMENT

Next, Solomon reviewed the client’s facility emissions-focused practices and identified gaps by conducting an Energy and GHG Best Practices Assessment (BPA). The purpose of performing a BPA was to develop an understanding of the root causes of the performance gaps when compared to well-established and top-performing programs across the oil industry. The assessment was used to develop noncapital recommendations.

The assessment began with Solomon reviewing the facility’s work processes and practices and interviewing key facility personnel. The Energy BPA covered energy management, fixed equipment management, rotating equipment management, and utility systems management (See Figure 1 for Assessment Scorecard).

The GHG BPA covered areas including GHG management, GHG core principles, strategic considerations, GHG accounting, fuel type management, compliance, and general operations (See Figure 2 for Assessment Scorecard). While conducting the GHG BPA, Solomon was unable to review Laboratory GHG practices since the client did not have direct laboratory support. In the future, Solomon recommends that direct laboratory support is needed to improve both its energy and GHG mitigation programs.

PHASE 3 – RECOMMENDATION DEVELOPMENT

Using benchmarking data and observations from the Energy and GHG Best Practices Assessments, Solomon was able to form various non-capital and capital improvement recommendations. This created a roadmap for the client starting from their current state.

Assessment of Energy Best Practices led to 10 noncapital energy improvement that identified an opportunity to recover a gap of 13M USD/yr.

Assessment of GHG best practices led to no capital recommendations for GHG mitigation, with a total opportunity to reduce 200k t/yr at 100 USD/t of carbon tax—equivalent to 20M USD/yr in potential savings. Further, capital recommendations were also provided with an opportunity to recover 15M USD/yr of power consumption, if implemented.

In total, results identified an estimated total benefit of 48M USD/yr. Opportunities evaluated the facility’s operational, maintenance, and technical performance compared to top performers to identify performance gaps in energy efficiency and GHG emission management using Solomon’s proprietary database of onshore global peer data.