investment

Thu, 2014-05-08 08:10Carol Linnitt
Carol Linnitt's picture

New Report Names Alberta Oilsands as Highest Cost, Highest Risk Investment in Oil Sector

A total of $1.1 trillion USD earmarked for risky carbon-intensive oil sector investments need to be challenged by investors, according to a new report released today by the Carbon Tracker Initiative.

The research identifies oil reserves in the Arctic, oilsands and in deepwater deposits at the high end of the carbon/capital cost curve. Projects in this category “make neither economic nor climate sense” and won’t fit into a carbon-constrained world looking to limit oil-related emissions, Carbon Tracker states in a press release.

The report highlights the high risk of Alberta oilsands investment, noting the reserves “remain the prime candidate for avoiding high cost projects” due to the region’s landlocked position and limited access to market.

The isolated nature of the [oilsands] market with uncertainty over export routes and cost inflation brings risk.”

Sat, 2013-02-16 08:00Guest
Guest's picture

The Credibility Gap: All Talk and Not Much Action on Climate Change

By Hannah McKinnon, National Program Manager at Environmental Defense.

In last week's State of the Union address, President Obama reiterated his vision for clean energy and urgent action on global warming. With TransCanada’s Keystone XL tar sands pipeline on the frontlines and looking threatened, oil industry supporters are suddenly desperate to look like the environmental and climate risks of the tar sands are under control.
 
But there’s a massive credibility gap as Canada’s contribution to global warming is spiralling out of control, with the reckless expansion of the tar sands.
 
We’ve always believed that actions speak louder than words. So while the oil industry and government embark on a pro-tar sands PR campaign, let’s look at how Canada has behaved on climate action and the environmental risks of the tar sands.  

Fri, 2012-12-07 17:21Carol Linnitt
Carol Linnitt's picture

Harper Government Approves Foreign Acquisition of Nexen, Progress Energy, Affirms FIPA Concerns

Today Prime Minister Stephen Harper announced the approval of two major acquisitions of Canadian energy companies by foreign state-owned enterprises. The Chinese National Offshore Oil Company (CNOOC) will commence the $15.1 billion takeover of Nexen Inc., a Canadian company with major holdings in the Alberta tar sands. Malaysia's Petronas will proceed with the purchase of Progress Energy Resources Corp., a Calgary company with considerable shale gas plays in British Columbia, for $5.2 billion. Petronas has plans to construct an $11 billion liquified natural gas plant in Prince Rupert to prepare gas exports for Asia. 

Prime Minister Harper announced the takeovers, which are steeped in controversy, in tandem with new takeover guidelines intended to address growing concerns of foreign ownership of Canada's resources by energy-hungry nations. He remained silent on the significance of the approval for FIPA, the Foreign Investment Protection and Promotion Agreement, also known as the China-Canada Investment Treaty.
 
“Canadians generally and investors specifically should understand that these decisions are not the beginning of a trend but rather the end of a trend,” said Mr. Harper. The full meaning of that statement, however, remains to be seen. The Harper government's decision to ratify FIPA may mean deals done with China, like today's deal with CNOOC, will carry a new significance.
 
The government previously raised the threshold for official review of foreign takeovers from $330 million to $1 billion, signaling open arms to potential foreign investors with an eye on mega projects like the Alberta tar sands. However, today that threshold was returned to $330 million for state-owned enterprises.
 
“To be blunt, Canadians have not spent years reducing ownership of sectors of the economy by our own governments only to see them bought and controlled by foreign governments instead,” Mr. Harper said
Sun, 2012-10-28 05:00Farron Cousins
Farron Cousins's picture

Why Is North America Behind The Curve On Climate Change and Energy?

Just three short years ago, it appeared that North America was on the verge of finally kicking that nasty dirty energy addiction that was crippling our economies and our energy independence.  The United States had elected a president (Barack Obama) who set incredibly lofty goals for renewable energy targets, and green energy investments across the continent were higher than anywhere else in the world.

Sun, 2007-04-15 17:29Emily Murgatroyd
Emily Murgatroyd's picture

Do Nothing, Risk Everything

A recent report published in March by the Ethical Funds Company found that out of 48 Canadian oil and gas companies studied, only 2 were responding in any meaningful way to address the risks associated with global warming; Shell Canada and Suncor.

Using a wide variety of sustainability metrics, EFC scored each company to determine how well they are prepared to meet the increasing demand for environmentally and sustainably sound practices in the oil and gas sector as it becomes more and more clear that climate change is a reality and will have a significant effect on operations and investor relations.

Subscribe to investment