With a target on its back, oilpatch still upbeat as COP26 nears | CBC News

Our planet is altering. So is our journalism. This story is a part of a CBC Information initiative entitled “Our Changing Planet” to point out and clarify the consequences of local weather change and what’s being accomplished about it.

On the eve of the COP26 United Nations local weather convention, a degree of unease throughout the Canadian oilpatch is perhaps anticipated. There are requires international locations around the globe to wind down their oil and fuel manufacturing as a crucial step wanted to slash emissions and deal with local weather change.

The fast wind-down of fossil fuels is required, Environmental Defence’s Julia Levin warned final week, “with the intention to restrict catastrophic ranges of warming, save hundreds of thousands of lives and finish hurt to front-line communities.”

However after a number of years of low commodity costs, many power firms are having fun with a return to hefty income. Oil and gas prices are at multi-year highs — although that is resulting in requires firms to earmark these funds to hurry up their efforts to scale back emissions.

On the similar time, the world is experiencing a shortage of fossil fuels as economies emerge from the pandemic — a state of affairs that is supporting the business’s argument that oil and pure fuel, particularly, stay crucial for on a regular basis life.

In Canada, many within the oilpatch additionally see alternative in utilizing know-how to drive down greenhouse fuel emissions. They contend the sector can play a task in serving to the nation obtain its local weather targets.

  • Have questions on COP26 or local weather science, coverage or politics? E mail us: ask@cbc.ca. Your enter helps inform our protection.

Contemplating that the oilsands symbolize about 11 per cent of Canada’s whole emissions and the remainder of the oilpatch produces about one other 15 per cent, the fossil fuel sector in Western Canada will probably play a crucial position in figuring out whether or not the nation reaches its 2030 local weather objective.

Complete CO2 emissions from the sector maintain climbing as manufacturing is at a report excessive in Alberta.

The Convention of Events (COP), because it’s recognized, meets yearly and is the worldwide decision-making physique set as much as implement the United Nations Framework Convention on Climate Change, adopted within the early Nineteen Nineties, and subsequent local weather agreements.

To debate the upcoming COP26 convention in Glasgow and the trail forward for the oilpatch, CBC Information spoke with three individuals who have labored with and within the business: 

  • Martha Corridor Findlay — Suncor Power’s chief sustainability officer and a former Ontario Liberal MP
  • Andy Mah — CEO of Benefit Power, an oil and fuel producer in northern Alberta that owns a stake in Entropy, a carbon seize and sequestration agency.
  • Gary Mar — CEO of the Canada West Basis, the previous CEO of the Petroleum Providers Affiliation of Canada and a former Alberta setting minister who attended COP5 as a part of Canada’s delegation.

The interview has been edited for size and readability.

Q: COP26 is lower than one week away. Are you nervous?

Martha Corridor Findlay: Nervous is not it. I feel, frankly, each alternative that we collectively have to interact in discussions about how we’re truly going to unravel this huge problem of local weather change is useful. It is not useful when you simply have the identical individuals who have the identical concepts all saying the identical factor. It’s actually useful whenever you get individuals who would possibly truly be ready to problem. So a few of the environmentalists difficult what we’re doing within the oilsands; folks from the oilsands difficult environmentalists by saying, ‘Simply wishing it had been so is not gonna make it occur.’ So how can we be reasonable? Let’s truly try to work collectively collaboratively simply as we have accomplished when it comes to pandemics and vaccines. I feel we will use that as an actual instance. This can be a enormous world drawback, too. So how can we take classes from that collaboration and determine the answer? So I am hopeful, truly.

Andy Mah: I would like to simply add that as fossil gas firms, we do acknowledge that we could be a vital contributor to an answer. The panic that we have to rid the world of fossil fuels instantly will not be a easy reply. I actually imagine the power sector has the talent set that is wanted to seek out the options right here.

Gary Mar:  It will be very tough drafting the aims of COP26 and what success seems to be like once we’re butting up in opposition to an actual energy crisis in Europe right now, as we converse. It’s going to be vital to acknowledge that merely ridding the world of fossil fuels will not be going to be the answer that will get us to the place we wish to be. And I’d body the query otherwise. There are some individuals who say that the query ought to be: Ought to we’ve got a hydrocarbon-free world? And that is the improper query. I feel that the higher query is: What can we do to make this an emissions-free future?

WATCH | Ought to Canada get credit score for lowering emissions elsewhere on this planet?

Some power advocates need Canada to export extra pure fuel to displace coal in international international locations

The Canada West Basis’s Gary Mar, Suncor’s Martha Corridor Findlay, and Benefit Power’s Andy Mah talk about whether or not Canada ought to get credit score for lowering emissions elsewhere on this planet. 5:40

Q: How would you describe the curiosity in carbon seize and storage (CCS) proper now in Alberta?

Mah: The bigger companies are speaking about these giant mega-hubs, if you wish to name them that. We’d assist that. However let’s additionally permit smaller centres the place we will, particularly for the reason that transport of CO2 may be expensive. If we will have everyone pushing in the identical path, the extra probably we will make traction right here rapidly. We simply acquired to guarantee that we’ve got the assist politically, the general public, after which clearly I feel the industries are there already.

Corridor Findlay: One factor that we actually have to maintain clear is that capturing carbon and sequestering it is not a money-making enterprise. It isn’t like pulling oil out of the bottom or fuel out of the bottom and promoting it. This can be a price.

Carbon pricing is one thing that Suncor has supported for over 20 years and helps the economics of this sort of effort. In case you have a look at the oilsands’ Pathways to Net Zero project, we’ve got a foundational challenge, which is carbon seize use and storage. Alberta and underneath the North Sea occur to be the 2 areas on this planet which have the perfect geology for carbon sequestration. There’s the Quest project [in Alberta] and Boundary Dam in Saskatchewan, so in Canada, we all know these items. We’re very enthusiastic about Pathways, however I want to return to the purpose about price. CO2 will not be for us a revenue-generating factor. And for this reason whenever you have a look at the two other major CCUS [carbon capture, utilization and storage] tasks globally in Europe, each are huge collaborations between the personal sector and the federal government.

Are you able to think about the Canadian oilsands going from being the unhealthy boy of emissions to being internet zero in our manufacturing and due to this fact being the world’s most popular supply of oil? I feel that is an incredible story for Canada.

Suncor Power’s Fort Hills mine, which opened in 2018, was the final oilsands megaproject to be constructed in northern Alberta. Suncor is one in all 5 Canadian oil firms concerned within the Pathways to Web Zero initiative. (Kyle Bakx/CBC)

Q: Power analysis agency Wood Mackenzie is calling the oil price windfall a ‘golden alternative’ to hurry up decarbonization. Will the oilpatch be placing its sizable income this 12 months towards sooner and deeper emission cuts?

Corridor Findlay: Suncor has for many years been working at lowering emissions. Our emissions depth per barrel, as an business, has gone down 20 or 30 per cent. That is so much. That did not come without spending a dime. We perceive the problem. Additionally recall that in COVID, at one level we had been at minus $26 US a barrel WTI. Our business ended up racking up main money owed, so now we’re very busy paying down debt, which is vastly vital. However we’ve got buyers who usually are not relying on multi-year excessive costs and are saying you want to have the ability to have economics assist infrastructure. Are we sustainable finance choices? Sure, however we’re a enterprise. Our buyers anticipate us to proceed to be a profitable monetary enterprise. Costs are excessive now, however we merely cannot rely on them. Are we each different that we will to make this occur? Completely. Are we going to want huge collaboration, the way in which we see in Europe? Sure.

Mar: Again in 2005 by way of 2011, once I was on the Canadian Embassy in Washington, D.C., we’d carry congressional delegations as much as see the oilsands, however we at all times stopped at Boundary Dam [Power Station in Estevan, Sask.] in order that they may see what CCS seemed like. On the time, I feel it was seen as being a little bit of a science experiment, however I feel it is more and more gotten credibility as this course of has labored. I view this as an enormous alternative for creating, as I say, future-fit hydrocarbons in a approach that we will maintain the carbon within the floor and use the power that’s generated from it.

Mah: We do see now a couple of years of stronger pricing. What I see on the bottom is a paradigm shift amongst loads of the management groups on this city. Even supposing we might even see some actually robust income within the firms, the dialogue round producing and lowering emissions is simply as robust on the board tables. I have been within the enterprise over 40 years, however once I began this is able to have been a dialog about ‘let’s go exploit and produce extra.’ Now the dialog is profitability and the second is ESG-related [environmental, social and governance] issues, relative to setting and the way can we do that higher and cleaner.

These conversations usually are not properly understood by the general public or the politicians that suppose we’re a bunch of oil and fuel individuals who simply are greed, greed, greed. That is not the case. This COP26 could possibly be very fascinating if a few of that dialog might come to the limelight.

Q: Pull out your crystal ball. It is 2030. Has Canada reached its climate goal? Are emissions down? What about manufacturing?

Mar: I am optimistic. Whether or not we make targets relies upon so much what the insurance policies are which can be agreed to and truly acted upon. What you do not need is a state of affairs the place when all is alleged and accomplished, extra is alleged than accomplished. There truly must be actions taken between now and 2030, however I imagine that our manufacturing might be up. I imagine our exports might be up in 2030 coming from Canada. And I imagine that the emissions curve might be bent in a constructive path.

Mah: I agree with Gary when it comes to the outputs from Canada. I imagine our oil outputs might be increased. I imagine our fuel output might be increased, however I imagine our emissions might be decrease. And I feel the industries themselves or firms will transfer towards that no matter political assist. Can we transfer towards targets? It is bold by 2030. But when we come out of COP26 with simply extra excessive views on both finish of the local weather debate, we’re not going to get there.

Corridor Findlay: My crystal ball says that Canadian oil and fuel is the popular oil and fuel around the globe, and that is as a result of we may have addressed our emissions drawback, so we might be internet zero in our manufacturing of oil and fuel. Once we get there’s fascinating. Frankly, Canada as a authorities has not lowered our emissions, interval. We now have a fame globally of claiming we will do that after which we actually have not been capable of do a lot. The oilsands are a very huge a part of that problem. So if at this level now, we will truly obtain the collaboration that we’re speaking about with our Pathways to Web Zero tasks and imaginative and prescient, this is a chance to really get that accomplished.

I’ve very excessive expectations and loads of confidence, however it is going to take — like vaccines, warfare, and famine, this can be a world problem, and it requires related engagement by everyone in a very collaborative approach.

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