Canada’s balancing act of reaping rewards from fossil fuels and cutting carbon emissions is reaching a breaking point.
Driving the news: This week marked the first earnings season for Canada’s oil and gas majors since the completion of the Trans Mountain pipeline expansion. Cenovus Energy and Canadian Natural Resources (CNRL), which reported yesterday, both experienced increased output aided by more export capacity.
- CNRL boosted its barrels of oil equivalent per day by 8% last quarter, while Cenovus raised its production estimates to between 785,000 and 810,000 barrels per day.
Yes, but: Oil majors also had cause for complaint. The Pathways Alliance — an industry group promoting carbon capture as a means for emissions cuts — is backtracking on its net-zero by 2050 goals due to new greenwashing rules.
Why it matters: Canada is trying to maximize the value of Canada’s oil and gas sector before demand tops out while also making some of the world’s most ambitious climate promises. This approach has left both sides confused and unsatisfied.
By the numbers: Canada is the only G7 country that has higher greenhouse gas emissions now than it did in 1990, with emissions rising 16.5% between 1990 and 2022. Oil production was a major factor.—QH, LA