New methane emissions reduction requirements to drive job creation: survey

Image: JWN

Businesses providing methane management solutions to the oil and gas industry are anticipating an uptick in business with the arrival of Canadian federal and Alberta methane rules, though some uncertainty has seeped into the timeline for reductions.

Last year, the federal government agreed with the U.S. and Mexico to reduce methane emissions over the next decade, but U.S. President Donald Trump has signalled the U.S. won’t abide by the pledge and last week Canada announced it will delay its implementation. It had pledged to reduce methane emissions by 40 to 45 per cent by 2025. Alberta has targeted a similar reduction.

An analysis by the Methane Emissions Leadership Alliance (MELA), an industry association of Canadian methane management technology and service providers established last year, found almost 180 companies in Canada provide methane management products and services.

Of those companies that responded to its survey, 80 per cent expect job growth in the next 12-18 months due to methane regulations and 40 per cent anticipate their headcount to grow by more than 100 per cent.

"Helping oil and gas companies improve operational efficiencies by controlling methane emissions is what our member companies do. This industry is clearly readying itself to expand capacity and headcount to provide its customers viable and affordable solutions to meet new federal and provincial regulatory requirements," Jackson Hegland, executive director of MELA, said in a statement.

To meet new government regulations, producers will have to deploy methane management technologies across the value chain and enlist the services of local businesses to support methane reduction management activities, according to MELA.

The study contains a review of companies with offices located in Canada and the associated number of jobs within each of those organizations related specifically to methane emissions reduction activities.

"With more than 70,000 well sites in Alberta alone, oil and gas producers will be looking for solutions to eliminate methane leaks and return this gas to the pipeline and this presents a tremendous opportunity for Calscan to grow," said Henri Tessier, operations manager, Calscan Solutions. "We expect to triple our staff and expand our facilities to meet the needs of our customers striving for zero methane emissions."

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