Unconventional Resources DevelopmentSocial License to Operate / Learnings
March 21-22, 2018International Energy Agency – Gas and Oil Technologies Forum
Paul Krishna
Corporate SSH&E
Environment, Regulatory, and Socioeconomics Manager
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Exxon Mobil Corporation has numerous subsidiaries, many with names that include
ExxonMobil, Exxon, Esso and Mobil. For convenience and simplicity in this
presentation, the parent company and its subsidiaries may be referenced
separately or collectively as "ExxonMobil." Abbreviated references describing
global or regional operational organizations and global or regional business lines
are also sometimes used for convenience and simplicity. Nothing in this
presentation is intended to override the corporate separateness of these separate
legal entities. Working relationships discussed in this presentation do not
necessarily represent a reporting connection, but may reflect a functional guidance,
stewardship, or service relationship.
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Social License to Operate / Learnings
Content
• Methane Emissions
• Importance
• USA Voluntary Reduction Program and API Environmental Partnership
• Research
• Global Methane Principles
• Industry Leadership
• Protecting drinking water
• Water usage
• Chemical Disclosure and Frac Focus
• Seismicity and Gas Storage
• Increasing Regulator Capacity
• Community
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• Subsidiary of Exxon
Mobil Corporation
• Founded in 1986 in Fort
Worth, Texas
• Operating units across
the USA, Canada, and
Argentina
• USA’s leading oil &
natural gas producer
About XTO Energy
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Oil and Gas
Multi-Sector Opportunity to Reduce Methane
Wetlands Rice Cultivation
Ruminants
• Half from natural sources
– Anaerobic decay
– Termite digestion
– Natural seeps
Natural Seeps Oil & Gas
Biomass Decay
Termites
• Agriculture is major human contributor
– Rice cultivation
– Livestock
Landfills /
Burning
Based on data from IPCC, 2013
• Oil and gas ~10% of total
• Landfills also significant sourceLandfills
Landfills /
Burning
Landfills /
Burning
Sources of Atmospheric Methane
Natural
Agriculture
Landfills
Oil
& Gas
Coal
• Coal mining is balance
Lifetime in the atmosphere is 7-10 years.
Global Warming Potential-100-years is 28.
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ExxonMobil expands methane emissions reduction program
News Release
Energy Factor Perspectives Blog
Infographic
Program Website Content
Environmental Defense Fund
Blog: Leading methane
commitment from Exxon's
U.S. driller: Why it matters
Statement : XTO Steps Up
on Methane Mitigation
“XTO Energy is showing real
leadership in addressing methane
emissions at key sources across
its U.S. operations.
Delivering on this promise will
make XTO a stand-out among the
U.S. oil and gas industry.”
“….this kind of company
responsiveness to local
community, investor and advocate
concerns is refreshing.
“XTO’s expanded methane
management program is a timely
reminder that reducing methane
emissions from today’s levels is
technologically feasible, cost
effective, and necessary.”
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Methane Emission Reduction Program at XTO Energy
Leak Detection and Repair
• Annual optical gas imaging camera surveys of equipment, fittings,
flanges, and connections. Enhanced to include pneumatic devices, tank
hatches. Repair on site or queue larger repairs.
• Includes relevant federal and state requirements, and substantial
‘beyond regulation’ activity.
Pneumatic Devices
• Replace all high-bleed devices with lower emitting devices.
• Research low emission devices with third-party manufacturers.
New Construction
• Designs to emphasize low emissions and include lower emitting or no
bleed devices.
• Expanded use of vapor recovery units, enhanced process monitoring,
and centralized facilities.
Manual Liquid Unloading
• Monitor operations; minimize release of natural gas.
Operations
• Training on optical imaging camera use and emission management.
• Methane emission learnings shared across the organization.
Manual Liquid Unloading
Pneumatic Device
Leak Detection & Repair
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API Environmental Partnership announced 12/5/17
Focus: Reduce methane and VOC emissions, starting January 1, 2018.
Participating companies represent 25% of U.S. gas industry volumes.
Companies to determine level of participation and which programs they will participate
Environmental Performance Programs
1. Leak monitoring using optical imaging camera or Method 21. Timely Repair.
2. High bleed pneumatic device phaseout (5-years)
3. Manual Liquid Unloading monitoring.
Participation Agreement and Report
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Global Methane Roundtable – 11/22/2017
• IEA World Energy Outlook said industry “has
homework to do” on methane emissions.
• Industry response to IEA with message: Natural
gas is a global fuel with environmental benefits.
• Guiding principles to respond to WEO key points.
10/25 Meeting.
• Participants: Shell, ExxonMobil, BP, Eni, Statoil,
Total, Repsol, and Wintershall.
• Notables: IEA, EDF, UNEP, and World Bank.
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Industry Leadership – Other Issues
GWPC Produced Water
and Beneficial Use (2018)
Stanford–ExxonMobil Fault Slip Potential Tool (2017)
Frac Focus (2010-2017)
States First: Gas
Storage (2017)
StatesFirst: Seismicity
(2016/2017)
TOPCORP University Regulator Training
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Addressing Local Impact through Community
Relations and Health Study
Community relations
• Addressing local impacts (trucks, noise, lights)
• Importance of communications
• Operation adjustments
Health Study
• Health Effects Institute (HEI) and Industry pursuing a first-of-its-
kind exposure study to assess community health impacts from
unconventional resources development.
• Industry Participants: ExxonMobil, Shell, Chevron, Statoil,
BHP-B, ConocoPhillips, Halliburton, Schlumberger, Noble
Energy & American Chemistry Council.
• HEI is a non-profit research organization chartered in 1980 to
provide high-quality, impartial, and policy-relevant science.
Lengthy respected track record.
• 5-Year $28M study. HEI in discussions with Congressional
Appropriations and EPA.