Page 4 - NorthAmOil Week 40 2021

NorthAmOil COMMENTARY NorthAmOil

Canadian companies call on Ottawa

to help with CCS funding

The Canadian Association of Petroleum Producers has revealed that it has asked the

Canadian government to fund 75% of carbon capture and storage costs

CANADA THE Canadian Association of Petroleum Pro- gas production with long-term decarbonisation
ducers (CAPP), an industry group, has revealed goals.
WHAT: that it has asked Ottawa to design a tax credit that Indeed, Canada is the world’s fourth-largest
The CAPP has asked the would cover 75% of the cost of building carbon oil producer, with its oil sands production often
Canadian government to capture and storage (CCS) facilities for oil and in the spotlight because of the region’s compar-
fund 75% of the costs of gas operations. The request was made in August atively high greenhouse gas (GHG) emissions
CCS construction with a to the Canadian Department of Finance, the intensity. The country has set a goal of net-zero
tax credit. CAPP’s vice-president of oil sands, Ben Brun- GHG emissions by 2050, and some of its leading
nen, told Reuters this week. producers have followed suit, setting individual
WHY: This came before Canada’s snap election in net-zero targets and a collective one to decar-
The industry is concerned September, in which Prime Minister Justin bonise the oil sands. CCS is expected to play a
about the high cost of Trudeau managed to hang on to power but his significant role in this.
building CCS facilities Liberal Party fell short of the majority he had However, the cost of building CCS facilities
specifically for oil and been trying to secure. Now that the election is specifically for oil and gas poses an obstacle,
gas. over, it appears that the Canadian oil and gas according to Brunnen. This is because carbon
industry is keen to turn the government’s atten- captured from oil and gas operations is less
WHAT NEXT: tion back to CCS. concentrated than that from certain other large
Ottawa is exploring emitters, such as fertiliser plants, he was cited by
a tax credit for CCS High costs Reuters as saying.
construction but has not CCS, also known as carbon capture, utilisa- “Because of that, this [credit] needs to be
revealed how much it tion and storage (CCUS), is increasingly being designed to drive a balance and reflect the eco-
could cover. pursued as the energy transition accelerates. It nomic realities,” he told the news service. “The
presents oil and gas companies with an option government role should be providing the play-
to keep producing fossil fuels while offsetting ing field to enable companies to make these
their environmental impact. As a result, the investments.”
concept is gaining popularity in some countries Ottawa is already considering a tax credit
that are trying to balance high levels of oil and for CCS investment, but has not disclosed any

P4 www. NEWSBASE .com Week 40 07•October•2021