Oil & Gas AT A GLANCE 1996-2005 1,2 Oil & Gas Facilities (Census Data) Exploration Wells Petroleum Refining Facilities Exploration and Production 876,230 wells 896,629 2% 247,800 employees 270,200 9% 38,600,000 billion Btu produced 35,700,000 billion Btu 8% Refining 164 refineries 148 10% 92,000 employees 68,000 26% 5.2 billion barrels crude oil input into refineries 5.5 billion 6% 78 Oil & Gas <strong>2008</strong> SECTOR PERFORMANCE REPORT
Profile The Oil & Gas sector includes the following operations, which are subject to a number of federal and state regulations: • Exploration and Drilling: Onshore and offshore geophysical operations, including seismic studies, engineering, well testing, drilling operations, and transportation of personnel or equipment to and from sites. • Oil and Gas Production: Operation, maintenance, and servicing of production properties on- and offshore, including transportation to and from sites. • Petroleum Refining: Distillation, hydrotreating, alkylation, reforming, and other distinct processes for converting crude oil into petroleum products. 3 In 2005 the Oil & Gas sector included 498,454 oil wells and 398,161 gas wells in operation. The sector employed 1,381 rotary rigs for drilling new wells. 4 The United States is the world’s third-largest petroleum producer and second-largest 5 natural gas producer. Petroleum products derived from crude oil through the refining process include gasoline (motor fuel), distillate (diesel fuel, home heating oil), kerosene (jet fuel), petroleum coke, residual fuel oil (industrial and marine use), petroleum gases (liquified petroleum gas, ethane, butane), elemental sulfur, asphalt and road oils, petrochemical plant feedstocks, and lubricating oils. The environmental impacts of the sector’s activities vary significantly. This chapter is divided into two sections, discussing the environmental implications of exploration and production (E&P), followed by a discussion of petroleum refining. exploration and Production 6 E&P operations locate and extract crude oil and natural gas from geologic formations. Geologic and regional differences, as well as basin-specific approaches to extract the resources available, influence the environmental footprint associated with E&P operations. This section overviews the major processes and factors affecting that footprint. Exploration and Drilling Exploration for oil and gas involves geologic testing of prospective formations. These activities often involve construction of new roads in remote areas and air emissions caused by vehicular traffic to, from, and within potential drilling locations. Drilling is done with truckmounted rigs powered by diesel engines, which also affect air quality. Operators prepare a pad for drilling equipment including creation of pits and ponds to contain various fluids and mud used in drilling and to manage the drill cuttings (rock displaced while drilling the well). Operators also install tanks or pipes to gather the resources produced. Oil Production The classifications of light, medium, heavy, or extraheavy refer to the crude oil’s gravity as measured on the American Petroleum Institute (API) scale, and reflect the energy required and environmental impacts inherent in producing and refining the oil. Light crude oil, for example, flows naturally or can be pumped relatively easily to the wellhead. Conversely, heavy crude oil does not flow easily and has higher viscosity than light or medium crudes, requiring enhanced oil recovery (EOR) processes such as heating or diluting. When crude oil, associated natural gas, and formation water arrive at the wellhead, operators must separate them before further processing and transport. The water is generally high in saline content and may contain hydrocarbons. Separator units near the wellhead separate the oil from the associated natural gas. The natural gas is processed to recover natural gas liquids (mostly propane and butane). Impurities such as carbon dioxide (CO 2 ) and hydrogen sulfide (H 2 S) also are removed from the gas before it is transported. If pipeline access is not available, the gas may be used on location to power production equipment or may be re-injected into the oil reservoir to maintain reservoir pressure. Water produced with oil must be removed because it is corrosive and an impediment to transportation and storage. Water is separated at gathering stations and oil storage tanks in the field. Measurable quantities of oil remain in the reservoir once primary production processes have concluded, and additional resources can be recovered through EOR processes. Such processes supplement natural reservoir forces to improve flow rate and recovery. Representative EOR techniques include water flooding, gas injection, and chemical and thermal processes—all of which can have environmental impacts. Natural Gas Production Production of gas generally begins as natural flow from the wellhead into the gathering system. As a field matures, reservoir pressure begins to decline and gas compression <strong>2008</strong> SECTOR PERFORMANCE REPORT Oil & Gas 79
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2008 Sector Performance rePort
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table of Contents i Preface 1 Execu
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Key to our work is collaboration wi
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Energy Use The eight sectors for wh
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Sector Data Side by Side The follow
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TRI Air Emissions Across Sectors 19
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TRI Waste Management Across Sectors
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This report relies upon a variety o
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TABLE 3 Economic Activity Data for
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Presentation of TRI Air Emissions D
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Presentation 500,000,000 of TRI Was
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Cement Manufacturing 1 AT A GLANCE
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equires 32% more energy per ton of
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Summing the Toxicity Scores for all
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l t , r t i t i Figure 3 Cement Kil
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ChemiCal manufaCturing 1 AT A GLANC
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Public Data Release (PDR) (includes
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Advancing Port Sustainability, Janu