As ironic as it may seem, the fossil fuel industry is fighting to survive, fending off attacks from every direction. With a political environment based on the idea of an energy transition from traditional forms to renewables as well as financial pressure from investors insisting companies address Environment, Social, and Governance (ESG) requirements, traditional drilling and production methods are no longer an option for producers. Finding options to reduce the carbon footprint of the extraction process is vital for success.
As the climate change discussion continues, capturing methane remains the focal point of not just the federal government, but also oil and gas producing states. In January, President Biden issued an Executive Order calling on the Environmental Protection Agency (EPA) to strengthen standards for methane and VOC emissions. The Agency is in the midst of writing a new rule that will affect not only new sources but also legacy production sites. States including New Mexico, Colorado, and Pennsylvania have already mandated reductions in emissions and banned venting and flaring in non-emergency situations.
When the EPA revised the New Source Performance Standards, Subpart OOOO in 2012, Agency findings revealed that using a vapor recovery unit (VRU) could achieve 95 percent or higher VOC emission reduction efficiency. Research since then supports that vapor recovery devices can achieve this high capture rate for not only VOCs but also methane.
During the past decade, Flogistix has utilized data-driven technology to help oil and gas producers capture emissions to reduce environmental impact while increasing revenues. As the leading provider of vapor recovery units, Flogistix designs, builds, and maintains VRUs all across the nation. Using advanced compressor technology, Flogistix equipment puts an end to the need to vent or flare because the emissions that would have been burned or released are combusted in the compressor engine to generate power. Our equipment maintains an industry-leading 98% runtime preventing the release of emissions due to inoperable equipment and often exceeding regulatory requirements. With service locations across the country, our company offers preventive and emergency maintenance to ensure equipment is working properly.
Oil and gas producers must embrace the push to capture methane and adjust their operations in order to stay in business. With current prices for energy at record-high levels, producers who continue to flare and vent are not only in violation of current regulations but are also essentially burning money. Utilizing a VRU not only protects the environment but increases revenue.
The data compiled by a Flogistix VRU is valuable to those companies addressing ESG concerns. While the current drive to energy transition is changing the oil and natural gas industry in ways many never anticipated, technology developed by the Flogistix team provides vital statistics regarding environmental sustainability. Stringent regulations and the influence of ESG initiatives on markets are forcing companies to assess sustainability, risk, and ethical practices on operations. The ESG movement is changing the criteria used by investors when determining what is a suitable investment. Flogistix data provides prompt and accurate emissions management details suitable for ESG reporting.
As institutional investors, asset managers, financial institutions, insurance providers, and other stakeholders look at ESG factors when making investment and lending decisions, the ESG ratings of a company will affect its long-term financial success and sustainability. Companies must scrutinize their own policies and look at how to mitigate risk while managing operations, employees, suppliers, and vendors. The relationships with the local communities where they operate must also be managed. Having a partner to work hand-in-hand through these challenges is vital. Feedback from our customers guides our efforts to eliminate potential environmental impacts while providing a reliable and effective product.
According to the U.S. Energy Information Administration (EIA), in 2019, 80% of domestic energy production was from fossil fuels. As the need for fossil fuels increases, companies are looking for solutions. Partnering with Flogistix allows producers to meet demand while protecting the environment, complying with applicable regulations, and providing investor confidence. Let our team of petroleum engineers, technology experts, and other specialized oil and gas professionals provide vapor recovery and other atmospheric solutions for your emissions needs.