Page 10 - NorthAmOil Week 41

NorthAmOil COMMENTARY NorthAmOil

Suncor Energy is also
in discussions with
Ottawa on potential
investments in building
small nuclear reactors
that would supply
power to oil sands
operations and CCS
facilities.

wealth fund pulled its investments from four oil industry through its recent purchase of the
sands companies. Since then, a handful of other Trans Mountain pipeline system in a bid to res-
financial institutions have announced similar cue the expansion project. Ottawa also supports
moves to withdraw from the oil sands, or at least plans to gradually reduce the emissions inten-
stop financing new projects in the region. The sity of Canadian oil while still producing the
names involved include Mitsubishi UFJ Finan- resource.
cial Group, Deutsche Bank and Robeco. Mean- “Certainly for the coming decades, oil will
while, insurer Zurich has said it will not renew continue to be used and Canada needs to
coverage for the Canadian government’s Trans continue to extract value from its resources,”
Mountain pipeline expansion from the oil sands Canadian Environment Minister Jonathan
to the British Columbia coast. Wilkinson was quoted by Reuters as saying.
“The first step is reducing carbon intensity.”
Seeking support Ottawa has not said whether it would con-
Canada’s oil and gas industry had been hoping sider granting financial aid to ventures such as
that efforts to reduce greenhouse gas (GHG) the ones Suncor is pushing to receive support
emissions from the oil sands would bring back for. However, it appears that such aid cannot be
investment, but this is not what is currently play- ruled out.
ing out. They are thus having to figure out how Suncor is also in discussions with Ottawa on Meanwhile, the
to proceed when faced with reduced access to potential investments in building small nuclear
capital and a market that remains highly vulner- reactors that would supply power to oil sands list of investors
able to new volatility, including as a result of new operations and carbon capture and storage shunning the
waves of COVID-19. (CCS) facilities, according to Hall Findlay. Spe-
Against this backdrop, Suncor Energy, a cific proposals on this have not yet been put oil sands on
leading oil sands producer, is pushing for the forward, though, and such technology remains
Canadian government to invest in several pro- at an early stage, which means it could be years environmental
jects with environmental goals. These include before it can be deployed in the oil sands on a
a C$1.4bn ($1.1bn) cogeneration scheme to commercial basis. However, Hall Findlay said concerns has
replace boilers fired by petroleum coke with using such reactors as a power source would cut continued to
natural gas. The project, which had been sus- oil sands emissions.
pended by Suncor in order to conserve cash, If Suncor is seen to be making headway with grow.
would reduce the company’s emissions and dis- such initiatives, other oil sands producers may
place some coal-fired power from Alberta’s grid. pursue similar schemes. In any case, the oil
“Let’s collaborate. We’re not asking for a hand- sands industry has not yet given up on trying
out,” Suncor’s chief sustainability officer, Martha to find a way forward in an increasingly envi-
Hall Findlay, was quoted by Reuters as saying. ronmentally conscious world. And given that
“It’s what do we have to do to make sure the Ottawa continues to support Canadian resource
business is economically viable.” extraction, financial backing from the govern-
Canada’s government has shown its will- ment is not out of the question, especially if it
ingness to participate in the country’s energy involves green initiatives.™

P10 www. NEWSBASE .com Week 41 15•October•2020