Pioneer Energy Partners with Diversified Energy for $5 Million DOE Grant to Revolutionize Emissions Control at Marginal Wells
In an exciting move to combat harmful emissions and promote sustainable practices in the oil and gas industry, Pioneer Energy has announced a transformative partnership with Diversified Energy to tackle the ongoing challenge of methane emissions from marginal conventional wells (MCWs). The U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) have awarded a $5 million grant to Pioneer Energy to further develop and scale their cutting-edge Emission Control Treater™ (ECT) technology. This innovative solution is designed to eliminate flaring and emissions in MCWs, with an initial demonstration set to take place at Diversified Energy’s field locations in East Texas.
The ECT is a groundbreaking well pad production technology that significantly improves the separation process compared to existing phase separators. As a result, the system ensures that no flash gas remains in the crude, and there is a dramatic reduction in the amount of heavy natural gas liquids (NGLs) left in the gas. This means that crude yield can be increased by 5-10%, offering a highly efficient alternative to traditional methods.
One of the key advantages of the ECT is its closed-system design, which processes the crude without the need for atmospheric storage tanks, completely eliminating routine flaring and achieving near-zero emissions at the production site. By offering a sustainable solution to an otherwise harmful process, this technology is poised to revolutionize emissions management in the oil and gas industry.
The ECT technology is equipped with advanced, cloud-connected automation that allows operators to not only monitor production remotely but also take full control from a centralized dashboard. This automation reduces the need for manpower, field trips, and maintenance visits, driving down operational costs while simultaneously improving efficiency. Additionally, the modular nature of the ECT allows for easier resizing of equipment throughout the life of a well pad.
This flexibility ensures better capital expenditure (CAPEX) utilization and minimizes the total cost of ownership over the well pad’s lifetime. The ability to scale and adapt this technology to meet the changing needs of well production makes the ECT a highly promising tool for increasing the sustainability of the oil and gas sector.
With the support of the $5 million grant from the DOE and EPA, Pioneer Energy will focus on scaling down the ECT technology for application in marginal well production. The funds will be used to develop miniaturized versions of the ECT, which will serve as low-cost, drop-in replacements for the surface infrastructure at MCWs. These mini-ECT units will be designed for easy installation and cost-effective operation, making them accessible to operators of marginal wells across the U.S. The units will be tested for 12 months on several production sites operated by Diversified Pioneer Energy in the Cotton Valley Basin of East Texas.
“We are thrilled to receive the support of the Department of Energy to help us commercialize the ECT for marginal wells,” said Eyal Aronoff, CEO of Pioneer Energy. “We believe that this technology has the potential to extend the economic life of these wells while simultaneously eliminating nearly all methane emissions and wasteful flaring. By working closely with the DOE and our partner Diversified Energy, we can further U.S. goals of leveraging advanced technology to boost domestic oil production in an environmentally responsible manner.”
The partnership between Pioneer Energy and Diversified Energy highlights a shared commitment to improving environmental performance and advancing the industry’s stewardship of natural resources. Paul Espenan, Senior Vice President of Environmental, Health, Safety, and Regulatory (EHS&R) at Diversified Energy, expressed his pride in the collaboration, stating, “We are proud to partner with innovative emissions technology providers like Pioneer Energy that allow us to pave the way for emissions improvement utilizing transformative industry solutions.
By leveraging the DOE grant and our collaboration with Pioneer Energy, we have a unique opportunity to demonstrate how efficient, high-performance technologies can provide the necessary tools to lead the way in emissions control. This initiative underscores our commitment to remaining at the forefront of environmental stewardship, particularly in managing mature producing assets.”
Diversified Energy, a leader in the energy industry with a focus on responsible asset management, is eager to demonstrate the viability and impact of the ECT technology. With a focus on maximizing the efficiency of their oil and gas operations while minimizing their environmental footprint, Diversified Energy is committed to reducing methane emissions across their portfolio. This collaboration with Pioneer Energy represents a significant step in achieving those objectives and sets a precedent for future innovation in emissions control technology.
The impact of this partnership could extend beyond East Texas, as Pioneer Energy’s technology offers the potential to be replicated in oil fields across the United States. As the U.S. continues to prioritize energy independence and environmental sustainability, the success of this project could serve as a model for how the oil and gas industry can balance economic growth with environmental responsibility. The new ECT technology aligns with the government’s ongoing efforts to reduce methane emissions and support the transition to cleaner energy production practices.
The DOE grant, which underscores the importance of investing in innovative technologies, is part of the federal government’s broader initiative to reduce greenhouse gas emissions and encourage the adoption of cleaner technologies in the energy sector. As part of the U.S. government’s commitment to achieving net-zero emissions by 2050, the integration of emission-reducing technologies like the ECT will play a critical role in the overall strategy for a more sustainable energy future.
By eliminating the need for routine flaring and reducing methane emissions, the ECT will make a substantial contribution to the U.S. energy transition. The ability to capture and treat emissions at marginal wells not only helps to improve the environmental impact of oil and gas production but also improves the overall profitability of the wells themselves. The reduction in wasteful flaring and emissions translates to both operational and environmental benefits, providing a win-win scenario for operators, the environment, and the U.S. economy.
The focus on marginal wells is particularly significant, as these sites are often seen as less economically viable due to declining production rates. However, by applying advanced technology like the ECT, the economic viability of these wells can be greatly improved. Extending the life of these wells while reducing emissions offers a powerful solution to the challenges posed by aging infrastructure and declining production rates in conventional oil fields.
Looking forward, the partnership between Pioneer Energy and Diversified Energy is expected to result in further breakthroughs in emission control technology. As the industry continues to adopt more sustainable practices, the demand for innovative solutions like the ECT will only grow. The successful implementation of this technology could open the door for broader adoption of emissions control systems across the oil and gas sector, marking a significant step forward in the global effort to reduce the environmental impact of fossil fuel production.
