Page 4 - NorthAmOil Week 12 2021

NorthAmOil COMMENTARY NorthAmOil

Decarbonisation in the spotlight

for oil sands players

Canadian oil sands producers Suncor Energy and Imperial Oil have been in the news

in recent days for reasons related to decarbonisation

CANADA TWO leading Canadian oil sands producers that of other energy companies – in Canada and
– Suncor Energy and Imperial Oil – are in the elsewhere – that have adopted long-term net-
WHAT: news for reasons related to decarbonisation. zero targets. Indeed, the net-zero movement has
Suncor and Imperial have In Suncor’s case, the company announced last been gaining momentum, with more and more
both been in the news week that it was investing in Svante, a carbon oil and gas players adopting the target over the
recently in relation to capture technology company, as it seeks ways to past year especially. However, these companies
decarbonisation. offset greenhouse gas (GHG) emissions from have not determined how the net-zero goal is
its oil and gas operations. Imperial, for its part, to be reached – or at least not in the long term.
WHY: has urged investors to vote against a shareholder The technologies that will likely be required for
Imperial is urging caution proposal to set a target of net-zero emissions on this are still at an early stage of development, and
with regard to long-term a company-wide basis by 2050. The vote will still need to become cost-effective, which could
emissions targets, while take place at Imperial’s annual meeting in May, take years.
Suncor has made a new after the motion was put forward by Aequo Nonetheless, a growing number of com-
investment. Shareholder Engagement Services on behalf panies are focusing on such targets, includ-
of Quebec group retirement system company ing other leading oil sands players. Cenovus
WHAT NEXT: Batirente. Energy set a target of net-zero GHG emissions
Carbon capture is by 2050 last year, while Canadian Natural
anticipated to play a role Urging caution Resources Ltd (CNRL) says net-zero emis-
for both companies as The Batirente proposal argues that that Imperial’s sions from its oil sands operations is its ulti-
they work to reduce their current 2023 emissions reduction target is a step mate long-term goal, but has not revealed a
GHG emissions. in the right direction but that it is also important deadline for this.
to have a long-term strategy. Batirente’s CEO Imperial’s current goal is to reduce GHG
Daniel Simard stated that all companies – and emissions intensity by 10% by 2023 relative to
especially those in the energy sector – have to 2016 levels. The company says it has a portfolio
reduce their emissions by 2050 in line with the of technologies at various stages of commercial-
targets of the Paris Agreement on mitigating cli- isation that could be deployed to further reduce
mate change. emissions over the longer term. This includes
But Imperial has responded that it is “prema- the use of solvents to produce bitumen from oil
ture” to set such ambitious emissions targets sands wells with less energy and using carbon
before it has a concrete plan for how they are to capture and storage (CCS) to create emission
be reached. As a result, the company has recom- offsets.
mended voting down the proposal. Suncor, meanwhile, is targeting a 30% reduc-
Imperial’s position stands in contrast with tion in emissions intensity by 2030 compared

Suncor is the latest
producer to invest
in Svante, a carbon
capture technology
company.

P4 www. NEWSBASE .com Week 12 25•March•2021