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addressing uncertainty in oil and natural gas industry greenhouse

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2.0 SOURCES OF UNCERTAINTY<br />

There are a myriad of sources that contribute to the<br />

<strong>uncerta<strong>in</strong>ty</strong> of an emission <strong>in</strong>ventory. Whether at the national,<br />

entity, or facility level, the ability to quantify emissions <strong>and</strong><br />

underst<strong>and</strong> their associated <strong>uncerta<strong>in</strong>ty</strong> h<strong>in</strong>ges on two ma<strong>in</strong><br />

factors:<br />

Section Focus<br />

This section discusses the major sources<br />

affect<strong>in</strong>g the <strong>uncerta<strong>in</strong>ty</strong> of GHG <strong>in</strong>ventories.<br />

It moves from general concepts to issues that<br />

are germane to GHG <strong>in</strong>ventories <strong>in</strong> the O&G<br />

<strong>in</strong>dustry. It also describes factors that could<br />

− Readily available data for emission quantification; <strong>and</strong><br />

<strong>in</strong>troduce errors <strong>in</strong>to the emission<br />

measurements process <strong>and</strong> contribute to the<br />

−<br />

range of uncerta<strong>in</strong>ties of estimated emissions.<br />

Knowledge of <strong>in</strong>put parameters for statistical<br />

The subsections address:<br />

calculation of <strong>uncerta<strong>in</strong>ty</strong>.<br />

• Overview of emissions <strong>in</strong>ventory<br />

<strong>uncerta<strong>in</strong>ty</strong>;<br />

The overall range of <strong>uncerta<strong>in</strong>ty</strong> associated with an entity<br />

GHG <strong>in</strong>ventory usually is determ<strong>in</strong>ed primarily by the<br />

• Emission <strong>in</strong>ventories uncerta<strong>in</strong>ties <strong>in</strong> the<br />

O&G <strong>in</strong>dustry;<br />

<strong>uncerta<strong>in</strong>ty</strong> associated with the largest (“key”) sources of • Sources of measurements <strong>uncerta<strong>in</strong>ty</strong>;<br />

emissions. Although very large confidence <strong>in</strong>tervals may be • Emission estimation approaches; <strong>and</strong><br />

associated with the data used to characterize some small • Inventory steps <strong>and</strong> data aggregation.<br />

sources, the overall impact on the range of <strong>uncerta<strong>in</strong>ty</strong> at the<br />

entity, or <strong>in</strong>stallation level, may often be very small. In turn, the confidence <strong>in</strong>terval associated with each<br />

<strong>in</strong>dividual source depends on the availability of sufficient data to estimate emissions, or on the quality of<br />

the data <strong>in</strong> order to properly account for emission variability.<br />

2.1 Overview of Emissions Inventory Uncerta<strong>in</strong>ty<br />

Uncerta<strong>in</strong>ties <strong>in</strong> <strong>in</strong>ventories are the result of three error categories:<br />

−<br />

−<br />

−<br />

Spurious errors, which may be due to <strong>in</strong>complete, unclear, or faulty def<strong>in</strong>itions of emission<br />

sources that result from human error or mach<strong>in</strong>e malfunction;<br />

Systematic errors, which may be due to the methods (or models) used to quantify emissions for<br />

the process under consideration; <strong>and</strong><br />

R<strong>and</strong>om errors, which may be due to <strong>natural</strong> variability of the process that produces the<br />

emissions.<br />

When assess<strong>in</strong>g the process or quantity under consideration, uncerta<strong>in</strong>ties might be associated with one or<br />

more factors such as: sampl<strong>in</strong>g, measur<strong>in</strong>g, <strong>in</strong>complete reference data, or <strong>in</strong>conclusive expert judgment.<br />

Uncerta<strong>in</strong>ties due to models or equations are related to the proper application of estimation methodologies<br />

to the respective source categories. These errors are typically elim<strong>in</strong>ated as far as possible <strong>in</strong> advance,<br />

Pilot Version, September 2009 2-1

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