Expansive assets, challenging economics and a mountain of pneumatics: How QB Energy is converting 17,000 methane-emitting devices to zero emissions, one nitrogen tank at a time
Asset Profile
4,500 wells, 17,000 emitting devices
About QB Energy
CO producer of ~400MMSCF/d gas, ~1000 bbls/d condensate
Accomplishment
Staging and scaling a standout zero-vent strategy
As the oil and gas industry faces increasing pressure to address methane emissions, The Energy Influencers series aims to showcase the forward-thinking individuals and entities tackling the issue head-on.
Kathairos is honored to showcase QB Energy as an esteemed Energy Influencer.
As Air Compliance Manager at one of the largest natural gas companies in Colorado’s prolific Piceance Basin in early 2019, Jerry Dismukes found himself staring down a daunting task. He needed to retrofit thousands of gas-powered pneumatic devices to a zero-emissions alternative he didn’t yet have.
The company was Caerus Oil and Gas – now QB Energy following its August 2024 acquisition by Quantum Capital – and Jerry had a multitude of reasons why his team needed to start moving on methane emissions, and ample proof it wouldn’t be easy.
“We were struggling with how to address our pneumatic device situation,” said Jerry. “We needed to convert around 17,000 devices away from motive gas across 4,500 wells and 950 different facilities.”
Sticks, Carrots and Colorado
The main driver at the time was Colorado’s stringent Regulation 7 – a state-specific air quality control regulation mandating emissions monitoring, controlling and reporting from oil and gas producers, and operational practices that minimize environmental impact.
While the rules were among the toughest in the country, similar laws have since been adopted by the EPA that apply nationwide, leaving operators scrambling for solutions.
But behind the stick, Jerry saw the carrot. That is, the upside economics of selling the natural gas that was powering QB Energy’s arsenal of pneumatics, rather than using it as a convenient source of onsite fuel before venting it into the atmosphere.
“Regulatory pressures in Colorado were a significant motivator, but beyond that, capturing and selling all the gas we extract just makes sense for us as a natural gas company.”
Many Wells, Few Solutions
Jerry’s first move was infrared monitoring of onsite methane emissions before expanding into pilot programs to test scalable technologies for elimination, not just detection.
The first major win came with the replacement or retrofitting of nearly 1,900 pneumatic gas-actuated pumps to non-emitting, which provided substantial natural gas savings and a quick return on investment.
Jerry and his team saw it as a project that opened the eyes of upper management to the benefits of methane mitigation from pneumatics. However, the sweeping valleys, canyons and plateaus of the stunning Piceance (pea-awnce) Basin – QB Energy’s exclusive operating region, meant continued facility innovation and associated emissions abatement wouldn’t come easy.
Adding to the challenge was an enormous portfolio of operating assets, many of them single-well facilities with difficult road access and minimal grid power. Even with a staged approach, the path to zero emissions would require profoundly scalable, reliable, economical solutions the company had yet to find.
QB Energy: Staging and scaling a monumental methane elimination strategy in Colorado’s Piceance Basin
Liquid Nitrogen for the Win
Jerry and his counterparts set to work on a variety of methane reduction technology trials.
“We were given plenty of leeway to pursue them, assess which ones we felt were most applicable, scalable and cost-effective, and run from there.”
One of the team’s initial solutions prior to landing on liquid nitrogen was small solar air compressors, which Jerry found to be ineffective for their needs both economically and operationally.
“A key reason we switched to nitrogen was the elimination of fire hazards associated with compressed air, which can carry oxygen,” he said. “Nitrogen is inert and doesn’t pose the same safety concerns, and operators loved the simplicity. Once hooked up, the system just runs itself with no freezing issues in cold weather, which is a big benefit in an area like the Piceance Basin.”
Starting from the Top
QB Energy was the first operator in the Piceance to pilot the Kathairos solution, starting with 12 liquid nitrogen tanks in late 2023 and quickly expanding to 60. As of December 2024, their total tank count sits at 182, with more than 6,000 pneumatic devices effectively addressed.
Jerry’s team began by focusing on the largest facilities with the highest liquid production and working down the line.
“Kathairos’ solution allowed us to quickly retrofit our larger sites to non-emitting pneumatics, ensuring immediate compliance with minimal operational disruption,” he said. ”Now we’re confident we can expand the technology efficiently and cost-effectively to our smaller single-well sites.”
Collaboration on the West Slope
QB Energy’s field team has been equally impressed with the ease of installation and reliability of the Kathairos system.
“It’s been very simple and far less of a headache to use nitrogen versus gas pneumatics,” said Jerry. “Our Operations team is fully on board and supports the use of nitrogen across the field. It’s as simple as installing one valve, and the technology integrates smoothly with the existing infrastructure.”
The QB Energy team have also hosted site visits and solution demos for neighboring operators like Terra Energy Partners, which Jerry sees as a benefit to the basin as a whole.
“The more nitrogen tanks we all deploy, the easier it becomes for Kathairos to scale their operations, which helps all operators in the region.”
Additional collaborative efforts among QB Energy and its peers include shared aerial flyover programs, various gas imaging camera trials, and information sharing in its many forms.
Miles Above and Beyond on Methane
QB Energy’s forward-thinking emissions monitoring and mitigation strategy has enabled it to exceed current and incoming regulatory requirements. Additionally, the company has voluntarily committed itself to OGMP 2.0 – the flagship oil and gas abatement and reporting framework of the United Nations Environmental Programme,
“We’re moving ahead of regulations in Colorado, and I think we have a really good path forward now,” said Jerry.
With one-third of their emitting pneumatics successfully addressed and work underway to tackle the remainder, QB Energy’s methane emissions in the Piceance Basin have meaningfully and rapidly declined.
And with Jerry at the wheel, no device among 17,000 will be left behind.
For more on QB Energy’s inspiring path to zero emissions, follow their journey here.
Book a call with our team to learn how Kathairos can help you on your path to net zero production.
- North America-wide coverage
- Zero capital investment
- Immediate methane abatement
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