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Devon Energy tries to make money by following rules

Devon Energy Corp. is using a mixture of new technology and old techniques to make the best of some new U.S. Environmental Protection Agency regulations.
BY JAY F. MARKS Published: February 8, 2013

Devon Energy Corp. has managed to make the task of complying with new U.S. Environmental Protection Agency regulations into a moneymaking proposition in western Oklahoma.

The company has figured out a way to keep methane and other forms of carbon known as “volatile organic compounds” from leaking out of oil storage tanks in its operations in the Cana Woodford Shale.

Devon is using vapor recovery units to compress the gas so that it can be placed into a pipeline to be sold. Otherwise, that gas would be burned off or simply leak out into the air.

“It keeps it out of the atmosphere,” said Jim Heinze, manager of production engineering for Devon's Anadarko Basin unit. “It's burned in somebody's house.”

The EPA is cracking down on emissions of some volatile organic compounds, which can cause environmental or health problems.

Travis Dean, a Devon construction and facilities engineers, said new regulations that took effect last fall slashed the allowable amount of such emissions to 6 tons per facility. The limit had been 40 tons per facility, so oil and natural gas companies had their work cut out for them.

“Devon has a lot invested across the company to comply with these regulations,” Dean said.

When possible, Devon now connects four well pads in the Cana to a single tank battery equipped with a compressor to prepare the vapor for sale.

“If you can compress that gas, you can sell it and make money off of it,” he said.

Dean said Devon chose to work with Oklahoma City-based Flogistix in western Oklahoma because its vapor recovery units work well with low-pressure gas. He estimated Devon has been able to capture 99.86 percent of the emissions from its storage tanks in the Cana since adding those units.

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