The chief govt of oil and fuel big Canadian Pure Sources Ltd. says Canada’s oil and fuel sector is banking on know-how and innovation to scale back its greenhouse fuel footprint over time, however received’t have the ability to do it with out the help of federal and provincial governments.
On Thursday, CNRL chief govt Tim McKay mentioned the corporate “would require collaboration” from authorities with the intention to meet its aim of attaining net-zero greenhouse fuel emissions by 2050.
READ MORE: Canada among highest energy consumers as countries move to net zero emissions
In an interview, McKay mentioned the aim is achievable, however CNRL _ in addition to the opposite 5 firms which are a part of the Oil Sands Pathway to Internet Zero alliance — want certainty round future authorities insurance policies and expectations.
“When you do a carbon discount undertaking, you wish to be certain the goalposts don’t change over time,” McKay mentioned. “So to me, it’s actually understanding the time-frame and what the expectation is.”
McKay’s feedback come the identical week Prime Minister Justin Trudeau and different authorities representatives are attending COP26, the UN local weather convention in Scotland. Amongst different issues, Canada has dedicated to a federal cap on greenhouse fuel emissions produced by Canada’s oil and fuel trade.
READ MORE: Alberta oil and gas industry, environmental groups watching COP26 climate talks
On Thursday, Canada additionally signed onto a world settlement to cease new direct public finance for coal, oil and fuel improvement by the tip of 2022.
McKay identified that Alberta has had a cap on emissions from the oilsands particularly since 2015, and the trade has been in a position to work inside that.
“So I don’t know that we’re apprehensive, however clearly we have to see the main points and perceive them,” McKay mentioned.
Within the third quarter of 2021, CNRL set new environmental targets. It says by 2030, it would cut back absolute methane emissions by 50 per cent from its 2016 baseline, and by 2026, will cut back in situ freshwater utilization and mining freshwater utilization depth by 40 per cent from 2017 baselines.
McKay mentioned the low-hanging fruit in terms of emissions discount is carbon seize and storage at its oilsands web site. The corporate is the most important proprietor of carbon seize and storage capability within the Canadian oil and fuel sector. Its Quest carbon seize facility on the Athabasca Oil Sands undertaking has captured 5 million tonnes of C02 over the past 5 years, and the corporate can also be a 50 per cent accomplice within the North West Refinery, which provides C02 to the Alberta carbon trunk line, a large-scale carbon seize and transportation undertaking.
READ MORE: New Alberta carbon capture project now fully operational
CNRL’s every day manufacturing averaged 1,237,503 barrels of oil equal per day within the third quarter of 2021, up from 1,111,286 a 12 months in the past. Like all Canadian oil and fuel producers, the corporate benefited from surging commodity costs _ posting a third-quarter revenue of $2.2 billion.
CNRL additionally introduced Thursday it would increase its quarterly dividend by 25 per cent, to 58.75 cents per share.
Canadian Pure’s revenue amounted to $1.86 per diluted share for the quarter ended Sept. 30, up from $408 million or 35 cents per diluted share in the identical quarter final 12 months.
The corporate reported income of $7.71 billion, up from $4.5 billion within the third quarter of 2020. It additionally decreased its web debt to roughly $15.9 billion, down from $18.2 billion within the second quarter.
McKay acknowledged {that a} cap on emissions from oil and fuel manufacturing could make it troublesome for firms like CNRL to develop organically in years to come back. Nonetheless, he mentioned there are different methods to proceed to develop and add worth for shareholders.
“You’ll be able to develop by way of acquisitions as properly,” he mentioned. “To me, one of many issues we do very properly is we’re an excellent operator, and so long as you’re a superb operator, you’ll be able to take alternatives to consolidate and do a greater job and develop your manufacturing.”
© 2021 The Canadian Press
