A cooperative model to lower cost and increase the efficiency of methane leak inspections at oil and gas sites

Abstract

Methane is a potent greenhouse gas that tends to leak from equipment at oil and gas (O&G) sites. Conventional leak detection and repair methods for fugitive methane emissions are labor-intensive and costly because they involve time-consuming close-range, component-level inspections at each site. This has prompted duty holders to examine new methods and strategies that could be more cost-effective. We examined a cooperative model in which multiple duty holders of upstream O&G sites in a region use shared services to inspect on-site equipment using optical gas imaging camera or Method 21. This approach was hypothesized to be more efficient and cost-effective than independent inspection programs by each duty holder in the region. To test this hypothesis, we developed a geospatial simulation model using empirical data from 11 O&G-producing regions in Canada and the United States. We used the model to compare labor cost, transit time, mileage, vehicle emissions, and driving risk between independent and co-op leak inspection programs. The results indicate that co-op leak inspection programs can generate relative savings in labor costs (1.8%–34.2%), transit time (0.6%–38.6%), mileage (0.2%–43.1%), vehicle emissions (0.01–4.0 tCO2), and driving risk (1.9%–31.9%). The largest relative savings and efficiency gains resulting from co-op leak inspection programs were in regions with a high diversity of duty holders, which was confirmed with simulations of fictitious O&G sites and road networks spanning diverse conditions. We also found reducing leak inspection time by 75% with streamlined methods can additionally reduce labor cost by 8.8%–41.1%, transit time by 5.6%–20.2%, and mileage by 2.60%–34.3% in co-op leak inspection programs. Overall, this study demonstrates that co-op leak inspection programs can be more efficient and cost-effective, particularly in regions with a large diversity of O&G duty holders, and that methods to reduce leak inspection time can create additional savings.