Climate Change

Greenhouse Gases

In 2007, Syncrude emitted 15.01 million tonnes of carbon dioxide (CO₂). The oil sands industry in total accounts for about five percent of Canada's emissions and 0.1 percent of global emissions. Canada's emissions of greenhouse gases comprise about two percent of the global total.

Specified Gas Emitters Regulation

In 2007, through the Specified Gas Emitters Regulation, Alberta became the first province in Canada to regulate greenhouse gases by establishing intensity targets for Large Final Emitters of carbon. the regulation requires Syncrude to, beginning in the second half of 2007, reduce its per barrel emissions of greenhouses gases by 12 percent from the average of its annual per barrel emissions between 2003 and 2005. If Syncrude is unable to meet this target directly, it must purchase offset credits or pay into a government fund dedicated to the development of emissions reduction technology.

Syncrude met 90 percent of its reduction target under the new regulation and offset the remainder through the payment of about $867,000 to the Alberta government's technology fund. Syncrude's emissions calculation method and its data were externally verified.

Syncrude Chair Endorses Climate Change Action

In October, the Chairman of Syncrude's Board of Directors attached his signature to a statement from the Canadian Council of Chief Executives calling for aggressive action to tackle climate change, drive energy innovation and strengthen economic performance. Marcel Coutu is a member of the Council's Task Force on Environmental Leadership, whose statement says that the goal of Canadian public policy must be to cut emissions of carbon dioxide and other greenhouse gases while strengthening Canada's competitive advantage and economic performance. It also says the ultimate goal must be to achieve a substantial absolute reduction in emissions of greenhouse gases in Canada and globally.

Carbon Sequestration

Syncrude is a member of the Integrated CO₂ Network (ICON), which was formed to explore the viability of a large-scale Canadian carbon dioxide capture, transportation, and storage network. A successful system is believed by many to be a key technology for reducing carbon dioxide emissions. In December 2007, ICON released a report, Carbon Capture and Storage: a Canadian Environmental Superpower Opportunity, which detailed what is needed to implement the system in Canada.

The report targets large sources of industrial emissions in Alberta, including coal-fired electrical generation and energy production. A portion of the captured CO₂ would be used for enhanced oil recovery in the conventional crude oil industry, and the balance would be sequestered in geological formations. Costs are, as yet, uncertain, but a substantial investment (in the billions of dollars) and supportive public policy would be required. Industry is prepared to contribute to significant up-front costs and also believes there is an important role for government.

Canadians want reductions in greenhouse gas emissions from all sectors of the economy, including the oil sands.

The oil sands account for five percent of Canada's total greenhouse gas emissions. To help manage the global challenge, Syncrude is working with others to develop carbon capture technology.