He also talked up the emissions reduction efforts that are already underway through
"In our view, this (federal) cap is unnecessary and overly ambitious in light of our stated preference for government and industry to continue to work together through the Pathways initiative to achieve an already announced emissions reduction target," McKay said.
"It is important for all parties to continue to work together."
The federal government indicated earlier this year that it would impose a cap on greenhouse gas emissions from the oil and gas sector in order to enable
While the government has so far not indicated what the allowable level of emissions will be, it issued a discussion paper earlier this month that said it is considering two options — a cap-and-trade system that will set regulated limits on emissions from the sector, or a modified carbon pricing system for heavy emitters that would see oil-and-gas players pay a higher carbon price.
"As presented, both emissions cap options have the potential to limit oil and natural gas production in
The federal government has stated it believes
That would bring total emissions from the sector — including production, refining and transportation via pipelines — to 110 million tonnes by 2030, down from 191 million tonnes in 2019. They haven't been that low in more than three decades.
Oilsands industry leaders have suggested meeting such an ambitious target in a relatively short time frame is likely unachievable. Instead, they have set their own targets through the
Key to the industry's plan is a proposed carbon capture and storage project that would capture CO2 from oilsands facilities and transport it to a storage facility near
"The tax credit is a positive approach where industry and government can co-invest in CCUS infrastructure at an achievable pace of development," McKay said Thursday.
CNRL reported Thursday that it more than doubled its second-quarter profits in 2022 as the war in
Crude prices spiked during the quarter, driven largely by
Canadian Natural's daily production, before royalties, averaged 1,211,147 barrels of oil equivalent per day in the quarter, up from 1,141,739 in the same quarter last year.
The company increased its production guidance for 2022 by two per cent on Thursday, and said it now expects to add 40 million barrels of oil equivalent per day of growth in 2023, and 96 million barrels of oil equivalent per day of growth by 2025. It increased its 2022 total budget for capital expenditures by
CNRL also announced Thursday a special dividend of
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