Page 9 - NorthAmOil Week 16 2021

NorthAmOil POLICY NorthAmOil

Canada, US raise emissions

reduction goals for 2030

NORTH AMERICA CANADA and the US have both set new, more Environment and Climate Change Canada. But
aggressive targets for reducing their greenhouse Trudeau said all countries must rise to the chal-
gas (GHG) emissions. At a virtual climate sum- lenge presented by the climate crisis.
mit held by US President Joe Biden this week, “Only bold climate policies lead to bold
Canadian Prime Minister Justin Trudeau said results,” he said. “We will continually strengthen
that his country would seek to reduce its emis- our plan and take even more action.”
sions by 40-45% compared with 2005 levels by The government has yet to unveil details of
US President Joe Biden 2030. how its new target will be achieved.
and Canadian Prime Canada had previously been targeting a cut Also at the climate summit, Biden announced
Minister Justin Trudeau of 30% by 2030 compared with 2005 levels. This his own new emissions reduction target for the
translated into lowering GHG emissions from US. The ambitious goal involves slashing the
732 megatonnes to 513 megatonnes. However, country’s GHG emissions by 50-52% by 2030
Trudeau said at the summit that Canada was compared with 2005 levels.
now “on track to blow past our old target”. The The commitment represents a more than
new commitment translates into the country doubling of the US’ prior target under the 2015
bringing its emissions down to at least 439 meg- Paris climate agreement, when former US Pres-
atonnes by 2030. ident Barack Obama pledged to cut emissions
Trudeau conceded, however, that meeting 26-28% below 2005 levels by 2025. The US is
this target would be challenging for Canada as a currently not even halfway to meeting that goal,
major energy producer. Indeed, the country has with former President Donald Trump – Obama’s
consistently failed to meet previous targets for successor – having taken the country out of the
cutting its emissions and they even rose slightly Paris agreement, only for the US to be subse-
in 2019, according to a recent report from quently returned to it by Biden this year.™

PROJECTS & COMPANIES

BP aims to eliminate onshore

US flaring by 2025

BP has unveiled a new target to phase out rou- flaring forms part of a broader emissions-reduc-
tine flaring of associated natural gas across its tion push by BP. The super-major has embraced
onshore US operations – primarily in the prolific the energy transition as a major component of
Permian Basin – by 2025. its long-term strategy and is pursuing net-zero
According to the Wall Street Journal, BP is greenhouse gas (GHG) emissions by 2050. It
planning to spend around $1.3bn on building intends to continue producing oil and gas, but
pipelines and other infrastructure to collect and has said it will only focus on more profitable and
capture its associated Permian gas volumes. “responsibly produced” volumes in the future.
The super-major bolstered its US onshore In the April 18 announcement, BP touted
operations with the acquisition of assets in Texas its new Grand Slam facility near Orla, Texas,
and Louisiana – across the Permian, Eagle Ford as marking a “significant step” in its efforts to
and Haynesville regions – from BHP in 2018. The reduce emissions and enhance production while
$10.5bn deal increased the proven crude reserves improving reliability of its Permian assets. Grand
held by BP’s onshore US unit, BPX Energy, tenfold. Slam is an electrified central oil, gas and water
Since that acquisition closed, BP has been handling facility that reduces operational emis-
working to reduce flaring at the assets, especially sions, in part by replacing gas-driven equipment,
in the Permian, where drilling for oil typically compressors and generators, according to the
yields large volumes of associated gas. The com- announcement. The facility is highly automated.
pany said in an April 18 announcement that its Grand Slam is the largest infrastructure pro-
Permian flaring rates had declined from around ject to date for BP’s US onshore business, the
16% in the fourth quarter of 2019 to less than 2% company said. It anticipates that over 75% of its
currently – with the figure continuing to drop. Permian operated wells will be electrified by the
The latest target for eliminating routine end of 2021, and over 95% by 2023.™

Week 16 22•April•2021 www. NEWSBASE .com P9