To date, 32 pilots have been extinguished and another 26 are under evaluation and could be extinguished in the next couple of months.

During the first quarter of 2009, Pengrowth Facilities Engineer Adam Friesen and the Olds Operations team diligently worked to reduce the amount of fuel consumed in the Olds Field. The team developed a better understanding of fuel gas consumption by implementing a measurement program and actively monitors how much fuel gas is used on a daily basis.

Results of the measurement program clearly identified where the biggest fuel consumption savings can be made. By capitalizing on these results, the Olds team met the requirements of one of this year’s Key Performance Indicators, reducing fuel gas consumption by 10 per cent.

Three specific actions have proven to be successful in reducing emissions and increasing production:

1. Extinguishing flare pilots
2. Turning off heating systems earlier in the spring
3. Implementing a preventative maintenance program to improve the efficiency of those line heaters identified as high fuel gas consumers

These efforts have achieved a 15 per cent reduction in fuel consumption and increased production by 12,129 barrels of oil equivalent (BOE), or 80 BOE per day, between January and May. This has also garnered Pengrowth an estimated $250,000 of additional revenue after royalties.

Alberta Environment considers the Olds Gas Plant a “Large Final Emitter (LFE)”.  All LFE’s are required to meet a 12% intensity Green House Gas (GHG) reduction every year.  This can be achieved by hard reductions at the plant, purchasing off set credits from non-LFE plants or contributing to a Climate Change Fund for research/development of GHG. Reducing fuel gas used for operations lowers GHG emissions and could be used to help the Olds Gas Plant to meet its targets.

In 2009, the fuel gas savings has led to a reduction in GHG emissions by an estimated 3,804 tonnes of CO2 equivalent. At $15 per tonne, the value of the emissions reduction efforts could add up to an estimated $57,000 in carbon offsets.  The team is also working with Pengrowth’s Environment group to determine the best way to capitalize on these offsets and make the estimated savings a reality.

Working closely with the Energy Resources Conservation Board (ERCB) has contributed to successfully extinguishing flare stack pilots in a safe and efficient manner, Adam says.  

“I have consulted extensively with the ERCB office in Red Deer and that relationship has been instrumental in the successful shutdown of flare pilots,” he added.

For local residents, Pengrowth’s commitment to curbing flaring volumes has had a positive impact on communities surrounding the gas plant. The continuing program also demonstrates our corporate commitment to public safety and reducing environmental waste by achieving more operational efficiencies.

“We’ve made a huge impact since the beginning of the year. There are still six month’s left in 2009 and we are only just beginning.”