RESPONSIBLE CANADIAN ENERGY 2 0 1 2
AT L A N T I C
C A N A D A
O F F S H O R E
S U P P L E M E N TA L
R E P O R T
View the full report online at www.capp.ca/rce
TABLE OF CONTENTS About the RCE Program................ 2-3 Canadian Upstream Oil and Gas Snapshot................................ 4-5 People........................................... 6-8 Air......................................................9 Water......................................... 10-11 About CAPP....................Back Cover
RESPONSIBLE CANADIAN ENERGY PROGRAM The Responsible Canadian Energy Program represents a collective commitment by CAPP’s member companies to continuously improve, measure and report performance in the areas of people, air, water and land, and engage collaboratively with the communities in which industry works. The measurement, reporting and analysis of information enables industry to show where it is making progress and where more focus is needed to reduce industry’s environmental footprint, to ensure every worker returns home safely each day and to improve the ways in which it engages stakeholders.
VISION AND PRINCIPLES CAPP’s Board of Governors has endorsed the following vision and principles for the Responsible Canadian Energy Program. We will conduct our business activities in a safe and sustainable manner, balancing social, economic and environmental considerations.
Cover Photos (left to right): Terra Nova FPSO vessel, offshore Newfoundland and Labrador Photo Credit: Suncor Energy Inc. Basic survival training exercise at sea Photo Credit: Survival Systems Limited. The Deep Panuke project under development offshore Nova Scotia Photo Credit: SBM Offshore.
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Suncor employees participate in the United Way Day of Caring at Janeway Children’s Hospital. Photo Credit: Suncor Energy Inc.
MEASURING PERFORMANCE The Responsible Canadian Energy Program focuses on four key performance areas: people, air, water and land. Objectives have been developed for each of the focus areas. CAPP has standard metrics to assess industry’s performance in each of these areas and to evaluate performance against the objectives. Based on performance, the report outlines how, through continuous improvement, the industry is progressing toward meeting its Responsible Canadian Energy vision and principles. Data on key metrics is gathered on an annual basis from CAPP members, as well as from government and regulators and reported to illustrate industry’s performance. Examples of leading practices and case studies are also presented in the report to show the types of projects, technologies and innovation that are driving forward performance of the industry.
RESPONSIBLE CANADIAN ENERGY ATLANTIC CANADA OFFSHORE The 2012 Atlantic Canada Offshore Supplemental report highlights activities in Atlantic Canada, and acts as a complement to the 2012 Responsible Canadian Energy progress report. In Atlantic Canada in 2012, three oil production projects operated offshore Newfoundland and Labrador with another sanctioned for development. In Nova Scotia, one natural gas project was in production with a second under development. Offshore oil and natural gas projects have unique attributes that require specific plans for every project related to safety and environmental protection. The report is divided into three sections, people, air and water. Since the report focuses on offshore production there is no inclusion of a land section. For the full story visit: www.capp.ca/rce
We will hold each other accountable and measure ourselves against the following principles: • Provide a safe and healthy workplace for our employees, contractors and for the communities in which we work, with a goal to do no harm; • Conduct our activities in an environmentally responsible manner; • Engage our stakeholders in open and responsive communications; • Create opportunities for economic and social benefits in the communities in which we operate, at a local and national level; and, • Conduct our business activities with integrity, ensuring all people are treated with dignity, fairness and respect.
The White Rose field is located 350 kilometres southeast of St. John’s, Newfoundland and Labrador. The field was developed using subsea technology with production tied back to a Floating Production Storage and Offloading (FPSO) vessel via subsea flowlines. Pictured here: A tanker approaches the SeaRose FPSO to pick up a cargo of crude oil. In the background are two drilling rigs and various supply and support vessels. Photo credit: Husky Energy.
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CANADIAN UPSTREAM OIL AND GAS SNAPSHOT
Industry injury frequency has decreased from
Canada exported
3.2 trillion cubic feet of natural gas to the U.S. in 2011.1
Average water use for fracturing operations ranges from
1.15 to 0.89 since 2007,
YUKON TERRITORY
5,000 m3 to 100,000 m3.
while exposure hours have increased by 33 per cent.3
The oil and gas industry employs more than
0.69 in 2011
– almost half of what it was in 2007.3
GHG intensity remains consistent at
0.09 tonnes/m3 oil equivalent.3
NUNAVUT
550,000 Canadians
The Atlantic Canada offshore industry injury frequency rate was
6
directly and indirectly.3
In 2011 Atlantic Canada offshore industry produced
325,000 barrels
NEWFOUNDLAND AND LABRADOR
NORTHWEST TERRITORIES
of oil equivalent (BOE) per day.7
In 2011 there were
5 fatalities as compared to 7
In 2011, producers invested
in 2010, fatalities continue to decline though are variable, 9 in 2007 to 5 in 2011.3
BRITISH COLUMBIA ALBERTA
PRINCE EDWARD ISLAND
MANITOBA
3 million barrels per day.3
$20 billion in taxes and royalties in 2011.
SASKATCHEWAN
CRUDE OIL PRODUCTION
15 per cent of Canada’s GHG emissions* in 2010, or 102 megatonnes.3, 5
4
NATURAL GAS PRODUCTION
Canada has the third largest oil reserves in the world with
174 billion barrels
of recoverable oil.2
Sources: 1 = National Energy Board 2 = Oil and Gas Journal 3 = Canadian Association of Petroleum Producers 4 = Canadian Energy Research Institute 5 = Government 6 = B.C. Oil and Gas Commission 7 = C-NLOPB/CNSOPB data
5,600 people.
6
Deep Panuke
3 5
CAPP member companies accounted for about
ONTARIO ONTARIO
NEW BRUNSWICK
178.7 million m 3 as compared to 192.9 million m in 2010.
Fresh water withdrawal for 2011 was
The Atlantic Canada offshore industry directly employs about
Sable Offshore Energy Project
3
$1.6 billion
in the offshore industry.5
Terra Nova
QUEBEC QUEBEC
Upstream oil and gas industry paid more than Canadian crude oil production is
White Rose Hibernia
As of March 31, 2012 there were over
NOVA SCOTIA
$2.3 billion
in exploration commitments to be undertaken in the Atlantic Canada offshore.3
POTENTIAL RESOURCES
Atlantic Canada offshore natural gas production
260 million cubic feet
Oil sands in situ
footprint is 50,000 hectares.
3
3
per day sales gas.
Atlantic Crude Oil Atlantic Natural Gas
* The upstream oil and gas industry accounted for about 18 per cent of Canada’s greenhouse gas emissions in 2010, or 123 megatonnes.
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PEOPLE
OIL AND GAS WEEK NEWFOUNDLAND AND LABRADOR
HIGHLIGHTS SAFETY • There was a slight increase in the total recordable injury frequency (TRIF) to 0.69 compared to 0.56 in 2010, caused by a 30 per cent increase in the contractor TRIF.
• Enhancing safety training and equipment for offshore workers is an area of focus as part of continuous improvement efforts.
• Oil and gas companies fund scholarships and awards, community programs and provide financial contributions to improve health care and education in the communities in which they operate.
New Helicopter Underwater Escape Trainer at the Marine Institute’s Offshore Safety and Survival Centre, purchased through a financial donation from Hibernia Management and Development 6 Company Photo Credit: G. Harvey, Marine Institute Offshore Safety and Survival Centre.
In 2011 member companies with operations offshore Atlantic Canada reported about seven million hours worked and reported 24 recordable injuries for a total recordable injury frequency (TRIF) of 0.69. This represents an increase of two injuries and frequency increase of 0.13 from 2010. While TRIF increased slightly in 2011 compared to 2010, 2011’s TRIF of 0.69 is about half of 2007’s rate of 1.26. The oil and gas industry will continue its diligence in developing and applying leading safety practices and improvements in safety culture. For the full story visit: www.capp.ca/rce
CAPP members in Newfoundland and Labrador participate in an annual event organized with other industry partners, called Newfoundland and Labrador Oil and Gas Week. This week-long series of events was created 11 years ago to raise the profile of the industry in Newfoundland and Labrador. Since then it has become a major event for the industry focusing largely on career education. One of the highlights of Oil and Gas Week is Energy Day Newfoundland and Labrador. Energy Day aims to educate high school students about career opportunities in the oil and gas industry. Over 600 high school students participate in Energy Day annually and many more take part via distance education opportunities throughout the province.
The offshore industry is committed to continuous improvement in environment, health and safety performance. Focusing on enhancing equipment provided to offshore workers is an example of how offshore operators work to keep people safe. When traveling offshore by helicopter, workers wear helicopter passenger transportation suits. These suits are designed to protect workers in the event of an emergency requiring an evacuation at sea. CAPP and its members participated in the Canadian General Standards Board’s review of its helicopter passenger transportation suit
Energy Day gives students a chance to speak to industry professionals about their career paths, what they enjoy about their jobs and the kind of lifestyle that can come with a career in this industry. In addition to career education initiatives, Oil and Gas Week also includes an industry food drive. Since 2001 the oil and gas industry and its employees have collected more than 500,000 pounds of food and raised over $450,000 for the Community Food Sharing Association. Last year's efforts alone provided 21,120 pounds of food and $24,000 to help needy families.
standard. This multi-year review resulted in an improved standard for future suits. As part of Encana Corporation’s development and operation of the Deep Panuke offshore natural gas project in Nova Scotia, Encana commits funds to education, training, research and development in the province. Under a recent call for research proposals related to the theme of offshore safety and risk, Climate Technical Gear Ltd. (formerly Helly Hansen Canada Ltd.) of Dartmouth, Nova Scotia was awarded funds to study clothing system improvements for wearers of helicopter passenger transportation suits. For the full story visit: www.capp.ca/rce
An early prototype of one of the undergarment types being studied by Climate Technical Gear Ltd. Photo Credit: Climate Technical Gear Ltd.
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AIR
COMMUNITY INVESTMENT AND SCHOLARSHIPS
HIGHLIGHTS
All offshore operators in Atlantic Canada invest in the communities in which they operate. Some examples include: • In 2011 Husky committed an additional $1 million to Newfoundland and Labrador through its community investment program. This included a $750,000 gift to the Dr. H. Bliss Murphy Cancer Foundation to help with the purchase of state-of-the-art TrueBeam radiation treatment technology. This equipment will enhance patient care and research and training capacity at Memorial University’s Faculty of Medicine.
Dr. H. Bliss Murphy Cancer Centre donation Photo Credit: Husky Energy
GHG
• Chevron hosts the Open Minds Program, held at The Rooms, Newfoundland and Labrador’s largest cultural space. The Open Minds program provides K – 12 teachers with the opportunity to move their classroom to The Rooms for an entire week. Students participate in a curriculum-based, interdisciplinary program which is customized to the needs of the teacher and students. • Statoil sponsors the First Lego League, a program designed to stimulate interest in science, technology, engineering and math. In November 2012 over 300 students from 30 schools from across Newfoundland and Labrador built and tested robots of all shapes and sizes as a part of a robotics competition designed to spark childrens interest in science and technology. Statoil’s support for this event is part of a larger global sponsorship which helps support First Lego League programs and tournaments involving an estimated 190,000 children in 56 countries.
Both total GHG emissions and intensity showed a slight decrease in 2011 as compared to 2010. Chevron Open Minds Program at The Rooms Photo Credit: Chevron Canada
For the full story visit: www.capp.ca/rce
NOX
Total GHG emissions are stable, with a decline from 1.86 million tonnes in 2010 to 1.78 million tonnes in 2011. This represents a decrease in total emissions of four per cent over the past year. Statoil Asset Manager Dave Ralph presents awards at the High angle rescue training. PhotoPhoto Credit: Credit: Enform Canada Newfoundland and Labrador First Lego League. Statoil
(NITROGEN OXIDES)
Total NOx emissions for offshore oil and gas fields remained relatively stable, while NOx emissions intensity increased slightly.
Total GHG emissions in 2011 decreased by four per cent relative to 2010. Emissions intensity also decreased slightly over the same period (from 0.1 tonnes of GHGs per m3 oil equivalent production (OE) to 0.09 tonnes of GHG per m3 OE). The decrease in GHG emissions is related to overall efficiencies within operations. This decrease in GHGs was counterintuitive to the slight increase in NOx as NOx, a byproduct of combustion, is a primary source of GHG emissions.
Industry scholarships and awards also help to support future employees of Atlantic Canada’s oil and gas industry.
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(GREENHOUSE GASES)
SO2
(SULPHUR DIOXIDE)
SO2 emissions and emissions intensity were negligible due to extremely low levels of naturallyoccurring sulphur in the product.
The increase in NOx was due to decreased production at one facility though the facility was required to still burn fuel to power production facilities at a significantly reduced efficiency. SO2 emissions and emissions intensity are extremely low and continue to decrease in this region. In 2011, SO2 emissions for all offshore production facilities totalled one tonne and the associated emissions intensity was negligible. For the full story visit: www.capp.ca/rce
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WATER
HIGHLIGHTS One of the ways the offshore industry works to protect marine environments is through spill prevention and response. The offshore oil and gas industry conducts its operations in Atlantic Canada with a goal of minimizing the impact of operations on the environment and other ocean users. Mitigating any potential impacts of offshore seismic surveys and working with the fishing industry are examples of how the industry works to protect the environment. For the full story visit: www.capp.ca/rce
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Environmental protection is a priority for the oil and gas industry.
Environmental protection is a priority for the oil and gas industry. The public and stakeholders want assurance that operators have the right plan in place to protect oceans and the people working on Atlantic Canada’s offshore facilities. The Atlantic Canada offshore petroleum industry has access to world class spill prevention and response capability and is governed by a rigourous regulatory regime. Prevention is the best line of defense against spills. Comprehensive management systems identify potential risks that operators work to reduce and mitigate. Automated and manual monitoring systems, with built-in redundancy, are located throughout offshore facilities to control shutdowns if required. Operators conduct detailed preventative and corrective maintenance to ensure equipment remains in safe working condition. Offshore installations must meet the safety standards of Transport Canada and the appropriate federalprovincial regulatory body. They must also meet international rules and undergo inspections of their design and capability by international agencies.
All hydrocarbon releases, regardless of size, into the Atlantic Ocean from offshore drilling and production are reported to regulators. Reporting of spills or releases to water includes all products that have an origin in hydrocarbons and are not exclusively crude oil. Synthetic drilling fluid spills are the largest volume contributor to releases, but synthetic drilling fluid is a relatively low toxicity product. In 2011 there were three releases of crude oil with a total volume of 33 litres. Any spill is unacceptable and operators continue to focus on prevention of spills. Although prevention is the focus, operators are also ready to respond should a spill occur. International leading practice is for response plans to be structured in three tiers scaling up response capacity as required by the situation. Offshore operators conduct drills and exercises to test equipment and ensure key personnel and external resources are trained and prepared to respond should their skills be required. For the full story visit: www.capp.ca/rce
Synergy – an on-water spill response training exercise held annually offshore Newfoundland and Labrador. Photo Credit: Husky Energy
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ABOUT THE CANADIAN ASSOCIATION OF PETROLEUM PRODUCERS The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP’s members companies produce about 90 per cent of Canada’s natural gas and crude oil production. CAPP’s associate members provide a wide range of services that support the upstream crude oil and natural gas industry. Together CAPP’s members and associate members are an important part of a national industry with revenues of about $100 billion a year. CAPP’s mission is to enhance the economic sustainability of the Canadian upstream petroleum industry in a safe and environmentally and socially responsible manner, through constructive engagement and communication with governments, the public and stakeholders in the communities in which we operate. Visit the CAPP website at www.capp.ca
Contact details:
Connect with CAPP:
2100, 350 - 7 Avenue S.W. Calgary, Alberta, Canada T2P 3N9 Phone: 403-267-1100 | Fax: 403-261-4622
@OilGasCanada http://www.facebook.com/OilGasCanada
View the full report online at www.capp.ca/RCE
1000, 275 Slater Street Ottawa, Ontario, Canada K1P 5H9 Phone: 613-288-2126 | Fax: 613-236-4280 403, 235 Water Street St. John’s, Newfoundland and Labrador, Canada A1C 1B6 Phone: 709-724-4200 | Fax: 709-724-4225
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