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
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 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
Oil sands steam generators. Photo courtesy Cenovus Energy
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
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 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
Wetland in reclaimed area in the Athabasca oil sands region. Photo by Greg Halinda for the Canadian Energy Centre
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
Photo courtesy Cenovus Energy
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.
“If Ottawa had it’s way Albertans would be left to freeze in the dark”
The ineffective federal net-zero electricity regulations will not reduce emissions or benefit Albertans but will increase costs and lead to supply shortages.
The risk of power outages during a hot summer or the depths of harsh winter cold snaps, are not unrealistic outcomes if these regulations are implemented. According to the Alberta Electric System Operator’s analysis, the regulations in question would make Alberta’s electricity system more than 100 times less reliable than the province’s supply adequacy standard. Albertans expect their electricity to remain affordable and reliable, but implementation of these regulations could increase costs by a staggering 35 per cent.
Canada’s constitution is clear. Provinces have exclusive jurisdiction over the development, conservation and management of sites and facilities in the province for the generation and production of electrical energy. That is why Alberta’s government is referring the constitutionality of the federal government’s recent net-zero electricity regulations to the Court of Appeal of Alberta.
“The federal government refused to work collaboratively or listen to Canadians while developing these regulations. The results are ineffective, unachievable and irresponsible, and place Albertans’ livelihoods – and more importantly, lives – at significant risk. Our government will not accept unconstitutional net-zero regulations that leave Albertans vulnerable to blackouts in the middle of summer and winter when they need electricity the most.”
“The introduction of the Clean Electricity Regulations in Alberta by the federal government is another example of dangerous federal overreach. These regulations will create unpredictable power outages in the months when Albertans need reliable energy the most. They will also cause power prices to soar in Alberta, which will hit our vulnerable the hardest.”
Finalized in December 2024, the federal electricity regulations impose strict carbon limits on fossil fuel power, in an attempt to force a net-zero grid, an unachievable target given current technology and infrastructure. The reliance on unproven technologies makes it almost impossible to operate natural gas plants without costly upgrades, threatening investment, grid reliability, and Alberta’s energy security.
“Ottawa’s electricity regulations will leave Albertans in the dark. They aren’t about reducing emissions – they are unconstitutional, ideological activist policies based on standards that can’t be met and technology that doesn’t exist. It will drive away investment and punish businesses, provinces and families for using natural gas for reliable, dispatchable power. We will not put families at risk from safety and affordability impacts – rationing power during the coldest days of the year – and we will continue to stand up for Albertans.”
“Albertans depend on electricity to provide for their families, power their businesses and pursue their dreams. The federal government’s Clean Electricity Regulations threaten both the affordability and reliability of our power grid, and we will not stand by as these regulations put the well-being of Albertans at risk.”
Related information
- Conference Board of Canada socio-economic Impacts of Canada’s 2030 Emissions Reduction Plan – (April 2025)
- Alberta Electric System Operator’s position on Canadian Energy Regulations
Oh, Canada
We find it endlessly fascinating that most Canadians believe they live in a representative democracy, where aspiring candidates engage in authentic politicking to earn their place in office. So accustomed are Canada’s power brokers to getting their way, they rarely bother to cover their tracks. A careful reading of the notoriously pliant Canadian press makes anticipating future events in the country surprisingly straightforward.
Back in December, when Pierre Poilievre was given better than 90% odds of replacing Prime Minister Justin Trudeau—and Mark Carney was still just an uncharismatic banker few had heard of—we engaged in some not-so-speculative dot-connecting and correctly predicted Carney’s rise to the top spot. Our interest was driven by the notoriously rocky relationship between Ottawa and the Province of Alberta, home to one of the world’s largest hydrocarbon reserves, and how Carney’s rise might be a catalyst for resetting Canada’s energy trajectory. In a follow-up article titled “The Fix Is In,” we laid out a few more predictions:
“Here’s how the play is likely to unfold in the weeks and months ahead: Carney will be elected Prime Minister on April 28 by a comfortable margin; [Alberta Premier Danielle] Smith will trigger a constitutional crisis, providing cover for Carney to strike a grand bargain that finally resolves longstanding tensions between the provinces and Ottawa; and large infrastructure permitting reform will fall into place. Protests against these developments will be surprisingly muted, and those who do take to the streets will be largely ignored by the media. The entire effort will be wrapped in a thicket of patriotism, with Trump portrayed as a threat even greater than climate change itself. References to carbon emissions will slowly fade…
In parallel, we expect Trump and Carney to swiftly strike a favorable deal on tariffs, padding the latter’s bona fides just as his political capital will be most needed.”
The votes have barely been counted, yet the next moves are already unfolding…
“Alberta Premier Danielle Smith says she’ll make it easier for citizens to initiate a referendum on the province’s future in Canada, after warning that a Liberal win in Monday’s election could spur a groundswell of support for Alberta separatism. Smith said on Tuesday that a newly tabled elections bill will give everyday Albertans a bigger say in the province’s affairs.
‘(We’re giving) Albertans more ways to be directly involved in democracy, and to have their say on issues that matter to them,’ Smith told reporters in Edmonton.
If passed, the new law would dramatically lower the number of signatures needed to put a citizen-proposed constitutional referendum question on the ballot, setting a new threshold of 10 per cent of general election turnout — or just over 175,000, based on Alberta’s last provincial election in 2023.”
“US President Donald Trump said on Wednesday that Canadian Prime Minister Mark Carney is looking to make a trade deal and will visit the White House within the next week. Trump said he congratulated Carney on his election victory when the Canadian leader called on Tuesday.
‘He called me up yesterday – he said let’s make a deal,’ Trump told reporters at the White House after a televised Cabinet meeting.”
Remember where you read it first.
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