Fossil fuels are burned for electricity generation, industrial uses, transportation, as well as for the heat in our homes and commercial buildings.Other industries that emit GHGs in Canada include transportation, electricity, cement, chemicals, manufacturing, buildings, agriculture and waste management.
GHGs from human activities are a significant contributor to climate change. To read about human impacts to the climate, please refer to the United Nations Framework Convention on Climate Change (UNFCCC).
Reducing GHG emissions is an important global issue. Specifically for the oil and gas industry, our challenge is to reduce GHG emissions while the demand for energy – and the amount of energy the world is consuming – is growing. Global demand for energy is expected to increase 32 per cent by 2040, according to the International Energy Agency.
The chart below shows that while Canadians make up only 0.5 per cent of the global population, Canada's share of global greenhouse gas emissions is approximately two per cent. Of that percentage, the largest portion comes from the transportation sector.
In 2010, Canada signed onto the Copenhagen Accord and committed to reduce its GHG emissions to 17 per cent below 2005 levels by 2020. On December 14, 2014, along with 194 other countries, Canada committed to the "Lima Call for Climate Action," which is now referred to as the "Lima Accord." This commitment has set the stage for governments to deliver a new universal climate change agreement in Paris, at the end of 2015.
Read about the government of Canada's Action on Climate Change.
Life cycle GHG emissions from crude oil
Life cycle analysis, sometimes called wells-to-wheels, estimates the amount of GHG emissions associated with the entire life of a product. For petroleum fuels, this includes crude oil production, transport, refining, refined product transport and ultimately combusting the fuel in a vehicle. When GHG emissions are viewed on a well-to-wheels basis, emissions released during the combustion of fuel (such as gasoline or diesel) make up 70 to 80 per cent of total emissions. (CERA Report, May 2014)
Oil sands and GHG
- Overall, oil sands crude is around six per cent more GHG intensive than the U.S. crude supply average on a wells-to-wheels basis (CERA 2010).
- The oil sands industry currently accounts for approximately 8.5 per cent of Canada's total GHG emissions and about 0.12 per cent of global GHG emissions. (Environment Canada 2015)
- Total oil sands GHG emissions in 2013 were 62 megatonnes. (Environment Canada 2015)
Natural gas and GHG
- Natural gas is the cleanest-burning hydrocarbon with a wide variety of uses in our homes, businesses, industry and communities.
- In 2013 Canada generated approximately 6,950 MW of electricity from coal-fired plants. For every 1,000 MW of coal-fired power generation converted to natural gas power generation, annual CO2 equivalent emissions are reduced by 4.4 million tonnes or just over one half of one per cent of Canada's total. (CAPP)
Members in action
CAPP member companies are actively working to reduce GHG emissions through project design, operational excellence, innovation and technology.
One way our members are reducing emissions through operational excellence is by the use of Waste Heat Recovery Units (WHRU). An example is Talisman's Bigstone Plant Waste Heat Recovery Unit, which was designed to transfer waste heat produced by gas turbine compressors and use it to heat liquids required to process gas. By transferring and re-using the waste heat, Talisman is able to reduce its fuel gas consumption thereby reducing GHG emissions.