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News Release
FOR IMMEDIATE RELEASE
EUB REPORT: SOLUTION GAS FLARING DOWN 71.5% SINCE 1996, VENTING DOWN 56.4% SINCE 2000
Reductions keep eight million tonnes of greenhouse gas emissions from being released into atmosphere
Calgary, Alberta (July 18, 2007) According to a new report released by the Alberta Energy and Utilities Board (EUB), solution gas flaring in Alberta has been reduced by 71.5 per cent since 1996, and solution gas venting has been reduced by 56.4 per cent since 2000.
Those reductions have kept approximately eight million tonnes of greenhouse gas emissions (CO 2 equivalent) from being released into the atmosphere since 1996. According to Climate Change Central, that is the equivalent of taking about 1.7 million cars off of Alberta's roads for one year.
The EUB's ST60B-2007: Upstream Petroleum Industry Flaring and Venting Report also indicates that in 2006, the upstream oil and gas industry conserved 96.03 per cent of all solution gas produced in Alberta last year for use or sale, rather than flaring and venting it. This continues Alberta's record as one of the global leaders in conservation and reduced flaring. In total, 96.3 per cent of all solution gas was conserved in 2005.
Of the 17,245 million cubic metres of solution gas produced in 2006, 689 million cubic metres were flared and vented compared to 667 units in 2005.
2006 was a year featuring unprecedented levels of oilpatch activity. There were an additional 299 crude bitumen batteries reporting production in 2006 (a 28.5 per cent increase over 2005). In some areas of Alberta where there is increased crude bitumen production, additional gas conservation infrastructure is required.
According to the World Bank, global flaring of solution gas adds about 350 million tons of CO 2 in annual emissions worldwide. The World Bank's Global Gas Flaring Reduction Partnership supports governments and companies in their efforts to reduce the flaring and venting of gas associated with the extraction of crude oil. In May, the success of the EUB's flaring and venting reduction efforts was featured in a BBC-produced documentary entitled 'Billion Dollar Bonfire'. The documentary detailed the World Bank's efforts to reduce solution gas flaring and venting from the petroleum industry throughout the world.
Alberta's success in reducing flaring and venting can be attributed to the cooperative efforts of the Clean Air Strategic Alliance (CASA) Flaring/Venting Project Team, environmentalists, the petroleum industry, the EUB, Alberta Energy, Alberta Environment and other government agencies.
As a result of the continuing work of CASA, the EUB has made revisions to Directive 060 - Upstream Petroleum Industry Flaring, Incinerating and Venting designed to ensure that solution gas flaring and venting continues to be reduced in 2007. The new regulations, which came into effect on January 31, 2007, require oil and gas companies to allocate revenues from oil production (not just gas production) to make solution gas conservation viable by up to $50,000 per facility. Companies are also required to conduct yearly evaluations of the potential for conserving solution gas at each facility, including evaluating gas prices, service costs, and access to conservation facilities like pipelines and gas plants.
Flaring is the burning of natural gas that cannot be conserved. Venting is the release of natural gas into the atmosphere. Solution gas is natural gas produced in association with crude oil and bitumen production.
The EUB ensures that the discovery, development, and delivery of Alberta's energy resources and utility services take place in a manner that is fair, responsible, and in the public interest.
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This news release is available on the EUB Web site at www.ercb.ca
For more information, please contact:
Davis Sheremata, EUB Communications
Phone: 403-297-2252, Email: davis.sheremata@eub.ca
NR 2007-27
