Oil and Gas Systems

Canada is one of the world's largest producers of oil and natural gas. The system for producing and distributing these fuels is very complex and involves many different partners. There are numerous points in this system where methane can escape into the atmosphere: during processing, storage, and distribution. Methane releases from oil and natural gas systems represent almost half of Canada’s total methane emissions.  Canada is a world leader in reducing methane from oil and gas sector sources, implementing requirements to reduce venting and flaring.   The province of Alberta has achieved over 50% reduction in venting of associated gas at crude oil and crude bitumen facilities between 2000 and 2010, although emissions since 2006 have begun to rise again due to significant increases in production of bitumen.  Requirements to carry out methane leak detection and repair for equipment have been in place since 2010 as well.  The provinces of British Columbia and Saskatchewan are also taking action to reduce methane emissions from these sources. 

To help further address these emissions, Environment Canada and Natural Resources Canada were instrumental in the development of the ON TIME Tool, which displays interactive flow diagrams of oil and gas systems.  The goal of the ON TIME Tool is to provide easy access to information on cost-effective technologies and practices that reduce emissions. Internationally, Canadian-funded projects in China, Mexico and Colombia have helped to reduce fugitive methane emissions, decrease greenhouse gas externalities, improve energy efficiency, and conserve valuable non-renewable resources at the China National Petroleum Corporation (CNPC), Sinopec and the China National Offshore Oil Corporation (CNOOC), and GMI Partner organization Petróleos Mexicanos (PEMEX), and EcoPetrol in Colombia.

Title: GHG Management in Mexico's Upstream Oil and Gas Industry
Canada’s Contribution: $971,994
Funding Period: 2009-2011
Sector: Oil & Gas
Targeted Country/Region: Mexico
Project Description: Under the auspices of the Canada-Mexico Partnership, this project focused on capacity building activities to manage GHG emissions and energy consumption in the Mexican oil and natural gas industry, including PEMEX (Petróleos Mexicanos). The intent of the project was to establish, train and equip internal audit teams, and pursue methane emission reduction and energy efficiency improvement opportunities in all segments of its operations.
Achievements: Project results include identification and preliminary evaluation of a range of methane emission reductions and energy efficiency improvement opportunities at the offshore production platform. Capacity building objectives were realized by training experts for the Mexican oil and gas industries on GHG verification and measurement procedures.


Title: GHG Management in China's Upstream Oil and Gas Industry
Canada’s Contribution: $383,800
Funding Period: 2010-2011
Sector: Oil & Gas
Targeted Country/Region: China
Project Description: This methane recovery project was part of an ongoing collaboration under the auspices of the Canada-China Climate Change Group, in support of the national energy and climate change objectives of China’s 12th Five-Year Plan. The purpose of the project was to advance cost-effective oil & gas sector methane reductions via technology transfer, training and capacity building, as well as to provide individual assistance to help Chinese companies identify and assess project opportunities.
Achievements: The project provided detailed methodological training to the China National Petroleum Corporation (CNPC) engineering personnel for the purpose of designing and planning science-based projects to measurably and verifiably reduce emissions from oil, natural gas and petrochemical facilities. 


 

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