Page 4 - NorthAmOil Week 40 2022

NorthAmOil COMMENTARY NorthAmOil

Ottawa issues draft guidelines for

oil and gas emissions performance

The Canadian government has published draft guidance for how oil and gas

projects can demonstrate “best-in-class” performance on GHG emissions

CANADA THE Canadian government has published draft “For the purposes of this guide, best-in-
guidance on how new oil and gas projects should class is the lowest level of GHG emissions
WHAT: demonstrate “best-in-class” performance on intensity of oil and gas projects globally
Ottawa has published greenhouse gas (GHG) emissions. The guidance that are conducting the same activity as the
draft guidance on follows an announcement made in April, and is proposed project: exploration, offshore pro-
emissions performance aimed at clarifying what is expected of oil and gas duction, onshore production, pipelines, oil
for new oil and gas projects undergoing federal regulatory review. refineries and heavy oil upgraders, natural gas
projects. Greater clarity on what Ottawa means by processing and liquefied natural gas (LNG)
best-in-class will be welcomed, but at the same projects,” the Canadian government said in
WHY: time, there is likely to be industry pushback its new guidance.
The guidance is aimed against increasingly stringent requirements for Canadian operators proposing new projects
at clarifying what is new oil and gas projects. would be required to identify the best-in-class
expected of projects This comes as Canada aims to achieve net- emissions performance of an equivalent project
undergoing federal zero GHG emissions by 2050, with an interim carrying out the same operations globally. They
regulatory review. goal of cutting emissions 40-45% compared would then have to demonstrate how their own
with 2005 levels by 2030. Decarbonising the project would match this best-in-class perfor-
WHAT NEXT: country’s oil and gas industry is considered to mance on emissions, or explain what factors
It comes as Canada’s oil be a major component of the push for net zero, would prevent it from doing so.
and gas industry comes given that it is Canada’s most emissions-in- “This is not saying net zero is a standard
under mounting scrutiny tensive industry, contributing around 27% of requirement, but when project approvals are
over its environmental total emissions in 2020. However, the industry being made what we want to see is a plan to get
credentials and goals. also accounts for around 5% of Canadian GDP there, or what circumstances may not make it
and its importance to the economy means that possible,” an Environment Canada spokesper-
Ottawa has a tough balancing act as it figures out son, Oliver Anderson, was quoted by Reuters as
a path forward. saying.
The guidance does not specify what tech-
Draft guidance nologies or practices should be used to achieve
The draft guidance builds on the federal gov- best-in-class emissions, nor does it prescribe
ernment’s announcement in April that all new emissions or emissions intensity thresholds or
oil and gas projects that are subject to a federal targets.
impact assessment under the Impact Assessment A comment period on the draft guidance is
Act (IAA) should have best-in-class GHG emis- now open until December 3, with the final guid-
sions performance throughout their lifetime. ance due to be published in early 2023.

P4 www. NEWSBASE .com Week 40 06•October•2022