US Refiners: CO2 cost curve?

Which refiners are least CO2 intensive, and which refiners are most CO2 intensive? This spreadsheet answers the question, by aggregating data from 130 US refineries, based on EPA regulatory disclosures.

The full database contains a granular breakdown, facility-by-facility, showing each refinery, its owner, its capacity, throughput, utilisation rate and CO2 emissions across six categories: combustion, refining, hydrogen, CoGen, methane emissions and NOx (chart below).

Assessed companies include Aramco, BP, Chevron, Citgo, Delek, ExxonMobil, Koch, Hollyfrontier, Marathon, Phillips66, PBF, Shell and Valero.

Ventures for an Energy Transition?

This database tabulates almost 300 venture investments made by 9 of the leading Oil Majors, as the energy industry advances and transitions.

The largest portion of activity is now aimed at incubating New Energy technologies (c50% of the investments), as might be expected. Conversely, when we first created the data-file, in early-2019, the lion’s share of historical investments were in upstream technologies (c40% of the total). The investments are also highly digital (c40% of the total).

Four Oil Majors are incubating capabilities in new energies, as the energy system evolves. We are impressed by the opportunities they have accessed. Venturing is likely the right model to create most value in this fast-evolving space.

The full database shows which topic areas are most actively targeted by the Majors’ venturing, broken down across 25 sub-categories, including by company. We also chart which companies have gained stakes in the most interesting start-ups.

Methane emissions from pneumatic devices, by operator, by basin

Methane leaks from 1M pneumatic devices across the US onshore oil and gas industry comprise 50% of all US upstream methane leaks and 15% of all upstream CO2. This data-file aggregates data on 500,000 pneumatic devices, from 300 acreage positions, of 200 onshore producers in 9 US basins.

The data are broken down acreage position by position, from high-bleed pneumatic devices, releasing an average of 4.1T of methane/device/year to pnuematic pumps and intermediate devices, releasing 1.4T, through to low-bleed pneumatic devices releasing 160kg/device/year.

It allows us to rank operators. Companies are identified, with a pressing priority to replace medium and high bleed devices. Other companies are identified with best-in-class use of pneumatics (chart below). The download contains 2018 and 2019 data, so you can compare YoY progress by company.

A summary of our conclusions is also written out in the second tab of the data-file.  For opportunities to resolve these leaks and replace pneumatic devices, please see our recent note on Mitigating Methane.

Chevron: SuperMajor Shale in 2020?

SuperMajors’ shale developments are assumed to differ from E&Ps’ mainly in their scale and access to capital. Access to superior technologies is rarely discussed. But new evidence is emerging. This note assesses 40 of Chevron’s shale patents from 2019, showing a vast array of data-driven technologies, to optimize every aspect of shale.

US CO2 and Methane Intensity by Basin

CO2 and methane intensities are tabulated for 300 distinct company positions across 9 distinct basins in this data-file. Using the  data, we can aggregate the total CO2 in (kg/boe) and methane leakage rates (as a percent of natural gas production) across the US’s different basins.

Covered basins include the Permian, Bakken, Eagle Ford, Marcellus/Utica, Alaska, GoM, Powder River, San Juan, Anadarko basin and DJ basin (chart above).

It is possible to rank the best companies in each basin, using the granular data, to identify industry leaders and laggards (chart below).

Permian CO2 Emissions by Producer

This data-file tabulates Permian CO2 intensity based on regulatory disclosures from 20 of the leading producers to the EPA in 2018. Hence we can  calculate the basin’s upstream emissions, in tons and in kg/boe.

The data are fully disaggregated by company, across the 20 largest Permian E&Ps, Majors and independents; and across 18 different categories, such as combustion, flaring, venting, pneumatics, storage tanks and methane leaks.

A positive is that CO2 intensity is -52% correlated with operator production volumes, which suggests CO2 intensity can be reduced over time, as the industry grows and consolidates into the hands of larger companies.

Overview of Downstream Catalyst Companies

This data-file tabulates details of the c35 companies commercialising catalysts for the refining industry.  Improved catalysts are aimed at better yields, efficiencies and energy intensities. This is the leading route we can find to lower refining sector CO2 emissions.

In particular, we find five early-stage companies are aiming to commercialise next-generation refining catalysts.

We also quantify which Majors have recently filed the most patents to improve downstream catalysts.

If you would like us to expand the data-file, or provide further details on any specific companies, then please let us know…

Solar Use within the Oil Industry?

This data-file tabulates 20 solar projects being undertaken within the oil industry, in order to clean up production and reduce emissions. More projects are needed, as the total inventory will obviate <1% of oil industry CO2 by 2025.

For each project, we estimate total TWH of power generation per annum, the CO2 emissions avoided, the timeline; and we also summarize the project details.

Leading examples include the use of concentrated solar for steam-EOR in Oman and California, Solar PV in the Permian, and leading efforts from specific companies: such as Occidental, Shell, Eni and other Majors.

At the cutting edge of EOR?

This data-file summarises 120 patents into Enhanced Oil Recovery, filed by the leading Oil Majors in 2018. Based on the data, we identify the “top five companies” and what they are doing at the cutting edge of EOR.

We find clear leaders for water-flooding both carbonate and sandstone reservoirs. At mature fields, we think these operators may be able to derive >10pp higher recovery factors; and by extension, lower decline rates, higher cash flows and higher margins.

As more of the world’s oilfields age, having an “edge” in EOR technology will make particular Oil Majors more desirable operators and partners, to avoid the higher costs and CO2 intensities of developing new fields to replace them.


Lubricant Leaders: our top five conclusions

This data-file presents our “top five” conclusions on the lubricants industry, after reviewing 240 patents, filed by the Oil Majors in 2018. The underlying data on each of the 240 patents is also shown in the ‘LubricantPatents’ tab.

We are most impressed by the intense pace of activity to improve engine efficiencies (chart above), across  over 20 different categories. As usual, we think technology leadership will drive margins and market shares. ‘Major 1’ stands out, striving hardest to gain an edge, by a factor of 2x. ‘ Major 2 has the ‘greenest’ lubricant patents, across EVs and bio-additives. Major 4 has the single most intriguing new technology in the space.

The relative number of patents into Electric Vehicle Lubricants is also revealing. It shows the Majors’ true attitudes on electrification, in a context where they are incentivised to sell new products into the EV sector. Our lubricant demand forecasts to 2050 are also noted.

Copyright: Thunder Said Energy, 2022.