1. Canadian Oil & Gas Methane Reductions: Low Cost, High Impact
Drew Nelson
Environmental Defense Fund
May 18, 2017

2. Climate Implications of Methane
About 25% of the manmade warming we are experiencing today is caused by methane.
Oil and gas is largest industrial source of methane globally.
Methane traps 84X more heat over 20 years
CH4
CO2

3. International Action Increasing
Countries
11/15 IEA: “The potential for natural gas to play a credible role in the transition to a decarbonised energy system fundamentally depends on minimising these [methane] emissions.”
Companies
6/16: US/Canada/Mexico 40-45% Reduction Goal by 2025.
10 companies, in UN Oil and Gas Methane Partnership (OGMP), to reduce their emissions.
11/16: Ministers from 21 countries identified oil and gas methane as “next big climate opportunity” and to develop reduction plans.
OGCI committed $1 Billion to, among other things:
Reduce methane emissions from their operations/incentive innovation.
Investors
Collaborate with EDF on a global study of oil and gas methane
10/16: Investors with $3.6T AUM support global action on methane
5/17: New collaborative effort: 29 oil and gas companies, 30 investors from 11 countries representing $3 trillion AUM

4. U.S. States and Federal Leading
Venting far less common in US than in Canada.
Quarterly LDAR required in some capacity in:
BLM
California
Colorado
EPA
Ohio
Pennsylvania
Utah
Wyoming
Federal and state regs in place/underway
Regs in place from EPA, BLM
Examples of states w/additional regs (e.g. venting)

5. Production Rose After Regs

6. Canadian Methane Reductions: Very cost effective
Canadian gas wasted=Gas consumption of Edmonton & Calgary.
45% reduction in Canada for less than one cent on the price of natural gas.
90% of emissions in the next five years will come from sources operating today.
45% reduction in addition to projected voluntary actions by 2020.
Methane reductions would result in cleaner air and fewer Hazardous Air Pollutants.
3x LDAR yields about 40% more gas saved compared to an annual LDAR survey.
All this for C$2.57 per CO2 metric tonne. 

7. A Cleaner Canadian Oil and Gas Sector With Existing Technology
Zero-bleed
Pneumatics
Solar Chemical Injection
Pumps
Leak
Detection
and Repair
Vapor Recovery
Units
Replacing
Wet Seals with Dry

8. Conclusions Alberta: Worse than Texas?
Methane significant driver of warming. Oil and gas largest industrial source of methane.
International momentum building, not just for environmental reasons.
US offers a model and shows production increased after regs.
Canadian methane reductions extremely cost-effective.
Frequent LDAR is key.
Canadian innovation can be used in markets across the globe.
Alberta: Worse than Texas?