• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 12 mins EU has already lost the Trump vs. EU Trade War
  • 1 hour Judge Orders Trump To Release Tax Returns
  • 4 hours Does .001 of Atmosphere Control Earth's Climate?!
  • 11 mins Err ... but Trump ...? #Eggbox
  • 3 hours China's Renewables Boom Hits the Wall
  • 3 hours Offshore SE Asia: Offshore OFS Could Get Major Boost in SE Asia
  • 1 hour The lies and follies of the "cry wolf" enviros: No more fire in the kitchen: Cities are banning natural gas in homes to save the planet
  • 3 hours Saudi Aramco IPO Will Not Save Kingdom
  • 5 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 3 mins CHK Trading @ 90 Cents
  • 17 hours Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
Alt Text

Is U.S. Shale Circling The Drain?

There’s a lot going on…

Alt Text

Endless Economic Wars: A Major Threat For U.S. Oil Exports

The recently imposed Chinese tariffs…

Alt Text

How Much Oil Does The U.S. Really Own?

The scope of global oil…

Jen Alic

Jen Alic

 

More Info

Premium Content

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




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play