An oil & gas pump jack in Alberta on May 6, 2020.Todd Korol/Reuters
Kendall Dilling is President of the Pathways Alliance.
Canada’s oil sands industry recognizes we are one of our country’s largest greenhouse-gas emitters, and that we have a major role to play in helping meet the national climate-change commitment of net-zero emissions by 2050.
We have a plan, which we have shared with the federal government, to reduce emissions by 22 million tonnes by 2030. And we support the larger emission-reduction goals set out by Ottawa.
However, we are concerned about the timelines recently proposed. We can reduce our emissions by 42 per cent from 2019 levels – we have, after all, set a goal of net zero by 2050 – but reaching that as early as 2030 is simply not realistic given current technology, construction and regulatory requirements.
In reality, impractical time frames for emissions-reduction targets could drive investment away from our industry and our country, reducing production in Canada while increasing output and emissions in other countries.
Canada’s six largest oil sands producers formed the Pathways Alliance more than a year ago to pro-actively address oil sands emissions. We have been working constructively with federal and provincial governments on the best way to meet Canada’s 2030 and 2050 emissions-reduction goals.
In fact, plans have already been submitted and field and pre-engineering work is under way to build one of the most comprehensive carbon capture and storage systems in the world.
Further phases of our plan will see the deployment of some of the 80 different technologies and process improvements that Pathways Alliance scientists, engineers and experts are working on to consistently reduce emissions from our facilities.
We see real and ambitious reductions on the immediate (by 2030), midterm (2030-2040) and long-range (2040-2050) horizon as we steadily move toward our net-zero goal.
By investing in technology, we can reduce emissions while ensuring responsibly produced Canadian energy can help meet the world’s energy security needs – replacing oil and gas from such countries as Russia.
Building projects on the scale we are proposing will require regulatory certainty and significant co-investment by industry and government. Up to $20-billion will be needed between now and 2030 for carbon capture and other technologies in the Pathways plan. Our industry is looking for support comparable to what is being provided by governments in other countries with similar plans, such as the Netherlands, Norway and the United States.
Some recent federal policies – especially the Investment Tax Credit (ITC) for carbon capture, utilization and storage (CCUS) announced in the 2022 federal budget – are welcome steps toward these goals.
However, others, such as the recent decision by Environment and Climate Change Canada to prevent lower-carbon oil or fuel intended for export from receiving Clean Fuel Regulation credits, erode the economics of CCUS and run counter to the benefits provided by the ITC.
Today, Canadians are facing higher fuel prices, and our allies are in desperate need of energy to end dependence on unstable regimes. We can’t afford to negatively impact our economy by creating a business environment full of uncertainty and added costs that risk shrinking production of our largest export commodity and one of the biggest contributors to national GDP.
There is already a suite of measures in place to help drive emissions reductions in oil and gas, including carbon pricing, Clean Fuel Regulations and methane regulations. Rather than layering on new regulations, we believe Canada should use rules they already have in place.
We support the federal government’s efforts to make significant emissions reductions by 2030, and its goal of net zero by 2050. However, getting there requires a practical and realistic approach to emissions reduction to protect jobs and investment and help provide global energy security.
We hope Ottawa will continue on a co-operative path with industry to tackle climate change with this in mind.
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TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
