Canada Ends Flaring Cap as Oil Producers Exceed Emissions Limit

  • Alberta’s energy regulator scrapped the natural gas flaring limit, burning over 912 million cubic metres in Canada.
  • The provincial government directed the regulator to remove the 20-year-old cap, arguing it no longer reflects rising production levels or updated emissions strategies.

Energy producers in Alberta, Canada’s top oil-producing province, have once again exceeded the province’s annual cap on natural gas flaring, prompting regulators to scrap the limit altogether. The Alberta Energy Regulator (AER) confirmed this week that the 20-year-old restriction has ended, citing direction from the provincial government.

According to data tallied by Reuters, Alberta’s oil and gas companies flared approximately 912.7 million cubic metres of natural gas in 2024—36% above the provincial limit of 670 million cubic metres. The province also overshot the limit in 2023, with 753 million cubic metres flared.

Flaring, the practice of burning off excess gas that cannot be economically captured or transported, has become increasingly common as oil production in Alberta hits record highs. In 2024, Alberta produced 1.5 billion barrels of crude, marking a 4.5% increase over 2023 and setting a new annual record.

The AER quietly announced the rule change in a bulletin on its website last week, with confirmation on Monday that it was acting under provincial government instruction. Ryan Fournier, spokesperson for Environment Minister Rebecca Schulz, said the province launched a review after producers exceeded the flaring limit in 2023. The review concluded that the cap no longer aligned with the realities of increased production or evolving emissions-reduction technologies.

Critics, however, say eliminating the cap could worsen environmental impacts. Amanda Bryant, senior analyst at the Pembina Institute, warned that while flaring is less harmful than venting, it still releases greenhouse gases, black soot, and other pollutants.

“Getting rid of the rule doesn’t eliminate the problem,” Bryant said. “The role of a regulator should be to mitigate harmful impacts and ensure responsible resource development.”

The World Bank, which has been pushing for an end to routine flaring by 2030, estimates that eliminating the practice could cut at least 381 million tonnes of CO₂-equivalent emissions globally. Its 2024 report showed global flaring rose in 2023 even as crude production increased by just 1%.

Despite Canada’s commitments to emissions reduction, the federal energy and environment ministries have not commented on Alberta’s decision. The move comes as Canadian energy firms await signals from incoming Prime Minister Mark Carney, whom they hope will take a more industry-friendly stance than his predecessor, Justin Trudeau.

Meanwhile, companies like Hexagon are preparing to deploy new technologies like AEON to test emissions-reduction strategies in live industrial settings later this year.

With the cap now gone, Alberta’s regulatory approach to flaring is entering uncharted territory, raising questions about the balance between energy expansion and environmental responsibility in a warming world.

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