Cenovus replies to low-blow from Norway’s trillion dollar oil fund
From Cenovus Energy
Canada targeted (yet again) as a scapegoat for global climate change challenge
Alex Pourbaix, President & Chief Executive Officer, Cenovus Energy
The recent decision by the Norwegian wealth fund, Norges, to pull its investments in Cenovus Energy and three of our oil sands peers is another example of Canada being used as a pawn by institutions attempting to earn climate points. But these announcements are motivated more by public relations than fact. The data they used to assess Cenovus’s greenhouse gas performance is outdated and incorrect.
Here’s what Norges failed to consider in its decision. Cenovus has reduced the emissions intensity of our oil sands operations by approximately 30 percent over the past 15 years. We’ve set ambitious targets to reduce our per-barrel emissions by another 30 percent across our operations by 2030 and hold absolute emissions flat during that time. We are also focused on innovation that will help us achieve our aspiration of net zero emissions by 2050. Our peers have similar emissions reductions achievements and commitments.
The hypocrisy of the move by Norges is particularly rich, given the sovereign wealth fund amassed its $1 trillion value primarily from oil production profits. Moreover, Norway’s former energy minister is on record saying the country will produce oil for as long as oil is used. Energy is important to Norway’s economy, as it is to Canada’s.
The oil and natural gas industry accounts for the largest share of Canada’s exports and is the most significant contributor to the country’s gross domestic product. This country is amassing a huge deficit as a result of the COVID-19 response, with the parliamentary budget officer suggesting our national debt could hit $1 trillion. That’s more than $26,000 for every man, woman and child in Canada. Key to reversing this unprecedented debt load will be secure and stable tax revenue to support the economic recovery. Canada’s energy sector has contributed an average of $8 billion annually to provincial and federal government coffers and its strength is fundamental to ensuring this country emerges from the downturn stronger than ever.
Yet, the Canadian oil sands have become an easy target for primarily European investment firms and insurers who have made a big splash announcing they are severing ties with Canadian companies. Pulling out of the oil sands earns these firms headlines but doesn’t have an impact on their business because most of them were not heavily invested in Canada. Canada’s oil sands have long been the poster child for the anti-oil movement. It’s easier to attack a country that has a regulatory system designed to ensure transparency on its environmental, social and governance (ESG) performance than it is to go after oil producing nations such as Russia and Saudi Arabia where the commitment to regulation and transparency substantially lags Canadian expectations and standards.
As the leader of a Canadian company whose sector contributes billions to the national economy and directly and indirectly employs 800,000 people – including being the country’s largest employer of Indigenous people – I am standing up for our industry and for Canada. Enough is enough with these unwarranted attacks.
Cenovus and our peers are committed to doing our part to help meet Canada’s climate commitments and contribute to global climate change solutions. We’re investing millions in technologies to reduce our own emissions and collaborating with innovators around the world, including the support of initiatives like the NRG COSIA Carbon XPrize, which is focused on solutions to convert greenhouse gas emissions into valuable products and consumer goods.
Canada is the largest oil-producing jurisdiction in the world with a national price on carbon, and Alberta’s cap on oil sands emissions is an unprecedented commitment. Our industry is committed to achieving Canada’s 45 percent reduction target for methane emissions, addressing a greenhouse gas that is more potent than carbon dioxide. If investors are truly concerned about global greenhouse gas emissions, they should place greater value on Canadian oil and natural gas.
The world is undergoing an energy transition as action is taken to limit global temperature rise. Canada’s energy sector is going to play a key role in supporting the transition. But as we see today, energy and economic growth are inextricably linked and even the most aggressive emissions-reduction scenarios recognize that oil and natural gas will continue to be a significant part of the energy mix for decades to come. Canada has the world’s third largest oil reserves and a significant opportunity to provide the world with the low cost, lower carbon energy it demands.
Just as support for a strong energy sector has benefitted Norwegians, it’s essential for Canadians to recognize the importance of Canada’s energy sector in contributing to our collective economic future.
Alberta’s province wide state of emergency ends as wildfire situation improves
Wildfires and smoke are shown in British Columbia and Alberta in this satellite image taken Thursday, May 18, 2023. Alberta’s public safety and emergency services minister says a province wide state of emergency that was declared nearly a month ago to deal with unprecedented wildfires will end Saturday night at midnight. THE CANADIAN PRESS/HO – Co-operative Institute for Research on the Atmosphere (CIRA) at the University of Colorado and the National Oceanic and Atmospheric Administration
Alberta’s public safety and emergency services minister says a provincewide state of emergency that was declared nearly a month ago to deal with unprecedented wildfires ended Saturday at midnight.
Mike Ellis told a news conference the wildfire situation in Alberta remains serious but, overall, things have improved significantly and it’s anticipated they will continue to improve.
He says support will not stop for communities affected by active wildfires, including Fort Chipewyan, which remains evacuated due to a large fire burning about seven kilometres away.
The state of emergency was implemented May 6 to expedite co-ordination of firefighting resources and support for evacuees.
Christie Tucker with Alberta Wildfire says the Rocky Mountain wildfire which threatens Fort Chipewyan remains a top priority and 85 Canadian troops were on the way to the area on Saturday afternoon
Tucker told the news conference the blaze was quiet on Friday until the evening, but crews are working to prevent flames spreading to the community and rain is expected in the area in the next day or so.
This report by The Canadian Press was first published June 3, 2023.
Saskatchewan landowners fight against illegal drainage washing out land, roads
WAWOTA, Sask. — Lane Mountney spreads a map over his kitchen table at his farmhouse in southeast Saskatchewan, pointing to yellow and orange arrows slithering across the document.
Many of the arrows represent existing channels and ditches, moving across fields and out of wetlands to drain water. The arrows eventually make their way to a creek, causing what he describes as a deluge of problems downstream.
“All these years, guys have gotten away with draining water and the next guy figures he can get away withit,” Mountney said in an interview at his farm near Wawota, Sask., about 200 kilometres southeast of Regina.
“If this keeps going like it has, I don’t know what Saskatchewan’s going to look like in 10 years.”
Mountney’s map depicts what’s called the Wawken Drainage Project, a plan developed by the local watershed group that has since been taken over by the Water Security Agency, which is responsible for overseeing drainage in Saskatchewan.
The project is nearly 14 square kilometres and contains 880 wetlands of various sizes representing a total of 2.4 square kilometres of water.
A project document indicates that 88 per cent of these wetlands have been drained, partially drained or farmed. About 12 per cent remain intact.
Most of this water is supposed to flow into a creek that runs through a parcel of Mountney’s land.
The plan developers believe the creek can handle the flows, but Mountney is not convinced.
Last year, he and his wife, Sandra Mountney, dealt with flooding ontheir horses’ pasture. They decided not to use their well water at the time because it was yellow.
“They were very excited to tell us that nobody inside the project area is going to lose acres, but they haven’t even looked at who’s going to lose acres miles down the line.” Sandra Mountney said.
Brent Fry, who farms grain and livestock, said it’s common for his land to flood for three days when people upstream get 50 millimetres of rain.
He said it has caused roads and access points to erode.
“There are about four farms out there and all they’re doing is draining whether they’ve got permission or not,” Fry said. “I don’t even know what to do because the government’s not doing anything — they’re siding with the big guys.”
Farmers have drained water in Saskatchewan for generations and many have done so illegally by digging ditches without permits.
Most producers drain because it allows them to grow more crops, helping them pay for land that has become increasingly expensive. However, it has caused yearly flooding for people downstream. Roads also wash out and habitat gets lost.
At the Saskatchewan Association of Rural Municipalities convention in February, reeves passed a resolution asking the Water Security Agency to require those who are illegally draining to remediate their unapproved works.
Saskatchewan legislation requires upstream landowners to receive permission from those downstream when they want to drain, but many say that’s not happening.
Sandra Mountney said the Water Security Agency hasn’t been taking concerns seriously.
“It’s hard to know who’s really protecting our waterways,” she said.
The Wawken project began about three years ago but hasn’t been completed. It’s among many drainage projects underway.
Daniel Phalen, a watershed planner, worked on the project as technician before he left for another job.
He said landowners had been draining water with no permits before the plan. His job was to determine how many wetlands were drained and what works had already been done.
Phalen said the plan was to put in structures that would slow down the drainage to reduce problems downstream.
It’s unclear what work had been done on the Wawken project to mitigate flows since Phalen left. The Water Security Agency did not respond to a request for comment.
Phalen said projects can get held up if affected landowners don’t come to an agreement. Expropriation is allowed but it’s rare, he said.
Another nearby drainage plan, known as the Martin project, has stalled because of landowner concerns.
Researchers have estimated Saskatchewan has lost half of its total wetlands over time for crop production.
Phalen, who also worked on the Martin plan, said it was concerning to see the number of wetlands sucked out.
“The Water Security Agency doesn’t have the manpower to do much about it,” Phalen said. “There’s such low enforcement already that if they had any policies in place, people would just drain anyways. It’s kind of a scary problem to be in.”
Sandra Mountney said she’s worried about losing wetlands because they help recharge groundwater supplies and filter contaminants — particularly important when it’s dry.
The Water Security Agency has released a drainage management framework that aims to prevent flooding and ensure Saskatchewan retains a “sufficient” number of wetlands.
Leah Clark, the Interim Executive Director of Agriculture Water Management, told attendees at a Saskatchewan Farm Stewardship Association meeting earlier this year that 43 per cent of wetlands are retained within approved projects. She added the province has “thriving” wildlife populations.
However, she said under the policy, landowners would be able to select which wetlands to retain.
“It will achieve a working landscape for landowners to continue to use their land for farming and ranching. This approach will allow for new development while retaining current drainage,” she said.
Phalen said Saskatchewan could look to Manitoba for solutions to retain wetlands.
Manitoba has historically drained most of its wetlands in the agricultural regions, he said, but the province has since developed a policy where landowners are paid for retaining them.
“You know, $100 an acre is not a ton of money, but it’s another incentive to help producers,” he said. “It’s such a complex problem where you got this huge financial incentive to drain.”
Lane Mountney said regulations just need to be enforced.
“It’s almost too late,” he said. “They should have been out there checking stuff before we got this point.”
This report by The Canadian Press was first published June 4, 2023.
Jeremy Simes, The Canadian Press
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