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Mr.Coffee · 10-06-2021, 09:17 PM

Couldn't be more wrong. CCS is happening, it is. Go check out Entropy (subsidiary of Advantage), or Pathways project which is a combined effort from major oilsands players. I personally am also working on a project like that right now too that's distinct. Every midstreamer in Canada is very actively working on new projects for CO2 reduction initiatives, exploring hydrogen, looking into emission reduction strategies at their facilities, looking for ways to make wellsites cleaner. You have some companies like Modern (prior to TOU takeover) that had solar panels at their wellsites for remote monitoring / automation. This is happening literally at just about every company in Canada's oil and gas sector right now because it's the easiest way to attract new capital. Look at Topaz's recent deal with WCP, literally to boast they have a royalty stream from a net negative carbon sink oil producing unit in Weyburn Saskatchewan (and WCP has been pumping that story for years now too, even though it is really just a tertiary flooding scheme to get more oil and has been going on for a long, long time but whatever, okay if the marketing works the marketing works and the absolute fact of the matter is, that the production of that oil is net negative and a carbon sink). Wolf Midstream's carbon trunk line in central Alberta is literally brand new and designed to deliver CO2 to injection schemes wherever. The fact that now a CO2 specific pipeline exists is actually pretty huge. They also were looking at all kind of expansion opportunities, NEBC, in throughout the Montney, North River- similar efforts. AltaGas, similar efforts. Pembina, similar efforts. Keyera... and none of this includes the huge producers that are walking the walk. ARX, TOU, CNQ, SU etc etc etc.

Reality is that carbon priced at $40/$50/tonne doesn't incentivize CCS very much, but as soon as you start to hit that $100/tonne it'll explode. That isn't set to happen for a few years though, but when it does, watch. Every gas plant / major facility with a turbine is going to be chasing those carbon initiatives. And it's already started to be honest because even around these prices you're truly starting to get marginal on the economics. I believe Entropy was claiming they needed around $50-$70/tonne or so.

So I really resent and dismiss the notion that CCS "isn't happening" or the pessimistic cynical views about Canada's oil and gas sector and the (huge) efforts they are making. They really are trying, because it's where the money is going to be. I watched a National Bank presentation from a very well known presenter, an energy expert. He stated that INTERNAL energy transition capital funding (so, money from within these companies themselves and not driven by subsidies or whatever cynical BS people throw out there) for projects is currently estimated to be $175BILLION over the next 10 years, expected to pour into various kinds of energy transition projects in Canada. The expected carbon footprint reductions are estimated to be 40-45%. That is insane. That is an absolutely enormous amount of capital to be risked into sketchy technology. So yes, CCS will be a HUGE part of that.

As an aside, I like how the EU today moved the goalposts and was looking to vote on including natural gas as a "green" energy source. Meanwhile the IEA also revised its' forecasts to suggest that Petroleum and Natural Gas will actually still be material energy sources (still greater % of energy mix than renewables) out to 2050. This was a revision to outstrip renewables from a previous estimate. Not good, but clear as to what drives energy efficiency.

Meanwhile 80% of India's power comes from coal and China is slapping up coal powered power plants and just generally driving coal demand like crazy but yeah, let's make sure those LNG projects take >20 years to build in Canada because we can't have a natural gas pipeline built that when it leaks (if it leaks), it dissipates natural gas safely into the air in the middle of nowhere and literally is one of the safest things around. Canada keeps crushing it. And I mean literally, trying to crush industry whenever it can. In fact what industry has accomplished, in the face of how this country has treated it, is a ####ing miracle.

10-06-2021, 09:17 PM	#257
Mr.Coffee damn onions Join Date: Mar 2006 Exp:	Couldn't be more wrong. CCS is happening, it is. Go check out Entropy (subsidiary of Advantage), or Pathways project which is a combined effort from major oilsands players. I personally am also working on a project like that right now too that's distinct. Every midstreamer in Canada is very actively working on new projects for CO2 reduction initiatives, exploring hydrogen, looking into emission reduction strategies at their facilities, looking for ways to make wellsites cleaner. You have some companies like Modern (prior to TOU takeover) that had solar panels at their wellsites for remote monitoring / automation. This is happening literally at just about every company in Canada's oil and gas sector right now because it's the easiest way to attract new capital. Look at Topaz's recent deal with WCP, literally to boast they have a royalty stream from a net negative carbon sink oil producing unit in Weyburn Saskatchewan (and WCP has been pumping that story for years now too, even though it is really just a tertiary flooding scheme to get more oil and has been going on for a long, long time but whatever, okay if the marketing works the marketing works and the absolute fact of the matter is, that the production of that oil is net negative and a carbon sink). Wolf Midstream's carbon trunk line in central Alberta is literally brand new and designed to deliver CO2 to injection schemes wherever. The fact that now a CO2 specific pipeline exists is actually pretty huge. They also were looking at all kind of expansion opportunities, NEBC, in throughout the Montney, North River- similar efforts. AltaGas, similar efforts. Pembina, similar efforts. Keyera... and none of this includes the huge producers that are walking the walk. ARX, TOU, CNQ, SU etc etc etc. Reality is that carbon priced at $40/$50/tonne doesn't incentivize CCS very much, but as soon as you start to hit that $100/tonne it'll explode. That isn't set to happen for a few years though, but when it does, watch. Every gas plant / major facility with a turbine is going to be chasing those carbon initiatives. And it's already started to be honest because even around these prices you're truly starting to get marginal on the economics. I believe Entropy was claiming they needed around $50-$70/tonne or so. So I really resent and dismiss the notion that CCS "isn't happening" or the pessimistic cynical views about Canada's oil and gas sector and the (huge) efforts they are making. They really are trying, because it's where the money is going to be. I watched a National Bank presentation from a very well known presenter, an energy expert. He stated that INTERNAL energy transition capital funding (so, money from within these companies themselves and not driven by subsidies or whatever cynical BS people throw out there) for projects is currently estimated to be $175BILLION over the next 10 years, expected to pour into various kinds of energy transition projects in Canada. The expected carbon footprint reductions are estimated to be 40-45%. That is insane. That is an absolutely enormous amount of capital to be risked into sketchy technology. So yes, CCS will be a HUGE part of that. As an aside, I like how the EU today moved the goalposts and was looking to vote on including natural gas as a "green" energy source. Meanwhile the IEA also revised its' forecasts to suggest that Petroleum and Natural Gas will actually still be material energy sources (still greater % of energy mix than renewables) out to 2050. This was a revision to outstrip renewables from a previous estimate. Not good, but clear as to what drives energy efficiency. Meanwhile 80% of India's power comes from coal and China is slapping up coal powered power plants and just generally driving coal demand like crazy but yeah, let's make sure those LNG projects take >20 years to build in Canada because we can't have a natural gas pipeline built that when it leaks (if it leaks), it dissipates natural gas safely into the air in the middle of nowhere and literally is one of the safest things around. Canada keeps crushing it. And I mean literally, trying to crush industry whenever it can. In fact what industry has accomplished, in the face of how this country has treated it, is a ####ing miracle. Last edited by Mr.Coffee; 10-06-2021 at 09:36 PM.