NorthAmOil: Decarbonisation in the spotlight for oil sands players

Two leading Canadian oil sands producers – Suncor Energy and Imperial Oil – are in the news for reasons related to decarbonisation.
In Suncor’s case, the company announced last week that it was investing in Svante, a carbon capture technology company, as it seeks ways to offset greenhouse gas (GHG) emissions from its oil and gas operations. Imperial, for its part, has urged investors to vote against a shareholder proposal to set a target of net zero emissions on a company-wide basis by 2050. The vote will take place at Imperial’s annual meeting in May, after the motion was put forward by Aequo Shareholder Engagement Services on behalf of Quebec group retirement system company Batirente.
The proposal argues that that Imperial's current 2023 emissions reduction target is a step in the right direction but that it is also important to have a long-term strategy. But Imperial has responded that it is “premature” to set targets before it has a concrete plan for how they are to be reached. As a result, the company has recommended voting down the proposal.
Imperial’s current goal is to reduce GHG emissions intensity by 10% by 2023 relative to 2016 levels. The company says it has a portfolio of technologies at various stages of commercialisation that could be deployed to further reduce emissions over the longer term. This includes the use of solvents to produce bitumen from oil sands wells with less energy and using carbon capture and storage (CCS) to create emission offsets.
Suncor, meanwhile, is targeting a 30% reduction in emissions intensity by 2030 compared with 2014. Its investment in Svante illustrates that it is also looking to carbon capture, and aims to bring down the cost of the technology.