(OTC Pink: KOSK) (GlobalOG) signed LOI with TEXXSTAR to acquire Shiloh Oil Gas Leasehold SE Kansas

Speaking at the inaugural UAE Climate Tech summit,  COP28 President Designate Sultan Ahmed Al Jaber called upon the oil and gas industry to phase out methane emissions by 2030 and align in favour of comprehensive net-zero emission plans by or before 2050. 

 Methane is a powerful greenhouse gas responsible for around 30% of the rise in global temperatures since the Industrial Revolution; it is the second largest contributor to global warming after CO2. More than half of global emissions stem from human activities in three sectors: agriculture, waste and fossil fuels. 

Methane tends to leak into the atmosphere undetected from drill sites, gas pipelines and other oil and gas equipment. It has more warming potential than carbon dioxide and breaks down in the atmosphere faster, so reining in methane emissions can have a more immediate impact on limiting climate change.

EPA's new policies would ban routine flaring of natural gas produced by newly drilled oil wells, require oil companies to monitor for leaks from well sites and compressor stations and establishes a program to use third party remote sensing to detect large methane releases from so-called "super emitters,".

US officials at the United Nations COP28 climate change conference in Dubai. The United States and other nations attending the summit are expected to detail how they will achieve a 150-country pledge made two years ago to slash methane emissions by 30% from 2020 levels by 2030.

The market is enormous: the natural gas flared and vented is equivalent to the energy needs of France and Germany. 

 The market segments include oil and gas, landfill gas, bio gas, shale gas, large scale to produce diluents to transport heavy oil to the US market. In Canada, the Alberta Energy Regulator is shutting in wells that can’t meet the emission objectives.  

According to Global Methane Assessment Study do in 2021 – which, assessed and integrated the climate and air pollution costs and benefits from methane mitigation – methane action would prevent nearly 1 million premature deaths due to ozone exposure, 90 million tonnes of crop losses due to ozone and climate changes, and about 85 billion hours of lost labour due to extreme heat by 2050. This would generate roughly USD 260 billion in direct economic benefits through 2050. 

More than three-quarters of methane emissions from oil and gas operations and half of emissions from coal can be abated with existing technology, often at low cost. Tackling methane emissions is one of the most cost-effective ways to reduce greenhouse gas emissions. Around USD 75 billion in spending is required to 2030 to deploy all methane abatement measures in the oil and gas sector in the IEA’s net zero scenario, the report finds. This is equivalent to less than 2% of the income generated by the oil and gas industry in 2022. 

Reducing methane emissions from the energy sector is one of the best – and most affordable – opportunities to limit global warming in the near term. Early actions by governments and industry to drive down methane emissions need to go hand-in-hand with reductions in fossil fuel demand and CO2 emissions.

 Tackling methane emissions is one of the most cost-effective ways to reduce greenhouse gas emissions. Around USD 75 billion in spending is required to 2030 to deploy all methane abatement measures in the oil and gas sector in the IEA’s net zero scenario, the report finds. This is equivalent to less than 2% of the income generated by the oil and gas industry in 2022.  

Our patent integrates the micro-refinery unit (MRU) with existing oil facilities that already have trained personnel.  

The technology to convert methane (and coal) to fuel was first developed by Fischer and Tropsch in the 1920s.  Germany used this technology in World War II as they had no petroleum.  The first step to produce fuels is to make syngas – a mixture of carbon monoxide and hydrogen.  In the second step, (Fischer-Tropsch synthesis), the CO and H2 react to long chain hydrocarbons, waxes, and light gases.

The problem with gas-to-liquid technology is CAPEX and OPEX. Small scale units are uneconomic, especially if you only build one.  Operators cost as much as $2 million per year for specialty chemical plants.  However, if you build hundreds, costs can come down exponentially – The patent application we filed address both CAPEX and OPEX.  

The MRU technology applies a catalytic partial oxidation (CPOX) step in a milli-second reactor.  This compact reactor costs a fraction of steam methane reforming (SMR) because it is exothermic rather than endothermic and so heat management is much simpler.  

 The first step in addressing cost is to train operators that are already there.  Second, integrating the MRU with existing facilities means that there are fewer unit operations to invest in: flare, oil storage, water treatment.  All these facilities already exist and so this could reduce the cost of an MRU by a factor of 2.  

The third element is reducing CAPEX by building mass manufacturing capability.  

 This technology provides this economic alternative with an expected payback in 12 to 18 months.  So, this would trigger a huge demand for the units as companies would be obliged to buy it.  We estimate that a unit could sell for $1,000,000 USD.

PEnG has consulted for dozens of start-ups and multinational corporations, including Total, Arkema, ExxonMobil, Johnson-Matthey, Velan, Lavergne Group, and Haldor-Topsoe. PEnG's founder has worked for DuPont in the United States, Spain, and Switzerland (starting in 1990).  In the US, he managed a laboratory to qualify 200 000 kg of catalyst for the commercial plant design, operations and technology marketing development. The gas-to-liquids process developed has all of the elements of past industry experience in catalysis manufacture, reactor design, operation, and scalability.  PEnG’s the patent holder of the MRU technology has managed $20 million in research funding to develop Li-ion batteries with multi-national corporation that makes catalysts.  PEnG has collaborated with major oil companies on developing technology to reduce CO2 emissions and granted a joint patent on similar technology.