Knock down energy companies and they'll get right back up
Can Canadian oil sands companies survive the punches that come along with stringent environmental policies and depressed oil prices?
Cenovus Energy Inc., MEG Energy Corp. (MEG), and Field Upgrading have announced they are developing new technology projects through funding from the federal government’s Oil and Gas Clean Tech Program as well as Alberta Innovates. The projects are aimed at promoting sustainable growth and aiding in the transition to a low-carbon economy.
Despite low oil prices and stringent environmental policies, Canadian energy companies refuse to stay down. Higher-cost competitors like the Canadian oilsands would be the most likely to quite, but instead the market has motivated them to reduce costs and accelerate innovation. MEG’s new technology, eMSAGP for example, will cut costs up to 50 percent, reduce construction time by up to three years, and cut emissions by 22 percent.
Broken Down Even more.
These technologies show that oil companies can simultaneously reduce their capital costs and improve environmental efficiencies. Sound too good to be true? Well the the proof is in MEG’s pudding. Their other technology, eMVAPEX, is also projected to reduce emissions by 43 percent and cut operating costs by up to 30 percent a barrel.
Can Canadian energy companies survive the punches that come along with stringent environmental policies and depressed oil prices?