Canada’s oil sands projects sometimes are portrayed as looming environmental villains. Much of the mainstream media are missing the likelihood that oil sands producers could prove to be leaders in advancing carbon capture and sequestration (CCS) technology.
Oil companies are involved in carbon capture research as part of diverse efforts to curb greenhouse gas (GHG) emissions that can contribute to climate change.
Industry alliances aim to help finance and organize large-scale CCS pilots. Enbridge Inc. plans to lead a group of 19 oil companies and electric utilities in the Alberta Saline Aquifer Project, which will identify potential storage formations and later design sequestration sites (OGJ, Feb. 11, 2008, Newsletter).
Saskatchewan officials tell OGJ that a similar alliance is in the planning stages there.
Integrated CO2 Network (ICO2N) was formed in late 2007 to develop an Alberta carbon capture network and pipeline. Members include Canadian Natural Resources Ltd., ConocoPhillips, Husky Energy Inc., Imperial Oil Ltd., Nexen Inc., Shell Canada Ltd., Syncrude Canada Ltd., and Suncor Energy Inc.
Suncor’s goal
ICO2N founding member Suncor voluntarily reports its GHG emissions as part of a 10-year-old climate action plan, which Suncor calls key to “becoming a sustainable energy company.”
The Calgary firm’s 2007 Progress Report on Climate Change reports a 26% companywide reduction in GHG emission intensity (emissions per bbl of oil) from 1990 baseline levels. For Suncor’s oil sands operations alone, emission intensity has fallen 51% since 1990.
Richard L. George, Suncor president and chief executive officer, believes climate change requires determined and collective action. “The energy industry has a particular responsibility—and opportunity—to respond,” he said.
Suncor calculates that management of its GHG emissions prevented 53.1 million tonnes of CO2 from entering the atmosphere through yearend 2006 compared with the 1990 baseline.
Every quarter, Suncor’s senior management team reviews company GHG emissions statistics.
Suncor aggressively pursues technologies, including CCS, to transform its GHG emissions profile, George said. This includes improved energy efficiency and reduced reliance on natural gas.
“Technologies such as petroleum coke gasification could further reduce our reliance on natural gas,” said the company’s latest climate change report, which acknowledges “a new era of GHG regulation.
“In particular, we are encouraged by plans to establish funds that large emitters such as Suncor can contribute for development of transformative technologies,” the company said.
On Feb. 1, a joint federal-provincial government panel recommended that Canadian governments invest $2 billion (Can.), to be matched by industry funding, toward CCS research. The initial goal is to sequester 5 million tonnes/year of CO2 by 2015 (OGJ, Feb. 11, 2008, p. 21).
As part of OGJ’s health, safety, and environment coverage, this reporter will watch closely to see how industry might transfer lessons from Alberta’s oil sands to oil and gas fields worldwide.
GHG contributors
Oil sands promise a steady, reliable source of energy for decades that will supplement conventional oil and gas reserves.
Currently, the oil sands industry accounts for less than 3% of Canada’s total annual GHG emissions. Suncor’s operations accounted for 1.3% of Canada’s total GHG emissions during 2005, the company reported.
New technology is being tested that could reduce GHG emissions from oil sands extraction facilities.
Suncor believes the integration of electric power utilities and heat systems could lower GHG emissions compared with current technologies.
Geothermal energy is being considered as a low-emissions alternative to gas, currently used to provide heat and steam for oil sands extraction.
Water could be pumped several kilometers below ground where it absorbs heat from hot rock. Then, the water would be returned to the surface where the heat could be extracted and used to produce steam.
This OGJ writer looks forward to reporting oil sands producers’ progress toward safe, cost-effective, and long-term carbon mitigation, management, and storage. In short, this is what Suncor’s chief executive calls industry’s responsibility to sustainability.
“We know a significant portion of GHG emissions from each barrel of oil comes from its production. However, approximately four times more GHGs are emitted once it is used as a fuel,” George said. “That means there are clear opportunities to make substantial sustained GHG reductions both when oil is made and used.”
