Methane Abatement: Bang For Your Buck
Despite his stinginess, even Larry David could stomach the cost for cutting methane emissions put forward in a new study.
What happened: A new report put together by Dunsky revealed a cost-effective path for the Canadian oil and gas industry to achieve its methane targets. The study suggests that meeting Ottawa’s goal of a 75 percent reduction in methane emissions by 2030 could be achieved at an average cost of just $11 per tonne.
- The country’s current carbon tax rate is $65 per tonne, though companies are not currently charged for methane emissions in Canada.
Birds of a feather: The International Energy Agency had a similar estimate in its Global Methane Tracker 2023. The Paris-based energy group found 30,000 tonnes of methane in the Canadian oil patch could be eliminated for $13 per tonne or less.
There’s more: Dunsky also believes official figures for methane releases are underestimated. The group suggested multiplying the Canadian methane emission inventories by 1.7 to get a more accurate estimate of releases.
- The report pushed the need for strict regulations, including bans on venting, the flaring of methane, frequent inspections, and restricting equipment prone to leaks.