Methane leaks remain the big unknown factor in greenhouse gas emissions from the oil and gas sector. Current data show that methane already accounts for 8 per cent of Canada’s emissions. But the latest science suggests these emissions are systematically undercounted, by as much as 60 per cent according to some estimates. And methane packs a big climate punch in the short term, with 28 times the warming impact of carbon dioxide over 100 years .
The good news is that there is already a bottom-line incentive for natural gas producers to reduce methane leaks: lost profits on the escaping natural gas often exceed the costs to prevent escape. The tricky part is that the economics are hard to peg – producers and regulators are still struggling to determine where leaks are and how much methane is escaping.
Regulating methane emissions will not only support the future competitiveness of the Canadian oil and gas sector but it will also provide real societal benefits and economic value. In fact, the federal government estimateswill result in $11.6-billion in reduced climate, health and environmental costs to society by 2035. Slightly more than $1-billion of revenue from the conserved gas partly offsets the $3.