Huge thirst for natural gas

Photo: Syncrude

Nearly one-third of the natural gas burned in Canada last year was used to produce crude from the oilsands, the country's energy regulator said Wednesday, something environmentalists called a "waste" of a cleaner-burning resource.

According to a National Energy Board report, nearly 2.38 billion cubic feet per day or a record 29 per cent of purchased natural gas was used for oilsands production in Alberta in 2016. That's up from the 730 million cf/d or 12 per cent of total demand in 2005.

Natural gas is used in the oilsands to generate steam to inject into underground formations to thin the heavy, sticky bitumen crude and allow it to be pumped to the surface.

The growth in so-called "thermal" projects is the main driver behind increased oilsands demand for natural gas, the NEB said.

Environmentalists said that natural gas could be better used to heat houses, generate electricity or make plastics.

"Rather than wasting this relatively low-carbon fuel to extract high-carbon oil from tarsands, let's use it to heat homes as we speed the transition to the 100 per cent renewable future that science demands," said Greenpeace campaigner Mike Hudema in an email.

Andrew Read, a senior analyst with the Pembina Institute, said the report highlights the need for a national energy plan that aligns use of energy with Canada's climate targets.

"This is basically using our cleaner fossil fuel resources to produce dirtier transportation fuels," Read said.