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 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 18 years and have significantly decreased our emissions intensity during this time.
We report gross operated emissions according to federal, state or provincial requirements, and we use intensity metrics for benchmarking and goal setting. Intensity metrics provide a more contextual measure of our impact with greater opportunity for consistency and comparability. Ovintiv is the operator for >95% of our production volumes.
Gross emissions data sources:
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.
Leading the industry in emissions tracking and transparency: Scope 2 GHG Emissions Dashboard
Ovintiv continues to be at the forefront of innovation in emissions performance tracking. In 2022, we undertook an initiative to digitize and automate the processing of over 1,000 monthly electricity usage invoices through Ovintiv’s data pipeline.
This cutting-edge solution enabled us to develop a comprehensive dashboard that tracks Scope 2 GHG emissions and electricity consumption. To our knowledge, Ovintiv is the first operator to achieve this level of granularity and data for the tracking of all Scope 2 emissions. Key highlights from this initiative include:
- 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 reducing emissions. With customizable filters, users are granted full data transparency and utility tailored to their specific needs, ensuring Ovintiv remains a leader in emissions measurement and management.
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 measure our emissions, depending on the emission type and source including estimations, 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 estimations, calculations, and measurement to determine our methane emissions. In 2022, 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.
Utilizes emission factors multiplied by an equipment count or manufacturer data
Utilizes parametric measurement such as fuel usage, engineering calculations, or flow rate
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 to each level.
Currently, Ovintiv is fully aligned with OGMP 2.0 for levels 1 – 3 and partially aligns with level 4. We anticipate that we will achieve company-wide compliance equivalent with level 4 by 2026. Although we are piloting direct measurement in select operations (at the site level), 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
Through our involvement with the Environmental Partnership, flyover emissions monitoring is occurring in our Permian operations. While we are not currently utilizing site-level direct measurement technology to measure or quantify our emissions, we are evaluating three different continuous monitoring systems in our Permian and Canadian operations to understand the future potential for applicability in our emissions measurement and monitoring program.
Ovintiv Alignment to OGMP 2.0
OGMP 2.0 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
Level 1 Reporting
• Single, consolidated emissions number
• Only applicable where company has very limited information
Level 2 Reporting
• 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
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. OVV reports Level 4 at ~45% of sources (70% needed for full Level 4). Anticipate OVV 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
OVV has utilized site-level measurements but does not currently incorporate into emissions reporting or go through a reconciliation process
OVV reports for operated assets. Note: 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 reduction efforts throughout our operations. LDAR has been part of Ovintiv’s emissions management practice for nearly 18 years. We comply with local and federal LDAR regulations and implement a voluntary LDAR program to complete surveys at certain non-regulated facilities. 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 2022, we conducted 3112 LDAR surveys using OGI cameras.
When we detect a leak, our program includes three components for continuous improvement:
Our OGI surveyors are trained in leak repair and service leaks upon detection.
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 enables the generation of facility improvement strategies and identifies the root causes of leaks in a more efficient manner, saving valuable time and resources.