Oil Frequently Asked Questions

Oil products, once hailed as 'safe' when they replaced coal and wood as the industrial world's major energy source, are recognized today as having environmental costs that must be weighted against their economic benefits.

The environmental sustainability of the oil and gas industry involves many complex issues. Each aspect of the petroleum industry – from exploration through to the final uses of its products – affects people, animals, plants, soil, air and water. Some impacts are confined to small areas, while others have global implications.

Impacts that can arise from industry activities include disturbances to land and ecosystems associated with oil extraction, and by construction and operation of associated facilities. Other examples can include spills, containment of tailings from oil sands mining, and emissions of various gases that have been identified as contributing to local air quality concerns as well as global climate change.

The environmental implications of industry are regulated by government. For example, oil and gas operations that release water or fluids into the environment must meet high standards established by federal and provincial authorities. The petroleum industry also works closely with government to protect the health and safety of workers and the public.

 

Flaring is the burning of waste gases during well testing and in petroleum production operations. Flaring may occur to dispose of unwanted or unusable volumes of gas, to depressure gas-processing equipment for maintenance, and to protect people and the environment during emergencies. Flaring is an important safety procedure, especially at facilities that handle sour gas.

 

The hydrogen sulphide (H₂S) in sour gas is toxic and heavier than air; if not flared, it could pose a hazard to workers and neighbours. Flaring converts the H₂S into less toxic sulphur dioxide (SO₂) which is dispersed in the plume of hot gases from the flare. Albertans who perceive flaring to be wasteful and a risk to human health and the environment have made complaints to the Energy Resources Conservation Board (ERCB).  The ERCB regulates flaring in the province, complaints have also involved smoke, noise and odour problems associated with flaring. 

Since 1999 the ERCB has directed industry to eliminate or reduce the volumes that are flared. The ERCB also asked industry to find alternative uses for gases that were previously flared, and to improve the design and operation of flares to increase their combustion efficiency, minimize the release of products and increase the proportion of gas recovered. 

Greenhouse gases or GHGs act like a greenhouse to trap the sun's heat near the earth's surface. Without this naturally occurring greenhouse effect, the earth's temperature would be a chilly minus-18 degrees Celsius. While many GHGs are naturally occurring, human activities are releasing more GHGs than the atmosphere can absorb. GHGs caused by human activities arise mainly from the use of fossil fuels and include carbon dioxide (CO₂), methane (CH₄) and nitrous oxide (Nox). 

Scientists believe that increased concentrations of GHGs are changing the earth's climate. Forecasts show that a continued warming of the earth's temperature – due to increased levels of GHGs – could trigger a wide range of changes in our climate, some of which include:

• increased frequency and severity of harsh weather events such as heat waves and floods
• changes in precipitation patterns that could stress animals, plants and agricultural crops
• sea level rise and inundation of coastal areas

Natural Resources Canada studies Canada's total GHG emissions.

 

Upstream oil and gas companies representing 95% of national production participate in Canada's Voluntary Challenge and Registry (VCR) program, which encourages energy efficiency and other measures to reduce GHG emissions. While initiatives implemented since the early-1990s have reduced the upstream industry's energy intensity – the amount of energy used per unit of production – by about one per cent per year, total GHG emissions have increased as production has risen.

GHGs emitted by oil and gas pipeline systems have increased since the early 1990s due to increases in the volumes shipped between upstream producers and downstream consumers. Through their national association, pipeline operators are participating in the VCR program and aiming to reduce emissions per unit of throughput, chiefly by improving the efficiency of their energy use.

In the downstream sector, changes in equipment and procedures have helped reduce the total amount of the most prevalent GHGs – including CO₂, which is released during the refining, storage and distribution of petroleum products.

More information about GHGs and climate change is available at Alberta Environment's website devoted to the topic.