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Canada's oil sands CEOs press back against proposed oil and gas emissions cap

Canada's most significant oil sands producers support a paying a tax on carbon but see a proposed federal oil and gas emissions cap as unnecessary legislation, the business' CEOs told lawmakers in Ottawa on Thursday.

Executives from Suncor Energy, Imperial Oil , Cenovus Energy, Enbridge and Shell appeared via videolink before a House of Commons committee to respond to concerns on their efforts to cut emissions.

Prime Minister Justin Trudeau's Liberal federal government is preparing to present a cap on oil and gas emissions however deals with stiff opposition from manufacturers, who argue the legislation is unneeded due to the fact that Canada already has regulative incentives in place, consisting of a price on carbon produced by industry.

I do support a rate on carbon across the economy since I. believe that will drive the innovation, the financial rewards. on all of our part to continue to enhance our service, stated. Suncor CEO Rich Kruger.

I fundamentally fret that a cap on emissions, the method it's. constructed, will be a cap on production, he included.

The oil and gas sector is Canada's highest-polluting. market, accounting for more than a quarter of all emissions,. and in 2022 made record earnings as oil costs skyrocketed during. Russia's intrusion of Ukraine. Environment campaigners state business. should invest more of their revenues in decarbonization.

Kruger's opposition to a cap was echoed by Imperial CEO Brad. Corson and Cenovus CEO Jon McKenzie.

Canada has a few of the most stringent regulative. requirements of any location worldwide, which is why when it. pertains to something like an emissions cap, I think it's. unnecessary, stated Corson. There's plenty of other cars and. requirements in location.

Climate supporters said oil sands business lack. extensive methods to decarbonize regardless of repeated. pledges to do.

Today's statement is a tip that additional. regulation is urgently needed if Canada's oil and gas sector is. going to meaningfully decrease its emissions, said. Marie-Christine Bouchard, oil and gas program director at the. Pembina Institute.

PATHWAYS ALLIANCE

Canada is the world's fourth-largest oil producer, with a lot of. of its 5 million barrels each day of production coming from the. northern Alberta's oil sands.

Suncor, Imperial and Cenovus become part of the Pathways. Alliance, a group of oil sands producers proposing to invest. C$ 16 billion ($ 11.70 billion) in a carbon capture and storage. ( CCS) task. However, progress has actually been sluggish and the group is. looking for more public financing from federal and provincial. governments before making a last investment choice.

Before we can put shovels in the ground, we need numerous. federal government authorizations and approvals and we require regulatory. certainty and co-investment commitments, McKenzie stated.

The CEOs supported keeping a rate on carbon contamination,. which would assist supply a revenue stream for Pathways'. sequestered emissions, although McKenzie said it required to be. universally used and could not target simply one market.

Carbon prices has become a political problem after federal. opposition leader Pierre Poilievre pledged to scrap Canada's. consumer carbon tax, prompting questions over the future of the. industrial carbon price.

Poilievre's Conservatives are leading the Liberals in surveys. ahead of an anticipated election next year.

The session was at times combative, with some legislators. criticising the CEOs for the high emissions strength of their. crude. Laurel Collins of the left-leaning New Democratic Celebration. asked Suncor's Kruger how he slept in the evening offered the danger of. environment change.

I appreciate your desire to create headings, to point. fingers that attempt to villanize the market, Kruger stated in. reaction.