The concept of completely replacing energy sources with carbon-free fuels is “practically impossible,” noted Peyto Exploration & Production president CEO Darren Gee, who believes natural gas has a bright future.
“We believe in natural gas—we have always been a company focused on natural gas,” Gee told the company’s annual general meeting. “We truly believe we are finding the cleanest most affordable, most efficient, most dependable, most scalable fuel that there is.”
As the world’s population grows, so does energy consumption—that is not changing, but the energy mix is likely to change.
“I’m sorry I have to break it to all those in the green camp, but this concept of a carbon-free world with a growing population on the planet is highly unlikely,” Gee said. “In fact, we’re going to need more of every form of energy that we’ve got for a very long time.”
On the subject of the changing energy mix, he noted that it will mean using more clean-burning natural gas.
“Which means the demand for natural gas should continue to grow, and that’s what most experts are predicting,” Gee noted. “There’s no question that natural gas is cleaner burning—it’s at least 10 per cent cleaner than oil from a production standpoint and it’s twice as clean as coal when it’s consumed.
“And Peyto’s gas, mind you, is cleaner still. Our operations have 50 per cent less environmental impact than the average natural gas producer in Canada, and we’re continuing to improve upon that record.”
He said the company recently participated in an Alberta fugitive emissions study.
“They went around and measured fugitive methane emissions from natural gas wellsites in the province,” Gee noted. “They spot checked 69 of Peyto’s wellsites.
“The findings indicated that our wellsites emit 27 times less fugitive emissions than the average industry standard,” he added. “We’re now not only the low-cost producer, we’re the Mr. Clean of the oilpatch.”