Canadian Natural Resources, Cenovus Energy, Imperial, MEG Energy
and Suncor Energy formally announced today the Oil Sands Pathways
to Net Zero initiative. These companies operate approximately 90%
of Canada’s oil sands production. The goal of this unique alliance,
working collectively with the federal and Alberta governments, is
to achieve net zero greenhouse gas (GHG) emissions from oil sands
operations by 2050 to help Canada meet its climate goals, including
its Paris Agreement commitments and 2050 net zero aspirations.
- This collaborative effort follows welcome announcements from
the Government of Canada and the Government of Alberta of important
support programs for emissions- reduction projects and
infrastructure. Collaboration between industry and government will
be critical to progressing the Oil Sands Pathways to Net Zero
vision and achieving Canada’s climate goals.
- The Pathways vision is anchored by a major Carbon Capture,
Utilization and Storage (CCUS) trunkline connected to a carbon
sequestration hub to enable multi-sector ‘tie-in’ projects for
expanded emissions reductions. The proposed CCUS system is similar
to the multi-billion dollar Longship/Northern Lights project in
Norway as well as other CCUS projects in the Netherlands, U.K. and
U.S., all of which involve significant collaboration between
industry and government.
- The Pathways initiative is ambitious and will require
significant investment on the part of both industry and government
to advance the research and development of new and emerging
technologies.
- The companies involved look forward to continuing to work with
the federal and Alberta governments, and to engaging with local
Indigenous communities in northern Alberta to make this ambitious,
major emissions-reduction vision a reality so those communities can
continue to benefit from Canadian resource development.
As proud Canadian companies, members of the Pathways alliance
share the aspiration of Canadians to find realistic and workable
solutions to the challenge of climate change. The oil sands
industry is a significant source of GHG emissions and the
initiative will develop an actionable approach to address those
emissions, while also preserving the more than $3 trillion in
estimated oil sands contribution to Canada’s gross domestic product
(GDP) over the next 30 years. The initiative will create jobs,
accelerate development of the clean tech sector, provide benefits
for multiple other sectors and help maintain Canadians’ quality of
life. The members of the Pathways alliance will do their part by
making the economic investments needed to ensure that our companies
successfully make the transition to a net zero world, and hence,
deliver long-term value to shareholders.
Because there is no single solution to achieving net zero
emissions, the initiative incorporates a number of parallel
pathways to address GHG emissions, including:
- A core Alberta infrastructure corridor linking oil sands
facilities in the Fort McMurray and Cold Lake regions to a carbon
sequestration hub near Cold Lake via a CO2 trunkline. The trunkline
would also be available to other industries in the region
interested in capturing and sequestering CO2. There is also
potential to link the infrastructure corridor to the Edmonton
region.
- Deploying existing and emerging GHG reduction technologies at
oil sands operations along the corridor, including CCUS technology,
clean hydrogen, process improvements, energy efficiency, fuel
switching and electrification.
- Evaluating, piloting and accelerating application of potential
emerging emissions-reducing technologies including direct air
capture, next-generation recovery technologies and small modular
nuclear reactors.
In addition to collaborating and investing together with
industry, it is essential for governments to develop enabling
policies, fiscal programs and regulations to provide certainty for
this type of long-term, large-scale investment. This includes
dependable access to carbon sequestration rights, emissions
reduction credits and ongoing investment tax credits. We look
forward to continued collaboration with both the federal and
Alberta governments to create the regulatory and policy certainty
and fiscal framework needed to ensure the economic viability of
this initiative.
Canada is uniquely positioned to be a global leader in
responsible oil production. The country has the world’s
third-largest oil reserves, some of the most stringent regulations
and standards governing energy projects anywhere in the world, a
strong track record for technology development and an established
reputation of industry working together with Indigenous communities
and municipalities. Members of the Pathways initiative believe the
most effective way to address climate change is by developing and
advancing new technologies and that this unprecedented challenge
can and will be solved by Canadian ingenuity, leadership and
collaboration.
While alternative energy sources will play an increasingly
important role in the decades ahead, all internationally recognized
forecasts indicate fossil fuels will continue to be an essential
requirement through 2050 and beyond as part of a diversified energy
mix, including as a feedstock for carbon fibres, asphalt, plastics
and other important products. That’s why it’s critical to take
action now to ensure Canada takes its place as a leading supplier
of responsibly produced oil to meet the world’s demand for energy
well into the future.
QuotesGovernment
of
Alberta
“The Oil Sands Pathways to Net Zero initiative is an industry
driven, made-in-Alberta solution which will strengthen our position
as global ESG leaders,” said Sonya Savage, Alberta’s Minister of
Energy. “Every credible energy forecast indicates that oil will be
a major contributor to the energy mix in the decades ahead and even
beyond 2050. Alberta is uniquely positioned and ready to meet that
demand. This initiative will also pave the way for continued
technological advancements, ultimately leading to the production of
net zero barrels of oil.”
Canadian
Natural
Resources
Limited
“Canada has an opportunity to lead on climate change by
delivering meaningful emissions reductions as well as balancing
sustainable economic development,” said Tim McKay, Canadian Natural
President. “Canadian ingenuity has enabled oil sands development
and with continued innovation, positions Canada to be the
ESG-leading barrel to meet global energy demand. We are committed
to working together with industry partners and governments to help
meet Canada’s climate objectives while providing sustainable
long-term economic and social benefits for Canadians from the oil
sands.”
Cenovus
Energy
“This collaborative effort amongst oil sands peers shows our
serious commitment to global climate leadership,” said Alex
Pourbaix, Cenovus President and CEO. “We are doing more than just
talking about the need to play a role – we are taking bold action
to address our emissions challenge and earn our spot as the
supplier of choice to meet the world’s growing demand for
energy.”
Imperial
“Canada has what it takes to be the responsible energy provider
to the world,” said Brad Corson, Imperial Chairman, President and
Chief Executive Officer. “Canada’s long-term success in achieving
its climate goals lies in a collective commitment to innovation,
global competitiveness, supportive public policy and open and
ongoing dialogue on constructive solutions. Imperial is
collaborating with others in industry and governments to develop
and commercialize the breakthrough technologies that will reduce
emissions and support society’s net zero ambitions.”
MEG
Energy
“We are pleased to be part of this collaborative effort
committed to the critical measures needed to achieve net zero
greenhouse gas emissions in the oil sands,” said Derek Evans,
President and Chief Executive Officer of MEG Energy. “Bold action
today demonstrates our commitment to tackling climate change and
global climate leadership. This alliance working collectively with
the federal and Alberta governments and all stakeholders will
ensure that Canada continues to be a leading supplier to the world
of responsibly produced oil."
Suncor
Energy
“Collaboration among companies, innovators and governments is
critical to achieving ambitious goals. That’s how we built a
budding oil sands resource into one of the world’s most reliable
and ESG-leading oil basins in the world,” said Mark Little, Suncor
President and Chief Executive Officer. “Canada - as one of the few
jurisdictions with industrial-scale commercial CCUS projects in
operation -- coupled with Alberta’s abundant natural gas resources,
geology and relevant technological expertise - is well positioned
to lead in this area.”About
the
Pathways
initiative
member
companies
Canadian
Natural
Resources
LimitedCanadian Natural Resources
Limited (Canadian Natural) is a senior oil and natural gas
production company, with continuing operations in its core areas
located in Western Canada, the U.K. portion of the North Sea and
Offshore Africa. Canadian Natural shares trade under the symbol CNQ
on the Toronto and New York stock exchanges. Refer to the Company’s
website for complete forward-looking statements at www.cnrl.com
Cenovus
Energy
Inc.
Cenovus Energy Inc. is an integrated energy company with oil and
natural gas production operations in Canada and the Asia Pacific
region, and upgrading, refining and marketing operations in Canada
and the United States. The company is focused on managing its
assets in a safe, innovative and cost-efficient manner, integrating
environmental, social and governance considerations into its
business plans. Cenovus common shares and warrants are listed on
the Toronto and New York stock exchanges, and the company’s
preferred shares are listed on the Toronto Stock Exchange under the
symbol CVE. For more information, visit cenovus.com.
Imperial
After more than a century, Imperial continues to be an industry
leader in applying technology and innovation to responsibly develop
Canada’s energy resources. As Canada’s largest petroleum refiner, a
major producer of crude oil, a key petrochemical producer and a
leading fuels marketer from coast to coast, our company remains
committed to high standards across all areas of our business.
MEG
Energy
MEG is an energy company focused on sustainable in situ thermal
oil production in the southern Athabasca oil region of Alberta,
Canada. MEG is actively developing innovative enhanced oil recovery
projects that utilize steam-assisted gravity drainage (“SAGD”)
extraction methods to improve the responsible economic recovery of
oil as well as lower carbon emissions. MEG transports and sells its
thermal oil (AWB) to customers throughout North America and
internationally.
Suncor
Energy
Suncor Energy is Canada’s leading integrated energy company,
with a global team of over 30,000 people. Suncor’s operations
include oil sands development, production and upgrading, offshore
oil and gas, petroleum refining in Canada and the US, and our
national Petro-Canada retail distribution network (now including
our Electric Highway network of fast-charging EV stations). A
member of Dow Jones Sustainability indexes, FTSE4Good and CDP,
Suncor is responsibly developing petroleum resources, while
profitably growing a renewable energy portfolio and advancing the
transition to a low- emissions future. Suncor is listed on the UN
Global Compact 100 stock index. Suncor’s common shares (symbol: SU)
are listed on the Toronto and New York stock exchanges.
Advisory
Cautionary Statement: Statements of future events or conditions
in this press release, including projections, targets,
expectations, estimates, and business plans are forward-looking
statements. Forward-looking statements can be identified by words
such as achieve, aspiration, believe, anticipate, intend, propose,
plan, goal, seek, project, predict, target, estimate, expect,
forecast, vision, strategy, outlook, schedule, future, continue,
likely, may, should, will and/or similar references to outcomes in
future periods. Forward-looking statements in this press release
include, but are not limited to, references to the viability,
timing and impact of the Oil Sands Pathways to Net Zero initiative
collaboration and the development of pathways in support of a
net-zero future; support for the pathways from the Government of
Alberta and the Government of Canada; the ability to enable net
zero emissions from oil production and preserve economic
contribution from the industry; the continued role of fossil fuels
as part of a diversified energy mix; and the deployment of
technologies to reduce GHG emissions, such as CCUS, process
improvements, energy efficiency, fuel switching, electrification,
infrastructure corridors and new emissions-reducing technologies.
All net-zero references in this announcement apply to emissions
from oil sands operations (defined as scope 1 and scope 2
emissions).
Forward-looking statements are based on current expectations,
estimates, projections and assumptions at the time the statements
are made. Actual future results, including expectations and
assumptions concerning: demand growth and energy source, supply and
mix; amount and timing of emissions reductions; the adoption and
impact of new facilities or technologies, including on reductions
to GHG emissions; project plans, timing, costs, technical
evaluations and capacities, and the ability to effectively execute
on these plans and operate assets; that any required support for
the pathways from the Government of Alberta and the Government of
Canada will be provided; applicable laws and government policies,
including climate change and restrictions in response to COVID-19;
production rates, growth and mix; general market conditions; and
capital and environmental expenditures, could differ materially
depending on a number of factors. These factors include global,
regional or local changes in supply and demand for oil, natural
gas, and petroleum and petrochemical products and the resulting
price, differential and margin impacts; political or regulatory
events, including changes in law or government policy and actions
in response to COVID-19; the receipt, in a timely manner, of
regulatory and third-party approvals including for new
technologies; lack of required support from the Government of
Alberta and the Government of Canada; environmental risks inherent
in oil and gas exploration and production activities; environmental
regulation, including climate change and GHG regulation and changes
to such regulation; availability and allocation of capital;
availability and performance of third-party service providers;
unanticipated technical or operational difficulties; project
management and schedules and timely completion of projects;
reservoir analysis and performance; unexpected technological
developments; the results of research programs and new
technologies, and ability to bring new technologies to commercial
scale on a cost-competitive basis; operational hazards and risks;
general economic conditions, including the occurrence and duration
of economic recessions; and other factors referenced by the
companies’ in their most recent respective annual reports and
management’s discussion and analysis, as applicable.
Forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties, some
that are similar to other oil and gas companies and some that are
unique to the companies. Actual results may differ materially from
those expressed or implied by its forward-looking statements and
readers are cautioned not to place undue reliance on them. The
companies undertake no obligation to update any forward-looking
statements contained in this press release, except as required by
applicable law.
Contacts
Canadian
Natural Resources Limited |
Media403-514-7777ir@cnrl.com |
Investors403-514-7777ir@cnrl.com |
|
|
|
Cenovus Energy Inc. |
Media403-766-7751media.relations@cenovus.com |
Investors 403-766-7711investor.relations@cenovus.com |
|
|
|
Imperial |
Media
587-476-7010IOLmedia@esso.ca |
Investors587-476-4743 |
|
|
|
MEG Energy |
Media Relations403-775-1131media@megenergy.com |
Investor Relations587-293-6045invest@megenergy.com |
|
|
|
Suncor Energy |
Media1-833-296-4570media@suncor.com |
Investors800-558-9071invest@suncor.com |
Photos accompanying this announcement is available at:
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