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Greenhouse gas methane from Canadian oil and gas sector can be reduced by nearly half using existing technologies, new research finds


October 5, 2015   by Canadian Underwriter


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Emissions of the potent greenhouse gas methane from the Canadian oil and gas sector can be reduced by 45% below projected 2020 levels, all while using existing technologies, said a new study released on Monday by energy industry research firm ICF International.

A press release from the EDF said that achieving this 45% reduction across Canada would allow for the recovery and potential sale of otherwise lost natural gas and would be the equivalent of eliminating 27 million metric tonnes of carbon dioxide emissions

The research, called Economic Analysis of Methane Emission Reduction Opportunities in the Canadian Oil and Natural Gas Industries, was commissioned by Environmental Defense Fund (EDF), an international environmental non-profit. EDF partnered with the Pembina Institute, Canada’s clean energy think tank, on the development of the project and dissemination of the ICF report. The report is based on data from numerous sources, including oil and gas producers, equipment vendors, governments and regulators, academics experts and trade associations, and has been peer reviewed by multiple experts in the Canadian oil and gas industry.

A press release from the EDF said that achieving this 45% reduction across Canada would allow for the recovery and potential sale of otherwise lost natural gas and would be the equivalent of eliminating 27 million metric tonnes of carbon dioxide emissions. “At a low cost of $2.76 per metric tonne of CO2, this reduction would provide the same immediate climate benefit as taking every passenger car off the road in British Columbia and Alberta, according to data from Statistics Canada and Canada’s National Inventory Report,” the release suggested.

Alberta and British Columbia are the country’s main oil-and-gas producing regions, responsible for nearly 70% of Canada’s total methane emissions. ICF analyzed the reduction opportunity in each, concluding that upstream methane emissions in Alberta could be reduced by 45% for $2.57 per metric tonne of CO2 and in British Columbia by 37%for $1.69 per metric tonne of CO2. All told, the C$726 million initial investment to achieve Canada’s 45% reduction from oil and gas represents about 1% industry’s annual capital expenditure, the release said.

“Curbing highly potent methane emissions offers a huge, untapped opportunity to better protect the climate now,” said Drew Nelson, senior manager, Environmental Defense Fund, in the release. “ICF’s new report confirms that Canada can gain substantial greenhouse gas reductions using simple, cost-effective solutions to control methane emissions. Even during these challenging economic conditions, methane reductions are one of the lowest-cost, highest-value ways to tackle climate change in the energy business today.”

Chris Severson-Baker, Alberta director, Pembina Institute, added that “with both Alberta and B.C. in the process of updating their climate plans, now is the perfect time to implement rules that require methane emissions to be reduced significantly.”

Achieving the 45% reduction in oil and gas methane relies on the sector implementing currently available technologies and processes for reducing and recovering emissions. Furthermore, the analysis shows that 90% of the emissions in the next five years will come from sources in operation today, and that the 45% reduction is in addition to “reductions that are achievable by current regulatory and projected voluntary actions by 2020.” Reducing methane also reduces conventional pollutants such as volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) that are directly contributing to poor air quality conditions across Alberta at no additional cost, the EDF said.

The EDF reports that natural gas is over 95% methane and is a potent greenhouse gas contributing to climate change, because its short-term impact is many times greater than carbon dioxide. According to data from Canada’s greenhouse gas inventory, oil and gas methane emissions are one of Canada’s largest sources of greenhouse gas emissions and are almost double the size of the next largest source of methane in the country.


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