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In 2014, for the first time in history the US oil production growth exceeded global oil demand growth. Had oil prices remained at ~$100/bbl and US operators continued on their course to keep ~2,000 rigs at work, the US oil production growth was on track to continue to exceed global oil demand growth through the end of the decade. By pushing prices lower and not allowing them to recover beyond ~$75/bbl has slowed US drilling and capped annual US oil production growth at around 500,000 bpd.

Jan_Week III - Global Oil Demand - Graph

 

Drilling on the Decline, Yet EPA Air Quality Regulations on the Incline

Although many operators are going to cut their budgets and shutdown rig operations in 2015, continuing compliance with EPA rules and regulations is still required. See the list below for an update on the latest NSPS Quad O rules that were finalized into the Federal Register late last year and early this year.

NSPS Quad O

1. “Gas well facilities” hydraulically fractured after January 1, 2015 are required to reroute and recover all “flowback” vapors without any release to the atmosphere.

2. Alternative thief hatch seals are warranted.

3. Reciprocating compressor work practice options receive a third plausible option (reroute rod packing emissions to the engine that powers the compressor; OTA’s compressor does not have rod packings, therefore there are no emission leaks to reroute and account for)

4. Proposed rules coming summer 2015

a) oil well “Green Completions”

b) pneumatic controllers

c) leaks from OGSs and compressor stations

d) extension of VOC reduction in ozone nonattainment areas

Revised Definitions

Jan_Week III - EPA Defined Quad O

Let OTA help you remain compliant with your air emissions. Feel free to email Gabriel Kent at enviro@otacompression.com if you have any questions or need further information.

 

 

 

 

 

 

 

 

 

 

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