Latest market news

Cop: Canada eyes 75pc cut in oil and gas methane

  • : Crude oil, Emissions, Natural gas
  • 23/12/04

Canada on Monday proposed regulations to slash methane from its oil and gas sector by 75pc in less than a decade.

The regulations would set new limits on venting and flaring of gas, along with new performance standards for leak detection and repair. The first requirements would take effect in 2027, with the regulations aiming for a 75pc reduction in methane emissions by 2030.

Environment minister Steven Guilbeault, who announced the proposal today during the Cop 28 climate talks in Dubai, framed the approach as one that will help the industry remain competitive as the world decarbonizes, citing commitments some major Canadian companies have already made to slash their emissions.

"They understand the need to become the cleanest producers in the world," he said.

The proposal would update previous regulations issued in 2018 and also remove most of the exemptions they contained. The previous regulations, which Guilbeault called "a great success story," required a 40-45pc reduction by 2025 relative to 2012.

"We are on track to beat our goal ahead of schedule," he said.

Methane is a highly potent greenhouse gas that routinely leaks from oilfield equipment such as pneumatic controllers, storage tanks, compressors and flares.

The announcement drew swift criticism from Alberta, the country's main oil and gas producer, which called the regulations illegal and lacking any scientific justification.

"Given the unconstitutional nature of this latest federal intrusion into our provincial jurisdiction, our government will use every tool at our disposal to ensure these absurd federal regulations are never implemented in our province," Alberta premier Danielle Smith and environment minister Rebecca Schulz said in a joint statement.

Alberta last week said it had met its own target of a 45pc reduction in methane emissions, relative to 2014, three years ahead of schedule.

The province has been locked in a long-running battle with Ottawa over energy and climate policy, which has included litigation and a recent declaration by Alberta that it would not enforce or cooperate with a national clean electricity standard proposed by the federal government.

Canada's announcement comes days after the US Environmental Protection Agency finalized new regulations to address methane leaks and gradually eliminate routine flaring from new wells and set the first-ever standards from existing oil and gas facilities.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more