Page 10 - NorthAmOil Week 23

NorthAmOil COMMENTARY NorthAmOil

To date Enbridge’s
renewable assets
consist primarily of
offshore wind projects.

and renewables account for CAD1bn ($747mn) Separately, in its World Energy Outlook, the
each. IEA states that offshore wind has the “technical
Enbridge’s renewable assets consist primarily potential” to meet current electricity demand
of offshore wind projects in the UK and Ger- “many times over”.
many, and the company is looking primarily to “There’s still lots of runway for oil and natural
Europe as it sets about expanding its renewable gas but it makes sense for us to mirror that global
footprint. According to Monaco, this is because supply picture. I think you’ll find most compa-
Europe benefits from more established supply nies, or the vast majority of companies in our
chains and more attractive power-purchase sector, are not positioned in that way,” Monaco
agreements (PPAs). said. “We think having a diversified approach,
“Supply chains are now extremely well having a gradual approach to the transition
developed in [Europe] in terms of engineering, through natural gas and renewables makes a lot
equipment and the sheer know-how of how to of sense,” he said.
deal with offshore wind projects. We also know Canadian upstream companies are also start-
that from a public policy perspective, Europe is ing to adjust their strategies in response to the
quite advanced and we see very good commer- energy transition. Earlier this year, Cenovus
cial models there,” Monaco said. “I think the Energy unveiled a target of “net zero” emissions
US could be a good opportunity for the future. by 2050, joining a handful of oil companies glob- Oil continues to
We’ve chosen to focus on Europe because that’s ally to set similar goals.
where the big prize is for us at the moment,” he Meanwhile, Suncor Energy’s CEO, Mark be the leading
added. Little, has been talking up the oil sands indus- component of
Enbridge has already identified several try’s climate-related initiatives, co-authoring an
renewable opportunities offshore France. The article in early June on potential ways oil sands global energy
company announced on June 2 that it had kicked players could take a lead in the energy transition.
off construction on the Fecamp windfarm off the (See NorthAmOil Week 22) consumption.
coast of north-west France in partnership with It is likely that this trend will accelerate, with
EDF Renewables and wpd. more companies pivoting towards lower-carbon
options in the coming months and years. How-
What next? ever, the process will be a slow one.
Oil continues to be the leading component of “Climate change is happening a lot faster and
global energy consumption, accounting for 32%, we’ve committed a lot of warming already,” an
according to the International Energy Agency’s associate professor at the University of Water-
(IEA) World Energy Balances from 2019. This loo and Canada Research Chair in energy
compares with coal comprising 28%, gas making transitions, Juan Moreno-Cruz, was quoted
up 22%, biofuels accounting for 9%, nuclear 5%, by the Financial Post as saying. He added that
hydro 2% and wind and solar just 1%. However, Enbridge would need to look to a broad range
the agency predicts that the share of gas and of industries and technologies – not just off-
renewables will grow rapidly, while oil consump- shore wind – to meaningfully shift its portfolio
tion will eventually decline. towards renewables.™

P10 www. NEWSBASE .com Week 23 11•June•2020