Energy efficiency improvements
Improving energy efficiency is an effective way to reduce GHGs. It can also reduce costs and other emissions to the air. We strongly support the responsible use of energy.
What we are doing
Near-term actions
In the near term, we are pursuing the efficient use of energy in a number of ways:
- Operating energy management systems
- Improving equipment and procedures in operations
- Installing energy conservation technology at retail sites
- Providing leadership to encourage improvements
- Incorporating energy technologies in projects
Energy management system
Since 2000, we have used a Global Energy Management System (GEMS) to conduct rigorous comparisons of our sites against an ideal operation to identify gaps. These gaps are systematically addressed through projects and work practices.
Energy efficiency for refining and for chemical steam cracking is measured using a third-party benchmarking methodology, and indices are calculated. These indices compare actual energy consumed versus an industry average standard for the amount of energy that should be consumed. This measures how well we run our equipment.
Improving energy efficiency in our refining business
By diligently seeking out incremental fixes such as capturing steam leaks or adjusting oxygen levels in furnaces to optimize heat production, as well as maintaining a sustained employee focus on day-to-day operations, we continued to make improvements in our energy usage.
Since 1990, the overall energy efficiency of our refineries has improved by 16 percent. In 2009, our refinery operations were one percent more efficient than 2008. Our target is to improve energy efficiency across our manufacturing sites by at least one percent each year.
Here are some examples of investments in energy efficiency that occurred in the refining business in 2009:
- Dartmouth refinery installed a high-efficiency vacuum furnace, which improved energy efficiency by 7 percent.
- Nanticoke refinery launched an energy real-time optimization project using on-line energy monitoring tools to enhance its utility system.
- Strathcona refinery upgraded its crude unit with new heat exchange technology to improve heat recovery and reduce energy required at the refinery’s furnaces.
- Our Sarnia research team conducted a series of workshops focused on improving refinery mechanical cleaning, including new methods for cleaning heat exchangers to further reduce energy required by the refineries’ furnaces.
The energy intensity index is a measure of energy efficiency for petroleum fuels refining. Performance is shown on a normalized basis with 1990 as a base index of 1.00. Energy intensity has improved 16 percent since 1990. Energy use has a significant impact on energy intensity. Despite lower energy use in 2009 due to market forces, our energy intensity performance improved by one percent. As the company continues its focus on plant reliability, energy intensity is expected to improve over the long term.
One of the challenges in achieving energy efficiency at our manufacturing sites is reliability. Optimal energy use can only be achieved if plants are running reliably, since unplanned downtimes can negatively impact energy use. We manage this challenge through our Global Reliability System (GRS), complementary to OIMS.
Improving energy efficiency in our Upstream
In our Upstream business, we are pursuing energy efficiency opportunities through new management systems, energy audits, waste heat recovery and new energy technologies. To improve energy efficiency at Cold Lake, we launched an online energy management surveillance system to identify and sustain energy-saving initiatives. This system was leveraged from an existing Downstream best practice. At year end, the system helped us to identify opportunities and realize more than $1 million in energy savings.
The Cold Lake operation also uses the ExxonMobil Production Operation Energy Management System and participates in the ExxonMobil Upstream Energy & Efficiency Network and the Downstream Energy Recovery Network. This provides the Cold Lake operation with access to ExxonMobil experts, as well as energy efficiency best practices. In 2009, energy specialists from ExxonMobil conducted an extensive review of our operation. The team helped us identify opportunities that will continue to improve Cold Lake's industry-leading energy performance.
Other important advances in the business included designing a waste-heat recovery project for our Norman Wells oil extraction facility and piloting the use of solar power pumps in remote gas field sites in Alberta.
Energy conservation at retail sites
We continued a multi-year program to install energy conservation technology at retail sites. To date, 115 of our largest sites have been upgraded. The automated building systems are designed to manage and reduce electricity and energy consumption. In addition, more than 180 retail sites have been retrofitted with energy-efficient outdoor lighting.
Incorporating energy-saving technologies in projects
Another way we can save energy is by incorporating technologies that reduce energy use and minimize GHG emission intensity in our project plans.
Our Kearl project and our Nabiye expansion at Cold Lake will include a combined 270 megawatts (MW) of cogeneration, a clean and efficient method of producing electricity and steam at the same time. We estimate that Kearl’s cogeneration facility will reduce carbon dioxide emissions by half a million tonnes a year compared to purchased power for the first phase of the project. The facilities will add to our 265 MW of existing cogeneration capacity at Cold Lake, Alberta and Sarnia, Ontario.
We also plan to use a new proprietary paraffinic froth treatment technology to remove fine clay particles and water from the bitumen. The process dilutes the bitumen with solvent to reduce viscosity, precipitate asphaltenes and enhance separation, producing a clean bitumen that is easily transportable by pipeline. Also, because this process uses less energy than an upgrader, it results in lower GHG emissions. Kearl will be the first oil sands mining operation that does not require an upgrader to make a saleable crude oil. Processing bitumen once, rather than twice (in an upgrader and a refinery), reduces life cycle GHG emissions.