Conoco and the Vapor Recovery Project: Using Innovation to Preserve Autonomy

We describe Conoco’s closed-loop approach to reducing undesirable emissions through vapor recovery at some of its natural gas production facilities near Corpus Christi, Texas. In response to the U.S. Clean Air Act Amendments of 1990 (CAAA), Conoco developed a technological solution that routed emissions from the facilities to fuel scrubbers and condensers to capture usable product and hazardous air pollutants. Usable product was sold. Nonsalable emissions were routed to on-site equipment as fuel. The new technology was designed without power needs because electricity was not available. In completing these modifications, a closed system (approaching zero emissions) for these facilities was achieved. This innovation saved and earned money for the firm and allowed Conoco to retain its autonomy in these operations. The solution was so effective that the air quality permits under the CAAA were not required for these production facilities, for a total out-of-pocket cost of $560,000 (plus earned revenue). The firm saved $2,535,000 in initial and $1,359,000 in annual permit costs and fees. The technology recovered $210,000/yr worth of vent gas as on-site fuel and 3,633 barrels/yr of saleable condensate valued at $58,128/ yr. At the same time, it reduced its division environmental impact by 884 tons/year of nitrogen oxides, 2,366 tons/yr of volatile organic compounds, and 495 tons/yr of other hazardous air pollutants. Payout of this $560,000 investment was less than 2 years.