Critical success factors in flaring venting reduction the alberta canada experience
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Critical Success Factors in Flaring & Venting Reduction: the Alberta/Canada Experience. George Eynon PGeo Board Member. Key Elements. CONTEXT Alberta’s history of industry regulation Recent history of flaring & venting DATA Measurement, collection, and public availability

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Critical Success Factors in Flaring & Venting Reduction: the Alberta/Canada Experience

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Critical success factors in flaring venting reduction the alberta canada experience

Critical Success Factors in Flaring & Venting Reduction: the Alberta/Canada Experience

George Eynon PGeoBoard Member


Key elements

Key Elements

  • CONTEXT

    • Alberta’s history of industry regulation

    • Recent history of flaring & venting

  • DATA

    • Measurement, collection, and public availability

  • STAKEHOLDER INVOLVEMENT

    • Governments, Industry, and NGOs

  • ECONOMIC TEST

    • Price/Cost Sensitivity


Ggfr the canadian context

GGFR: the Canadian Context

Canada first to submit a Country Implementation Plan

Required co-operationamong provinces

Canadian Flaring and Venting Regulators Forum [CFVRF]created

ERCB-led process


The alberta context

The Alberta Context

Provincial ownership of resources

Legislated oversight of industry

75-year experience in regulation

Arms’ length quasi-judicial tribunal

Technical expertise; 900 staff


Ercb mission

ERCB Mission

…to ensure that development of Alberta’s energy resources is orderly, efficient and effective

…and is conducted in a manner that is safe, fair, responsible, and in the public interest


Beginnings

Beginnings…

1930s massive flaring at Turner Valley oil fields nr Calgary

1938 Alberta created regulator Gas Conservation Board

1949 ERCB authorized to regulate removal of gas from Alberta

1950s NGTL created to gather gas in Alberta & TCPL created to move gas across North America

Gas required for pipelinesso conservation required


Separate roles

Separate Roles…

GOVERNMENT

Alberta Dept of Energy

P&NG licenses & leases

Royalties

REGULATOR

ERCB at arms length

Delegated regulation-making authority

Data gathering & analysis

Reporting requirements

Compliance/enforcement

Compliance infractions publically reported


Critical success factors in flaring venting reduction the alberta

Data…

Alberta economy resource-based

oil & gas development facilitated by public availability of data/information to industry, government, and NGOs

ERCB role and reputation

based on collection and analysisof information and data

If it gets measured, it gets doneNo data, no analysis!

Shows where to focus efforts

Public reporting

positive pressure on companies to do better

recognition for those that do a good job

shows where to focus our efforts


Definitional problems

Definitional Problems…

Federal/Provincial terminologyneeds to be harmonized

Data/Reporting inconsistencies

NRCan/Environment Canadaworking with Provinces e.g., “fuel gas” definition and reporting requirements


Verifiable data

Verifiable Data…


N2 in vented gas

N2 in vented gas?


Gas flared in testing

Gas Flared in Testing?


Other sources

Other Sources

Mineable oil sands

Difficult to estimate vented volumes

What emissions factor should be to estimate volumes of gas emitted per cubic tonne of oil sands?

Upgraders

Not previously reported in annual reports.

Flare and vent data reported to ESRD not ERCB

May change with a single regulator


Economic test

Economic Test…

Gas Conservation Orders

Initial methodology

set level of conservation

field/product specific

based on economic conservation

Stakeholder involvement

CASA – industry, government, public

now incl. municipalities, communities, NGOs, etc

Economic test

ERCB sets economic parameters

Ability to audit and review

Compliance/enforcement


Directive 060

Directive 060…

Economic test

Based on gas conservation economics only

If…

NPV of sales revenues less than…

NPV of conservation costs

and >($50,000)

then conservation required


Challenges

Challenges…

Low gas prices affect economics…

result in less conservation

Companies only required to consider the gas;gas/oil ratio needs to be used?

The NPV threshold needs revision?

Using gas as fuelat wells and batteriesalso needs to be encouraged


Looking ahead

Looking Ahead…

Canada’s GHG emissions policy

to play a larger role

Harmonization of definitionsacross Canadian jurisdictions?

Revise economic testin Alberta if gas prices remain low?Impacts of URRF?Alberta Unconventional Resources Regulatory Frameworkbased on play trends/project areas

Impact of “single regulator”and Land Use Frameworklegislation in Alberta?

Gas conservation orders again?


Thank you questions

Georg EynonPGeoBoard Member – ERCB

[email protected]

www.ercb.ca

Thank you!Questions?


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