Deloitte report says oil emissions cap will mean output cuts: CP
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Carbon Capture and Storage solutions in many cases are too expensive to be economically viable, the Deloitte report said.
Canadian oil and gas companies will decide to cut production rather than invest in carbon capture and storage (CSS) technology to meet a federally imposed emissions cap, CP reports, citing a Deloitte report that was commissioned by the Alberta government. The emissions cap will impose reductions of 20 megatonnes of greenhouse gases by 2030, which can only be achieved through production curtailments or through widespread use of CSS technology. But the cost of CSS is so high that in many cases it doesn’t make economic sense, meaning companies will more likely simply cut output, the report says.
