• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 17 hours Solving The Space Problem For America’s Solar Industry
  • 7 hours How Far Have We Really Gotten With Alternative Energy
  • 19 hours Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 3 days Investment in renewables tanking
  • 8 days If hydrogen is the answer, you're asking the wrong question
  • 8 days "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
3 Energy Dividend Stocks To Consider This Summer

3 Energy Dividend Stocks To Consider This Summer

The oil market supply balance…

Europe’s Nuclear Power Puzzle

Europe’s Nuclear Power Puzzle

The ongoing disagreement among European…

Canada Oil Industry Needs $51 Billion To Decarbonize

Canada’s oil sands producers would need investments amounting to some US$51 billion (C$65 billion) to be able to reduce its emissions footprint while increasing production in line with demand, RBC has calculated.

In the report, RBC analysts said that Canada could boost its oil production by half a million barrels daily, but this would result in annual emissions of  9 million tons of carbon dioxide, which would cost more than $1 billion (C$1.5 billion) to offset, the Financial Post reported.

To reduce the effect of their production growth activities, then, Canadian oil producers would need to invest between $35.1 billion and $51 billion between 2024 and 2030 in carbon capture, Bloomberg reported.

According to the report authored by RBC economists Colin Guldimann and Yadullah Hussain, carbon capture will be necessary in order for Canada to hits its emission reduction target of 22 million tons stipulated in the Oil Sands Pathways Initiative. Carbon taxes would cover about 50 percent of the cost of the emission reduction push.

At the same time, Canadian crude is becoming vital for the energy supply security of Western nations, RBC economist Colin Guldimann told the Financial Post.

“What current events have really shown us is that oil and gas are, and are likely to remain, critical parts of our energy supply for at least the foreseeable future,” he told the news outlet in an interview, adding, “Crises can be clarifying moments.”

“We need a really concerted effort over the next 24 months or so in laying out the foundation for where emissions cuts can come from,” Guldimann also told the Financial Post.

“Be that methane reductions, electrification of the oil and gas system, but also laying out major emissions plans, on top of what the government has already said, that include long-term decarbonization investments like carbon capture.”


By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News