French energy giant Total says it is writing off $9.3-billion worth of oilsands assets in Alberta and cancelling its membership in the Calgary-based Canadian Association of Petroleum Producers.
Total now considers oil reserves with high production costs that are to be produced more than 20 years in the future to be “stranded” given its carbon reduction targets and because the resource may not be produced by 2050, the Paris-based company said Wednesday.
It will take writedowns worth $7.3 billion related to its 24.6 per cent ownership in the Fort Hills oilsands mine operated by partner Suncor Energy Inc., the company said, and its 50 per cent stake in the Surmont thermal oilsands project operated by partner ConocoPhillips.
Total will also write off $2 billion in other oilsands assets, it said, along with $1.07 billion on its liquefied natural gas assets in Australia.
Total said it is leaving CAPP because of a “misalignment” between the organization’s public positions and those expressed in Total’s climate ambition statement announced in May.
“It is disappointing that they would write down Canadian assets, and increase their focus in Africa and Brazil and the Middle East,” said CAPP CEO Tim McMillan in an interview.
“As a company, over the last few years, they’ve increased investment and focus in those jurisdictions.”
He added it’s disappointing Total is bowing out of CAPP but said, “that’s their prerogative.”
Impairment charge
In May, Suncor registered an impairment charge of $1.38 billion on its 54.1 per cent share of Fort Hills in view of lower oil price prospects.
The other partner in Fort Hills, Vancouver miner Teck Resources Ltd., took a $474-million writedown in May on its 21.3 per cent stake and has also cancelled its CAPP membership, saying it was part of a cost-cutting program.
“Total’s decision to write down their tarsands assets and quit Canada’s biggest oil lobby group for its opposition to action on climate change underscores the urgency of ensuring that COVID-19 stimulus plans grow a green economy and transition workers securely into it,” said Greenpeace Canada campaigner Keith Stewart on Wednesday.
“As the world transitions away from fossil fuels, starting with the most polluting sources, the tarsands are hemorrhaging investors.”
Total has been distancing itself from the oilsands for several years, although a Canadian Press analysis last year revealed it actually produced more from the oilsands in 2018 than any other foreign company.
When it sold its undeveloped Joslyn oilsands mining project to Canadian Natural Resources Ltd. in 2018, it said it was part of a strategy to move away from high cost oilsands investments.
The same rationale was used in reducing its stake in Fort Hills in 2017.
Earlier this week, Frankfurt-based Deutsche Bank said it would join a list of European lenders and insurance companies that say they won’t back new oilsands projects.
The German bank said its new fossil fuels policy will also prohibit investing in projects that use hydraulic fracturing or fracking in countries with scarce water supplies, and all new oil and gas projects in the Arctic region.
Two years ago, Europe’s largest bank, HSBC Holdings plc, announced it would no longer offer financial services for new oilsands projects or pipelines, a move that led to Suncor vowing to end all business with HSBC, including in its conventional oil operations in Europe.
In a release, Alberta’s energy minister Sonya Savage said Canada’s oilsands would continue to offer investment in a “stable and ethical democracy.”
“At the same time Total is dismissing the leadership of Canadian producers who are doing their part with active strategies that have reduced emissions, they continue to invest in countries such as Myanmar, Nigeria and Russia,” Savage said.
“This highly-hypocritical decision comes at a time where international energy companies should, in fact, be increasing their investment in Alberta, rather than arbitrarily abandoning a source of a stable, reliable, supply of energy.”
HOUSTON (AP) — Brian White scored in the second half to rally the Vancouver Whitecaps to a 1-1 draw with the Houston Dynamo on Wednesday night.
Houston (12-9-8) took a 1-0 lead into halftime after Ezequiel Ponce scored on a penalty kick in the seventh minute of stoppage time. Ponce’s third goal this season came after Amine Bassi drew a foul on Whitecaps midfielder Pedro Vite following a video review. It was Ponce’s sixth career appearance, all starts.
Vancouver (13-8-7) scored the equalizer in the 73rd minute when White, who entered in the 60th, used assists from Fafá Picault and Ryan Gauld to find the net for the 13th time this season. Picault’s assist was his fifth, matching his career high for a single season. Gauld’s assist gives him a career-best 13 on the season.
Yohei Takaoka, who had clean sheets in his last three starts, finished with one save in goal for the Whitecaps.
Steve Clark saved three shots for the Dynamo, who remain one point behind Vancouver in the Western Conference standings.
Houston, which was coming off a 4-1 victory over Real Salt Lake, has allowed just 33 goals this season.
Vancouver — 6-2-2 in its last 10 matches overall — leads the all-time series 10-9-6.
The Whitecaps remain on the road to play the Los Angeles Galaxy on Saturday. The Dynamo travel to play Austin FC on Saturday.
FOXBOROUGH, Mass. (AP) — Tom Pearce and Nathan Saliba scored in the second half — the first goals of their careers — and CF Montreal rallied for a 2-2 draw with the New England Revolution on Wednesday night.
“In the second half, the guys came out a little more ambitious and above all, more connected,” Montreal head coach Laurent Courtois said. “It was a great second half of resilience and fighting spirit. Nathan and Sam were impressive.
“Impressive in covering the gaps and compensating for the teammates, and the individual defending – yes it’s true, it is a lot of weight on their shoulders, but that’s the job.”
New England (8-16-4) jumped out to a 1-0 lead in the 24th minute on Bobby Wood’s third goal of the season. Teenage defender Peyton Miller notched his first assist in his fourth career start and sixth appearance and Carles Gil picked up his ninth of the season. Peyton, at 16 years, 315 days old, is the eighth youngest player in league history to record his first assist.
The Revolution took a two-goal lead in the 35th minute and held it through halftime when 19-year-old Esmir Bajraktarevic took a pass from Gil and scored his third goal of the season and career in his first full season in the league. It was the 73rd regular-season assist in Gil’s career, tying him with Steve Ralston for the most in club history.
Montreal (7-12-10) pulled within a goal in the 54th minute when Pearce scored off a free kick after defender George Campbell drew a foul on New England’s Mark-Anthony Kaye. It was the first goal for Pearce in his third career start and fourth appearance.
“Playoffs are the goal. Maybe it wasn’t in the best form, but in the end, we are picking up a point,” Pearce said. “We came into this game confident, ready to play our own game. Everyone tries their best, whenever the players are called on, we are always ready, and we are always giving it our best.”
Montreal scored the equalizer in the 68th minute on the first career goal by Saliba, a 20-year-old midfielder. Saliba has made 34 starts and 48 appearances with Montreal in his two seasons in the league. Campbell snagged his second assist of the season and the third of his career.
“It’s an incredible feeling, it’s a goal I’ve been waiting for a long time. I’m extremely happy that I was able to score it and that it can help the team take this important point on the road,” Saliba said. “Pearce’s first goal gave us really good momentum and we kept up the pressure to go for a second goal. We got more solid defensively, and we came back ready after halftime, to push for these 3 points.”
Aljaz Ivacic finished with four saves in goal for the Revolution.
Jonathan Sirois stopped four shots for Montreal.
New England beat Montreal 5-0 on the road on Aug. 24.
New England leads the all-time series 16-13-4. Montreal improves to 5-8-2 on the road against the Revs.
The Revolution travel to take on Charlotte FC on Saturday. Montreal returns home to host the Chicago Fire on Saturday.
ARLINGTON, Texas (AP) — Adolis García hit a two-run home run in the sixth inning, Cody Bradford pitched seven strong innings after the worst start of his career, and the Texas Rangers beat the Toronto Blue Jays 2-0 on Wednesday night.
The win kept the defending World Series-champion Rangers alive in the AL West race, trailing first-place Houston by 10 games with 10 to play.
García launched an inside sinker over the left-field wall off Toronto starter Bowden Francis (8-5) after Wyatt Langford singled.
“He swings hard, he swings a lot,” Francis said of García. “I guess the velo was dropping during that time.”
Bradford (6-3) allowed five hits and no walks while striking out six.
The seven shutout innings are the most in a game during his two-year career. He was knocked out of his previous start after allowing career highs in hits (nine), runs (eight) and homers (three) in 3 2/3 innings in a 14-4 loss at Arizona.
“Throughout the week, you’ve got to try and digest what happened, see where I can make adjustments, whether it was just game plan went wrong or just poor execution, or a little bit of both,” Bradford said. “Then you flush it.”
Bradford was perfect through four innings before Alejandro Kirk opened the fifth with a smash back to the mound that caromed off Bradford’s left foot and rolled into right field for a single. It extended Kirk’s hitting streak to a career-high 12 games.
Spencer Horwitz’s double to left-center put runners on second and third with no outs before Bradford retired the next three batters.
Blue Jays manager John Schneider credited Bradford’s “deceptive fastball.”
“When you’re throwing 89, 92, you’ve got to have pretty good deception with that at this level,” Schneider said. “Kept us off balance.”
Kirby Yates pitched a perfect ninth inning for his 31st save in 32 opportunities.
Francis, who took no-hitters into the ninth inning in two of his previous four starts, allowed a double to Marcus Semien, the Rangers’ first hitter of the game. He gave up five hits and one walk in six innings.
Francis has a 1.96 ERA in nine starts with 54 strikeouts and seven walks since being moved back into the starting rotation in late July.
“I don’t even want to get complacent, on cruise control,” Francis said. “Just keep attacking.”
TRAINER’S ROOM
Blue Jays: SS Bo Bichette was a late scratch with a right middle finger contusion suffered during infield practice. Schneider said the team will get back x-rays on Thursday. Bichette was activated Tuesday following a calf injury and played for the first time in two months, going 2 for 5 with one RBI at the plate. … INF Will Wagner (left knee inflammation) will have the knee scoped on Thursday. Schneider said Wagner should be ready to start spring training. Wagner, son of former major leaguer Billy Wagner, was acquired from Houston at the trade deadline.
UP NEXT
Rangers rookie RHP Kumar Rocker (0-0, 2.25 ERA) will make his home debut against Blue Jays RHP Kevin Gausman (12-11, 4.02) in the series finale. Rocker allowed one run in four innings at Seattle last Thursday in his major league debut.
