Marathon participates in various programs aimed at reducing and avoiding GHG emissions. The Company is a founding member in the U.S. and international Natural Gas STAR programs for producers. Membership reflects Marathon's commitment to reducing methane emissions from production operations and to technology sharing. The EPA estimates that Marathon's 1994 to 2007 cumulative U.S. methane emissions reductions totaled 49 billion cubic feet (BCF), the equivalent of removing 4.3 million cars from the road for one year. Marathon reported 2.2 BCF reductions for 2006 to 2007 in Natural Gas STAR International.
The Global Gas Flaring Reduction (GGFR) initiative is a voluntary public-private partnership to reduce flaring and venting of associated gas. Since joining GGFR in 2005, Marathon has reduced associated gas flaring and venting from its Equatorial Guinea operations by more than 12 BCF, or approximately 60 percent. Marathon is adapting the GGFR's Voluntary Standard as part of its Corporate CSR Standards.
Marathon refineries participate in API's Climate Action Challenge, an industry-wide initiative to improve energy efficiency 10 percent between 2002 and 2012. Due to ongoing energy efficiency measures, 2007 Downstream GHG emissions remained flat and energy intensity declined compared to 2006, while refining throughput increased approximately 1 percent. From 2002 to 2007, total refinery throughput increased more than 16 percent while emissions increased less than 10 percent.
The Canton refinery implemented projects in 2007 that reduced its CO2 emissions by more than 9,200 tonnes, representing almost half of its energy savings realized over five years. Based on the outcome of Canton's project to repair and replace process piping insulation, Marathon's other refineries are conducting insulation assessments
and will consider making similar upgrades over the next few years.
Marathon continues to evaluate its refinery efficiency against the Energy STAR hypothetical model refinery. Performance reviews and applications for Energy STAR awards are conducted annually.
Technology Strategy
The Company invests in research, development and deployment of cost-effective technologies
that improve efficiency and reduce GHG emissions intensity associated with carbon-based
fuels.
These technologies include a proprietary, patented Gas-to-Fuels™ (GTF) process that converts natural gas directly into high-value transportation fuels. GTF would allow Marathon to develop natural gas resources in areas without infrastructure or markets. Marathon developed the technology in five years of laboratory and pilot testing and is building a 10-barrel-per-day demonstration plant in Texas. The Company expects to decide within the next year whether to commercialize the GTF process.
Other emerging technologies under investigation include gas hydrates and carbon capture and storage. Marathon is participating in industry and academic projects related to emerging technologies, such as MIT's Carbon Sequestration Initiative, the Gulf Coast Carbon Center and an evaluation of options to capture and store CO2 in the U.K.
Marathon patented the Excape® Completion Process, a production well completion method that reduces gas emissions during completion operations. Since this technology's inception in 1999, its use in Marathon's Alaska operations has reduced natural gas emissions by an estimated 130 million standard cubic feet, enough natural gas to supply the needs of 1,500 U.S. households for approximately one year.
