The oil and natural gas industry is addressing the challenges of meeting the world's growing energy demands in a responsible manner. Real and sustainable actions to reduce greenhouse gas (GHG) emissions are an important aspect of achieving this objective. To this end, the American Petroleum Institute (API) and the International Petroleum Industry Environmental Conservation Association (IPIECA) have collaborated on guidelines to promote the credible, consistent, and transparent quantification of GHG emission reductions from emission reduction projects of interest to the oil and natural gas industry. This paper will provide an overview of the Petroleum Industry Guidelines for Greenhouse Gas Emission Reduction Projects (referred to as the Project Guidelines), developed to provide oil and natural gas companies with a framework for evaluating, quantifying, documenting, and reporting GHG emission reductions achieved through discreet projects. The Project Guidelines address the selection of appropriate baseline candidates and boundaries for scenario assessment. It also addresses potential emission sources to be incorporated for the selected scenarios, along with compatible monitoring considerations. The guidelines focus on technical considerations and provide flexibility in adapting the approach in view of applicable public policy mandates. Case studies will be used to demonstrate the application of these emission reduction principles for two categories of significant GHG emission reduction projects:
cogeneration of electricity and steam, and
carbon dioxide capture and geological storage.
Although the concepts are illustrated through project examples relevant to the oil and natural gas industry, the information is applicable to a variety of project types and it establishes the foundation for assessing any project activity