ConocoPhillips Canada is committed to the environmental stewardship in the development of our projects and our development teams will continue to draw from the expertise of existing steam assisted gravity drainage (SAGD) and heavy oil projects to minimize our footprint. Because the environment is of paramount importance to us, we do several things to minimize our impact. For example, before planning any major project we identify and develop plans to mitigate key environmental issues such as water use and discharge, emissions of greenhouse gas and air pollutants and cumulative impact on wildlife.

Challenges

During the past year, the environmental challenges associated with oil sands development emerged as a key public concern. Two environmental issues stand out for us in our oil sands projects: greenhouse gases and water use. Additionally, there is an overarching issue of cumulative effects due to numerous projects concentrated in one region of Alberta. The effects of intense and long-term development in the region will impact multiple environmental fronts, including air quality, water quality and availability, and quality of wildlife habitat, which is threatened with fragmentation. 

Water Management 

We use water from deep underground aquifers to create steam for the SAGD process. The use of water from regional aquifers is expected to increase with expanded development. This is heightening concerns about sustainability and the potential for surface water to be lost as it is drawn down into deep aquifers.

From a regulatory context, the Alberta Energy Resource Conservation Board has recently focused the industry on minimizing freshwater use and maximizing re-use of produced water in oil sands operations.

Using SAGD technology, it can take less than a quarter of a barrel of water to produce one barrel of bitumen. We are targeting a 90 per cent water recycle rate, which is consistent with regulatory expectations. However, even with this high recycle rate, the amount of water needed over the 40-year life of Surmont Phase 1 and 2 is expected to average approximately 5,000 cubic metres per day, and our water use will increase as our projects grow. We are addressing water demand with technology and through our work with multi-stakeholder groups. This work is primarily dedicated to regional planning and water management.

Surmont Water Monitoring Program
A comprehensive groundwater and wetland/ surface water monitoring program is in place at Surmont. The data collected over the life of the project will provide information to validate predictions of sustainable aquifer levels and confirm that there is no drawdown of surface water. No unexpected results have been found since the program began. We expect to provide the results of this monitoring program in future reports.

Land Management

Oil sands development contributes to cumulative land impacts through the multiple demands put on the region by the number of projects. We believe one of the best ways to address these cumulative impacts is to look at land issues in a coordinated way, working with industry, communities, academics and governments.

Regional Land Planning
We are an active member of the Cumulative Environmental Management Association, a registered, not-for-profit, non-governmental, multi-stakeholder organization. The association includes representatives from municipal, provincial and federal governments, Aboriginal groups, environmental nongovernmental organizations and industry including forestry, mining and oil sands.

The association develops recommendations that go to the Government of Alberta for the management of cumulative environmental effects of industrial development. We currently co-chair the association’s Sustainable Ecosystems Working Group. The association is making substantial progress towards developing a land management framework. We provided considerable staff time to support the association’s work providing recommendations to the Alberta government on how to manage cumulative effects in the region. This work included identifying the need for increased protected areas and interim policy measures to maintain conservation locations in the region that appear to have both high conservation potential and comparatively limited economic potential.

Coordinated Planning
During oil sands development, we coordinate all of our plans for roads and well pads with Alberta-Pacific Forest Industries’ plans for timber harvesting. This coordination minimizes land disturbance by using common roads.

Managing Greenhouse Gas Emissions

Industrial development, including the oil sands, is a significant source of greenhouse gas emissions. The reduction of these emissions is one of the most complicated and pervasive issues we are facing. Oil sands operations emit large amounts of carbon dioxide as well as a minor amount of methane gas. Although there has been significant progress towards decreasing the intensity of greenhouse gases produced by oil sands operators, the increased production of oil counterbalances these reductions. For example, as our Surmont Project progresses and production increases, our total emissions will rise despite a decrease in the emissions per unit of production, or intensity. We support mandatory emissions reduction across all of our operations and we believe technology will play a significant role in helping us meet these future requirements.