Compton Petroleum

Nothing but upside When Compton Petroleum learned of cutting-edge technology that could increase safety, protect the environment and save money, the company moved quickly, as Keith Regan explains. When John Kendrick, manager of environmental, health and safety at Compton Petroleum Corporation learned of a new infrared camera technology that could help pinpoint gas leaks, he began to do his homework and prepare a case for laying out the capital expenditure to acquire the technology. ÔÇ£I put together a PowerPoint presentation with maybe 20 slides or so,ÔÇØ Kendrick recalls. When he showed that presentation to the company executive in charge of making the purchasing decision, he didnÔÇÖt get very far, however. ÔÇ£I got to maybe the third slide and he said, ÔÇÿOK, letÔÇÖs do it.ÔÇÖ It was an easy decision.ÔÇØThe decision has already paid enormous dividends for Compton, with the company achieving savings equal to the cost of the technology in the first year and additional savings being racked up this year as the company continues to proactively identify leaks, inefficiencies, or aging equipment causing gas to escape from its gas plants and other company assets. ThatÔÇÖs long before the less-quantifiable benefits of increased safety and improved neighbor relations are even taken into account. The technology is known as the ThermaCAM infrared camera and is produced by North Billerica, MassachusettsÔÇôbased FLIR Systems. The camera filters out all spectra of light except for those that may contain hydrocarbons (such as methane, propane and ethane) and allows the source of such gases to be clearly seen. The camera technologyÔÇöbased on tools used by Navy SEALs for covert missionsÔÇöis part of an emerging field of predictive maintenance, which seeks to give companies the tools to identify problems before they become apparent.Based in Calgary, Alberta, Compton Petroleum focuses its resources on the exploration, development, and production of natural gas, natural gas liquids, and crude oil in the Western Canada Sedimentary Basin. It has been publicly traded since 1996 and recently sold some assets in a nod to shareholder desire for increased liquidity. It remains an active and growing mid-sized player in the petroleum space, giving it fewer resources than larger rivals to devote to cutting-edge safety and environmental initiatives. Still, Compton became just the second gas company in Alberta to deploy the FLIR technology, which helps address pending regulatory requirements from both federal and provincial agencies that gas companies have comprehensive plans in place to identify and reduce so-called fugitive emissions from gas farms, pipelines and refineries. ÔÇ£The decision was made to get ahead of the curve,ÔÇØ Kendrick says. ÔÇ£There was a sense that whatÔÇÖs cutting edge today might not be in two years, but this was a way we could start to address those requirements well ahead of the deadlines.ÔÇØReducing fugitive emissions is key because vented gas has 21 times the greenhouse gas impact of burned gas, Kendrick notes. ÔÇ£ItÔÇÖs quite serious for the greenhouse effect,ÔÇØ he adds, noting that all gas infrastructure has some such emissions. ÔÇ£You put stuff together the best you can and test it to the greatest extent possible, but with vibration and wear, stuff gets worn out and leaks happen.ÔÇØ The predictive maintenance approach also saves money. For instance, if the camera shows piston rod seals are beginning to wear out, they can be changed when a unit is down for other routine maintenance, rather than waiting for them to fail. ÔÇ£Now youÔÇÖre no longer venting gas out of those seals, and you can get a great cost savings on that gas.ÔÇØSince it purchased the camera a little over a year agoÔÇöalong with mass flow sampling tools sourced from Houston-based Heath ConsultantsÔÇöCompton has gone through all its larger facilities seeking out potential leaks and areas that could be tightened. During the first year, Compton estimates it stopped leaks that would have allowed $126,000 worth of gas to escape from its major facilities. Halfway through the second year with the camera, it had identified about half as much gas savingsÔÇöthough gas is also selling for a higher price. ÔÇ£The fact that the amount weÔÇÖre finding is going down is a good thing,ÔÇØ Kendrick notes. ÔÇ£It means weÔÇÖve got things tightened up considerably.ÔÇØ In addition to the environmental and bottom-line benefits, the predictive work has an obvious safety benefit as well, since in confined space, even a tiny leak can accumulate enough gas to pose an explosion risk in the presence of a static discharge, such as that created by a workerÔÇÖs clothing. ÔÇ£One of our foremen saw a facility building explode in one of his earlier jobs with a previous employer. He was the person who went in and pulled out the worker who was trapped in the building, tended to him and called for help,ÔÇØ Kendrick notes. ÔÇ£He doesnÔÇÖt want to have to worry about going through that ever again in his life, and this was one way to help prevent a reoccurrence.ÔÇØ Employees recognize that Compton is going the extra mile on the safety front, he adds. ÔÇ£They know this is a significant expense weÔÇÖve taken on and not something that every company of our size, and even some bigger companies, would take on. I think that helps them understand we care about them and want to keep them safe, and that in turn makes them enjoy working for us more.ÔÇØIn addition, there is time savings for workers in the field, who can spend more of their workdays on their main jobs and objectives and less time chasing down leaks, which has traditionally been done with ultrasound equipment or even manual processes such as using soaplike solutions that bubble in the presence of a leak. The predictive and proactive approach fits with ComptonÔÇÖs overall philosophy toward its gas facilities and other assets, which seeks to go above and beyond regulatory requirements and make the company as much of a good neighbor as it can be. For instance, it has taken extra steps to address the appearance of its gas plants, using architectural accents to help them blend into the surrounding communities. ÔÇ£As important as the greenhouse gas emissions are, theyÔÇÖre not the only reason we did this,ÔÇØ Kendrick says. ÔÇ£The return on investment, the improved safety to our neighbors and our workers, and the overall idea of doing the right thingÔÇöitÔÇÖs a cumulative effect. Global warming may be the flavor of the day, but if youÔÇÖre running a business on one issue alone, you canÔÇÖt survive very long. ItÔÇÖs an important issue that is recognized, and weÔÇÖre taking steps to be corporately responsible.ÔÇØ┬á