Canadian oil executives doubt carbon capture technology's viability

This week, Canadian oil-and-gas executives asked the federal government to stop its industrial carbon pricing system. This request suggests that they are losing faith in carbon capture technology, which they had previously promoted as essential for sustainable operations. In an open letter to federal leaders, the executives emphasized their investments in carbon capture and storage (CCS) but did not focus on it in their demands. Instead, they called for less government interference in industrial pricing, indicating a shift away from relying on carbon capture to reduce emissions. For a long time, industry leaders believed that carbon pricing would make CCS economically viable by creating value through carbon credits. These credits could help reduce compliance costs for companies that successfully captured emissions. However, the executives now seem to prefer less certainty about future pricing and credit systems. Some provinces may continue to have their own carbon pricing systems, but without federal oversight, prices may not increase predictably. This could make it harder for companies to secure the financial backing they need for CCS projects. Not all companies are giving up on carbon capture. Strathcona Resources is moving forward with a $2 billion investment in a CCS project. However, their situation is unique, and their approach may not be applicable for other large producers facing stalled plans. The pushback against carbon pricing comes amid economic pressures, including political tensions with the U.S. Some industry officials might be reconsidering their commitment to reducing carbon emissions due to immediate financial concerns. As the federal election campaign begins, it remains to be seen how the public will react to these changes and whether they align with the industry's previous messages about reducing carbon intensity.