Federal Environment Minister Steven Guilbeault has approved a controversial new oil project off the coast of Newfoundland with what Ottawa is calling the strongest emissions rules ever imposed.
His decision released Wednesday by the Impact Assessment Agency of Canada says Equinor’s Bay du Nord project can proceed as long it achieves net-zero greenhouse gas emissions by 2050.
That means the company will have to offset or capture any emissions the project produces by 2050. The announcement says this is the first time the federal government has imposed such a condition on an energy project.
“At five times less emissions-intensive than the average Canadian oil and gas project, and 10 times less than the average project in the oilsands, the Bay du Nord Development Project is an example of how Canada can chart a path forward on producing energy at the lowest possible emissions intensity while looking to a net-zero future,” the news release says.
Until 2050, Equinor is also legally required to consider and incorporate the best available options for reducing emissions. The government signalled Wednesday that these conditions, including net-zero by 2050, will become the legal standard for any future oil and gas project seeking federal approval.
Guilbeault told a House of Commons committee that there will still be oil and gas produced in 2050, it just will have to be produced without emissions.
Bay du Nord is expected to produce around 300 million barrels of oil over its lifetime, though industry insiders in Newfoundland and Labrador say that figure could be more than 800 million barrels. Equinor has said Bay du Nord would likely start pumping in the latter half of the decade, and continue producing for 20 to 30 years. Production is expected to peak at around 200,000 barrels a day.
“Equinor is pleased with the strong support that the Bay du Nord project has received from stakeholders across the province and Canada,” company spokeswoman Alex Collins said in an emailed statement after the decision was published. She said the project “has the potential to produce the lowest carbon oil in the country.”
Collins noted in an earlier statement the company and its partners haven’t yet sanctioned the development. That decision, she said, is expected “in the next couple years.” Equinor has said the project will provide about $3.5 billion in total revenues for the cash-strapped government of Newfoundland and Labrador.
Premier Andrew Furey was beaming at an evening news conference, saying the project will be an economic driver for his province. He said greenhouse gas emissions from the project will be among the lowest in the world for an oil project and it will help meet global demand for “low-carbon, ethical oil.”
“This will be a giant step forward in our economic recovery,” Furey added.
In his decision, Guilbeault said the project “is not likely to cause significant adverse environmental effects” as defined in the Canadian Environmental Assessment Act. But climate scientists and environmentalists have opposed the project, saying it would undermine Canada’s goals for reducing greenhouse gas emissions.
“(The) decision represents a triumph of the kind of politics that will only deepen the climate crisis and global addiction to planet-wrecking fossil fuels,” Keith Stewart, senior energy strategist at Greenpeace Canada, said in an emailed statement. “This decision isn’t just a climate failure, it is a failure to imagine and invest in a sustainable energy future for the Atlantic region.”
Caroline Brouillette, national policy manager at Climate Action Network Canada, said progress on climate over the last few years is being undermined by this approval.
“Frankly I think this is heartbreaking,” she said.
Brouillette said it’s coming just two days after a United Nations climate report that was clear there is no room for more oil and gas production if the world is to avoid the worst of the climate crisis.
“It’s so clearly not compatible with climate safety,” she said.
This report by The Canadian Press was first published April 6, 2022.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
