EMISSIONS MEASUREMENT AND MANAGEMENT
We are committed to reducing our air impact through strategic design, innovation and efficiency for the lifecycle of our operations.
We have achieved measurable results on this commitment, delivering on our 2025 methane intensity reduction target four years ahead of schedule. Building on that success, we set a goal of reducing our Scope 1 & 2 GHG emission intensity by 50% from 2019 levels by 2030.
Ovintiv’s Approach to Climate Change
- Drive meaningful and quantifiable GHG emissions reductions
- Promote innovation and actionable solutions
- Foster transparent partnerships among key stakeholders
- Align economic, environmental and energy security needs
Measuring and Managing Emissions
Ovintiv recognizes climate change as a global concern and understands our role in reducing emissions. Tracking emissions allows us to set measurable and achievable goals and identify solutions to decrease emissions intensity. We have tracked GHG emissions for more than 19 years and have significantly decreased our emissions intensity during this time.
For sustainability reporting, we report gross operated emissions using a methodology consistent with jurisdictional reporting requirements and industry standards, and we use intensity metrics for benchmarking and goal setting. We are also required to report our emissions to federal, state or provincial regulatory bodies in accordance with their requirements. Intensity metrics provide a more contextual measure of our impact with greater opportunity for consistency and comparability. Ovintiv is the operator for over 95% of our production volumes.
Gross emissions data sources:
Emissions Dashboards
To better harness our information and support operational decision-making, we have created emissions dashboards that allow us to monitor our emissions performance data and drive further improvements.
We can access monthly results for Scope 1 & 2 GHG emissions, methane emissions, as well as flaring and venting volumes across our organization. Previously this data was only available on an annual basis. The dashboards display total emissions and intensity by operating area and includes emission sources. This level of detail allows us to quickly identify opportunities for reduction as well as easily extract data for peer benchmarking. It is a critical component to meeting our Scope 1 & 2 GHG emissions reduction target.
To further leverage our emissions data, we have developed a multi-disciplinary GHG forecasting process that integrates a variety of factors including operational data and impacts of changing regulations to help us ensure we are on track to meet our reduction target.
In an effort to increase the accuracy of our Scope 2 emissions tracking, we have also digitized and automated the processing of over 1,000 monthly electricity usage invoices through Ovintiv’s data pipeline. Our Scope 2 emissions dashboard includes:
- Integration of the latest U.S. EPA eGRID subregion and Canadian provincial electricity consumption GHG intensity values
- Streamlined, automated tracking of Scope 2 emissions across each basin
- Increased transparency and insights into facility-level Scope 2 emission performance and electricity consumption trends
- Robust support for data quality efforts through monthly team energy consumption reviews
Ovintiv will consistently review our monthly usage trends to detect any data anomalies. Our advanced dashboard is designed to help operations teams effectively pinpoint opportunities for cost-savings and emissions reductions. With customizable filters, users are granted full data transparency and utility tailored to their specific needs.
Emissions Calculations
Our Company has a long history of emissions monitoring and measurement, and we understand both the importance and the business value of good data. We employ several methodologies to determine our emissions, depending on the emission type and source including estimates, calculations and measurements. Our formulas are aligned with the Environmental Protection Agency (EPA) and the GHG Emissions Protocol and consider manufacturers’ specifications, equipment run-time, fuel, flare and vent gas compositions, and production levels, among other data inputs.
Methane Emissions Measurement
We currently employ source-level estimates, calculations, and measurement to determine our methane emissions. In 2023, just over half of our methane emissions were estimations, however as technologies improve and we continue to track and monitor more equipment we anticipate that the percentage of estimated versus measured/calculated methane emissions will continue to decline.
Estimated Emissions:
Utilizes emission factors multiplied by an equipment count or manufacturer data
Calculated Emissions:
Utilizes parametric measurement such as fuel usage, engineering calculations, or flow rate
Measured Emissions:
Utilizes the direct measurement of methane
Oil & Gas Methane Partnership 2.0
The Oil & Gas Methane Partnership 2.0 (OGMP 2.0) is the United Nations Environment Programme’s measurement-based oil and gas reporting and mitigation framework. It has five levels of compliance, with increasing direct measurement requirements and timelines associated with each level.
Though Ovintiv is not currently an OGMP 2.0 partner, we are aligned with its ambition and strive to continuously improve our reporting. We determined through a self-assessment process that Ovintiv’s approach is currently aligned with OGMP 2.0 for levels 1 – 3 and partially aligns with level 4. We anticipate that we will achieve Company-wide performance equivalent with level 4 over the next three years. Although we have piloted site-level direct measurement in select operations, we currently do not widely employ direct measurement technology across our operations. As noted by OGMP 2.0, the wide use of methane sensing technologies to reach their stated level 4 or 5 compliance may prove unviable until technologies advance, despite companies acting in good faith to identify and commercialize these technologies.
Ovintiv’s Approach to Site-Level Direct Measurement
While we are not currently utilizing site-level direct measurement technology to measure or quantify our emissions, we continue to evaluate the potential for future applicability in our emissions measurement and monitoring program.
Ovintiv Alignment to OGMP 2.0
Recommended Disclosures
OGMP 2.0 Description
Ovintiv Description
Methane Emission Reduction Target
Company Performance Target (one of the following):
- 45% reduction by 2025
- 60-75% reduction by 2030
- Near zero emissions intensity
Achieved a reduction of ~66% through year end 2023
Level 1 Reporting
Venture/Asset Reporting:
- Single, consolidated emissions number
- Only applicable where company has very limited information
Report emissions by detailed source type utilizing engineering calculation, activity factors, measurement, and emission factors
Level 2 Reporting
Emissions Category:
- Emissions reported based on IOGP and Marcogaz emissions categories
- Based on generic emission factors
Report emissions by detailed source type utilizing engineering calculation, activity factors, measurement, and emission factors
Level 3 Reporting
Generic Emission Source Level:
- Emissions reported by detailed source type
- Based on generic emission factors
Report emissions by detailed source type utilizing engineering calculation, activity factors, measurement, and emission factors
Level 4 Reporting
Specific Emission Source Level:
- Emissions reported by detailed source type using specific emissions and activity factors
- Based on direct measurement or other methodologies
- Achieved within 3 years
Report emissions by detailed source type utilizing engineering calculation, activity factors, measurement, and emission factors. Ovintiv reports Level 4 at ~45% of sources (70% needed for full Level 4). Anticipate Ovintiv will be at full Level 4 over the next 3 years
Level 5 Reporting
Level 4 + Site Level Measurement Reconciliation:
- Integrating bottom-up source-level reporting with independent site-level measurements
- Site-level measurements: direct measurement technologies at a site or facility level on a representative sample of facilities
- Achieved within 5 years
Non-operated Assets
Commitment to work with non-operated ventures demonstrating reasonable endeavors to help them reach progressively L4/5 reporting in 5 years
Ovintiv reports for operated assets. Ovintiv is the operator for >95% of our production volumes
Leak Detection and Repair (LDAR)
Tracking and reporting methane emissions and intensity allows us to consistently benchmark our methane emissions reduction efforts throughout our operations. LDAR has been part of Ovintiv’s emissions management practice for nearly 19 years. Our monitoring programs are designed to comply with local and federal LDAR regulations. Surveys typically occur on a bi-monthly, quarterly or semi-annual basis depending on requirements, inspections and directed maintenance.
Using optical gas imaging (OGI) cameras, we can identify leaks and initiate repairs to reduce methane emissions on-site.
We supplement our OGI monitoring with on-site audio, visual and olfactory (AVO) surveys.
Optical Gas Imaging: OGI surveyors can scan thousands of connection points from a safe distance, using the camera’s technology to see invisible methane gases.
In 2023, we conducted more than 4,000 LDAR surveys using OGI cameras.
When we detect a leak, our program includes three components for continuous improvement:
Repair
Our OGI surveyors are trained in leak repair and service leaks upon detection.
Documentation
We use a digital logging system, which automatically integrates with our compliance system, to track inspection dates, findings and repairs.
Data Analysis and Directed Maintenance
By analyzing LDAR survey data, we identify trends and specific facilities, components and equipment with greater potential for leaks. We proactively direct inspection and maintenance activities for these sites to mitigate potential leaks. To facilitate clear communication of LDAR data trends, we created an LDAR analytics dashboard. This innovative tool generates facility improvement strategies and identifies the root causes of leaks in a more efficient manner, saving valuable time and resources.