Petroleum

Petroleum includes the domestic exploration, development, and transportation of oil, and gas, and their management through a network of distribution systems and facilities. These resources are then transformed into intermediate and finished products, and are distributed to final customers.

The upstream oil, and gas sector includes the exploration, production and basic processing of crude oil and natural gas. Petroleum refining refers to the physical, thermal and chemical separation of crude oil into major distillation components and conversion into finished products, such as fuels (motor gasoline, diesel fuel, aviation fuel, light and heavy fuel oil), non-fuel products (such as lubricating oils and greases, asphalt) and raw materials for the chemical industry.

There are many environmental impacts associated with activities from the upstream petroleum industry. The emissions released by the industry to the air from flaring, for example, are of concern with respect to regional air quality and greenhouse gas emissions. Air pollution emissions from the industry include toxics, such as benzene and particulates, smog precursors, acid emissions and greenhouse gases, such as methane and carbon dioxide. The 2006 Environment Canada published air pollutant emissions for the UOG sector are reported to contribute 17% of the sulphur oxide (SOx), 21% of the nitrogen oxide (NOx) and 28% of the volatile organic compounds (VOC) in Canada. The petroleum refining process results in the release of a number of air pollutants, including: sulphur oxides, nitrogen oxides, volatile organic compounds, particulate matter, carbon monoxide, and benzene, as well as many greenhouse gases (GHGs).

In 2006, Canada produced approximately 1.52 million barrels per day of conventional crude oil, 1.1 million barrels per day of crude from oil sands operations[1], and 6.1 trillion cubic feet of natural gas[2]. The majority of Canadian crude and natural gas exports go to the United States. In 2006, 1.8 million barrels per day of crude oil1 and  58% of the produced natural gas (3.5 trillion cubic feet)2 were exported to the U.S., producing revenues of over $65.1 billion.1 2

According to Statistics Canada, the three oil and gas sector components (upstream, midstream, and downstream)employed roughly 298, 000 in 2006. Currently there are 19 refineries operating within Canada. Of the 19 refineries, 3 produced either asphalt or petrochemicals, while the others produced a range of petroleum products.Employment from Canadian refineries, asphalt paving, shingles and other petroleum and coal manufacturing in 2006 totalled 16,400. Employment in petroleum product wholesaling in 2006 was 11,500. . Some 74,000 worked at retail outlets for petroleum products in 2006.[3]

[1] Canadian Oil Market, Review of 2006 & Outlook to 2020, December 2007, Petroleum Resources Branch, Oil Division, Energy Sector, Natural Resources Canada

[2] Canadian Natural Gas: Review of 2006 and Outlook to 2020, December 2007, Petroleum Resources Branch, Natural Gas Division, Energy Sector, Natural Resources Canada

[3] Fuelling the economy, May 2007 Perspectives, Statistics Canada – Catalogue no. 75-001-XE

Under the auspices of the Canadian Council of Ministers of the Environment, Environment Canada has been engaged in the development of the National Framework for Petroleum Refinery Emissions Reduction aimed at developing a new and more effective approach to managing emissions from petroleum refineries. Implementation of the Framework is expected to lead to substantive emissions reductions-as high as 50% of some parameters at some facilities.

Renewable Energy

Many petroleum companies are expanding their traditional business models through strategic investments in renewable energy products and services. 

Renewable energy has little or no greenhouse gas emissions, and most forms of renewable energy do not contribute to the formation of smog, acid-rain or hazardous air pollution. When low-emitting forms of renewable energy are used to replace fossil-fuel energy, reductions in air pollution occur and cleaner air is the result.

Renewable energy is a viable energy source in a growing number of applications and offers many environmental benefits as well as increased local economic opportunities.  In 1999 the segment of the industry considered as emerging had gross revenues of about $1.4 billion, including $400 million in exports.  It employed an estimated 3,700 Canadians. 

The Federal Government is undertaking an extensive list of actions to promote renewable energy in Canada. These actions include research and technology development, incentive programs, resource assessment and mapping, procurement initiatives, and marketing and awareness building activities.