Business
Oil and gas will be around a lot longer than some think, despite climate change goals: RBC – CBC News
Global ambitions to tackle climate change are being confronted by rising concerns about energy security, according to a new report by RBC, which is why oil and natural gas are going to be used for quite a while.
The Russian invasion of Ukraine has sent energy prices soaring, as there are supply concerns for many commodities such as oil, natural gas and coal. As many countries grapple with energy security and affordability issues, there is less emphasis on climate change.
That’s why the authors of the report say countries like Canada now have to figure out how to produce more oil and gas in the short term, all the while trying to meet climate goals.
“Short of major additional action, oil and gas will likely remain critical and contentious energy sources for longer than some think,” the report notes.
In the last few months, there has been a renewed push by countries like Canada and the United States for more oil and natural gas production. At the same time, some countries in Europe are investing in liquefied natural gas terminals to import more natural gas and also looking at coal and oil-fired electricity to reduce reliance on Russian gas.
Global demand for oil keeps rising and is expected to increase for several more years, according to the International Energy Agency.
The RBC report highlights how many governments around the world are also offering subsidies to offset high gasoline and power prices, including “usual climate leaders” such as Germany, California, and British Columbia.
Climate change is still a priority, said RBC economist Colin Guldimann, but there isn’t as much momentum as compared to six months ago after the UN climate conference.
“Many will admit that things have changed markedly, especially in the energy space, in the last couple of months,” he said in an interview.
Canada must now thread the needle of meeting climate goals while also meeting energy needs.
Even after oil demand peaks, Guldimann said “the pace of that decline, and the steepness of how quickly that decline happens, is fundamentally uncertain.”
Investments in clean energy are happening, but instead of replacing fossil fuels, much of that energy is offset by rising consumption around the world as the population grows.
“We think energy demand is set to surge over the next couple of decades and how we meet those energy needs is really the critical question today,” he said.
“I think countries are going to struggle to switch their energy systems over to ones that are non-emitting extremely quickly. Green infrastructure takes time to build, and technologies that can replace oil are still sort of coming to the fore.”
The RBC report calls for more ambition to curb emissions, not only from the oilpatch, but other sectors too such as building retrofits, zero-emission vehicle subsidies and more transmission lines to move clean power around the country.
On Monday, credit ratings agency Moody’s said it expects oil producers to generate record profits and free cash flow this year — and oil prices could remain high for the next 12 to 18 months.
Oil prices dropped by more than five per cent at one point on Monday as lockdowns in China are dampening economic activity. As commodity prices fluctuate so wildly, some oil companies could delay production increases.
“I wouldn’t be surprised to see if a lot of these companies say ‘You know what, let’s defer this decision where we have to expand our spending,” said Jeremy McCrea, an analyst with Raymond James, “which ultimately will keep oil and gas prices higher, longer.”
Business
Gas prices expected to rise 14 cents on Thursday
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Drivers are bracing for a double-digit spike at the gas pumps on Thursday, as the price is expected to rise 14 cents at midnight.
Roger McKnight, chief petroleum analyst withEn-Pro International Inc., tells CityNews the price at gas pumps is set to rise to 178.9 cents/litre at local stations. The price as of Wednesday is 164.9 cents/litre.
The last time gas prices were this high was back in August 2022.
McKnight says the spike is due to price increases for wholesale gas and only applies to gasoline. He adds the price for diesel will increase by 0.4 cents.
Earlier this month, the price rose to its highest levels in six months following the implementation of the federal carbon price, also referred to as the carbon tax.
That saw the carbon tax on gasoline go up by 3.3 cents per litre, while diesel increased by 4.1 cents per litre.
Business
Rupture on TC Energy's NGTL gas pipeline sparks wildfire in Alberta – The Globe and Mail
A section of TC Energy’s TRP-T NGTL gas pipeline system in Alberta ruptured and caught fire on Tuesday, sparking a wildfire in a remote area, the company said.
“An initial ignition of natural gas at the rupture site is now extinguished. We are working to support Alberta Wildfire in their response to contain a secondary fire,” the company said in a statement on its website.
TC said there were no injuries and it was working closely with first responders in the region.
How fire broke out at the TC gas pipeline near Edson, Alberta
The fire broke out about 40 km (25 miles) northwest of Edson, Alberta, in Yellowhead County. Canadian broadcaster Global News said there was a plume of flames and smoke visible from many kilometres away.
The Canada Energy Regulator (CER) said initial investigations indicated a rupture in a gas pipeline caused the fire, which was under control.
TC Energy said it has isolated and shut down the affected section of the NGTL system, and the remainder of the system is operating normally with no commercial impact.
The CER said it is sending inspectors to the area to monitor and oversee the company’s response and determine the impact of the incident.
NGTL is TC Energy’s natural gas gathering and transportation system that transports gas produced in Western Canadian Sedimentary Basin (WCSB) to markets in Canada and United States.
Business
Gas prices in GTA expected to rise 14 cents on Thursday – CityNews Toronto
Drivers in the GTA are bracing for a double-digit spike at the gas pumps on Thursday, as the price is expected to rise 14 cents at midnight.
Roger McKnight, chief petroleum analyst with En-Pro International Inc., tells CityNews the price at gas pumps is set to rise to 178.9 cents/litre at local stations. The price as of Wednesday is 164.9 cents/litre.
The last time gas prices were this high was back in August 2022.
McKnight says the spike is due to price increases for wholesale gas and only applies to gasoline. He adds the price for diesel will increase by 0.4 cents.
Earlier this month, the price rose to its highest levels in six months following the implementation of the federal carbon price, also referred to as the carbon tax.
That saw the carbon tax on gasoline go up by 3.3 cents per litre, while diesel increased by 4.1 cents per litre.
With files from John Marchesan of CityNews
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