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Emissions double trouble for Canada
Sudden surge in methane emissions ahead of output haven’t forced Canada, Alberta to rethink hopes of being carbon-neutral by 2050 Gary Park for Petroleum News
Just three months after the Canadian and Alberta governments resolved years of bickering over developing national methane regulations they have been rocked by updated statistics showing greenhouse gas emissions from the petroleum industry have more than doubled in the past year.
But none of the key players has yet issued warnings that Canada may be forced to revise its goals for lowering methane output, rated as one of the most toxic human-triggered gases.
Vented emissions, mainly methane, soared to 175 million cubic meters in the first half of 2020 compared with 75 million cubic meters in the same period of 2019, according to Petrinex, an industry-government data-gathering partnership.
If that trend continues it could test the target set by the federal administration of Prime Minister Justin Trudeau to make Canada carbon-neutral by 2050.
Canada-wide program The national government launched a Canada-wide program on Jan. 1 to better measure and reduce methane emissions - which are estimated at 25 times greater than carbon dioxide output.
Some provinces, including Alberta, implemented their own methane regulations to match the federal goal, but it wasn’t until mid-May that Alberta agreed to bring its controls into line with the Trudeau government’s minimum standards after what it described as a period of “aggressive negotiations.”
The federal plan aims to cut national methane emissions from the oil and gas sector by 40 to 45% from 2012 levels by 2025, but that target was meaningless without the participation of Alberta whose oil and gas industry accounts for 70% of provincial methane emissions, of which 25% come from upstream activity.
Stricter than US program Canada’s petroleum industry says the program, if fully implemented, will be the strictest approach to global methane emissions, contrasting with the United States, where the Trump administration is rolling back methane curbs.
During pandemic-induced oil production cuts, energy producers have been forced to reduce capital spending to survive.
But the sudden surge in estimated GHG output during a period of downturn is expected to compound the challenges facing governments.
“The fact that we are spending less on technology and adoption means the (government) goals and targets are meaningless,” Audrey Macarenhas, chief executive officer of Questor Technology, which develops technologies to help companies meet emissions targets, told Reuters. “We don’t have a clear idea of how step by step we’re going to get there.”
However, Terry Abel, executive vice president of the Canadian Association of Petroleum Producers, said it is too early to say that the new emissions statistics will cause Canada to miss its 2025 target.
“We always expected that if the regulations didn’t achieve the desired outcome, the regulations would perhaps become even more stringent,” he said.
Canada’s Environment Minister Jonathan Wilkinson said his government hopes that federal loans to help the industry achieve GHG reductions will be in place “within weeks.”
Spokesmen for Canadian Natural Resources and Cenovus Energy, two of Canada’s leading oil and gas producers, say the bigger operators are ahead of schedule, while the Alberta Energy Regulator is setting up a surveillance program to ensure compliance with the methane targets.
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