Federal government’s methane emission reduction plan raises industry concerns
CALGARY — Tougher methane emission regulations unveiled Thursday are expected to create oil and gas services jobs, but have raised concern that the costs of implementation could further weaken an industry hit hard by two years of commodity price uncertainty.
The new restrictions to be phased in between 2020 and 2023 will require energy companies to regularly check equipment for leaks, make repairs, use cleaner technologies, monitor emission levels and report results to Ottawa.
The federal government estimates the regulations would cost industry $3.3 billion from 2018 to 2035, but says the costs of avoiding action on climate change would be more than four times that.
Mark Salkeld, CEO of the Petroleum Services Association of Canada, said the initiative would likely create jobs for his members, but noted the cost is too high when added to provincial and federal carbon price proposals.