ENV-04-175 Promoting Global Consistency in Estimating Greenhouse Gas Emissions from Oil and Gas Industry Operations

Description:

Estimating and reporting greenhouse gas emissions is extremely complex for the operationally and geographically diverse oil and gas industry. Companies are further challenged by the fact that greenhouse gas emission estimates can vary significantly depending on the approach used to calculate the emissions and the methodologies governing the accounting and reporting of emission inventories. Since first releasing the Compendium of Greenhouse Gas Emissions Estimation Methodologies for the Oil and Gas Industry, the American Petroleum Industry (API) has engaged in a number of activities to promote harmonization of estimation methodologies and meaningful comparisons of reported emissions. A revised version of the Compendium was released in February 2004, incorporating modifications and recommendations from a two-year “pilot test” of the original document. Timing of the revised Compendium also corresponds to the release of an IPIECA guidance document, Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions that addresses the implementation aspects of a corporate greenhouse gas inventory. In addition, a calculation tool, the SANGEA Energy and Emissions Estimating System, is available and facilitates development of inventories that are consistent with the Guidelines and utilize the methodologies in the API Compendium. This paper will address the global collaboration among oil and gas companies and industry organizations in revising the Compendium and in developing the Guidelines. The paper will also demonstrate a case study applying the SANGEA™ System to create an inventory that is consistent with the Guidelines and employs the Compendium methodologies.