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- Further refined data sets for the Oil & Gas Methane Emissions Reduction Project to come up with the use case for the Hyperledger Global Challenge 2022.
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Table 1: Emission and fuel production token data for select oil and gas basins in the U.S. in 2020.
C-NFT component Basin | Methane, mt CO2e |
|---|
input | Flaring, mt CO2e |
|---|
input | Oil prod., mtoe |
|---|
output | Gas prod., bcm |
|---|
output | O&G prod., mtoe (total |
|---|
output) | EF methane kgCO2e/toe |
|---|
partial | EF flaring kgCO2e/toe |
|---|
partial | EF total, kgCO2e/toe |
|---|
total | ||||||||
|---|---|---|---|---|---|---|---|---|
| Bakken, B | Bm = 35.30 | Bf = 3.17 | Bo = 60.43 | Bg = 27.94 | BT = 84.46 | 418.0 | 37.6 | Be = 455.5 |
| Niobrara, N | Nm = 4.07 | Nf = 0.16 | No = 237.25 | Ng = 56.62 | NT = 81.05 | 50.2 | 2.0 | Ne = 52.2 |
| Permian, P | Pm = 27.53 | Pf = 7.19 | Po = 1597.58 | Pg = 172.83 | PT = 366.54 | 75.1 | 19.6 | Pe = 94.7 |
U.S. Average | 298.5 | 15.2 | 313.7 | |||||
| Global Average | 229.9 | 38.7 | 268.5 |
The data in Table 1 are used to construct Carbon Trakers Non Fungible Tokens (C-NFTs) for each basin (producer), as introduced in this working paper. The C-NFT links the methane and flaring emission tokens to the corresponding fuel production tokens, which, are assigned to each C-NFT at the closure of a audit, verification and certification processes. The C-NFT provides an anchor for the embodied flaring and venting emissions, measured as the carbon intensity or emission factors (see right rolumns in Table 1) of the oil and gas fuel tokens.
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- Local Gas methane emissions per thousand cubic-meter natural gas: (Be*0.2 + Ne*0.2 + Pe*0.6) * 0.86 toe/kcm = 136158.19 kgCO36kgCO2e/kcmtoe.
More interestingly, the Local Gas Utility can acquire the following natural gas fuel tokens from each C-NFT, 0.2 bcm form Bg and Ng , and 0.6 bcm of Pg. These can be re-sold to consumers at a premium on the emission factor anchor. Clearly, Niabrara could seek a significant premium compared to the average emission factor of the Local Gas Utility: 4452.89 2 vs. 136158.19 36 kgCO2e/kcmtoe. Assuming consumers are exposed to a carbon price of 100 USD/tonCO2e, the fuel production linked to the Niabrara contract could seek a premium of up to 9.1 USD/kcm or 0.25 USD/mmtbu, roughly 10% of the Henry Hub Natural gas prices in 2020 (~2.5 USD/mmbtu).
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