Canada’s oil firms are coming under fire from the federal environment minister for failing to follow through on their commitments to combat climate change.
According to Steven Guilbeault, the nation’s main oil companies made commitments to reduce greenhouse gas emissions, but instead gave the majority of their record-breaking earnings to shareholders.
This is at least the third time in the last six months Guilbeault’s frustration has spilled over as oil company profits soar.
This time, he made his criticisms through a video that was uploaded to Twitter as significant oil companies were disclosing their third-quarter financial results.
According to Guilbeault, “We’re already putting our money where our mouth is.” I’m not certain they are.
Imperial Oil, which reported $2 billion in profits for the third quarter and $6. 2 billion for the first nine months of 2022, released the first earnings report from the industry on Friday. That compares with $1.
For the first nine months of 2021, 7 billion.
The business announced plans to buy back $1. 5 billion worth of shares while also increasing its quarterly dividend by 30%.
Next week, Cenovus, Suncor, and Canadian Natural Resources are scheduled to report their financial results.
Together with MEG Energy and ConocoPhillips Canada, these four businesses make up the Pathways Alliance, a group established to address climate change in the oilsands.
Early in 2022, global oil prices rose sharply, largely as a result of Russia’s invasion of Ukraine, and Canadian businesses benefited.
The Pathways firms reported profits of more over $22 billion in the first half of 2022. When compared to the first half of 2021, that amount was less than $6 billion.
Guilbeault’s Friday request for comment was ignored by an Alliance spokeswoman who said the group won’t comment on its members’ financial decisions.
The organisation announced two weeks ago that it will invest $24 billion over the following eight years in emissions-reduction projects, but it is waiting for further funding from Ottawa before moving forward with those plans.
When Finance Minister Chrystia Freeland presents her fall mini-budget next week, the businesses might receive part of what they’re asking for. She might use it to make changes to the tax incentive she introduced this spring for carbon capture and storage technology.
Oil and gas firms depend heavily on equipment that captures pollutants from industrial sources and channels them back underground since it is a key component of how they can continue to produce their products while achieving their emission reduction obligations.
The current tax credit — mostly to cover half the price of capital investments — will cost Ottawa about $2. 6 billion over the next five years and $1. 5 billion annually for four years after that.
Oil firms were unhappy with the anticipated 50% coverage since they had requested up to 75% coverage.
The United States Inflation Reduction Act provides more substantial incentives for carbon capture technologies, which may encourage Canada to step up its game.
Guilbeault said Friday he did not know what the plan is for the tax credit, though he acknowledged the U. S. incentive changed the domestic picture.
Of course, he replied, “we’re looking at what the United States has done.”
“… We are aware that the investment industry is competitive. The oilsands businesses are in Canada, but at the same time. Additionally, they are unable to carry out emission reduction programmes in the United States. They must contribute to Canadian decarbonization if they have any faith in the future of their businesses.
The world’s demand for oil will be less than one-third of what it is today by 2050, according to predictions, and all of it will need to come from sources that don’t produce emissions.
If they don’t make those efforts in decarbonization, will there be a place for one of the oil types that emits the most greenhouse gases? I don’t think so. ”.
Oilpatch is criticised by the environment minister for making money and doing nothing about climate change.
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