This pro-oil propaganda raises a fair point, but several facts were left out.
1) Since 2015, Quebec went from 8% Alberta oil to 44%, via the reversal of pipeline 9. That’s part of why Energy East was no longer worthwhile.
2) Trudeau stepped in with $4.5B to keep the Trans Mountain pipeline going and ground broke last year.
3) It’s hard to find capital for major oil projects right now. A lot of the above projects were proposed when oil was tickling $100/barrel. You can’t get half that now. And some of the biggest investment groups, like the $7 Trillion fund that BlackRock runs, no longer invest in fossil fuel projects.
- Oil project profits pay out over a 30 to 50 year period.
- Oil companies predict peak oil in ten years: no new growth.
- Growth in public concern for climate issues is risky for long projects.
The competition from renewables also looks bad for oil in the long run.
- India cancelled two huge coal plants: the solar price came in lower.
- Europe is moving away from fossil fuels as fast as they can.
- China is building both fossil fuel and massive solar farms.
- Electric cars are projected to be mass-market cheap in 5 years.
- America is even money to go all in on climate policy in Nov.
4) Teck didn’t get cancelled; they walked away. For all the above reasons. Instead, they bought a solar plant. Their press release is quoted in an article below; they stated very clearly that they supported climate change mitigation, and Alberta just doesn’t do that hippy shit
“Our involvement with SunMine is part of our commitment to taking action on climate change, advancing renewable energy development, and supporting the global transition to a low-carbon economy,” said Don Lindsay, President and CEO. “SunMine will help us gain firsthand experience with solar power generation as we advance the use of solar power at other operations.”
You can’t get clearer than that to see which way Teck is moving, and you can expect more.