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Imperial says oil sands impacted
The unfolding catastrophe in the Gulf of Mexico could do more harm than good to Alberta’s oil sands sector, said Imperial Oil Chief Executive Officer Bruce March, countering those who think the vast bitumen resource could gain favor over offshore development.
He suggested that both the oil sands and the offshore will face questions about the future role of oil in both North America’s and the world’s energy security equation.
March said he would not be surprised to see a batch of major new regulations introduced over the next 20 years, just as those that followed the Exxon Valdez disaster in 1989, once stakeholders in the industry and government develop policies and establish a path forward.
He said options being debated, such as the drilling of relief wells in conjunction with an exploration well, could add substantial costs to operations.
Although conceding the world is shifting away from oil to more renewable forms of energy, March said Canada’s oil reserves offer the only safe and most environmentally friendly source of energy to meet demands over the next three decades.
He said the transition to a “more renewable energy base will likely take 30 or more years to develop. In the interim, hydrocarbon fuels are the only way to meet demand in a manner than is reliable and affordable.”
March: oil sands essential Despite being a target for environmentalists and climate scientists, March said the oil sands are an essential part of Canada’s economic wellbeing, in addition to generating billions of dollars in tax revenues.
He said Imperial is taking steps to reduce the risks of greenhouse gas emissions associated with oil sands development, but noted: “We are not good and I don’t know that anybody is good at quantifying these risks … but we see enough to know that we should be participating in some actions,” including new technologies to reduce energy and water consumption in its operations and reduce its overall environmental footprint.
“Our goal on land is simple. After development is completed, we want no evidence that we were ever there,” March said.
He said Imperial’s new C$8 billion Kearl oil sands project will include cogeneration facilities to produce electricity and steam at the same time, while reducing energy consumption and greenhouse gas emissions.”
David Collyer, president of the Canadian Association of Petroleum Producers, told a Global Petroleum Conference in Calgary that the Gulf events have made it harder for the industry to improve the public’s perception of the use of fossil fuels and could result in “long-term consequences of what clearly in the short-term is tragic event.”
He said industry efforts to be more proactive in changing the public view of the industry are now a tougher sell.
—Gary Park
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