• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 11 mins UK, Stay in EU, Says Tusk
  • 59 mins Socialists want to exorcise the O&G demon by 2030
  • 9 hours How Is Greenland Dealing With Climate Change?
  • 11 hours Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 5 hours Venezuela continues to sink in misery
  • 9 hours German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 11 hours WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 5 hours Maritime Act of 2020 and pending carbon tax effects
  • 1 day "Peace Agreement" Russia vs Japan: Control Over Islands Not Up For Discussion
  • 1 day BofA Sees Oil at $35-70
  • 1 day Regular Gas dropped to $2.21 per gallon today
  • 12 hours Trump inclined to declare national emergency if talks continue to stall - Twitter hides this as "sensitive material"
  • 17 hours Orphan Wells
Alt Text

Fears Of U.S. Shale Demise May Be Overblown

Recent reports have highlighted growing…

Alt Text

There’s No Sugarcoating Canada’s Oil Crisis

Beyond heavy oil production in…

Alt Text

U.S. ‘Tough Line’ On Iran Depends On Crude Prices

As the White House compliments…

Jen Alic

Jen Alic

 

More Info

Trending Discussions

Oil Majors Support C02 Tax in Canada

Exxon Mobil Corp. (NYSE: XOM), France’s Total SA and Cenovus Energy Inc. (CVE) are all actually seeking the imposition of a tax on carbon dioxide emissions in Canada. It’s not a change of heart, it’s about the bottom line.

Here’s the deal: These companies are planning to convert billions of barrels of Canadian oils sands bitumen into diesel and gasoline and they need to get it to foreign markets. The problem is that this product will leave a much larger carbon footprint than regular fossil fuels.

A carbon tax could ease the competition in terms of greenhouse gases. Simply put, lobbying for a C02 tax might open up access to markets for them.

Related article: Glencore Poised to Become Largest Russian Oil Trader

A tax would be simpler, more predictable and preferable in market terms to the cap-and-trade system, which has done woefully in Europe. 

Of course, this alignment of the oil majors and the C02 tax system in Canada has sparked the ire of Prime Minister Stephen Harper who has long stood against the carbon-dioxide emissions tax put forth by his political opponents.

Harper wishes to tackle emissions at an industrial level rather than through a C02 tax that he believes would distort the economy.

Related article: Why has US Oil Consumption Steadily Fallen since 2004?

The C02 is a “liberal” policy and the Conservatives may be stymied by Exxon and the growing ranks of oil majors supporting the carbon tax.

The bottom line is that Exxon (NYSE: XOM) and friends understand that this issue has to be resolved. If it isn’t, if something isn’t done about the carbon footprint, the domestic market will become over saturated because foreign markets will be closed off. It’s a pragmatic move, however much Canada’s Conservative MPs dislike it.

By. Jen Alic of Oilprice.com




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News