The chief govt of oil and fuel big Canadian Pure Assets Ltd. says Canada’s oil and fuel sector is banking on know-how and innovation to cut back its greenhouse fuel footprint over time, however received’t be capable 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 reaching 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 Web Zero alliance — want certainty round future authorities insurance policies and expectations.
“When you do a carbon discount challenge, you wish to be certain that 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 global settlement to cease new direct public finance for coal, oil and fuel growth 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 frightened, 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 relating to emissions discount is carbon seize and storage at its oilsands website. The corporate is the biggest proprietor of carbon seize and storage capability within the Canadian oil and fuel sector. Its Quest carbon seize facility on the Athabasca Oil Sands challenge has captured 5 million tonnes of C02 over the past 5 years, and the corporate can also be a 50 per cent associate within the North West Refinery, which provides C02 to the Alberta carbon trunk line, a large-scale carbon seize and transportation challenge.
READ MORE: New Alberta carbon capture project now fully operational
CNRL’s each 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 elevate 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 internet 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 return. Nevertheless, he mentioned there are different methods to proceed to develop and add worth for shareholders.
“You’ll be able to develop via acquisitions as effectively,” he mentioned. “To me, one of many issues we do very effectively is we’re an excellent operator, and so long as you’re a superb operator, you possibly can take alternatives to consolidate and do a greater job and develop your manufacturing.”
© 2021 The Canadian Press
