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addressing uncertainty in oil and natural gas industry greenhouse

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The CO 2 emissions are calculated us<strong>in</strong>g Equation 5-9:<br />

6<br />

10 scf H2 lbmole H2 lbmole <strong>gas</strong> 1.13 lbmole CO2 44 lb CO2<br />

tonne<br />

E<br />

CO<br />

= 13,000 × × × × ×<br />

2<br />

year 379.3 scf 4.35 lbmole H lbmole <strong>gas</strong> lbmole CO 2204.62 lb<br />

2 2<br />

E<br />

= 177,700 tonnes CO /yr<br />

CO2<br />

2<br />

The CO 2 <strong>uncerta<strong>in</strong>ty</strong> is then calculated by apply<strong>in</strong>g Equation 4-6 <strong>and</strong> us<strong>in</strong>g the relative <strong>uncerta<strong>in</strong>ty</strong> values.<br />

Urel ( ) = Urel ( ) + Urel ( ) + Urel ( )<br />

Urel<br />

CO<br />

2 2<br />

2 2 2<br />

( )<br />

CO<br />

= 15 + 3.89 + 4 = 16.0%<br />

2<br />

2 2 2<br />

Feedstock rate moles C moles H<br />

Based on the assumptions applied for the H 2 plant emission methodologies, the <strong>uncerta<strong>in</strong>ty</strong> associated with<br />

each of the methods provided <strong>in</strong> the API Compendium is comparable. In both equations, the aggregated<br />

<strong>uncerta<strong>in</strong>ty</strong> is <strong>in</strong>fluenced primarily by the ±15% <strong>uncerta<strong>in</strong>ty</strong> values assigned to the feedstock rate (used <strong>in</strong> the<br />

first method) <strong>and</strong> the H 2 production rate (used <strong>in</strong> the second method).<br />

5.4 Strategic Reduction of Uncerta<strong>in</strong>ty<br />

This section addresses the potential need to ref<strong>in</strong>e the emission <strong>in</strong>ventory to reduce the <strong>uncerta<strong>in</strong>ty</strong> <strong>in</strong> the<br />

overall emission estimate. There may be several reasons to do this. In some specific locations, there may be<br />

state or national regulations, or guidel<strong>in</strong>es for voluntary programs that suggest or require an emission<br />

<strong>in</strong>ventory to have uncerta<strong>in</strong>ties lower than a certa<strong>in</strong> percentage level. A company may also <strong>in</strong>dependently<br />

wish to ref<strong>in</strong>e its own <strong>uncerta<strong>in</strong>ty</strong> limits, if it considers the uncerta<strong>in</strong>ties too large.<br />

The reader should note that none of the strategies mentioned here are aimed at reduc<strong>in</strong>g the actual emissions<br />

of GHGs. That is a separate subject, <strong>and</strong> while emission reductions are achievable <strong>in</strong> some cases, they are<br />

beyond the scope of this report. This section focuses on reduc<strong>in</strong>g the mathematical <strong>and</strong> statistical <strong>uncerta<strong>in</strong>ty</strong><br />

associated with an exist<strong>in</strong>g emission <strong>in</strong>ventory.<br />

Once a decision has been made to ref<strong>in</strong>e <strong>and</strong> reduce the <strong>uncerta<strong>in</strong>ty</strong> associated with a given <strong>in</strong>ventory, some<br />

strategic analysis of the major sources contribut<strong>in</strong>g to the <strong>uncerta<strong>in</strong>ty</strong> is <strong>in</strong> order. It is important to know<br />

which sources significantly contribute to the overall <strong>in</strong>ventory. It would make little sense to ref<strong>in</strong>e a term<br />

with large confidence bounds, but that contributed very little to the overall <strong>in</strong>ventory. It may also be useful to<br />

have a target <strong>uncerta<strong>in</strong>ty</strong> <strong>in</strong> m<strong>in</strong>d. For example, if the current total <strong>uncerta<strong>in</strong>ty</strong> is ±50.0 % <strong>and</strong> the company<br />

wishes to reduce it to ±25.0%, then that target is useful <strong>in</strong> the analysis. As uncerta<strong>in</strong>ties of <strong>in</strong>dividual values<br />

<strong>in</strong> the calculations are exam<strong>in</strong>ed, values that have uncerta<strong>in</strong>ties that are already at or below the 25.0% target,<br />

Pilot Version, September 2009 5-18

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