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Pioneer Energy Partners with Diversified Energy, Selected by the Department of Energy for a $5 Million Grant to Eliminate Emissions at Marginal Conventional Wells

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Pioneer Energy and Diversified Energy (DEC) have secured a $5 million grant from the U.S. Department of Energy and EPA to adapt Pioneer's Emission Control Treater™ (ECT) technology for marginal conventional wells. The technology will be demonstrated at DEC's East Texas locations for 12 months.

The ECT technology offers superior separation compared to existing phase separators, increasing crude yield by 5-10% while eliminating routine flaring and atmospheric storage tanks. The system features cloud-connected automation for remote monitoring and control, reducing operational costs and maintenance requirements.

The grant will fund the development of mini-ECT units as cost-effective replacements for existing infrastructure at marginal well sites. The demonstration will take place in the Cotton Valley Basin, aiming to extend well economic lifetime while eliminating methane emissions and flaring.

Pioneer Energy e Diversified Energy (DEC) hanno ottenuto una sovvenzione di 5 milioni di dollari dal Dipartimento dell'Energia degli Stati Uniti e dall'EPA per adattare la tecnologia Emission Control Treater™ (ECT) di Pioneer per i pozzi convenzionali marginali. La tecnologia sarà dimostrata nelle sedi di DEC in Texas orientale per 12 mesi.

La tecnologia ECT offre una separazione superiore rispetto ai separatori di fase esistenti, aumentando la resa del greggio del 5-10% ed eliminando la combustione di routine e i serbatoi di stoccaggio atmosferico. Il sistema presenta automazione connessa al cloud per monitoraggio e controllo remoti, riducendo i costi operativi e i requisiti di manutenzione.

La sovvenzione finanzierà lo sviluppo di unità mini-ECT come sostituti economici delle infrastrutture esistenti nei siti dei pozzi marginali. La dimostrazione avrà luogo nel Cotton Valley Basin, con l'obiettivo di estendere la vita economica dei pozzi eliminando nel contempo le emissioni di metano e la combustione.

Pioneer Energy y Diversified Energy (DEC) han asegurado una subvención de 5 millones de dólares del Departamento de Energía de EE. UU. y la EPA para adaptar la tecnología Emission Control Treater™ (ECT) de Pioneer para pozos convencionales marginales. La tecnología se demostrará en las ubicaciones de DEC en el este de Texas durante 12 meses.

La tecnología ECT ofrece una separación superior en comparación con los separadores de fase existentes, aumentando el rendimiento del crudo en un 5-10% mientras elimina la quema rutinaria y los tanques de almacenamiento atmosférico. El sistema cuenta con automatización conectada a la nube para monitoreo y control remoto, reduciendo los costos operativos y los requisitos de mantenimiento.

La subvención financiará el desarrollo de unidades mini-ECT como reemplazos rentables para la infraestructura existente en sitios de pozos marginales. La demostración tendrá lugar en la Cuenca de Cotton Valley, con el objetivo de extender la vida económica de los pozos mientras se eliminan las emisiones de metano y la quema.

Pioneer Energy Diversified Energy (DEC) 는 미국 에너지부와 EPA로부터 500만 달러의 보조금을 확보하여 Pioneer의 Emission Control Treater™ (ECT) 기술을 한계 Conventional Well에 적합하도록 조정하게 됩니다. 이 기술은 DEC의 동부 텍사스 지역에서 12개월 동안 시연될 예정입니다.

ECT 기술은 기존의 단계 분리기보다 우수한 분리 성능을 제공하여 원유 수율을 5-10% 증가시키고, 일상적인 가스 소각 및 대기 저장 탱크를 제거합니다. 이 시스템은 원격 모니터링 및 제어를 위한 클라우드 연결 자동화를 특징으로 하여 운영 비용과 유지 관리 요구 사항을 줄입니다.

이 보조금은 한계 우물 사이트의 기존 인프라에 대한 경제적인 교체책으로서 mini-ECT 유닛의 개발을 지원할 것입니다. 시연은 Cotton Valley Basin에서 진행되며, 메탄 배출과 연소를 제거하는 한편 우물의 경제적 수명을 연장하는 것을 목표로 합니다.

Pioneer Energy et Diversified Energy (DEC) ont obtenu une subvention de 5 millions de dollars du Département de l'énergie des États-Unis et de l'EPA pour adapter la technologie Emission Control Treater™ (ECT) de Pioneer pour les puits conventionnels marginaux. La technologie sera démontrée sur les sites de DEC au Texas Est pendant 12 mois.

La technologie ECT offre une séparation supérieure par rapport aux séparateurs de phase existants, augmentant le rendement en brut de 5 à 10 % tout en éliminant les torchères et les réservoirs de stockage atmosphériques. Le système est doté d'une automatisation connectée au cloud pour la surveillance et le contrôle à distance, réduisant ainsi les coûts d'exploitation et les besoins en maintenance.

La subvention financera le développement d'unités mini-ECT comme remplacements économiques des infrastructures existantes sur les sites de puits marginaux. La démonstration se déroulera dans le Cotton Valley Basin, dans le but d'étendre la durée de vie économique des puits tout en éliminant les émissions de méthane et la torchère.

Pioneer Energy und Diversified Energy (DEC) haben einen Zuschuss in Höhe von 5 Millionen US-Dollar vom US-Energieministerium und der EPA erhalten, um die Technologie Emission Control Treater™ (ECT) von Pioneer für marginale konventionelle Förderstellen anzupassen. Die Technologie wird in den DEC-Standorten in Osttexas über einen Zeitraum von 12 Monaten demonstriert.

Die ECT-Technologie bietet eine überlegene Trennung im Vergleich zu bestehenden Phasentrennern und erhöht den Rohöl-Ausstoß um 5-10%, während sie routinemäßige Fackelung und atmosphärische Lagerbehälter eliminiert. Das System zeichnet sich durch cloud-verbundene Automatisierung für Fernüberwachung und -steuerung aus, was die Betriebskosten und den Wartungsaufwand reduziert.

Der Zuschuss wird die Entwicklung von mini-ECT-Einheiten finanzieren, die kosteneffiziente Ersatzlösungen für bestehende Infrastrukturen an marginalen Bohrstellen darstellen. Die Demonstration wird im Cotton Valley Basin stattfinden, mit dem Ziel, die wirtschaftliche Lebensdauer der Bohrstellen zu verlängern und gleichzeitig Methanemissionen sowie Fackelung zu beseitigen.

Positive
  • Secured $5 million DOE/EPA grant for technology development
  • ECT technology increases crude yield by 5-10%
  • Eliminates routine flaring and reduces operational costs
  • Cloud-connected automation reduces maintenance and manpower requirements
Negative
  • None.

Insights

This $5 million DOE grant represents a significant technological breakthrough in emission control for marginal conventional wells. The ECT technology's closed-system approach and improved separation efficiency, yielding 5-10% higher crude output, addresses both environmental and economic challenges. The cloud-connected automation and modular design particularly stand out as innovative features that could transform operational efficiency in the oil and gas sector.

The scalability potential for smaller wells through mini-ECT units could revolutionize how the industry handles emissions from marginal wells, which have historically been challenging to manage cost-effectively. The 12-month demonstration in the Cotton Valley Basin will be important in validating the technology's effectiveness in real-world conditions.

For Diversified Energy (DEC), this partnership represents a strategic opportunity to enhance operational efficiency while addressing regulatory compliance. The technology's potential to increase crude yield by 5-10% through better separation could significantly impact revenue streams from marginal wells. The reduction in maintenance costs and field visits through remote monitoring capabilities presents substantial operational cost savings.

The $5 million grant mitigates R&D investment risks while positioning DEC advantageously for future environmental regulations. The modular design's impact on CAPEX optimization and reduced lifetime ownership costs could improve profit margins on marginal wells that might otherwise become economically unviable.

This initiative aligns with broader federal efforts to reduce methane emissions, as evidenced by the larger $850 million DOE and EPA commitment to the sector. The selection for this grant indicates strong government support for innovative solutions in emissions reduction, potentially setting new industry standards. The successful implementation could influence future regulatory frameworks and create competitive advantages for early adopters.

The focus on marginal conventional wells is particularly strategic, as these sites often face economic challenges in implementing emission controls. This technology could become a model for balancing environmental compliance with economic viability in mature oil and gas assets.

LAKEWOOD, Colo.--(BUSINESS WIRE)-- Pioneer Energy announced today that in partnership with Diversified Energy (LSE:DEC)(NYSE:DEC), it has been selected by the U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) for a $5 million award to adapt Pioneer’s Emission Control Treater™ (ECT) technology to eliminate flaring and emissions at marginal conventional wells (MCWs). This technology will be demonstrated by Diversified Energy Company at their field locations in East Texas.

The Emission Control Treater (ECT) is a breakthrough well pad production technology that performs better separation than existing phase separators. As a result, there is no flash gas left in the crude and there is a lot less heavy NGLs left in the gas, increasing crude yield by 5-10%. The ECT is a closed system that completely processes the crude, resulting in zero routine flaring with no need for atmospheric storage tanks, achieving a near zero emissions production facility. This new technology utilizes state-of-the-art, cloud-connected automation, giving operators the ability to not only monitor their production but also to control it remotely from a centralized dashboard, saving manpower, field trips, and maintenance costs. Additionally, the ECT is modular, which enables easier right sizing of equipment throughout the life of the well pad. This results in better CAPEX utilization and reduced lifetime total cost of ownership.

This award will provide funds to scale down the ECT to process production from marginal wells. These mini-ECT units will be designed as inexpensive, drop-in replacements for surface infrastructure at marginal well production sites. The technology will be demonstrated for 12 months on several sites operated by Diversified Energy in the Cotton Valley Basin in East Texas.

“We are thrilled to receive the support of the Department of Energy to help us commercialize the ECT for marginal wells. We believe that the ECT can help to extend the economic lifetime of those wells, while simultaneously eliminating nearly all methane emissions and wasteful flaring,” said Pioneer Energy’s CEO Eyal Aronoff. “We look forward to working closely with the DOE as well as our partner, Diversified Energy, as we adapt the ECT for this application, furthering U.S. goals of leveraging new technology to improve domestic oil production while protecting the environment.”

“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,” said Paul Espenan, Senior Vice President of EHS&R at Diversified Energy. “By leveraging the DOE grant, coupled with our collaboration with Pioneer Energy, we have an application that provides a cost-effective implementation. The technology will allow us to demonstrate how efficient, high-performance solutions provide the opportunity for Diversified to continue to be a leader with our stewardship approach to managing mature producing assets.”

DOE Announcement:

U.S. DEPARTMENT OF ENERGY AND U.S. ENVIRONMENTAL PROTECTION AGENCY ANNOUNCE $850 MILLION TO REDUCE METHANE POLLUTION FROM THE OIL AND GAS SECTOR
https://content.govdelivery.com/accounts/USDOEOFE/bulletins/3c8852e

About Pioneer Energy

Pioneer Energy, Inc. is a provider of technologies that help the oil and gas industry to increase production revenues and decrease operational expenses, while also eliminating flaring and oilfield emissions. The company’s product lines include the Emission Control Treater™ (ECT), a zero-emission oil production system which increases crude production volumes; Pegasus field gas conditioning systems which save on fuel costs, decrease field operations costs, reduce emissions and improve uptime for well pad production and hydraulic fracturing operations; and flare gas capture and processing equipment. Pioneer’s systems help oil producers to be good stewards of the environment while converting emissions to resources which help to support domestic energy security. To learn more, visit http://pioneerenergy.com/.

About Diversified Energy Company PLC

Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our unique and differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value. To learn more, visit https://www.div.energy/.

Nicole Lane, Corporate Relations Officer: nlane@pioneerenergy.com

Joseph E. Palaia, IV, Vice President of Business Development: jpalaia@pioneerenergy.com

Source: Pioneer Energy, Inc.

FAQ

What is the value of the DOE grant awarded to Pioneer Energy and DEC?

Pioneer Energy and Diversified Energy (DEC) were awarded a $5 million grant from the U.S. Department of Energy and EPA.

How much does the ECT technology increase crude yield for DEC operations?

The Emission Control Treater (ECT) technology increases crude yield by 5-10% through better separation than existing phase separators.

Where will DEC demonstrate the ECT technology?

DEC will demonstrate the ECT technology at their field locations in the Cotton Valley Basin in East Texas.

How long will DEC's demonstration of the ECT technology last?

The technology demonstration will last for 12 months at several sites operated by Diversified Energy.

What are the main benefits of the ECT technology for DEC operations?

The ECT technology eliminates routine flaring, removes the need for atmospheric storage tanks, enables remote monitoring and control, reduces maintenance costs, and increases crude yield.

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