Canada’s main oil producers at the moment are united in making an attempt to realize net-zero greenhouse fuel emissions by 2050, calling their plan good for the economic system. But one group says it is a public relations push to get federal cash.
Under an alliance introduced Wednesday, the nation’s 5 greatest oilsands producers will mix forces, cash and know-how to cut back emissions in one of the carbon-intensive jurisdictions on this planet.
The alliance contains Canadian Natural Resources, Cenovus Energy, Imperial Oil, MEG Energy and Suncor Energy, which collectively function 90 per cent of the nation’s oilsands manufacturing.
“We found out that by working together we can do this faster, we can accelerate the results and drive down the costs,” stated Mark Little, president and CEO of Suncor.
A key joint effort could be to construct a carbon-sequestration trunk line for all the firms’ services to deposit captured atmospheric carbon dioxide underground close to Cold Lake, Alta.
Still, no income sources are related to sequestration and storing emissions, Little stated, so the businesses should work with authorities on public-private partnerships to assist fund the undertaking “to make sure that this is going to make sense for our shareholders.”
There’s no particular greenback quantity quoted for the funding pitch, however the oil firms hope assist comes from the federal and Alberta governments.
Suncor’s CEO stated it is value investing within the plan, including all the initiative goes to price about $2.5 billion a yr for an trade that is producing authorities revenue of about $15 billion a yr, as the businesses additionally faucet into rising emissions-reducing applied sciences.
Push to maneuver away from fossil fuels
Keith Stewart, a senior vitality strategist with Greenpeace Canada, stated international traders and the International Energy Agency say reaching net-zero emissions ought to imply stepping into renewable vitality initiatives and out of pumping oil, and traders need to see company plans that steer away from fossil fuels.
“That’s what the market is demanding, that’s what the science demands,” Stewart stated.
Little referred to as the brand new initiative a “super-extension” of 2012’s Canadian Oil Sands Innovation Alliance (COSIA), aimed toward growing options to issues tied to the oilsands. Stewart referred to as COSIA largely a “stalling tactic.”
He stated there are options to extending the oil enterprise, however the executives “just can’t imagine that world.”
“And if they can’t imagine it, they’re gonna end up being the Blockbuster Video of the 21st century, [which] didn’t recognize what the threat from Netflix was,” Stewart stated.
“We really need to see this as a public relations push, and a push for government funding. They really need to get serious with changing their business plan.”
Stewart stated the know-how is on the market now to modify from oil, fuel and coal to renewable vitality, and in accordance with the International Energy Agency, net-zero means not constructing new fossil gas infrastructure.
He stated the alliance thinks it “can keep selling oil forever, and that’s just not what the science says.”