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.
Alberta’s future runs on rails
Alberta’s government is bringing together passenger rail experts from across the world to share best practices and inform the province’s Passenger Rail Master Plan.
As Alberta experiences record growth and evolving transportation needs, passenger rail infrastructure and services will be vital for enhancing accessibility and connecting communities. To support this, Alberta’s government is developing a Passenger Rail Master Plan to build the optimal passenger rail system for the province.
As part of the development of the plan, Alberta’s government is hosting a one-day forum to provide an opportunity for Alberta communities, industry and experts to collaborate and share information on passenger rail opportunities and challenges. The forum includes experts from Ontario, Quebec, California, Italy, Spain and Japan who are involved in passenger rail procurement, governance and operations. The sessions will allow for the sharing of best practices and lessons learned on passenger rail planning and development.
“Alberta was built by innovators and visionaries who saw potential in our province and its people. They believed that if you could dream it, you could achieve it. We believe there is opportunity and demand for passenger rail services in Alberta. Today’s forum marks an important step forward in the development of our Passenger Rail Master Plan and in achieving our vision for passenger rail.”
In line with the province’s commitment to engaging Albertans throughout the development of the Passenger Rail Master Plan, a survey has been launched to seek public input on passenger rail. Albertans are invited to complete the online survey by Dec. 20 to help shape the future of passenger rail in Alberta. There will be additional opportunities for Albertans to have their say on passenger rail in the future, including regional open houses which will be held in early 2025.
“Feedback from Albertans, Alberta municipalities, Indigenous communities and industry will be critically important to developing passenger rail services in Alberta. I encourage all Albertans to complete the online survey to help inform a shared vision for passenger rail to enhance accessibility, efficiency, and connectivity across the province.”
In April 2024, Alberta’s government shared its vision for passenger rail and announced the development of the Passenger Rail Master Plan for Alberta. The province’s vision is for an Alberta passenger rail system that includes public, private or hybrid passenger rail, including:
- a commuter rail system for the Calgary area that connects surrounding communities and the Calgary International Airport to downtown
- a commuter rail system for the Edmonton area that connects surrounding communities and the Edmonton International Airport to downtown
- passenger rail that runs between Calgary and Edmonton and the Rocky Mountain parks
- a regional rail line between Calgary and Edmonton, with a local transit hub in Red Deer
- municipal-led LRT systems in Calgary and Edmonton that integrate with the provincial passenger rail system
- rail hubs serving the major cities that would provide linkages between a commuter rail system, regional rail routes and municipal-led mass transit systems
The vision includes a province-led “Metrolinx-like” Crown corporation with a mandate to develop the infrastructure and oversee daily operations, fare collection/booking systems, system maintenance, and planning for future system expansion.
Quick facts
- The Passenger Rail Survey will be open until Dec. 20.
- Alberta’s Passenger Rail Master Plan is expected to be completed by summer 2025 and will include:
- a comprehensive feasibility assessment
- financial and delivery model options
- governance and operations recommendations
- a 15-year delivery plan
- public engagement
Related information
Grande Prairie. Getty Images photo
From the Canadian Energy Centre
Federal cash grab driving costs for local governments, driving up property taxes
New data shows the painful economic impact of the federal carbon tax on municipalities.
Municipalities in Alberta paid out more than $37 million in federal carbon taxes in 2023, based on a recent survey commissioned by Alberta Municipal Affairs, with data provided to the Canadian Energy Centre.
About $760,000 of that came from the City of Grande Prairie. In a statement, Mayor Jackie Clayton said “if the carbon tax were removed, City property taxes could be reduced by 0.6 per cent, providing direct financial relief to residents and businesses in Grande Prairie.”
Conducted in October, the survey asked municipal districts, towns and cities in Alberta to disclose the amount of carbon tax paid out for the heating and electrifying of municipal assets and fuel for fleet vehicles.
With these funds, Alberta municipalities could have hired 7,789 high school students at $15 per hour last year with the amount paid to Ottawa.
The cost on municipalities includes:
Lloydminster: $422,248
Calgary: $1,230,300 (estimate)
Medicine Hat: $876,237
Lethbridge: $1,398,000 (estimate)
Grande Prairie: $757,562
Crowsnest Pass: $71,100
Red Deer: $1,495,945
Bonnyville: $19,484
Hinton: $66,829
Several municipalities also noted substantial indirect costs from the carbon tax, including higher rates from vendors that serve the municipality – like gravel truck drivers and road repair providers – passing increased fuel prices onto local governments.
The rising price for materials and goods like traffic lights, steel, lumber and cement, due to higher transportation costs are also hitting the bottom line for local governments.
The City of Grande Prairie paid out $89 million in goods and services in 2023, and the indirect costs of the carbon tax “have had an inflationary impact on those expenses” in addition to the direct costs of the tax.
In her press conference announcing Alberta’s challenge to the federal carbon tax on Oct. 29, 2024, Premier Danielle Smith addressed the pressures the carbon tax places on municipal bottom lines.
“In 2023 alone, the City of Calgary could have hired an additional 112 police officers or firefighters for the amount they sent to Ottawa for the carbon tax,” she said.
In a statement issued on Oct. 7, 2024, Ontario Conservative MP Ryan Williams, shadow minister for international trade, said this issue is nationwide.
“In Belleville, Ontario, the impact of the carbon tax is particularly notable. The city faces an extra $410,000 annually in costs – a burden that directly translates to an increase of 0.37 per cent on residents’ property tax bills.”
There is no rebate yet provided on retail carbon pricing for towns, cities and counties.
In October, the council in Belleville passed a motion asking the federal government to return in full all carbon taxes paid by municipalities in Canada.
The unaltered reproduction of this content is free of charge with attribution to the Canadian Energy Centre.
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