You’re Spending Too Much On Vapor Recovery – Maximizing Profitability with Right-Sized Vapor Recovery
- Melissa Esparza
- 7 days ago
- 4 min read
Oil and gas production rates decline naturally over time with most unconventional wells transitioning from a hyperbolic to an exponential decline in the later stages of production (terminal decline), typically after 3-7 years depending on the play. Once past the initial flush production phase, reservoir pressure depletes, flow rates decline, and associated tank vapor volumes follow suit.
The graph below illustrates the decline curve of a typical unconventional, and the point where production transitions from a hyperbolic to an exponential decline profile.
The blue dashed line shows early hyperbolic decline, with steep but gradually flattening rates.
At about 8 years (gray dotted line), the well transitions into exponential decline (red line), where the curve straightens out on the log scale.
Yet in many facilities, the vapor recovery capacity installed during the early production phase eventually becomes oversized as producing wells age and production begins to fall at a decreasing rate. This misalignment between equipment capacity and production volumes increases per-unit operating costs, lowers efficiency, and erodes profitability.
This article covers strategies operators can use to align operating expenses with declining production for maintaining profitability over the life of the well or facility.
The Challenge: Oversized VRUs in Decline Phase
When wells are first brought online, flash gas and tank vapor volumes can be significant, requiring the installation of high-capacity Vapor Recovery Units (VRUs) designed to handle thousands of standard cubic feet per day (scfd). However, as liquids production naturally declines, vapor generation may drop by 50–80% within just a few years.
Large VRUs operating at fractional load can result in several issues:
Inefficient Compression. Compressors sized for higher flow rates may cycle excessively or run outside their efficiency curve.
Higher Operating Costs. Larger units require more horsepower, consume more fuel/electricity, and often have higher service requirements.
Increased Maintenance. Frequent starts and stops, poor lubrication regimes, and wet-gas carryover can shorten equipment life.
In practical terms, this means operators are paying to run equipment that no longer matches the process conditions.
The Technical Case for Right-Sizing
Right-sizing VRUs involves replacing or retrofitting existing compression equipment with units designed to handle current and forecasted vapor volumes.
Key technical benefits include:
Optimized Horsepower Utilization. A smaller compressor requires less brake horsepower (BHP), translating directly into lower fuel gas or electricity consumption.
Stable Compression Ratios. Units can be configured to maintain consistent suction pressure and discharge conditions, ensuring reliable vapor capture and minimizing emissions.
Reduced Cycling. Properly matched capacity eliminates excessive on/off cycling, which reduces wear on valves, seals, and bearings.
Improved Controls Integration. Right-sized VRUs can be tied into tank pressure control and burner management systems, allowing precise, automated operation at varying load conditions.
The Solution: A Lifecycle Approach to VRU Management
Platinum Control Systems designs and delivers vapor recovery solutions with lifecycle economics in mind. Rather than treating VRUs as static installations, we engineer flexibility into the system so that operators can scale down when production dictates.
The two key factors in lifecycle economics include:
PULSE™ Remote Monitoring and Optimization platform, and
Flexible Fleet™ Leasing Program
PULSE™ Remote Monitoring and Optimization
PULSE remote monitoring from Platinum Control is a cloud-based solution provides real-time data on critical Platinum VRU performance metrics right on your desktop or mobile device, anywhere where you have an Internet connection.
Durable proven sensors are installed on key VRU components covering over 40 critical data points.
Each sensor feeds data into your SCADA system.
PULSE polls data every 1 to 5 minutes depending on the sensor, unless requested more frequently.
If a component is operating outside of normal parameters, PULSE sends an alert to both the operator and to Platinum, ensuring a quick response to fix issues before they become problems.
One of the most important benefits of PULSE is the ability to determine when a VRU is under or over-sized for its application.
An overloaded unit runs full speed at maximum pressure, stressing seals and piping, which shortens maintenance intervals and raises the risk of failures or downtime.
Conversely, an underloaded unit runs intermittently, which may seem beneficial but isn’t. VRUs, like most mechanical equipment, operate best under steady loads within design limits, and continuous operation within capacity typically delivers longer, trouble-free performance.
PULSE quickly identifies “oversized” situations where we can proactively reach out to you with opportunities to downsize to a smaller VRU that is less expensive to operate.
Flexible Fleet™ Leasing Program
One key strategy for facilities optimization and right-sizing vapor recovery capacity to production volumes is our Flexible Fleet™ Leasing Program. Our Flexible Fleet leasing program allows you to move any leased Platinum VRU from one location to another without filling out a transfer form or performing other burdensome paperwork.
Benefits of Flexible Fleet Leasing:
Eliminates burdensome paperwork and administrative tasks.
Move Platinum VRUs from one location to another, as needed, without approvals or notifications to the Lessor.
Right-size VRU capacity to current production levels.
Conserves precious capital resources.
Can reduce your overall cost of capital.
READ MORE: Flexible Fleet Leasing Program Page
This data-driven, flexible approach ensures the selected VRU size delivers the lowest $/Mcf operating cost while maintaining regulatory compliance and maximizing hydrocarbon recovery.
Operational and Economic Impact
Right-sizing is not simply a cost-cutting measure—it’s a profit protection strategy. Operators who replace an oversized 300-hp unit with a right-sized 125-hp VRU often realize:
30–50% reduction in operating energy costs
Fewer maintenance interventions and longer run-times
Improved tank vapor control, reducing emissions exposure
Continued revenue capture from vapors that might otherwise be flared or vented
Conclusion
Decline-phase wells require a different approach to vapor recovery than when they were in the peak production phase. By aligning VRU capacity with actual vapor volumes, operators can minimize operating expenses, extend equipment life, and sustain profitability across the full lifecycle of their assets.
Platinum Control Systems provides the engineering expertise and control solutions to make that transition seamless—delivering VRU systems that remain cost-effective, compliant, and reliable from day one through late-stage production.
Are you spending too much on your VRUs? Chances are the answer is “yes!” Contact us today at sales@platinumcontrol.com or 432-695-4992 today to start maximizing your margins.