Emissions cap not possible without oil, gas production cuts: Deloitte
The report was commissioned by the government of Alberta.
A report says oil and gas companies facing a federally imposed emissions cap will decide to lower production rather than invest in too-expensive carbon capture and storage technology.
The Deloitte report was commissioned by the government of Alberta to assess the potential economic impacts of Ottawa’s proposed cap on greenhouse gas emissions from the oil and gas industry.
The report says the only way the industry could comply with the proposed cap is to invest in widespread deployment of carbon capture technology or to cut production levels.
It concludes that for most companies, cutting production would make more financial sense.
The Deloitte report says Alberta’s oil production in 2030 would be 10 per cent lower with a cap than without one, and natural gas production would be 16 per cent lower.
By 2040, Deloitte says, Alberta’s G-D-P would be 4.5 per cent lower, and Canada’s G-D-P would be one per cent lower, than if no emissions cap were in place.
