HUB Pipeline – CO2 Tax

We asked some industry insiders what their thoughts were on the topic:

The new carbon tax certainly hits all Albertans in the pocketbooks and impacts the industry as well, but we can’t help but wonder why the overt support by the industry for the Alberta NDP Government direction by majors like CAPP, Census, Suncor, CNRL and Shell. Why would these companies come out in favour of the new climate change and carbon tax policies by Premier Notley? Is it just politics and political correctness on their part? Or is there something bigger going on?

“The majors and CAPP have far too much infrastructure in place to pack up and leave (or go broke) in Alberta, therefore it behooves them to swallow any bitter pill and show support even though behind closed doors they probably hate this.”

“The NDP are about to destroy the two industries that built Alberta and they are being told over and over to listen to common sense and reason. Unfortunately, they are deaf and blind.”

“At the end of the day, the industry across the board should be against this as it’s stupid. But the companies mentioned kinda have that ‘too big to fail’ thing going – so they capitulate – which sucks. They could and should be the biggest ally in fighting this crap.”

“I wouldn’t be surprised if there’s some type of competitive advantage about “first in, and no one else can get in after the emissions cap is reached”, but I don’t know the math well enough to say that with conviction.”

“By supporting the climate strategy from the NDP, the industry appears to be less of a monster than they have been perceived to be for the past 10 years.”

“The ones that are speaking up are so invested in AB that if they rock the boat at all or try to pull up roots they would lose way too much and the investors would bury them.”

“Obviously, that group is posturing with the belief that the NDP will give them some latitude. Which is sad, for them and the rest of us because the NDP will do whatever they want no matter the consequences.”

“The NDP was going ahead with it anyway so be part of it and be allowed to at least shape it a little, or don’t – and then be just a taker… I agree”

“In essence, the NDP is in cahoots with big oil – the irony is head exploding.”

“The most efficient carbon producers per box will end up getting a rebate on the carbon tax. So the bigger companies have more $ to spend on efficient processes so they are going to make money from this!”

“I wouldn’t be surprised if there is a lot of internal communications ensuring that workers in the oil & gas industry see this as ‘their bosses are helping to set direction’ as opposed to ‘their bosses caving in to the NDP’.”

“The four companies that were there with the Premier are also the largest players in the oilsands game. They have the most invested. They also have the most lateral room to adjust their strategy to the new normal.”

“If they are motivated purely by playing a part in the environment what would that look like? Is everything else they do consistent with that mission or is this an anomaly.”

“Although the whole “world criticism of Canada with their dirty oilsands” thing is total BS and political, not reality … ignoring it won’t make it go away.”

“I know that CNRL has been acquiring huge amounts of leases in Northern Alberta, maybe they are thinking of putting those 665 wind turbines up there…?”

“Maybe they know they can get more bees with honey than vinegar and they might be giving small victories to the current gov to avoid huge future bombshells (Royalty Reviews).”

“The companies have invested over the years in other renewable energy options, so there is the chance that the carbon tax “revenue-neutral” funds can end up coming back to them in another way, through supporting their renewable energy initiatives.”

“Perhaps the larger question is why didn’t IOL stand with them?”

“Climate change isn’t going away, and as such, the 5 organizations mentioned can choose to help frame and create the framework and associated policies or they can be the ones left to only follow someone else’s creation.”

“The oil sands guys like it because it spreads the pain to consumers and conventional players. They likely don’t like it but they are happy the hit wasn’t squarely on them.”

“The companies on stage will now race to fill the gap between our current 70 mega tonne GHG emissions to the 100 mega tonne cap that the government imposed on the industry. They are in the best position to do so.”

“They are after the coal, farming and of course our industry. It’s like they know they are going to be short lived and they are trying to destroy everything prior to the next election.”

“I personally suspect it could be a little back room dealing where Notley committed to some other things (think pressure on royalty review….) perhaps in return for this type of support.”

“Since they are unlikely to tell us any hidden motives you can only look at what they say versus what they are actually doing and infer.”

Andrea Turko
Communications Director / Managing Editor
Oilfield PULSE

Originally published in the

Date Published	December 24, 2015
Company	Leadstone Group Inc., Oilfield PULSE
Article Author	Andrea Turko
Article Type	December 2015 Issue
Category	Articles, Oilfield HUB
Tags	Carbon Tax, E&P, S&S
HUB SEARCH	Leadstone

HUB Pipeline – CO2 Tax

HUB Pipeline – CO2 Tax

We asked some industry insiders what their thoughts were on the topic:

December 2015 issue of Oilfield PULSE