Five oil companies in North Dakota
were recently ordered to cut their production in the state for failing to meet
new gas flaring restrictions, as set forth by the Environmental Protection
Agency, which went into effect at the beginning of the year, according to the
Associated Press.
Per the new requirements, companies
must capture at least 77% of natural gas produced during oil production to
reduce methane emissions and volatile organic compounds (VOCs). After failing
to comply with the new rules, the North Dakota Oil and Gas Division ordered
Emerald Oil, Occidental Petroleum Corporation, QEP, Abraxas Petroleum and
Enerplus to reduce their production to 100 barrels of oil per day at certain
wells or face additional daily penalties.
The EPA aims to cut global methane
emissions by 40-45% by 2025 compared to 2012 levels, by specifically focusing
on emissions from high-volume hydraulic fracturing – or “fracking.”
Many top producers oppose the
regulations as unnecessary and expensive, as the new rules are expected to
require the use of reduced emission completion (REC) technologies and utilize
flaring as a last resort. REC technologies cost anywhere from $700 and $6,500
per day, according to the EPA, so it’s no surprise that flaring is the more
favorable, low cost and most commonly used option. But flaring carries its own
problems.
Gas flaring is a method of
incinerating impurities in raw natural gas and carbon dioxide. During oil
production, natural gas is carried through the pipelines along with the flow of
crude. However, the construction of gas-gathering pipelines has failed to keep
up with the rapid increases in drilling in states like North Dakota. Without
adequate pipelines, the solution is to flare the gas and convert the waste
methane into carbon dioxide, polluting the air with carcinogenic toxins.
The National Oceanic Administration
Association (NOAA) estimates that gas flares pump 400 million tons of carbon
dioxide into the atmosphere worldwide each year, adversely impacting local
populations of human and wildlife, and often resulting in loss of livelihood
and severe health issues.
The environmental and economic
obstacles are nothing but opportunity for Houston-based Well Power, Inc.
(OTCQB: WPWR). Well Power has the licensing rights to Texas, along with the
first right of refusal on the other U.S. states, to a new technology solution
that processes waste natural gas into “clean power” and engineered fuels. Based
on proprietary technology, these Micro Refinery Units (MRU) are mobile,
high-yield and can be deployed with minimum capital expenditure.
The MRU is an assembly of tested
commercial technologies with a proprietary micro-reactor system for hydrocarbon
processing and catalytic reactions. The company intends to provide the MRU with
full-service engineering, design, construction, modular fabrication,
maintenance, and construction management services to clients in the upstream
areas of exploration and production as they maintain compliance with the EPA’s
new regulations.
To further support the technology and
its efficacy, Well Power will also offer consulting services, process
assessments, facility appraisals, feasibility studies, technology evaluations,
project finance structuring and support, and multi-client subscription
services.
As companies like Emerald Oil,
Occidental Petroleum Corporation, QEP, Abraxas Petroleum and Enerplus struggle
to meet EPA mandates, Well Power’s technology creates the opportunity to
generate value from a wasted resource while simultaneously enabling wider
access to energy, improved environmental conditions, and economic development
for local populations.
For more information, visit
www.wellpowerinc.com
About QualityStocks
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
Sign up for “The QualityStocks Daily Newsletter” at www.QualityStocks.net
The Quality Stocks Daily Blog http://blog.qualitystocks.net
The Quality Stocks Daily Videos http://videocharts.qualitystocks.net
The Quality Stocks “Ones to Watch” http://gotstocks.qualitystocks.net
Please see disclaimer on the QualityStocks website: http://disclaimer.qualitystocks.net
No comments:
Post a Comment