-System has already prevented more than 300,000 tons of carbon dioxide from entering the atmosphere since beginning operations-
April 17, 2017 – Secretary of Energy Rick Perry and Governor of Texas Greg Abbott joined the chief executive officers of the Petra Nova carbon capture and enhanced oil recovery system partners – NRG Energy (NYSE: NRG), JX Nippon Oil & Gas Exploration Corporation (JX Nippon), and Hilcorp Energy Company (Hilcorp) - to celebrate the operations of the carbon capture and enhanced oil recovery system.
Petra Nova, a 50-50 joint venture by NRG and JX Nippon, is the world’s largest carbon capture system retrofitted onto an existing coal plant. It was constructed on-time and on-budget and commenced operations at the end of 2016. The project has delivered more than 300,000 tons of carbon dioxide (CO2) to the West Ranch oil field. The CO2 is injected into the oil reservoir to increase oil production in an established process known as Enhanced Oil Recovery (EOR).
“I commend all those who contributed to this major achievement,” said Secretary Perry. “While the Petra Nova project will certainly benefit Texas, it also demonstrates that clean coal technologies can have a meaningful and positive impact on the Nation’s energy security and economic growth.”
“Everything is bigger in Texas so it is fitting that the largest post-combustion, carbon-capture facility in the world is right here in the Lone Star State,” said Governor Abbott. “Texas has become a global leader in innovation thanks to the pioneering spirits of companies like NRG and JX Nippon who are fueling the next generation of energy production through projects like Petra Nova.”
“Petra Nova demonstrates our leadership on energy innovation at commercial-scale,” said Mauricio Gutierrez, President and CEO of NRG Energy. “We have built the largest carbon capture system on an existing coal-fired power plant in the United States on-time and on-budget. This further shows what can be achieved when collaboration and competitive markets come together to make our existing domestic energy infrastructure more secure and sustainable.”
“JX Nippon is very pleased that the construction of Petra Nova’s Carbon Capture System (CCS) was completed on-schedule and on-budget,” said Shunsaku Miyake, President and CEO of JX Nippon. “Also JX Nippon is delighted to say that shipping of oil produced through enhanced oil recovery by means of CO2 injection, is currently proceeding smoothly. This project enables us not only to decrease greenhouse gas from the coal-fired power plant, but also, at the same time to dramatically boost oil production. It is a great honor for us, as a Japanese company, to participate in this innovative project in Texas and we are grateful to Petra Nova Team for this incredible opportunity.”
“We are excited to be a part of this project,” said Jeffery D. Hildebrand, Chairman and CEO, Hilcorp Energy Company. “The CO2 delivered from Petra Nova to West Ranch will provide employment and long term economic opportunity for both the local economy and the State of Texas. We are proud of the fact that West Ranch has one of the most extensive monitoring programs for an enhanced oil recovery project in the United States, making sure that this project not only provides greater energy security for our nation and an economic benefit to the region but also is done in a safe and environmentally responsible manner.”
Petra Nova captures more than 90% of CO2 from a 240 MW equivalent slipstream of flue gas off an existing coal-fueled electrical generating unit at the WA Parish power plant in Fort Bend County, southwest of Houston. The project can capture more than 5,000 tons of CO2 per day, or the equivalent of taking more than 350,000 cars off the road.
Hilcorp, the operator of West Ranch oilfield, uses the captured CO2 to boost production at West Ranch oilfield, jointly owned by NRG, JX Nippon and Hilcorp. Both Hilcorp and the University of Texas Bureau of Economic Geology are monitoring the movement of CO2 deep in the oil reservoir. Over the next few years, oil production at the field is currently estimated to increase from approximately 300 barrels per day before beginning EOR operations to up to 15,000 barrels per day using captured CO2.
NRG is the leading integrated power company in the U.S., built on the strength of the nation’s largest and most diverse competitive electric generation portfolio and leading retail electricity platform. A Fortune 200 company, NRG creates value through best in class operations, reliable and efficient electric generation, and a retail platform serving residential and commercial businesses. Working with electricity customers, large and small, we continually innovate, embrace and implement sustainable solutions for producing and managing energy. We aim to be pioneers in developing smarter energy choices and delivering exceptional service as our retail electricity providers serve almost 3 million residential and commercial customers throughout the country. More information is available at www.nrg.com. Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.
JX Nippon Oil & Gas Exploration Corporation is a core business company in the JXTG Group, which was established in April 2017 through a business integration of the JX Group and the TonenGeneral Group. The JXTG Group is the leading “integrated energy, resources and materials business group” in Japan. JX Nippon Oil & Gas Exploration Corporation engages in oil and natural gas exploration and production (E&P) business around the world. In the U.S., JX Nippon owns assets in the Gulf of Mexico, ranging from the continental shelf to deep water area. In addition, JX Nippon participates in the Syncrude Project in Canada, which produces synthetic crude oil from oil sand, and manages the project at Houston office. More information is available at www.nex.jx-group.co.jp/english.
Hilcorp, founded in 1989, is one of the largest privately-held independent oil and natural gas exploration and production companies in the United States. Hilcorp is consistently ranked as one of the top places to work in America by multiple regional and national publications. Headquartered in Houston, TX, with over 1,500 employees, Hilcorp has operations across the United States including the Gulf Coast of Texas and Louisiana, Wyoming, Northeast U.S. and both the Cook Inlet and North Slope of Alaska. More information is available at www.hilcorp.com.
Something interesting to share?
Join NrgEdge and create your own NrgBuzz today
According to the Nigeria National Petroleum Corporation (NNPC), Nigeria has the world’s 9th largest natural gas reserves (192 TCF of gas reserves). As at 2018, Nigeria exported over 1tcf of gas as Liquefied Natural Gas (LNG) to several countries. However domestically, we produce less than 4,000MW of power for over 180million people.
Think about this – imagine every Nigerian holding a 20W light bulb, that’s how much power we generate in Nigeria. In comparison, South Africa generates 42,000MW of power for a population of 57 million. We have the capacity to produce over 2 million Metric Tonnes of fertilizer (primarily urea) per year but we still import fertilizer. The Federal Government’s initiative to rejuvenate the agriculture sector is definitely the right thing to do for our economy, but fertilizer must be readily available to support the industry. Why do we import fertilizer when we have so much gas?
I could go on and on with these statistics, but you can see where I’m going with this so I won’t belabor the point. I will leave you with this mental image: imagine a man that lives with his family on the banks of a river that has fresh, clean water. Rather than collect and use this water directly from the river, he treks over 20km each day to buy bottled water from a company that collects the same water, bottles it and sells to him at a profit. This is the tragedy on Nigeria and it should make us all very sad.
Several indigenous companies like Nestoil were born and grown by the opportunities created by the local and international oil majors – NNPC and its subsidiaries – NGC, NAPIMS, Shell, Mobil, Agip, NDPHC. Nestoil’s main focus is the Engineering Procurement Construction and Commissioning of oil and gas pipelines and flowstations, essentially, infrastructure that supports upstream companies to produce and transport oil and natural gas, as well as and downstream companies to store and move their product. In our 28 years of doing business, we have built over 300km of pipelines of various sizes through the harshest terrain, ranging from dry land to seasonal swamp, to pure swamps, as well as some of the toughest and most volatile and hostile communities in Nigeria. I would be remiss if I do not use this opportunity to say a big thank you to those companies that gave us the opportunity to serve you. The over 2,000 direct staff and over 50,000 indirect staff we employ thank you. We are very grateful for the past opportunities given to us, and look forward to future opportunities that we can get.
Headline crude prices for the week beginning 15 July 2019 – Brent: US$66/b; WTI: US$59/b
Headlines of the week
Unplanned crude oil production outages for the Organization of the Petroleum Exporting Countries (OPEC) averaged 2.5 million barrels per day (b/d) in the first half of 2019, the highest six-month average since the end of 2015. EIA estimates that in June, Iran alone accounted for more than 60% (1.7 million b/d) of all OPEC unplanned outages.
EIA differentiates among declines in production resulting from unplanned production outages, permanent losses of production capacity, and voluntary production cutbacks for OPEC members. Only the first of those categories is included in the historical unplanned production outage estimates that EIA publishes in its monthly Short-Term Energy Outlook (STEO).
Unplanned production outages include, but are not limited to, sanctions, armed conflicts, political disputes, labor actions, natural disasters, and unplanned maintenance. Unplanned outages can be short-lived or last for a number of years, but as long as the production capacity is not lost, EIA tracks these disruptions as outages rather than lost capacity.
Loss of production capacity includes natural capacity declines and declines resulting from irreparable damage that are unlikely to return within one year. This lost capacity cannot contribute to global supply without significant investment and lead time.
Voluntary cutbacks are associated with OPEC production agreements and only apply to OPEC members. Voluntary cutbacks count toward the country’s spare capacity but are not counted as unplanned production outages.
EIA defines spare crude oil production capacity—which only applies to OPEC members adhering to OPEC production agreements—as potential oil production that could be brought online within 30 days and sustained for at least 90 days, consistent with sound business practices. EIA does not include unplanned crude oil production outages in its assessment of spare production capacity.
As an example, EIA considers Iranian production declines that result from U.S. sanctions to be unplanned production outages, making Iran a significant contributor to the total OPEC unplanned crude oil production outages. During the fourth quarter of 2015, before the Joint Comprehensive Plan of Action became effective in January 2016, EIA estimated that an average 800,000 b/d of Iranian production was disrupted. In the first quarter of 2019, the first full quarter since U.S. sanctions on Iran were re-imposed in November 2018, Iranian disruptions averaged 1.2 million b/d.
Another long-term contributor to EIA’s estimate of OPEC unplanned crude oil production outages is the Partitioned Neutral Zone (PNZ) between Kuwait and Saudi Arabia. Production halted there in 2014 because of a political dispute between the two countries. EIA attributes half of the PNZ’s estimated 500,000 b/d production capacity to each country.
In the July 2019 STEO, EIA only considered about 100,000 b/d of Venezuela’s 130,000 b/d production decline from January to February as an unplanned crude oil production outage. After a series of ongoing nationwide power outages in Venezuela that began on March 7 and cut electricity to the country's oil-producing areas, EIA estimates that PdVSA, Venezuela’s national oil company, could not restart the disrupted production because of deteriorating infrastructure, and the previously disrupted 100,000 b/d became lost capacity.