EPA’s Greenhouse Gas Reporting Program: Lessons Learned for Onshore Petroleum and Natural Gas Production Operations

The Environmental Protection Agency (EPA) mandatory greenhouse gas (GHG) reporting program applies to facilities and operations whose annual GHG emissions exceed 25,000 tonnes of carbon dioxide equivalent.  For the Petroleum and Natural Gas Systems sector, 40 CFR Part 98 Subpart W lists the requirements for quantification and reporting of GHG emissions. The methodologies specified for the eight industry segments within the sector, range from application of specified emission factors, engineering calculations, and direct emissions measurements. Notably, the Onshore Petroleum and Natural Gas Production segment is comprised of a large number of emission sources within “facilities” that cover multiple operations within a single hydrocarbon basin. These requirements necessitate installation of proper instrumentation, robust data collection practices, and Information Technology (IT) systems that enable a smooth interface with EPA’s electronic greenhouse gas reporting tool (eGGRT).

This paper will address the lessons learned from the initial phases of reporting for the Petroleum and Natural Gas systems and will emphasize the unique aspects of reporting GHG emissions for onshore oil and natural gas production operations. The discussion will address the need to balance reliable information and reporting burden and will highlight industry’s commitment to continuous improvement.   It will address how reporting provides companies a means to highlight altering practices like venting and flaring minimization, and reduction of environmental impacts of operations. Such systematic data collection, as mandated by the EPA GHG reporting program, may not only help target areas for future reductions but also demonstrate significant voluntary progress toward continually ‘greener’ operations.