A techno-economic analysis of methane mitigation potential in the upstream oil and gas sector: A case study using aerially-measured source data in Alberta, Canada

Methane emissions reductions in the oil and gas industry is one of the best readily attainable goals to meeting the global emission reduction targets to combatting climate change.  However, real and perceived mitigation costs are often a major barrier to implementing strong regulations.  This work analyzes technically and economically achievable mitigation potential on a source- and site-specific basis at upstream oil and gas sites.  In contrast to previous analyses, this work considers actual measured sources and sources distributions from recent aerial surveys.  Using data for the province of Alberta, Canada as a case study, methane source mitigation via vapour recovery units, vapour combustors, flares, and on-site power generation are considered where applicable to identified sources.  Engineering cost models for each source are first created combining available manufacturer data with previous literature estimates.  Two main scenarios are considered in line with newly released federal methane regulations from Environment and Climate Change Canada (ECCC).  The first scenario estimates costs for eliminating all intentional venting sources, while the second scenario estimates costs to and combined mitigation strategies to reduce the simple site-specific methane intensity to below 0.1%.  The ultimate goal of this work is to assess achievable near-term mitigation potential in the upstream oil and sector in Canada.