RE:CO2 Sequestration, Federal Govt Carbon Cash, and WhitecapMigraineCall wrote: I know Whitecap is presently injecting CO2 for enhanced reservoir recovery in places.
With Trudope's grandstand announcement at COP25 to cap oil and gas emissions, it comes with an imminent choice:
1) burden us with legislation that kills off our energy industry operating in an area with the third largest reserves in the world so we can buy our oil from other countries elsewhere that don't care, or
2) make federal funds available as part of a tax credit to the oilpatch companies that sequester CO2, along with measured and reported performance and corresponding legislation.
Option 2) seems like the clear choice for an energy superpower living in a Northern climate.
As such, the Federal government may soon announce a Carbon Capture Credit for energy companies soon, perhaps within the next weeks.
Is Whitecap already a net negative emitter?
How will millions of new gov't dollars given for what they already do, and all the new attention as a shining CO2 munching star affect the future earning potential and SP of Whitecap?
Thoughts please...
Migrain I LOVE how you are thinking. Hopefully it is a Wayne Gretsky thing - anticipating where the puck (share price ) is going and not because it is an echo chamber thing.
I live in Regina and so hear lots of chatter in the local media about the CO2 sequestor thing. Yes at the moment WCP is CO2 negative. If not the most carbon friendly oil co in the world it is certainly very near the top in this regards.
The Co-Op refinery in Regina is spending $500 million in a deal with WCP to store CO2 at the Weyburn production facility. WCP will spend $300 million as part of the project. There is no management team that I would trust more than WCP to get a great return on that investment for shareholders. Grant and the team have always delivered.
I emailed WCP for more details and numbers but was told that they those numbers are not available for public release.
However, what is public is the fact that the price of carbon is only going one way and dramatically so. In the parlance of Wall Street Bets "to da moon" insert rocket emojiis.
BOD member Brad Wall was adding to his position at these levels this week.
We have an absolutely amazing team at WCP.
Trudeau has capped CO2 emissions for the oilpatch. This CO2 needs to go somewhere. Can you imagine being an oil co unable to increase production with oil over $70 because of CO2 levels. Will a market develope where WCP can sell some of their massive CO2 credits to another company that does not have the CO2 capture abilities of WCP.
Another very important aspect of this debate is the effect of fund flows. This can not be overlooked what with almost every endowment fund and major pension plan filtering investments with an ESP prespective.
While I am not suggesting that WCP will make more money by capturing CO2 than pumping oil, the day is coming when carbon capture will not only green the environment but us shareholders as well.
The writing is on the wall in letters that are larger than those that were on the banner unfurled on the CN Tower by our environment minister Steven Guilbeault.