Innovation, not just resources, can help drive Alberta economy
Methane management technology an opportunity, writes
Alberta’s abundant oil and gas reserves have driven its economy for decades and made the province — and Canada — global energy leaders. The Alberta oil and gas industry has remained strong through market cycles, largely because of its resilience and ability to innovate throughout the production chain.
Now that methane emissions are recognized as an environmental challenge and business opportunity for energy companies, it is this spirit of innovation that can keep Alberta moving toward a cleaner, prosperous energy future.
Last year, the Canadian government committed to reduce methane emissions from the oil and gas sector by 40-45 per cent by 2025, and the province of Alberta made a similar commitment. Action here in Canada and in countries around the world is signalling to energy companies that responsible oil and gas production must include methane controls.
Methane is the primary ingredient of natural gas. When it’s burned, it’s a lower-carbon alternative to coal. But when it escapes unburned into the atmosphere, as it does throughout the oil and gas supply chain, it is a powerful pollutant that accelerates climate change.
Leaked methane is also a wasted product. Fortunately, a host of Canadian-based technology service providers offer low-cost methane capture solutions to help operators improve their efficiency by recovering this lost gas while reducing the environmental impact of their operations. Expansion of this methane management sector is a significant opportunity for the industry and our province.
Comprised mostly of small businesses, Canada’s methane management sector is steadily growing and helping energy companies keep more of their gas in the pipeline. According to a recent market survey, there are nearly 180 companies in Canada that offer methane monitoring, measurement and reduction technologies and services. Eighty per cent of these companies expect to add jobs in the next 18 months, and many expect to double the size of their staff.
Alberta is home to more than three-quarters of these companies and stands to benefit the most from the new efficiency requirements for the oil and gas sector.
But the opportunity goes far beyond local job growth, improved operational efficiencies and cleaner air, and it is much broader than Canada’s energy industry.
Several U.S. states are already successfully regulating oil and gas methane emissions. Mexico and a number of countries in Europe are also taking action.
This trend follows on the heels of heightened attention from the financial community demanding that the energy companies they invest in take methane emissions into account. Meanwhile, leading oil and gas operators are demonstrating the business value of reducing methane by working with the service companies right here in Canada that have the emission detection and reduction technologies they’re looking for.
The Canadian oil and gas sector is surrounded by organizations and entrepreneurs accustomed to high performance and meeting stakeholder demands.
Strong methane regulations provide the newest opportunity for industry and the emerging technology sector to demonstrate their agility and adaptability to meet the demands of a changing world.
Working together, industry, government and the technology sector can strengthen Alberta’s economy and energy leadership, create new jobs and expand its capacity to serve the clean, efficient development of our natural resources. The opportunity is right in front of us. Let’s embrace it.
According to a recent market survey, there are nearly 180 companies in Canada that offer methane monitoring, measurement and reduction technologies and services.