Question Period Note: Oil and Gas Regulation

Oil and Gas Sector Regulations

• The Government of Canada is providing national leadership to combat climate change and reduce greenhouse gas emissions from the oil and gas sector.

• The Government of Canada has put in place regulations to cut methane emissions from the oil and gas sector by almost half.

• Canada’s carbon-pollution pricing system includes a regulatory trading system for large industry, which will drive down emissions from oil and gas facilities.

• The Government of Canada will ensure energy workers and communities can shape their own futures by introducing a just transition act, giving workers access to the training, support, and new opportunities they will require to succeed in the economy of tomorrow.

• The Government is finalizing new national regulations to reduce air pollution from the petroleum and petrochemical sectors—including refineries. The target date for publication of the final regulations is early 2020.

METHANE REGULATIONS

• Methane is a potent greenhouse gas responsible for about 25 percent of the human-caused global warming we feel today, and it packs more than 70 times the warming power of carbon dioxide over a 20-year period.

• Cutting methane emissions helps reduce the global economic costs associated with climate change. Taking action on methane emissions is one of the lowest-cost actions to reduce greenhouse gases.

• The Government of Canada published national methane regulations on April 26, 2018, delivering on its promise to fight climate change and grow the economy. Methane regulations are one of the complementary climate actions within the Pan Canadian Framework to meet our emissions reduction targets, grow the economy, and build resilience to a changing climate.

• The federal methane regulations provide a backstop to ensure that Canada’s objective of a 40 to 45 percent emission reduction from oil and gas will be achieved. Provinces and territories can put in place methane regulations that make sense given their circumstances, provided they can clearly demonstrate emission reductions equivalent to the federal measures.

• Reducing methane from the oil and gas industry is the lowest-cost greenhouse gas reduction opportunity in the energy sector. Environment and Climate Change Canada’s estimated net industry compliance cost averages about $17/tonne.

METHANE EQUIVALENCY

• Environment and Climate Change Canada is continuing to meet with provincial partners to discuss respective methane regulations. If provincial methane regulations can achieve equivalent methane emission outcomes to federal regulations, they can replace federal measures.

• While considering the provincial regulatory approach, the Government of Canada will:

o validate data reported to provinces;
o review and assess provincial procedures for emission quantification; and
o review and assess provincial requirements for measurement, monitoring, and reporting consistent with specific provincial regulatory approaches.

BENEFITS AND OPPORTUNITIES

• Canada’s new methane regulations will help drive clean growth in Canada’s oil and gas sector. They will ensure that our resources are developed more responsibly, while supporting clean competitiveness. The regulations are creating new clean technology jobs in the oil and gas industry. There are already more than 170 Canadian companies providing affordable and proven clean-technology services. Companies will hire more workers as these regulations are phased-in.

• Canada recognizes the challenging market environment for the oil and gas sector. The regulations include flexibilities to reduce costs and encourage innovation, while ensuring Canada meets its emissions reduction targets. Natural gas captured as a result of the new regulations is also expected to generate revenue for industry.

• Reducing methane emissions can be good for business: it can be as simple as preventing wasteful gas leaks, which means Canadian companies will have more natural gas to sell. Preventing the waste of natural gas (methane) is one of the cheapest ways of reducing greenhouse gas emissions in Canada.

• These regulations will also help protect Canadians’ health by improving air quality by reducing the harmful air pollution that contributes to smog.

Question Period notes as provided by the Department to the Minister’s Office