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Canadian energy producers among worlds’ best at limiting gas flaring

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The Nahr Bin Omar oil field and facility near Iraq’s southern port city of Basra on February 11, 2022. In the oilfields of southern Iraq, billions of cubic feet of gas literally go up in smoke, burnt off on flare stacks for want of the infrastructure to capture and process it. (Photo by HUSSEIN FALEH/AFP via Getty Images)

From the Canadian Energy Centre

International comparisons of gas flaring among top oil producers

Canada contributed just 0.7% of the global amount of gas flaring despite being the world’s fourth-largest oil producer

ByĀ Ven VenkatachalamĀ andĀ Lennie Kaplan

This Fact Sheet analyzes the upstream oil industry’s record on flaring in Canada relative to other top oil-producing countries. Gas flaring is the burning off of the natural gas that is generated in the process of oil extraction and production. Flaring is relevant because it is a source of greenhouse gas emissions (GHGs) (see Appendix).

In 2022, 138,549 million cubic meters (m3) (or 139 billion cubic meters (bcm)) of flared gases were emitted worldwide, creating 350 million tonnes of CO2 emissions annually. Canada is a significant oil producer; it has theĀ third-largestĀ proven crude oil reserves and is the fourthlargest crude oil producer in the world (Natural Resources Canada, undated), and so contributes to flaring.

Flaring comparisons

This Fact Sheet uses World Bank data to provide international comparisons of flaring. It also draws on U.S. Energy Information Administration (EIA) crude oil production data to compare flaring among the top 10 crude oil producing countries.

Table 1 shows gas flaring volumes in 2012 and 2022. In absolute terms, Russia recorded more flaring than any other country at 25,495 million m3 (25.4 bcm) in 2022, which was 1,628 million m3 (7 per cent) higher than in 2012.

The four countries that are the top GHG emitters through flaring (Russia, Iraq, Iran, and Algeria) accounted for 50 per cent of global gas flaring in 2022.

At 945 million m3, Canada was the eighth lowest flarer in 2022 (23rd spot out of the top 30 countries). It decreased its flaring emissions by 320 million m3 from the 2012 level of 1,264 million m3, a 25 per cent drop.

In 2022, Canada contributed just 0.7 per cent of the global amount of gas flaring despite being the world’s fourth largest oil producer (see Table 1).

Sources: World Bank (undated)

Flaring declined worldwide between 2012 and 2022

Figure 1 shows the change in flaring volumes between 2012 and 2022. Nine countries flared more in 2022 than in 2012, while 21 countries flared less. In the last decade, the global flaring volume decreased by 3 per cent.

  • The three countries that most significantly increased flaring between 2012 and 2022 were the Republic of the Congo (65 per cent), Iran (56 per cent), and Iraq (41 per cent).
  • The three countries that most significantly decreased flaring between 2012 and 2022 were Uzbekistan (-76 per cent), Columbia (-75 per cent) and Kazakhstan (-74 per cent).
  • As noted earlier, flaring fell by 25 per cent in Canada between 2012 and 2022.
Sources: World Bank (undated)

Comparing flaring to increased production

The decreases in flaring in Canada between 2012 and 2022 shown in Table 1 and Figure 1 understate the magnitude of the decline in flaring in the country. That is because Canada’s crude oil production increased by 45 per cent in that period, even as absolute flaring decreased by 25 per cent (see Table 2).

Canada compares very favourably with the United States, which increased crude oil production by 82 per cent and decreased flaring by 16 per cent.

Sources: World Bank (undated) and EIA (2023)

Largest oil producers and flaring intensity

To fully grasp how much more effective Canada has been than many other oil producers in reducing flaring, Table 3 compares both flaring intensity (gas flared per unit of oil production) and crude oil production among the top 10 oil producing countries (which account for 73 per cent of the world oil production).

Canada is the fourth-largest producer of crude oil, and its gas flaring intensity declined by 48 per cenft between 2012 and 2022. Four of the top 10 oil producers witnessed their flaring intensity increase between 2012 and 2022.

Sources: World Bank (undated) and EIA (2023)

Conclusion

Gas flaring contributes to greenhouse gas emissions. However, it is possible for countries to both increase their oil production and still reduce flaring. Canada is one noteworthy example of a country that has significantly reduced flaring not only compared to its increased production of crude oil, but also in absolute terms.


Appendix

Background

Flaring and venting are two ways in which an oil or natural gas producer can dispose of waste gases. Venting is the intentional controlled release of uncombusted gases directly to the atmosphere, and flaring is combusting natural gas or gas derived from petroleum in order to dispose of it.¹ As Matthew R. Johnson and Adam R. Coderre noted in their 2012 paper on the subject, flaring in the petroleum industry generally falls within three broad categories:

  • Emergency flaringĀ (large, unplanned, and very short-duration releases, typically at larger downstream facilities or off-shore platforms);
  • Process flaringĀ (intermittent large or small releases that may last for a few hours or a few days as occurs in the upstream industry during well-test flaring to assess the size of a reservoir or at a downstream plant during a planned process blowdown); and
  • Production flaringĀ (may occur continuously for years while oil is being produced).

To track GHGs from flaring and venting, Environment Canada (2016)Ā definesĀ such emissions as:

  • Fugitive emissions:Ā Unintentional releases from venting, flaring, or leakage of gases from fossil fuel production and processing, iron and steel coke oven batteries, or CO2 capture, transport, injection, and storage infrastructure.
  • Flaring emissions:Ā Controlled releases of gases from industrial activities from the combustion of a gas or liquid stream produced at a facility, the purpose of which is not to produce useful heat or work. This includes releases from waste petroleum incineration, hazardous emission prevention systems, well testing, natural gas gathering systems, natural gas processing plant operations, crude oil production, pipeline operations, petroleum refining, chemical fertilizer production, and steel production.
  • Venting emissions:Ā Controlled releases of a process or waste gas, including releases of CO2 associated with carbon capture, transport, injection, and storage; from hydrogen production associated with fossil fuel production and processing; of casing gas; of gases associated with a liquid or a solution gas; of treater, stabilizer, or dehydrator off-gas; of blanket gases; from pneumatic devices that use natural gas as a driver; from compressor start-ups, pipelines, and other blowdowns; and from metering and regulation station control loops.

1. Many provinces regulate flaring and venting including Alberta (Directive 060) British Columbia (Flaring and Venting Reduction Guideline), and Saskatchewan (S-10 and S-20). Newfoundland & Labrador also has regulations that govern offshore flaring.

Notes

This CEC Fact Sheet was compiled by Ven Venkatachalam and Lennie Kaplan at the Canadian Energy Centre:Ā www.canadianenergycentre.ca. All percentages in this report are calculated from the original data, which can run to multiple decimal points. They are not calculated using the rounded figures that may appear in charts and in the text, which are more reader friendly. Thus, calculations made from the rounded figures (and not the more precise source data) will differ from the more statistically precise percentages we arrive at using source data. The authors and the Canadian Energy Centre would like to thank and acknowledge the assistance of an anonymous reviewer in reviewing the data and research for this Fact Sheet.

ReferencesĀ (All links live as of September 23, 2023)

Alberta Energy Regulator (2022), Directive 060: Upstream Petroleum Industry Faring, Incinerating, and Venting <https://bit.ly/3AMYett>; BC Oil and Gas Commission (2021), Flaring and Venting Reduction Guideline, version 5.2 <https://bit.ly/3CWRa0i>; Canada-Newfoundland and Labrador Offshore Petroleum Board (2007), Offshore Newfoundland and Labrador Gas Flaring Reduction <https://bit.ly/3RhKpKu>; D&I Services (2010), Saskatchewan Energy and Resources: S-10 and S-20 <https://bit.ly/3TBrVGJ>; Johnson, Matthew R., and Adam R. Coderre (2012), Compositions and Greenhouse Gas Emission Factors of Flared and Vented Gas in the Western Canadian Sedimentary Basin, Journal of the Air & Waste Management Association 62, 9: 992-1002 <https://bit.ly/3cJRqPd>; Environment Canada (2016), Technical Guidance on Reporting Greenhouse Gas Emissions/Facility Greenhouse Gas Emissions Reporting Program <https://bit.ly/3CVQR5C>; Natural Resources Canada (Undated), Oil Resources <https://bit.ly/3oWWhW0>; U.S. Energy Information Administration (undated), Petroleum and Other Liquids <https://bit.ly/2Ad6S9i>; World Bank (Undated), Global Gas Flaring Data <https://bit.ly/3zXuxGX>.

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Alberta

Temporary Alberta grid limit unlikely to dampen data centre investment, analyst says

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From the Canadian Energy Centre

By Cody Ciona

ā€˜Alberta has never seen this level and volume of load connection requests’

Billions of investment in new data centres is still expected in Alberta despite the province’s electric system operator placing aĀ temporary limitĀ on new large-load grid connections, said Carson Kearl, lead data centre analyst for Enverus Intelligence Research.

Kearl cited NVIDIA CEO Jensen Huang’sĀ estimateĀ from earlier this year that building a one-gigawatt data centre costs between US$60 billion and US$80 billion.

That implies the Alberta Electric System Operator (AESO)’s 1.2 gigawatt temporary limit would still allow for up to C$130 billion of investment.

ā€œIt’s got the potential to be extremely impactful to the Alberta power sector and economy,ā€ Kearl said.

Importantly, data centre operators can potentially get around the temporary limit by ā€˜bringing their own power’ rather than drawing electricity from the existing grid.

In Alberta’sĀ deregulated electricity market – the only one in Canada – large energy consumers like data centres can build the power supply they need by entering project agreements directly with electricity producers.

According to theĀ AESO, there are 30 proposed data centre projects across the province.

The total requested power load for these projects is more than 16 gigawatts, roughly four gigawatts more than Alberta’sĀ demand recordĀ in January 2024 during a severe cold snap.

For comparison, Edmonton’s load is around 1.4 gigawatts, the AESO said.

ā€œAlberta has never seen this level and volume of load connection requests,ā€ CEO Aaron Engen said in a statement.

ā€œBecause connecting all large loads seeking access would impair grid reliability, we established a limit that preserves system integrity while enabling timely data centre development in Alberta.ā€

As data centre projects come to the province, so do jobs and other economic benefits.

ā€œYou have all of the construction staff associated; electricians, engineers, plumbers, and HVAC people for all the cooling tech that are continuously working on a multi-year time horizon. In the construction phase there’s a lot of spend, and that is just generally good for the ecosystem,ā€ said Kearl.

Investment in local power infrastructure also has long-term job implications for maintenance and upgrades, he said.

ā€œAlberta is a really exciting place when it comes to building data centers,ā€ said Beacon AI CEO Josh Schertzer on a recent ARC Energy IdeasĀ podcast.

ā€œIt has really great access to natural gas, it does have some excess grid capacity that can be used in the short term, it’s got a great workforce, and it’s very business-friendly.ā€

The unaltered reproduction of this content is free of charge with attribution to the Canadian Energy Centre.

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Canadian Energy Centre

Alberta oil sands legacy tailings down 40 per cent since 2015

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Wapisiw Lookout, reclaimed site of the oil sands industry’s first tailings pond, which started in 1967. The area was restored to a solid surface in 2010 and now functions as a 220-acre watershed. Photo courtesy Suncor Energy

From the Canadian Energy CentreĀ 

By CEC Research

Mines demonstrate significant strides through technological innovation

Tailings are a byproduct of mining operations around the world.

In Alberta’s oil sands, tailings are a fluid mixture of water, sand, silt, clay and residual bitumen generated during the extraction process.

Engineered basins or ā€œtailings pondsā€ store the material and help oil sands mining projects recycle water, reducing the amount withdrawn from the Athabasca River.

In 2023, 79 per cent of the water used for oil sands mining was recycled, according toĀ the latest dataĀ from the Alberta Energy Regulator (AER).

Decades of operations, rising production and federal regulations prohibiting the release of process-affected water have contributed to a significant accumulation of oil sands fluid tailings.

The Mining Association of CanadaĀ describes that:

ā€œLike many other industrial processes, the oil sands mining process requires water.Ā 

However, while many other types of mines in Canada like copper, nickel, gold, iron ore and diamond mines are allowed to release water (effluent) to an aquatic environment provided that it meets stringent regulatory requirements, there are no such regulations for oil sands mines.Ā 

Instead, these mines have had to retain most of the water used in their processes, and significant amounts of accumulated precipitation, since the mines began operating.ā€

Despite this ongoing challenge, oil sands mining operators have made significant strides in reducing fluid tailings through technological innovation.

This is demonstrated by reductions in ā€œlegacy fluid tailingsā€ since 2015.

Legacy Fluid Tailings vs. New Fluid Tailings

As part of implementing theĀ Tailings Management FrameworkĀ introduced in March 2015, the AER releasedĀ Directive 085: Fluid Tailings Management for Oil Sands Mining ProjectsĀ in July 2016.

Directive 085 introduced new criteria for the measurement and closure of ā€œlegacy fluid tailingsā€ separate from those applied to ā€œnew fluid tailings.ā€

Legacy fluid tailings are defined as those deposited in storage before January 1, 2015, while new fluid tailings are those deposited in storage after January 1, 2015.

The new rules specified that new fluid tailings must be ready to reclaim ten years after the end of a mine’s life, while legacy fluid tailings must be ready to reclaim by the end of a mine’s life.

Total Oil Sands Legacy Fluid Tailings

Alberta’s oil sands mining sector decreased total legacy fluid tailings by approximately 40 per cent between 2015 and 2024, according to theĀ latest company reportingĀ to the AER.

Total legacy fluid tailings in 2024 were approximately 623 million cubic metres, down from about one billion cubic metres in 2015.

The reductions are led by the sector’s longest-running projects: Suncor Energy’s Base Mine (opened in 1967), Syncrude’s Mildred Lake Mine (opened in 1978), and Syncrude’s Aurora North Mine (opened in 2001). All are now operated by Suncor Energy.

The Horizon Mine, operated by Canadian Natural Resources (opened in 2009) also reports a significant reduction in legacy fluid tailings.

The Muskeg River Mine (opened in 2002) and Jackpine Mine (opened in 2010) had modest changes in legacy fluid tailings over the period. Both are now operated by Canadian Natural Resources.

Imperial Oil’s Kearl Mine (opened in 2013) and Suncor Energy’s Fort Hills Mine (opened in 2018) have no reported legacy fluid tailings.

Suncor Energy Base Mine

Between 2015 and 2024, Suncor Energy’s Base Mine reduced legacy fluid tailings by approximately 98 per cent, from 293 million cubic metres to 6 million cubic metres.

Syncrude Mildred Lake Mine

Between 2015 and 2024, Syncrude’s Mildred Lake Mine reduced legacy fluid tailings by approximately 15 per cent, from 457 million cubic metres to 389 million cubic metres.

Syncrude Aurora North Mine

Between 2015 and 2024, Syncrude’s Aurora North Mine reduced legacy fluid tailings by approximately 25 per cent, from 102 million cubic metres to 77 million cubic metres.

Canadian Natural Resources Horizon Mine

Between 2015 and 2024, Canadian Natural Resources’ Horizon Mine reduced legacy fluid tailings by approximately 36 per cent, from 66 million cubic metres to 42 million cubic metres.

Total Oil Sands Fluid TailingsĀ 

Reducing legacy fluid tailings has helped slow the overall growth of fluid tailings across the oil sands sector.

Without efforts to reduce legacy fluid tailings, the total oil sands fluid tailings footprint today would be approximately 1.6 billion cubic metres.

The current fluid tailings volume stands at approximately 1.2 billion cubic metres, up from roughly 1.1 billion in 2015.

The unaltered reproduction of this content is free of charge with attribution to the Canadian Energy Centre.

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