Wednesday, February 5, 2014

Bridging the Environment with Oil Profits

Hans Mueller, a Colorado native and a School of Mines graduate, has found a way to give the oil company a profit where it did not exist before. Hans has found a way to turn greenhouse gases into money. In short, Hans is turning garbage into gold by clean means that could revolutionize how oil companies make a profit while meeting state emission-reduction requirements.

At the School of Mines in Golden, Hans and a group of students worked on a project that captured the natural gases produced during the decay of garbage in landfills and turned them into energy. After graduating, he continued his quest of helping the environment by capturing greenhouse gases. Hans understood early on that, to help the environment, he would have to turn poison into gold and make a profit. It soon dawned on Hans that there could be a way to capture those gases that leak from oil storage tanks. We see the escaping gases that Hans captures as unsightly fires burning at the top of huge stills. In fact, when one of Han’s EcoVapor Recovery Systems, or as Hans calls it, the “vapor recovery module” is running, the flame goes out, a sign that Han’s gases are turning into dollars and those burning dollars aren’t chocking our air with greenhouse gases.

This type of technology has been the Holy Grail of the oil industry and just as elusive. One of the main issues is that when these mineral rich gases are captured it’s difficult to re-pipe them back into the system, mainly because of the oxygen that is found in the compounds. Oxygen corrodes precious pipelines. But Hans found a clever and highly technical way to remove the oxygen molecules from the gases. This then allowed the EcoVapor to re-pipe the gases back into the system, mainly methane.

With about 235 million cubic feet of methane now captured by his 21 machines the size of a small school bus, Hans could heat some 6,500 homes.

So what’s the problem? Why aren’t there school-bus sized vapor recovery modules dotting every oil field in America, or the world? Well, one word—accounting. The problem is who owns the gases? Wells and tanks are often owned by multiple people. Also, the minerals in the mineral-rich gases are also owned by individuals holding mineral rights, which are separate than oil or land rights—a slippery predicament. Mineral owners have historically not generated revenue from gases, since gases have never been captured; therefore, they’ve never been sold or taxed. So who does the gas belong to?

The solution to the accounting nightmare was found by Rep. Dave Young, D-Greeley through House Bill 1322.  But because of some miscommunication or perhaps bad wording, House Bill 1322 missed its mark and became wholly unpopular for the wrong reasons. As it stands now, the question remains. Who do the gases and now its profits belong to?  It’s a solution that can easily be found through accounting paperwork to oil companies instead the multiple wells, tanks and owners.  Finding a piece of legislation that can project profits from gas would remove one last hurdle to Hans’ new technology, the environment and finally make clean air a profitable market. The Holy Grail has been found, now can the government and huge business find a means to make it work?