While Oil Prices are Down, Get Up on Compliance


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It’s no secret that the oil and gas industry has taken a hit lately, with per-barrel prices dipping to as low as $27. The saturated market and low prices have many companies putting a hold on drilling.

While no one in our industry likes dipping oil prices, there are two things you can do to weather the storm until those prices take a (much welcomed) upward turn:

Stay up to date on compliance issues. Everyone in the oil and gas industry knows about (and most have complied with) Quad O, but in September of 2015, the EPA proposed additional requirements to the compliance legislation. These new rules, known as Quad Oa, will affect oil & gas operations throughout the United States if implemented.

Quad Oa aims to accomplish several things:

  • Increase fugitive leak detection requirements across the entire oil & gas sector
  • Change the definitions of “new” and “modified” as they relate to oil & gas sites, which will increase the number of sites that will now need emission reduction equipment.
  • Include methane in the regulations, which will require monitoring of residue gas.
  • Fugitive emission monitoring at oil & gas production sites and within compressors.
  • Monitor storage tanks for fugitive emissions.
  • Expansion of the source category (oil well completions, pneumatic pumps and fugitive emission components at well sites and compressor stations).
  • Additional required compliance tracking, verification and electronic reporting.
  • Initial and ongoing performance testing if not on list of EPA-approved combustors
  • Enclosed combustion units – opacity monitoring

This proposed rule would not affect facilities constructed prior to the proposal date of the new Subpart OOOO rules in the Federal Register. The EPA has requested comment on several of the compliance verification steps, including third-party audit verification and closed-vent system design certification by professional engineers, with some of this information in publicly accessible data systems.

Read more about Quad Oa here and here.

Prepare your site. If your site is behind the curve on compliance issues, it’s probably time to evaluate a combustion solution. Determining the size unit your site needs is easy. Simply contact an ABUTEC sales manager, who will walk you through completing our application data sheet. Once complete, we’ll provide you with a quote and timeline of getting your combustors to you. Even if you’re waiting to install until oil prices go back up, it’s always good have your ducks in a row for when that time comes.

ABUTEC sales managers are always happy to work with you to evaluate your site before you buy, especially when prices are low. Talk to an ABUTEC representative today!

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