Page 5 - NorthAm Week 25 2021
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NorthAmOil                                   COMMENTARY                                          NorthAmOil



















































                         will delay a rise in upstream spending in the oil   Efforts to address this are picking up pace,
                         sands, factored into the reduction in the IHS  with Canada’s nationwide emissions reduction
                         Markit long-term growth expectation.”  target of net zero by 2050 adding to the pres-
                           Indeed, the consultancy envisions more than  sure. In late May, oil sands producer Suncor
                         80% of the growth in its outlook coming from  Energy set its own net-zero target for 2050.
                         the ramp-up, optimisation and completion of  This was followed by the formation of an alli-
                         projects where some capital has already been  ance in early June among the five leading oil
                         invested. It said that nearly two-thirds was  sands producers – including Suncor – aimed
                         expected to come from the ramp-up of existing  at achieving net-zero emissions from the oil
                         operations.                          sands by 2050.                       Despite ongoing
                                                               This task is considerable, however. Reuters
                         What next?                           reported this week that the three main hopes   decarbonisation
                         Another major disincentive for making new  for the region are carbon capture and stor-  efforts, the oil
                         investments in the oil sands is the ever-accel-  age (CCS), steam-reduction technology and
                         erating push to embrace the energy transition.  the deployment of renewables to power the   sands continue
                         A number of international majors has already  oil sands. But – especially in the case of CCS
                         exited the oil sands over the past few years, which  – there will be considerable costs involved.  to grapple with
                         has been attributed both to the region’s econom-  Producers are pushing for federal financial
                         ics and a desire to appear more environmentally  support to help CCS take off in the region, and   public image
                         friendly. And despite ongoing decarbonisation  while Ottawa has unveiled a tax credit for the   issues.
                         efforts, the oil sands continue to grapple with  technology, to be launched in 2022, oil sands
                         public image issues.                 players have expressed dissatisfaction with its
                           Oil sands producers have already succeeded  structure.
                         in reducing their emissions intensity per bar-  The provincial government of Alberta, mean-
                         rel by 21% from 2009 to 2019, according to  while, is calling on Ottawa to invest CAD30bn
                         IHS Markit, but absolute emissions have risen  ($24bn) in CCS over the next decade. Any plans
                         alongside output. Another consultancy, Rystad  for new CCS investments are likely to attract
                         Energy, estimates that the oil sands yield 3-5  criticism from those arguing that fossil fuels
                         times the global average of emissions per barrel  should be abandoned altogether. But a full-scale
                         of oil equivalent (boe), because of the energy-in-  exit from fossil fuels would be even more costly
                         tensive production processes involved.  and complicated.™



       Week 25   24•June•2021                   www. NEWSBASE .com                                              P5
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