B.C.’s Oil & Gas Energy Transition: A Path to a Greener Future

This energy transition is crucial in meeting BC’s climate goals, reducing greenhouse gas (GHG) emissions, and ensuring a sustainable energy future.

Historically, the oil & gas industry has relied heavily on fossil fuels to power its operations, from drilling and processing to transportation. However, with advancements in clean energy technology to cut emissions, the industry is now embracing electrification.

By transitioning to electricity, oil & gas companies can lower carbon emissions, reduce operating costs and improve energy efficiency. BC is uniquely positioned to lead this transition, thanks to government incentive and its strong commitment to clean electricity supply, primarily generated through heritage hydroelectric power and fast tracking of new clean power projects, including wind and solar. In addition to new power sources, there are also incentives to support demand side management activities to conserve energy and limit peak demand.

This commitment will be demonstrated through the legislative amendments that will be introduced in Spring 2025 to expand the mandate of the BC Energy Regulator (BCER), which started as the authority overseeing oil & gas development, to include the North Coast Transmission Line (NCTL) and other high-voltage electricity transmission projects. The aim is to enable BCER to be the primary regulatory authority for this project to meet the clean energy needs of major critical minerals, future port expansions, and LNG, hydrogen and other important resource projects in the North Coast.

Several major electrification initiatives are already underway in BC, further demonstrating the province’s commitment to reducing emissions and fostering sustainability. These include:

• Grid Expansion Projects: BC Hydro is actively working to extend its electricity grid to remote oil & gas sites, enabling companies to connect to clean power instead of relying on diesel or natural gas generators.

• Electrification of LNG Facilities: LNG facilities are significant energy consumers. BC is pushing for the electrification of LNG terminals to minimize their carbon footprint.

• Renewable Energy Integration: Companies are increasingly integrating renewable energy sources such as wind and solar power to supplement their electricity needs.

A key player in the energy transition is BC Hydro’s Alliance of Energy Professionals, a network of experts dedicated to assisting organizations to evaluate solutions to reduce energy consumption and GHG emissions. Alliance members, including BBA, provide essential services such as energy assessments, feasibility studies, and access to incentive programs designed to make the transition to electrification more feasible.

Despite the clear benefits, electrification in the oil & gas sector is not without challenges. Projects face high initial investment costs, infrastructure limitations in remote areas, and the need for regulatory alignment to support widespread adoption. However, with government support, continued advancements in clean energy technology, and the expertise provided through networks of professionals, such as the BC Hydro’s Alliance of Energy Professionals, these barriers can be studied and solutions analysed for cost effective and reliable power.

As BC continues to advance its clean energy initiatives, the oil & gas sector’s shift toward electricity-driven operations will not only help meet climate targets but also create long-term economic and environmental benefits.

By leveraging BC’s clean power resources, expanding electrification projects, and adopting innovative technologies, the province is leading the way for a more sustainable oil & gas industry.

Through collaboration between industry leaders, policymakers, and energy professionals, BC is well-positioned to set a precedent for sustainable energy transformation across Canada.