Canada’s Oil Sands Emissions Intensity Falls for Sixth Year

By Robert Tuttle

Emissions at a facility in the Athabasca oil sands near Fort McMurray, Alberta. Photographer: Ben Nelms/Bloomberg

Canada’s oil sands industry reduced its emissions per barrel for the sixth straight year in 2023, even as one growing portion of the sector moved in the opposite direction, according to new Alberta government data released Thursday.

The emissions intensity of all oil sands sites fell to the equivalent of 0.399 metric tons of carbon dioxide per cubic meter of bitumen produced, down from 0.404 in 2022, the data show. The gain reflects improvements at oil sands mines, where bitumen is dug from the ground. However, in situ oil sands, which use wells similar to traditional oil producers, saw emissions per barrel rise.

Even with the efficiency improvement, total emissions rose to the equivalent 80.1 million metric tons of carbon dioxide, up from 78.8 million in 2022, the data show. That’s the highest in data back to 2011.

Source: Alberta government
Note: data is in metric tons of carbon dioxide equivalent per cubic meters of bitumen or synthetic crude

The oil sands’ declining energy intensity — to the lowest in data stretching back to 2011 — is welcome news for an industry that has struggled with a reputation for being climate unfriendly, prompting some investors to shun it altogether. However, the rising emissions intensity at well sites presents a challenge for the sector, as the method’s lower costs make it increasingly popular among producers.

While the average intensity of oil sands producers is higher than the average for the global oil industry overall, drillers ‘emissions profiles vary widely around the world, said Kevin Birn, chief analyst for Canadian oil markets for S&P Global.

The oil sands “fits well within the range of carbon intensity of oil and gas we see in the world,” Birn said in an interview.

All of the oil sands mines reduced their emissions intensity with Canadian Natural Resources Ltd.’s Horizon making the biggest gain for the year.

In situ production facilities, which include the more than 250,000 barrel-a-day Suncor Energy Inc. Firebag site and Cenovus Energy Inc.’s Christina Lake, inject steam into the ground to pump the viscous bitumen out of the earth. The emissions intensity of such facilities, the source of about 52% of the bitumen produced in the oil sands, rose to 0.426 in 2023 from 0.417 a year earlier.

In situ sites’ emissions intensity can increase for a range of reasons, including simply through the addition of new wells, because steam is injected into the ground long before bitumen is produced, Birn said.

The biggest emissions intensity increases for large producing sites came from Strathcona Resources Ltd.’s Tucker, where intensity has been rising each year since 2018, the data show. The biggest drop happened at Canadian Natural’s Wolf Lake and Primrose Plant.

Strathcona and Canadian Natural didn’t immediately respond to messages seeking comment.

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