As Canada curbs methane emissions, new measurements show problem bigger than thought

Questor Technology

16/08/2020 14:00

By Jeff Lewis and Rod Nickel
    TORONTO/WINNIPEG, Manitoba, Aug 16 (Reuters) - Reported
greenhouse gas emissions from Canada's oilpatch have more than
doubled in the year's first half as changes to how they are
measured revealed a more extensive picture of environmental
damage, previously unreported industry data show.
    Prime Minister Justin Trudeau's government, which has set a
goal of making Canada carbon-neutral by 2050, launched a
national program on Jan. 1 to better measure and reduce methane
emissions.
    Some provinces, including Alberta, implemented their own
regulations to achieve the same goal, and Ottawa deemed those
regulations equivalent with federal standards.
    Alberta aims to slash methane emissions by 45% by 2025 from
2014 levels. 
    Canada's program, which its oil industry says is the
strictest approach to methane emissions in the world, contrasts
with the United States, where the Trump administration is
rolling back methane curbs.  urn:newsml:reuters.com:*:nL1N2FE0CP
    Vented emissions, mainly methane, climbed to 175 million
cubic metres of vented gas in the first half from 79 million a
year earlier, according to Petrinex, an industry-government
partnership that collects data about the sector. 
    Methane, the main component of natural gas used to heat
homes and power factories, is responsible for one-quarter of
human-caused global warming, largely from oil and gas
facilities, according to Canada's environment ministry.
    Canada's oil industry has long faced pressure from
international investors distancing themselves from its stained
environmental reputation.  urn:newsml:reuters.com:*:nL1N2FC15O
    An Alberta Energy Regulator (AER) official last month said
that changes to flaring and venting definitions would lead to
higher reported emissions.
    While pandemic-induced oil production cuts have curbed
emissions, energy producers were also forced to cut spending to
survive, including some plans to reduce venting and leaks of
methane into the environment, according to interviews with six
clean technology providers.
    "The fact that we're spending less on technology and
adoption means those goals and targets are meaningless," said
Audrey Mascarenhas, Chief Executive of Questor Technology Inc
 QST.V .
    "We don't have a clear line of how step by step we're going
to get there." 
    Aborted progress this year would be costly, although it is
too soon to say mitigation efforts will miss the 2025 goal, said
Terry Abel, a CAPP executive vice-president.
    "If you miss a year, it just backloads what you need to do,"
Abel said. "We always expected that if the regulations don't
achieve that (desired) outcome, the regulations will perhaps
become even more stringent."
    Canada's Environment and Climate Change Minister Jonathan
Wilkinson said efforts to reduce oilpatch methane emissions are
on track, despite delays in government loans to help the
industry achieve reductions. 
    "My expectation is that we're going to see the kinds of
reductions that we have forecast," Wilkinson said, adding the
federal loans will be in place "ideally in weeks."
    Senior executives from major producers Canadian Natural
Resources Ltd (CNRL)  CNQ.TO  and Cenovus Energy  CVE.TO  said
they have not scaled back plans.
    "The bigger operators are going to be at or ahead of
schedule, so I don't think it will be that big a deal" if
smaller players scale back, CNRL President Tim McKay told
Reuters.
    The AER is still developing a surveillance program to ensure
methane compliance, spokesman Shawn Roth said.

 (Reporting by Jeff Lewis in Toronto and Rod Nickel in Winnipeg,
Manitoba; Editing by David Gregorio)
 ((rod.nickel@tr.com; Twitter: @RodNickel_Rtrs; 1-204-230-6043;
jeff.lewis@tr.com; +1 647 200 7236))