Alberta industry blew past gas flaring ceiling in 2024 as province eliminates limit

Energy producers in Alberta, Canada, the country’s top oil-producing province, have exceeded the self-imposed limit on annual natural gas flaring for the second consecutive year in 2024, according to calculations by Reuters. The Alberta Energy Regulator recently announced the end of the flaring limit, a development that was quietly published on its website and confirmed by the regulator on Monday in response to direction from the provincial government.
Canada, the world’s fourth-largest oil producer, has been experiencing a boom in oil production as it seeks to diversify its exports away from the United States. With President Donald Trump’s tariffs on Canadian exports, the country has been looking to expand its energy industry and increase exports to other markets. Canadian energy companies are hopeful that Prime Minister Mark Carney will be more supportive of the industry compared to his predecessor, Justin Trudeau.
Reuters’ analysis of Alberta Energy Regulator data reveals that oil and gas producers in the province flared approximately 912.7 million cubic meters of natural gas in 2024, surpassing the annual provincial limit of 670 million cubic meters by 36 percent. This follows a similar trend in 2023 when the province exceeded the limit with total annual flare volumes reaching 753 million cubic meters.
Flaring, the process of burning off excess natural gas associated with oil production, has come under scrutiny due to its environmental impact. The World Bank estimates that eliminating flaring could reduce environmentally harmful emissions by at least 381 million tonnes of carbon dioxide equivalent. Alberta’s Environment Minister Rebecca Shulz initiated a review of the flare gas policy after the industry exceeded the limit in 2023. The province concluded that the 20-year-old flaring limit was no longer effective in reducing flaring and did not account for increased oil production or new emissions-reduction strategies.
Globally, flaring by oil and gas companies has been on the rise, with a seven percent increase in 2023 despite only a one percent rise in crude oil production, according to a 2024 World Bank report. While flaring is considered better for the environment than other gas disposal methods like venting, it still releases harmful byproducts and greenhouse gases. Amanda Bryant, a senior oil and gas analyst at the Pembina Institute, emphasized the importance of regulators in preventing harmful impacts from industry practices and ensuring responsible resource development.
Overall, the decision to end the flaring limit in Alberta reflects a broader trend in the energy industry towards more sustainable practices. Companies are encouraged to invest in technologies that can capture flare gases and reduce their environmental footprint. As the province continues to set records in oil production, it will be crucial to balance economic growth with environmental stewardship to ensure a sustainable future for Alberta’s energy sector.