Page 5 - NorthAmOil Week 42 2021

NorthAmOil COMMENTARY NorthAmOil

Canadian Prime
Minister Justin Trudeau
has pledged to speed
up emissions cuts
from oil and gas, but
is facing industry
pushback.

production and what is required to maintain the targets for the oil and gas industry starting in
Paris Agreement target of restricting warming 2025.
to only 1.5 Celsius. However, at least one major Canadian oil pro-
The report ranked Canada fourth, fifth and ducer, Suncor Energy, has said such accelerated
11th for global gas, oil and coal output respec- decarbonisation plans are unrealistic. The com-
tively, with the country responsible for 4%, 5% pany continues to target 2030, rather than 2025
and 1% of production. It noted, however, that as set out by the government, as its next deadline
Canada was planning to increase its oil and for bringing in major emissions cuts.
gas production by 18% and 17% respectively “Honestly, 2025 is going to be tough,” Suncor’s
between 2019 and 2040. Given the timeline chief sustainability officer, Martha Hall Findlay,
Canada has set for decarbonising, this presents a told Reuters this week. “That’s not a number
challenge, and the report argued that it made no we’ve used, it’s a number the feds have used.”
sense to pursue partial decarbonisation meas- Suncor is one of the five members of the Oil
ures that would then have to be phased out in Sands Pathways to Net Zero initiative, and this
less than 30 years. It cited the use of natural gas week the group unveiled more details of how This week the
in transportation as an example. they would achieve decarbonisation of the oil
Separately, one other report, from the Inter- sands. The group said it had already begun group unveiled
national Energy Agency (IEA), projected last efforts to reduce oil sands emissions by 68mn more details
week that under existing climate policies, Cana- tonnes per year – aiming to cut 22mn tpy by
dian oil production would peak in 2030, grow- 2030, a further 25mn tpy by 2040 and by an of how they
ing by around 700,000 barrels per day (bpd) by additional 21mn tpy by 2050.
that year. However, if the country implements During the first phase of the plan, the group would achieve
new policies promised by the recently re-elected said it would focus on building out a carbon cap-
Liberal government, the agency estimates that ture network in the oil sands region. Detailed decarbonisation
available Canadian oil supply would fall by project plans for this phase are currently under of the oil sands.
100,000 bpd by 2030. And if the country opted development, it added.
to follow a path that could realistically take it to Al Reid, director of Oil Sands Pathways and
net-zero emissions by 2050, supply would fall executive vice president of stakeholder engage-
even faster. ment at Cenovus Energy – one of the companies
participating in the initiative – told the Financial
What next? Post that talks with federal and provincial gov-
Pressure is certainly rising on Canadian oil and ernments over additional support were ongoing.
gas producers to respond to such targets and “That’s a question we still have to answer,” he
findings. Last month, Canadian Prime Minister said, when asked whether current incentives
Justin Trudeau made a pre-election pledge to would be enough to help the oil sands to reach
introduce more aggressive emissions reduction net zero emissions.™

Week 42 21•October•2021 www. NEWSBASE .com P5