Alberta
Five ways Canada’s oil and gas industry showed improved environmental performance in 2023
Natural gas processing facility in Alberta. Photo courtesy Alberta Energy Regulator
From the Canadian Energy Centre
Data shows work industry is doing to reduce its environmental footprint
New data released in 2023 shows the progress Canada’s oil and gas industry is making to reduce its environmental footprint.
From emissions to water use and reclamation, here are some key performance statistics.
1. Methane emissions reduction target achieved three years ahead of schedule
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 per cent 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.
2. Oil sands emissions stay flat despite production growth
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.
3. Producers spend millions more than required on oil and gas cleanup
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 per cent more than the regulator required.
Industry abandoned 10,334 inactive wells, pipelines and facilities in 2022 – nearly double the amount abandoned in 2019 and 2020, the AER reported.
Reclamation activity also accelerated, with the AER issuing 461 reclamation certificates, an increase of one third compared to 2021.
The regulator reports that 17 per cent of licensed wells in Alberta are now considered inactive, down from 21 per cent in 2019. And about 30 per cent of licensed wells are now considered reclaimed, up from 27 per cent in 2019.
4. Oil sands reclaimed land growing
Data released by Canada’s Oil Sands Innovation Alliance highlights the growing spread of the industry’s reclaimed land.
As of 2021, oil sands operators had permanently reclaimed 10,344 hectares, the equivalent area of more than 20,000 NFL football fields – a 16 per cent increase from 2019.
Of this, 1,296 hectares (about 2,500 NFL football fields) is permanently reclaimed to wetlands and aquatics.
5. Fresh water use per barrel declining
New data on water use in Alberta’s oil and gas industry released in December shows producers continue to reduce the use of fresh water from lakes, rivers and shallow groundwater
The oil and gas industry used less than one per cent of Alberta’s available fresh water in 2022, the AER reported.
Thanks primarily to increased water recycling, fresh water use per barrel in Alberta oil and gas has decreased by 22 per cent since 2013.
Overall, 82 per cent of water used in Alberta oil and gas in 2022 was recycled; 80 per cent in oil sands mining, and 90 per cent in drilled or “in situ” oil sands production.
Alberta
Fortis et Liber: Alberta’s Future in the Canadian Federation
From the C2C Journal
By Barry Cooper, professor of political science, University of Calgary
Canada’s western lands, wrote one prominent academic, became provinces “in the Roman sense” – acquired possessions that, once vanquished, were there to be exploited. Laurentian Canada regarded the hinterlands as existing primarily to serve the interests of the heartland. And the current holders of office in Ottawa often behave as if the Constitution’s federal-provincial distribution of powers is at best advisory, if it needs to be acknowledged at all. Reviewing this history, Barry Cooper places Alberta’s widely criticized Sovereignty Act in the context of the Prairie provinces’ long struggle for due constitutional recognition and the political equality of their citizens. Canada is a federation, notes Cooper. Provinces do have rights. Constitutions do mean something. And when they are no longer working, they can be changed.
Alberta
30 million contraband cigarettes valued at $25 million dollars seized in Alberta
New release from Alberta Gaming Liquor and Cannabis (AGLC)
Record setting contraband tobacco seizures result from AGLC investigations
Alberta Gaming Liquor and Cannabis (AGLC) recently concluded several investigations which netted two of the largest contraband tobacco seizures in Alberta history. The combined total of the contraband tobacco seized was 154,800 cartons of contraband cigarettes (30.7 million individual cigarettes). These seizures are a result of the work conducted by AGLC’s Tobacco Enforcement Unit with the assistance of provincial law enforcement agencies.
- In a January 2024 investigation, approximately 43,500 cartons (8.7 million individual cigarettes) were seized. This equates to $7 million in retail value with a provincial tax avoidance of $2.4 million. This included the seizure of 15,000 grams of contraband shisha.
- In April of 2024, 60 wrapped pallets were seized from a warehouse setting netting a total of 111,300 cartons of contraband cigarettes (22 million individual cigarettes) which equates to over $18 million in retail value with a provincial tax avoidance of $6.6 million.
- Criminal Charges are pending in both cases.
“These are significant contraband tobacco investigations involving individuals that are part of organized networks whose proceeds defraud Albertans millions of dollars in tax revenue. AGLC will continue to work with our partners to investigate and disrupt the individuals and organizations involved in these illegal activities as part our commitment to a strong contraband tobacco enforcement program in Alberta.”
- Gary Peck, Vice President, Regulatory Services, AGLC
“Contraband tobacco hurts law abiding businesses that follow the rules, and it costs Albertans millions each year from lost tax revenue. Our government is committed to keeping illegal tobacco off the streets and ensuring that the sale of tobacco products comply with the law.”
- Dale Nally, Minister of Service Alberta and Red Tape Reduction
Over the last nine months, AGLC’s Tobacco Enforcement unit has seized an estimated 35 million contraband cigarettes and 115,000 grams of contraband shisha from across the province. The total potential lost tax revenue is estimated to be more than $10.1 million.
Contraband tobacco:
- is any tobacco product that does not comply with federal and provincial laws related to importation, marking, manufacturing, stamping and payment of duties and taxes;
- comes from four main sources: illegal manufacturers, counterfeits, tax-exempt diversions and resale of stolen legal tobacco; and
- can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the “DUTY PAID CANADA DROIT ACQUITTÉ” on packages of cigarettes and cigars or pouches of tobacco.
In addition to lost revenues that may otherwise benefit Albertans, illegally manufactured products also pose public health and safety risks as they lack regulatory controls and inspections oversight.
Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522 or Crime Stoppers at 1-800-222-TIPS (8477).
Under a Memorandum of Understanding with Alberta Treasury Board and Finance, AGLC enforces the Tobacco Tax Act and conducts criminal investigations related to the possession, distribution and trafficking of contraband tobacco products. In 2022-23, provincial revenue from tobacco taxes was approximately $522 million.
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