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One step forward, one back; more oil sands producers target net zero
Gary Park for Petroleum News
At the same time the Alberta oil sands sector is making strides in lowering its greenhouse gas emissions, the Alberta and Canadian governments are offending landowners, First Nations and environmentalists by reducing their monitoring activities.
In a report released Aug. 5, the energy consultancy IHS Markit showed the carbon emission intensity from the oil sands fell by 2% in 2018 from the previous year and 20% over the 2008-2018 decade while projecting there will be further reductions over the next decade.
Those forecasts come amid a drive by major producers - Suncor Energy, Canadian Natural Resources, Cenovus Energy and Husky Energy - to achieve net-zero emissions, mostly targeting 2050.
Husky unveiled fresh targets earlier in August to lower its emissions per barrel (also known as emissions intensity) by 25% within five years from its 2015 levels.
The company’s Senior Vice President Janet Annesley said Husky investors have been “looking for a commitment that we will improve our greenhouse gas emissions performance.”
Husky’s strategy includes lowering methane emissions in its Western Canadian operations and its West White Rose project offshore Newfoundland.
Beyond 2025, the company plans to capture carbon and apply carbon offsets to achieve its net zero goal.
An official with the Alberta-based Pembina Institute commended Husky’s actions, noting that carbon competitiveness is becoming an increasingly important measure of overall market competitiveness, while stressing that government and industry need to do more than set aspirational targets.
“We basically need to discuss decreasing the absolute emissions” of the oil sands sector, he told the Calgary Herald, adding, “The heavy lifting is still ahead.”
Cuts in environmental monitoring The IHS report said industry investments in carbon efficiencies are “bearing some fruit,” but noted the most intensive carbon projects are still about four times more GHG intensive than those that are least intensive.
What troubles many observers is a deal signed earlier in August by the Alberta and Canadian governments to make major cuts in environmental monitoring of the oil sands by lowering the budget allocation to C$44 million from C$58 million.
The deal says no fieldwork will be done in the main branch of the Athabasca River through the oil sands region, coinciding with an Alberta decision to allow water from oil sands tailings ponds to flow into the river, which flows through the Northwest Territories to the Arctic Ocean.
Bill Donahue, a former senior official with Alberta’s science and monitoring programs, said that removing the Athabasca from monitoring was “crazy,” relaxing monitoring of an industrial development that is a major source of environmental contamination and water consumption.
A federal spokesman said the monitoring is still an evolving issue and some studies of water quality could resume when COVID-19 restrictions are eased.
- GARY PARK
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