Page 10 - NorthAmOil Week 50 2020

NorthAmOil COMMENTARY NorthAmOil

The Canadian
government will also
propose new targets
and regulations for
methane emissions
from the oil and gas
industry.

setting out concrete steps to be taken for the This has not been well received by Alberta,
purpose of reducing emissions. It included a which has one of Canada’s highest unemploy-
number of other measures, such as investment ment rates following the oil price collapse earlier
into electric vehicles (EVs) and retrofit pro- this year. The provincial government has said it
grammes to achieve energy savings. will continue with plans to challenge the new
It is the big picture of reducing emissions, carbon tax hikes in court.
however, that is the driving force behind all the Alberta Minister of Environment Jason Nixon
other proposals unveiled as part of the plan. called the tax “another attack on Alberta’s econ-
And while this will have implications for every omy and Alberta’s jurisdiction”, claiming that
sector of the Canadian economy, it presents a it would suppress investment and raise costs.
particular challenge to the oil and gas industry, “This is not the time to be considering increas-
which is still reeling from this year’s downturn ing the cost of living for people of Alberta,” he
following years of low crude prices. said at a news conference last week.
And Reuters has reported that Canada’s
Complications Supreme Court is considering an appeal by Rising carbon
Rising carbon taxes complicate the recovery Ontario against the carbon tax.
for the Canadian energy industry, which is Meanwhile, Trudeau’s plan has received taxes complicate
already questioning its future as the energy praise – or at least more praise than other cli- the recovery for
transition picks up pace, while the possibil- mate change initiatives – from green groups,
ity of peak oil demand is increasingly being with Greenpeace Canada campaigner Keith the Canadian
considered. Stewart describing it as a “serious and well-
Indeed, Trudeau’s new plan also singles out thought out plan”. But the Green Party’s Paul energy industry,
the oil industry, saying Ottawa will propose still said Trudeau was not being nearly ambi-
to “strengthen Canada’s approach to reducing tious enough. which is already
methane emissions from the oil and gas sector This is in keeping with the response to most questioning its
by establishing new targets and associated reg- of Trudeau’s environmental initiatives as he has
ulations for 2030 and 2035, based on interna- sought to balance energy development with future.
tional best practices”. efforts to combat climate change. The oil indus-
These new targets and regulations are set to try and provinces say Ottawa is going too far,
be established through consultations with prov- while environmental groups maintain that it is
inces, the oil and gas industry and civil society, not going far enough. It appears unlikely that
according to the Canadian government’s state- there can be consensus between two sides under
ment. This suggests that the oil and gas indus- current circumstances. Indeed, this problem is
try could ultimately end up with even stricter not unique to Canada as countries all over the
emissions targets and related tax and regulatory world weigh up how to revive their economies
obligations. while accelerating decarbonisation.™

P10 www. NEWSBASE .com Week 50 17•December•2020