Spotlight_Vol 24_Issue_1

Methane Emissions Reduction Target Achieved 3 Years ahead of Schedule

An updated study by S&P Global in August found oil sands emissions did not increase in 2022 even though production grew. It’s a significant first that indicates oil sands emissions may start decreasing sooner than previously expected, said Kevin Birn, S&P Global’s vice-president of Canadian oil markets. Total oil sands emissions were 81 megatonnes in 2022, nearly flat with 2021 despite a production increase of about 50,000 barrels per day. In 2022, S&P Global predicted peak oil sands emissions around 2025. The new findings indicate it could happen faster. Producers Spend Millions More Than Required on Oil and Gas Cleanup

Photo courtesy Tourmaline

The Alberta Energy Regulator (AER) released data in November showing that oil and gas producers in the province achieved the target of reducing methane emissions by 45 percent compared to 2014.

The milestone was achieved in 2022, three years ahead of the 2025 government deadline.

Reducing methane emissions comes primarily from reducing small leaks from valves, pump seals, and other equipment, as well as reducing flaring and venting.

Oil Sands Emissions Stay Flat Despite Production Growth.

Photo courtesy Alberta Energy Regulator

Oil and gas producers in Alberta spent significantly more than required in 2022 cleaning up inactive wells, facilities, and pipelines, the AER reported in October. The regulator’s industry-wide minimum “closure” spend for 2022 was set at $422 million. But the final tally showed producers spent $685 million, or about 60 percent more than the regulator required. SPOTLIGHT MAGAZINE ON BUSINESS MAGAZINE • VOL 24 ISSUE 1 47

Oil sands steam generators. Photo courtesy Cenovus Energy

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