Reporting Methodology
Strengthening our greenhouse gas (GHG) emissions reporting is the first phase in a multi-year project to develop an integrated environmental information management system (EIMS). The system went into operation in 2008 and is undergoing quality control checks to ensure historical data matches current data. This program will enable us to roll up and report emissions from all of our facilities against targets and performance measures agreed to by each business unit.
Data used to determine GHG emissions on this website is collected from auditable sources and can be verified against data reported to external regulatory authorities or received from third-party sources (e.g. utility companies). Data from our operated platforms in the Netherlands is certified by a government-approved, third-party auditor. As well, all large facilities located in Alberta that are obligated to comply with a 12% improvement target as set by the provincial government are verified by an external third party. Petro-Canada has four large facilities in Alberta that have been complying with this 12% improvement target since its inception in early 2007. All other large facilities that Petro-Canada operates report their emissions through the appropriate regulatory body; in Canada, GHG emissions are reported through Statistics Canada to Environment Canada and Alberta Environment for the seven facilities that emit greater than the 100 kilotonne CO2e limit; internationally, two facilities in the Dutch North Sea report and participate in the European Union Emissions Trading Scheme (EUETS).
In accordance with current Canadian and Albertan regulations as well as other jurisdictional requirements, and as per Scope 1 of the World Resources Institute (WRI) GHG Protocol, Petro-Canada reports 100% of the GHG emissions from the facilities it operates, owns outright or controls. For information on emissions from facilities in Canada where Petro-Canada holds a working interest but does not operate, visit the Environment Canada website, or the reports for the companies that operate those facilities.
Petro-Canada follows industry-accepted standard methodologies for GHG emissions calculations. Our Canadian upstream emissions are calculated based on the guidelines in the Canadian Association of Petroleum Producers Publication #2000-0004. Emissions from the Downstream business are calculated in accordance with Canadian Industrial Energy End-Use Data and Analysis Centre standards and industry-accepted norms. For our international operations, our emissions quantification and reporting procedure is based on industry standards (the United Kingdom Offshore Operators Association) and complies with requirements as identified by Dutch authorities for our Netherlands operations.
Our Greenhouse Gas Emissions
The emissions shown below represent the total greenhouse gas emissions from Petro-Canada operated facilities, regardless of whether they fall below the minimum threshold for regulatory reporting purposes. They do not include the emissions from facilities which are operated by other parties. They do include all indirect emissions from purchased power.
Production carbon intensity (PCI) is an indicator of greenhouse gas emissions intensity. It is a ratio of the amount of greenhouse gases emitted per unit of production, so a lower index indicates better energy performance. For the oil and gas industry, the standard unit of production is a cubic metre of oil equivalent, or 1,000 cubic metres of natural gas (e3m3). The PCI data shown on this page includes indirect emissions, such as those produced by a third party during energy production (typically electricity) on our behalf. By including indirect emissions, PCI values are comparable across years and more accurately reflect the overall intensity. This means that the carbon intensity reflected in this report will not match the submissions made to the Alberta government for the 2008 Specified Gas Emitters reporting, as those intensities were intended to exclude indirect emissions.
This illustrates a challenge we face in terms of reporting our performance efficiently and accurately. With Petro-Canada operating in many jurisdictions, we are required to report in multiple methodologies. Having a standardized reporting structure would increase the transparency and accuracy of the information as well as increase internal efficiencies both for Petro-Canada as well as outside regulatory bodies.
Petro-Canada’s aggregate upstream PCI is calculated using a weighted average for all of our operated upstream assets in the North American Natural Gas, Oil Sands and International and Offshore business units.
Total GHG Emissions
 |
 |
 |
| |
| Kilotonnes of Carbon Dioxide Equivalent (CO2e) |
2008 |
2007 |
2006 |
2005 |
2004 |
|
Downstream |
3,297 |
4,089 |
4,183 |
3,742 |
4,143 |
|
North American Natural Gas |
1,455 |
1,563 |
1,761 |
1,956 |
1,848 |
|
Oil Sands |
612 |
521 |
534 |
509 |
417 |
|
International & Offshore |
66 |
102 |
70 |
57 |
82 |
|
International & Offshore — East Coast Canada |
618 |
752 |
374 |
721 |
882 |
|
Total |
6,048 |
7,027 |
6,922 |
6,985 |
7,372 | |
|
 |
 |
 |
Our total emissions from all operations decreased by approximately 12% in 2008 over 2007, from 7,028 kilotonnes in 2007 to 6,048 kilotonnes in 2008. This decrease was primarily due to a corresponding decrease in production from facilities in North America Natural Gas, three offshore facilities, as well as our Downstream facilities. In contrast, the MacKay River plant increased production by approximately 23%, with a corresponding 17% increase in GHG emissions.
Upstream PCI was 0.15 in 2008, virtually unchanged from 2007. Downstream PCI was 0.22, compared to 0.23 in 2007, also virtually unchanged. Overall increases or decreases in production were managed with corresponding increases or decreases in energy requirements, and therefore GHG emissions.
Behind the Numbers
North American Natural Gas
In the North American Natural Gas business, which includes our conventional natural gas production, overall emissions were lower in 2008 at 1,455 kilotonnes, compared to 1,563 kilotonnes in 2007.
While the overall reductions in emissions are mainly attributable to natural production declines in natural gas operations, we also undertook a number of energy efficiency initiatives to reduce energy consumption and greenhouse gas emissions. North American Natural Gas Western Canada operations estimates that approximately 40,000 tonnes of CO2e were saved due to these initiatives. Examples of these energy efficiency initiatives include the capture of vent gas for fuel use, equipping engines with Air Fuel Ratio control technology, evaluation of the optimal use and configuration of lineheaters, and the installation of Green Machines (solar-powered instrumentation).
These initiatives are promoted through an internal quarterly Energy Efficiency Newsletter. This newsletter not only celebrates individual facility successes, it also serves as an educational and best practice sharing forum for various emissions reduction initiatives. Additionally, in 2008, North American Natural Gas initiated a formal Direct Inspection and Maintenance (DI&M) Program for detecting and repairing fugitive equipment leaks at our facilities. Looking ahead, this program should positively impact our 2009 emissions.
International and Offshore
Netherlands
In 2008, both the F2-A-Hanze and P11-B-De Ruyter platforms emitted less carbon dioxide than their permitted allocations, resulting in a small surplus of emissions credits. Petro-Canada is active in the EU Emissions Trading Scheme.
Overall GHG emissions from our Netherlands operations were significantly lower in 2008 than in 2007 at 66 kilotonnes, compared to 102 kilotonnes in 2007. This was anticipated, given the improvement in reliable operations due to stabilization of production at the De Ruyter platform, after almost two years of start-up.
East Coast Canada (Terra Nova)
As indicated last year, the Terra Nova Floating, Production, Storage and Offloading (FPSO) vessel outperformed in 2008 compared to 2007, resulting in the lowest annual PCI ever achieved for the facility. Overall, emissions were 20% lower in 2008 than in 2007, at 618 kilotonnes versus 752.
The reduction in emissions is largely due to decreased flaring activities, which were achieved as a result of the following flare management and reduction activities:
- the implementation of a Life-of-Field Flaring Strategy
- an increased focus on improving the reliability of the gas injection system
- a strong leadership focus on flaring performance, including the development of internal key performance indicators (KPIs)
The flare management practices developed for the Terra Nova FPSO will be shared internally as part of Petro-Canada’s Community of Practice for Environmental Advisors.
Downstream
Downstream GHG emissions were down slightly at 3,297 kilotonnes in 2008, compared to 4,089 kilotonnes in 2007. The PCI for 2008 was 0.22, relatively flat from 2007.
Improvements in our Montreal refinery's PCI were mainly due to shutdowns of two of the units that require a significant amount of energy relative to the increase in production volume provided. These two units upgrade products versus increase production barrels and therefore saw a significant reduction in emissions with a less significant increase in production barrels.
The PCI at the Edmonton refinery was higher than last year's due to Edmonton Refinery Conversion Project start-up issues and an unplanned shutdown in July 2008. Mississauga's PCI was better than 2007, due to improved energy efficiency by maintaining higher throughputs. In addition, dedicating maintenance personnel to fix steam leaks improved energy use year over year as well.
Oil Sands
The MacKay River in situ plant is a steam-assisted gravity drainage operation. Emissions increased to 612 kilotonnes in 2008, compared to 521 kilotonnes in 2007, primarily a result of increased bitumen production. The overall PCI improved to 0.374, compared to 0.392 (tonnes CO2e/m3 Oil equivalent production) in 2007, primarily due to improvement in operational reliability and the implementation and ongoing stewardship of flare control systems, which significantly reduced the flaring at Mackay River.
Improved reliability of the vapour recovery compressor also contributed to the overall GHG reduction.