Post on 31-Mar-2015
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CRITICAL SUCCESS FACTORS IN FLARING & VENTING REDUCTION:
THE ALBERTA/CANADA EXPERIENCEGeorge Eynon PGeoBoard Member
2Key Elements
CONTEXT• Alberta’s history of industry
regulation• Recent history of flaring &
ventingDATA
• Measurement, collection, and public availability
STAKEHOLDER INVOLVEMENT• Governments, Industry,
and NGOs
ECONOMIC TEST• Price/Cost Sensitivity
3GGFR: 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
4The Alberta Context
Provincial ownership of resources
Legislated oversight of industry
75-year experience in regulation
Arms’ length quasi-judicial tribunal
Technical expertise; 900 staff
5ERCB 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
6Beginnings…
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
7Separate Roles…
GOVERNMENTAlberta Dept of EnergyP&NG licenses & leasesRoyalties
REGULATOR ERCB at arms lengthDelegated regulation-making authorityData gathering & analysisReporting requirementsCompliance/enforcementCompliance infractions publically reported
8Data…
Alberta economy resource-basedoil & 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 dataIf it gets measured, it gets doneNo data, no analysis!Shows where to focus efforts
Public reportingpositive pressure on companies to do betterrecognition for those that do a good jobshows where to focus our efforts
9Definitional Problems…
Federal/Provincial terminologyneeds to be harmonized
Data/Reporting inconsistenciesNRCan/Environment Canadaworking with Provinces e.g., “fuel gas” definition and reporting requirements
10Verifiable Data…
11
12N2 in vented gas?
13Gas Flared in Testing?
14Other Sources
Mineable oil sandsDifficult to estimate vented volumesWhat emissions factor should be to estimate volumes of gas emitted per cubic tonne of oil sands?
UpgradersNot previously reported in annual reports.Flare and vent data reported to ESRD not ERCBMay change with a single regulator
15Economic Test…
Gas Conservation OrdersInitial methodologyset level of conservationfield/product specificbased on economic conservation
Stakeholder involvementCASA – industry, government, publicnow incl. municipalities, communities, NGOs, etc
Economic testERCB sets economic parameters Ability to audit and reviewCompliance/enforcement
16Directive 060…
Economic testBased on gas conservation economics only
If…NPV of sales revenues less than…NPV of conservation costsand >($50,000) then conservation required
17Challenges…
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
18Looking Ahead…
Canada’s GHG emissions policy to play a larger role
Harmonization of definitions across Canadian jurisdictions?
Revise economic test in 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?
19Thank you!
Questions?
Georg Eynon PGeoBoard Member – ERCBgeorge.eynon@erccb.ca www.ercb.ca