PATHWAYS TO NET ZERO
Sector
Oil and gas
Function
Fuel for transportation, power generation, space heating, industrial processes, and petrochemicals
GHG emissions
193 MtCO2eq (2018) Canada’s largest source of GHG emissions, 26% of national total
Options for decarbonization
Reduce production emissions from oil and gas sector to reach net zero; develop net-zero energy products derived from fossil sources; phase out fossil-based energy exploitation
Stage of transition
Emergence
Nature of the problem today
Entrenched political and financial interests, infrastructure lock-in, up-front capital costs, insufficient policy signals
Other systemic issues
Deep economic dependence on oil and gas industries, especially in producing regions; major problems with air and water pollution, contaminated sites; abandoned wells
Opportunities and concerns
Diversify economies of producing provinces away from traditional oil and gas production and associated boom/bust cycles; avoid stranding assets and further entrenching carbon lock in; leverage existing labour skills, industry resources, and infrastructure into new opportunities; develop, deploy, and export emission-reducing technologies
Priorities for action
Develop R&D and infrastructure for production of zero emission fuels (hydrogen or electricity) and geothermal energy, and material uses of bitumen. Dramatically improve energy efficiency and emission profile of existing oil and gas extraction. Scale back investment in the sector not geared to an ultra low emission future
Longer-term issues
Phase out traditional oil and gas extraction; reclamation liabilities; developing net zero carbon offset markets
Indicators of progress
Sector emissions, net-zero by 2050 business plans with 2030 targets
Assessement table: Oil and Gas
Oil and gas production (non-oilsands)
Methane emission reduction
Machinery equipment and vehicles
Oil sands production
Equipment and vehicles
Low carbon electricity for SAGD or other approaches
Alternative extraction approaches
Artificial intelligence & machine learning
Artificial intelligence & machine learning
Carbon capture and storage (CCS) across the industry
For energy production, bitumen upgrading, hydrogen production, refining, etc.
Negative emissions technologies
To offset residual emissions. Direct air capture, afforestation, agricultural practices, BEECs, etc.
Hydrogen production (as an alternative energy carrier)
Steam-methane reforming (NG feedstock) without CCS
Steam-methane reforming (NG feedstock) with CCS
In-situ gas wells
In-situ oil sands
Geothermal Electricity
Utility-scale power generation
Non-combustive uses for bitumen
Activated carbon, vanadium, carbon nanotubes, carbon fibre
Lithium
Direct extraction from oilfield wastewater
