The Alberta government is calling on its federal counterparts to scrap its proposed oil and gas emissions cap in the wake of a damning report that suggests the policy will have a limited impact on emissions while devastating the Canadian — and Alberta — economy.Premier Danielle Smith, Environment Minister Rebecca Schulz and Energy Minister Brian Jean issued a joint statement Monday calling on the Trudeau government to “scrap the cap” after S&P Global consultants warned a 40% cap would eliminate 51,000 jobs and reduce the country’s gross domestic product (GDP) by $247 billion by 2035.The study was commissioned by the Canadian Association of Petroleum Producers (CAPP), the country’s largest oil industry association, and released on Monday..“Make no mistake: this isn't about emissions. Even without this unconstitutional cap, S&P Global found that total emissions from the oil and gas sector are set to decline before 2035, thanks to new technologies,”Smith, Schultz and Jean.In a joint statement, the UCP brass said Alberta would bear the brunt of what amounts to a de facto production cut on the order of 1 million barrels per day, but made clear the pain will be felt across every province and territory.“Make no mistake: this isn't about emissions. Even without this unconstitutional cap, S&P Global found that total emissions from the oil and gas sector are set to decline before 2035, thanks to new technologies already being put in place,” it said.“This cap will not make the world consume less energy or reduce demand for oil and gas. It will simply increase coal and other higher-polluting energy from outside Canada while decreasing production here and chilling investment in critical technologies like carbon capture, utilization and storage. Only an out-of-touch federal government would sacrifice Canadian livelihoods knowing its actions will end up increasing global emissions.”Liberal Environment Minister Stephen Guilbeault announced a 38% reduction at the COP28 climate summit in Dubai last December, taking Alberta officials almost completely by surprise. Premier Smith has vowed to take the issue to the Supreme Court if it is implemented..The kicker is that emissions intensity per barrel has fallen by 23% since 2009 and is on track to decline by another 17%, if not more, depending on the adoption of new silver bullet technologies to trap GHGs and store them underground. That’s even though production has nearly doubled to 5.5 million bpd — about 4.5 million bpd in Alberta — since 1999. If allowed to grow a modest 8% to 6 million bpd, the conventional oil and gas industry could support more than 383,000 jobs nationwide and add $1.3 trillion in GDP by 2035, without significantly increasing existing emissions, the report showed.“It’s time to scrap the cap. Ottawa's reckless scheme threatens not only Alberta jobs but Canada’s economic future. Billions in investment will vanish, retirement savings will be threatened, and families will feel the pinch. We can reduce emissions and enjoy a thriving economy, but only if Ottawa abandons the proposed oil and gas emissions cap for good,” they added.
The Alberta government is calling on its federal counterparts to scrap its proposed oil and gas emissions cap in the wake of a damning report that suggests the policy will have a limited impact on emissions while devastating the Canadian — and Alberta — economy.Premier Danielle Smith, Environment Minister Rebecca Schulz and Energy Minister Brian Jean issued a joint statement Monday calling on the Trudeau government to “scrap the cap” after S&P Global consultants warned a 40% cap would eliminate 51,000 jobs and reduce the country’s gross domestic product (GDP) by $247 billion by 2035.The study was commissioned by the Canadian Association of Petroleum Producers (CAPP), the country’s largest oil industry association, and released on Monday..“Make no mistake: this isn't about emissions. Even without this unconstitutional cap, S&P Global found that total emissions from the oil and gas sector are set to decline before 2035, thanks to new technologies,”Smith, Schultz and Jean.In a joint statement, the UCP brass said Alberta would bear the brunt of what amounts to a de facto production cut on the order of 1 million barrels per day, but made clear the pain will be felt across every province and territory.“Make no mistake: this isn't about emissions. Even without this unconstitutional cap, S&P Global found that total emissions from the oil and gas sector are set to decline before 2035, thanks to new technologies already being put in place,” it said.“This cap will not make the world consume less energy or reduce demand for oil and gas. It will simply increase coal and other higher-polluting energy from outside Canada while decreasing production here and chilling investment in critical technologies like carbon capture, utilization and storage. Only an out-of-touch federal government would sacrifice Canadian livelihoods knowing its actions will end up increasing global emissions.”Liberal Environment Minister Stephen Guilbeault announced a 38% reduction at the COP28 climate summit in Dubai last December, taking Alberta officials almost completely by surprise. Premier Smith has vowed to take the issue to the Supreme Court if it is implemented..The kicker is that emissions intensity per barrel has fallen by 23% since 2009 and is on track to decline by another 17%, if not more, depending on the adoption of new silver bullet technologies to trap GHGs and store them underground. That’s even though production has nearly doubled to 5.5 million bpd — about 4.5 million bpd in Alberta — since 1999. If allowed to grow a modest 8% to 6 million bpd, the conventional oil and gas industry could support more than 383,000 jobs nationwide and add $1.3 trillion in GDP by 2035, without significantly increasing existing emissions, the report showed.“It’s time to scrap the cap. Ottawa's reckless scheme threatens not only Alberta jobs but Canada’s economic future. Billions in investment will vanish, retirement savings will be threatened, and families will feel the pinch. We can reduce emissions and enjoy a thriving economy, but only if Ottawa abandons the proposed oil and gas emissions cap for good,” they added.
