Tourmaline has been actively pursuing diesel displacement initiatives throughout its operations by replacing or retrofitting drilling and completions equipment to run on natural gas. Auxiliary trucking, however, still represents a large source of diesel consumption in the natural gas life cycle. This can be curtailed by utilizing Compressed Natural Gas (CNG) in our heavy trucking operations, resulting in a significant reduction in greenhouse gas emissions. We are interested in all innovations in the value chain of CNG technology for heavy trucking.
Oil and gas operations rely on a significant amount of commercial trucking; drilling and completing a single well in Alberta can require cumulative heavy transport distances exceeding 200,000 km. As is common practice around the world, these vehicles typically run on diesel fuel. Natural gas provides an attractive alternative: it has a lower carbon intensity, lower cost per Joule, and it is manifestly available throughout Tourmaline’s operations. We have had enormous success in similar diesel displacement projects by replacing or retrofitting generators at our well sites, but transportation services carry new and different hurdles to overcome. The lack of infrastructure, cost of conversion, and low rates of adoption have so far limited natural gas vehicles to a small niche in North American trucking. Additional low-cost technological innovations at all steps of the CNG value chain will be necessary to see uptake in the market. Tourmaline is well positioned to be a nucleation point for such technologies given the abundant local natural gas supply and substantial auxiliary trucking operations.
Tourmaline is Canada’s largest natural gas producer, with over 400,000 boepd production through our Montney, Peace River, and Deep Basin business units in Alberta and British Columbia. With an extensive production base and infrastructure network to support 75-years of drilling inventory, we are uniquely situated to lead our peers as our industry evolves. By maintaining low capital costs and a strong balance sheet, Tourmaline continuously invests in new technologies for a sustainable future and strives to always improve our environmental performance.