CALGARY — The Alberta government’s claim to have reached its 2025 methane reduction target ahead of schedule is solely based on obsolete estimation techniques self-reported by industry, while modern studies which also incorporate actual measurement of methane emissions at oil and gas sites have found Alberta’s emissions are up to 90 per cent higher than the province’s official estimate.
As talks between Alberta and the federal government on their energy and climate memorandum of understanding draw to a close – with an agreement promised by April 1 – a new Pembina Institute analysis urges negotiators to note the importance of using the most credible data to ground-truth discussions on Alberta’s future methane rules. Moving Forward on Methane – How Alberta can demonstrate renewed leadership on oil and gas methane emissions, authored by Amanda Bryant, manager of the Pembina Institute’s oil and gas program, describes how Alberta can modernize its methane inventory system and produce credible data.
The federal government’s National Inventory Report, and two peer-reviewed studies that verified it, put Alberta’s methane emissions at 35 per cent below 2014 levels as of 2023, in contrast to the 52 per cent reduction claimed by self-reported industry estimates. While Alberta is making progress, the NIR data indicates it is the only major oil and gas producing province in Canada that did not reach its 2025 target early.
As part of the ongoing Alberta-Ottawa talks following the signing of a memorandum of understanding in November, the provincial government is seeking an equivalency agreement in place of adopting the federal government’s new methane regulations. The continued use of Alberta’s current dataset would, in practice, mean asking for significantly less action from industry. The wording of the MOU already suggests that industry in Alberta may get twice as long as industry elsewhere in Canada to curb their methane emissions in line with the national target of a 75 per cent reduction.
Bryant has identified several gaps in Alberta’s regulation and reporting of methane emissions:
Emissions data: The federal greenhouse gas inventory, which incorporates independent measurements, estimates Alberta’s oil and gas methane emissions are almost twice as high as Alberta’s methane model, which is based primarily on industry self-reporting. Alberta should require measurements of oil and gas facilities with methods such as vehicle-based systems, aircraft, drones, continuous monitors, and other platforms and reporting of the data.
Venting: There is a significant amount of venting that occurs above the province’s limit on vent volumes at oil and gas sites. Most facilities estimate rather than meter their vent gas, which leads to underestimation of vent gas volumes. Alberta should regulate an end to routine venting by 2030.
Separator buildings: Pneumatic controllers and pumps are a significant and underregulated source of methane emissions in separator buildings, and the quality of reported data is poor. Alberta should regulate a rapid phase-out of existing natural gas-fired pneumatic devices.
Solution gas flaring: Flaring of methane released by oil production has doubled since 2019. While not a major contributor to methane emissions, this practice poses a serious threat to human and animal health in the vicinity of the flaring. Alberta should regulate an elimination of routine flaring by 2030 or earlier, in accordance with Canada’s international commitment to the World Bank Zero Routine Flaring Initiative.
In addition to the impact on climate change, methane regulation has significant trade implications. Many of the jurisdictions that Ottawa hopes to sell Canadian natural gas into – including Japan, South Korea, and the European Union, are beginning to require proof of effective methane mitigation.
Quotes
“Reducing methane emissions is not only one of most effective tools to slow climate change in the near term, it also means preserving millions of dollars' worth of a saleable energy product each year and creating thousands of good industrial jobs. As British Columbia has already shown, aggressively reducing methane emissions can be achieved while nevertheless growing oil and gas production.”
“Alberta should not be afraid modernize its measurement data and methods, including vehicle-based systems, aircraft and satellites to effectively reduce its methane emissions. These improvements should better align Alberta’s inventory with independent studies and Canada’s National Inventory Report, thereby improving the province’s ability to accurately track progress – and by extension, to credibly tell success stories and ensure ongoing international market access for its energy products.”
— Amanda Bryant, Manager of the Oil & Gas Program, Pembina Institute
Quick facts
- British Columbia has adopted modern methane inventory methods, and reached their 2025 emissions targets ahead of time, while simultaneously increasing production levels.
- Methane mitigation is a strong creator of well-paid industrial jobs, and there are more than 130 methane companies in Canada, most of them small businesses.
- Canada is a co-convenor of the Global Methane Pledge, in which 159 nations committed to cutting methane emissions by 30 per cent below 2020 levels by 2030. Canada reaffirmed this commitment at COP30 in Belém in November of 2025.
Contact
Benjamin Alldritt
Senior Communications Lead, Oil & Gas, Pembina Institute
587-328-1955
