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Canadian Natural Resources Ltd: Proposed Emissions Cap on Oil and Gas Industry “Overly Ambitious”

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On Thursday, the CEO of Canada’s largest oil and gas producer accused the federal government’s carbon cap proposal for the oil and gas sector, claiming that environmental targets must be balanced with economic and energy security concerns.

Tim Mckay, president of Canadian Natural Resources Ltd made the comments during a conference call with analysts while talking about Ottawa’s proposed cap.

He also praised the efforts of the Pathways Alliance, an industry group of which CNRL and other major Canadian oilsands producers are part, to reduce greenhouse gas emissions.

“In our view, this (federal) cap is unnecessary and overly ambitious in light of our stated preference for government and industry to continue to work together through the Pathways initiative to achieve an already announced emissions reduction target,” said McKay. “It is important for all parties to continue to work together.”

In order to fulfill Canada’s 2030 emissions reduction target, Trudeau’s government stated earlier this year that it would put a cap on greenhouse gas emissions from the oil and gas sector.

Earlier this year, Trudeau’s government stated its plans of putting a cap on GHG emissions from oil and gas industry to fulfill the country’s 2030 emissions reduction targets.

In a discussion paper released earlier this month, the government stated that it is considering two strategies for dealing with emissions from the oil and gas sector: a cap-and-trade system that would establish regulated limits on emissions, or a modified carbon pricing system for heavy emitters that would see oil-and-gas players pay a higher carbon price.

“The tax credit is a positive approach where industry and government can co-invest in CCUS infrastructure at an achievable pace of development,” said McKay on Thursday.

Additionally, CNRL announced on Thursday a special dividend of $1.50 per common share, citing its “very robust” financial situation, rapidly declining debt levels and “significant” free cash flow

Original source material for this article taken from here

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Written by Olivia Woods

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