While no oil or gas development leaves the environment unscathed, some energy companies are taking steps to reduce the impact as they work to meet the world’s growing energy demand.

Efforts are visible in Canada’s oil sands, where Statoil recently announced it has increased oils sands production by more than 60% and lowered its CO2 intensity – the amount of CO2 released during production of a barrel of bitumen – by almost 24% in 2012. The company presented the information in its 2012 Oil Sands Report.

Compared to conventional forms of producing hydrocarbons, oil sands typically generate more well-to-tank greenhouse gas emissions. And considering Canada houses some of the world’s largest supplies of oil sands – which account for about 170 Bbbl, or 98%, of the country’s oil reserves, according to US Energy Information Administration (EIA) data – operators there have a large task ahead when it comes to reducing their carbon footprint.

Oil sands operations made up the bulk of Alberta’s greenhouse gas emissions in 2010, accounting for 37.4% of total emissions reported, according to Alberta Energy statistics. In total that year 165 facilities representing 15 industrial sectors in Alberta reported 122.5 megatons of CO2 equivalent emitted. Alberta has regulations in place to manage such emissions. In addition to emissions-reporting requirements, these include legislation that mandate facilities emitting more than 100,000 tons of CO2 per year lower emissions intensity by 12% below their 2003 to 2005 baseline emissions intensity.

Statoil’s Leismer Demonstration Project, its first oil sands operations for the Kai Kos Dehseh (KKD) leases operated in partnership with PTT Exploration and Production of Thailand, started operations in 2011 and reached peak production of 21,000 b/d in 2012 with an average production of about 16,000 b/d that year.

The company said it aims to lower CO2 intensity in its production process by 25% by 2020 and 40% by 2025. In 2012, CO2 emissions per barrel were 55.6 kilograms, down from 72.7 kilograms in 2011.

“For Statoil, our first emissions management priority is to reduce the production of CO2 emissions at the source. We undertook optimization work at Leismer in 2012 to improve operational efficiency and decrease fuel consumption and associated emissions,” the report stated. “Reducing the volumes of natural gas used to operate steam generators and utilities contributed to our reduction in CO2 intensity.

However, key performance indicators show overall CO2 emissions were 332,163 tons, up from 267,993 in 2011, as production increased.

“Leismer operations, and our Heavy Oil Technology Centre (located both in Calgary and Norway) are developing new technologies to improve efficiency and reduce fossil fuel use,” Statoil said.

Technology initiatives in the works include a steam assisted gravity drainage (SAGD) solvent co-injection process that adds a hydrocarbon solvent to steam that is then injected underground to recover bitumen, Statoil said. The process, which will be test-piloted at Leismer this year, could lower the steam-oil ratio of conventional SAGD, which in turn could reduce CO2 emissions and water use.

Statoil said it has investigated carbon capture and storage (CCS) techniques working with organizations in Alberta, looking for ways to store CO2 in deep saline aquifers or to enhance oil recovery in conventional fields. CCS projects already are in use at the company’s Sleipner and Snøhvit facilities in Norway.

“Statoil has always had a great appetite for technology innovation because we believe the industry has a duty to produce oil responsibly,” Ståle Tungesvik, president of Statoil Canada Ltd., said in the report. “This means creating new technologies and innovative processes that support our integrated approach to safety and sustainability. For Statoil, this is the only option for successful development.”

The report also mentioned the continuous ambient air monitoring program that was completed at Leismer in April 2012. “The results from the continuous and passive programs were within our expectations and showed no early indication of air quality concern. Going forward, we will undertake the required three months per year of continuous air monitoring.”

Statoil estimated that the KKD leases have about 2 Bbbl of recoverable resources with the potential to produce more than 200,000 b/d of bitumen during the next 10 years.

Contact the author, Velda Addison, at vaddison@hartenergy.com.