Sheila Wanite Bautz
Special to the Herald
For five straight years, Saskatchewan’s upstream oil and gas sector is reporting reductions in greenhouse gas emissions (GHG).
The decrease in GHG is occurring even with a rise in provincial infrastructure projects in the Crown sectors and while building momentum with oil, gas and mineral extractions.
Saskatchewan’s Ministry of Energy and Resources is required to provide the annual Oil and Gas Emissions Management Regulations (OGEMR) Report. The OGEMR releases information on the province’s upstream oil and gas emissions reduction program. The Ministry is also responsible for upholding and enforcing the OGEMR standards while ensuring emission reduction commitments outlined in Prairie Resilience: A Made in Saskatchewan Climate Change Strategy are met.
“Our made-in-Saskatchewan approach to lowering GHG emissions is working, and these numbers show it,” said Colleen Young, Minister of Energy and Resources. “Investment and innovation in the oil and gas sector has led to the significant reduction in the emissions we have seen since OGEMR was introduced in 2019. The Ministry of Energy and Resources will continue to take a regulatory approach that facilitates growth and ensures responsible resource development.”
According to the Ministry of Energy and Resources’ 2024 data in the report, provincial greenhouse gas emissions decreased from upstream oil facilities by 71 per cent when compared to the 2015 levels. Further comparisons demonstrated a 13 per cent decrease from 2023.
The term upstream is the reference for the location in the supply chain for oil and gas production. As such, upstream oil and gas production includes the exploration, identification, extraction and/or production of the raw natural resources and material discovered underground. The upstream industry employs workers in the areas of seismic and drilling contractors, engineers and geologists, to name a few.
Whereas the term downstream refers to the physical marketplace the final product appears for consumers to purchase, such as in a store. The products include natural gas to heat Saskatchewan homes, oil refineries and vehicle fuel at the gas pump as examples.
The greenhouse gas emissions results found in the OGEMR annual report show that emissions from flaring and venting processes at upstream oil facilities have been reduced by 7.7 million Tonnes of carbon dioxide equivalent (Mt CO2e) in the last decade. For perspective, this is comparable to taking 1.7 million passenger vehicles off the roads and highways for one year.
The term flaring is a reference to controlled burning that occurs during the production and processing phase. The fuel or the excessive waste gas is ignited as it exits the end of a flare stack, which is an elongated metal tube the gas is sent through for release. This creates the visual of the characteristic flame that is associated with flaring.
The controlled release of gases into the atmosphere during the production stage of the raw material is referred to as venting. During the process of venting, the separation occurring through processing oil or natural gas will release other hydrocarbon vapours and gases, such as water vapour and carbon dioxide, which separated during the processing of the extracted oil or natural gas.
According to the OGEMR annual report, “venting gas results in methane being released into the atmosphere, and flaring gas results in carbon dioxide”.
Prior to the new year in 2021, the Government of Saskatchewan and the Government of Canada established an equivalency agreement. The agreement addresses the reduction of methane emissions from the oil and gas sector. It involves Environment and Climate Change Canada (ECCC) to establish a timeframe to accomplish goals, which lasted until December 31, 2024. A subsequent agreement with ECCC extended the time period to December 31, 2029, to achieve the level of expectation for greenhouse gas emissions reductions, which are presented in the federal methane regulations.
Another example of incentives for lowering the GHG occurred in January of this year when the federal government provided $718,400 for the North Saskatoon Business Association (NSBA). The funds are allocated to launch a decarbonization education initiative for Saskatchewan businesses who are expected to discover different ways to reduce their greenhouse gas emissions. This makes the prairie province enterprises more sustainable and competitive.
Initiatives, such as the NSBA example, assist provincial companies and corporations to discover cost-effective ways to mitigate negative environmental impacts, meet consumer expectations and continue to grow. Accountability for carbon emissions is expected by consumers, government bodies and the public in general.
“Prairie businesses have always been global leaders in innovation, punching above their weight and driving a strong, competitive Canadian economy,” said Terry Duguid earlier this year, the Federal Minister for Prairies Economic Development Canada (PrairiesCan). “That’s why our government is proud to champion the forward-thinking businesses here in Saskatchewan as they embrace the future and build a resilient, net-zero, green Prairie economy.”
PrairiesCan is a federal government department that assists with diversifying the Canadian Prairies economy. The federal government agency assists with support for prairie provinces who are building a strong, competitive Canadian economy in Alberta, Saskatchewan and Manitoba.
The 2024 OGEMR Report states that multiple activities and strategies were intricate to the 2024 greenhouse gas emission reductions. The credit for the reduction is due to the focus on two primary areas. The first focus includes oil companies installing combustion equipment at oil wells and facilities who incorporate flaring gas, which is vented. The second focus involves the incorporation of vented gas by companies and corporations on their worksites to utilize as another source of fuel in areas of their operations where it is beneficial to do so and for industry-related purposes.
The OGEMR annual report ensures there is progress while directing key focus and attention on reducing greenhouse gas emissions from the upstream oil and gas sector. This has resulted in the province of Saskatchewan surpassing the goal of 40 to 45 per cent reduction in the GHG emissions, which is ahead of the target in 2025.
