Suncor Energy Inc T.SU

Canada leads G20 to phase out subsidies for oil

[Obscure1]

Canada is the first country to go to the next stage of commitment to phase out oil subsidies made by the G20 in 2009.  Just another sign that Canada is getting out of the oil business.

WTI is trading at just under $78.  Hurrraaayyyyy.  But SU is still under $40.  Why do you think that is?

July 24 (Reuters) - Canada on Monday released a framework for eliminating inefficient fossil fuel subsidies, making it the first G20 country to deliver on a 2009 commitment to rationalise and phase out government support for the sector.

The framework will apply to existing tax measures and 129 non-tax measures, but the government has not put a dollar value on the subsidies that will be affected.

Fossil fuel actives will be exempt from the framework if they fall into one of six categories: enabling significant carbon emissions reductions, supporting clean energy, providing essential energy to a remote community or short-term support for an emergency response, supporting Indigenous participation in fossil fuel activities or are projects that have a credible plan to reach net-zero by 2030.

"It ensures that the only federal support for oil and gas goes to projects that decarbonize the sector and result in significant greenhouse gas emissions reductions," federal Environment Minister Steven Guilbeault told a press conference.

[MigraineCall]

'The framework will apply to existing tax measures and 129 non-tax measures, but the government has not put a dollar value on the subsidies that will be affected.' They won't put a dollar figure on it because it is so miniscule compared to the billions and billions in tax revenues the oil industry generates for municipal, provincial, and federal tax coffers. They would look like

[mrbb]

Yes, very puny compare to $30+ billion subsidies given to VW and Stellantis, not to mention bilions more given to solar and wind farm, EV purchase, biofuel, etc With those 6 exemptions. it goes to show how essential oil/gas is because the alternative is not possible or cost prohibited. If we encounter socetial crises one day, we will be in situation of one of those 6 exemption with no backup 

[PabloLafortune]

It's actually the other way around - Oil and gas subsidizes Canada. The politicians and general population may not realize it but the economists certainly do.

[matt2018]

Exactly Pablo..... as mentioned by another here, it's political theatre.  The Liberals will run on this.  They will keep showing the fires and how they are the ones who can bring change and do something about it. Some voters may feel good about that, while they fill up the SUV at the gas station and go back and forth to the cottage. Meanwhile, look at the cost overruns on the TMP and

[PabloLafortune]

The irony is, 100 years or so ago Canadian economists Innis and Macintosh among them coined the phrase Staple economy to describe Canada. And by and large, we still are. 

[meritmat]

The federal Liberals will also permit subsidies that align with Article 6 of the Paris Agreement, which allows countries to claim carbon credits for providing fuels capable of lowering the carbon footprint of another country.   Full steam ahead with the LNG Also a lot of oil companies are in bed with FN.  

[Experienced]

Gotta admit it that Trudeau is really good at sounding like he is doing something when he is actually doing nothing. He is getting political points for something that really doesn't exist.  The announcement sounds like he is going to bash the the big bad oil companies and the unwashed masses will soak it all in. So what kind of subsidies does Trudeau give to big bad oil? The reference

[meritmat]

Honestly I don't think much will happen.  He can talk tough and appeal to his base.  Then do nothing and appeal to the rest of Canada.  For all we know the feds and Alberta have a back room deal we're there's a ton of posturing so it appeals to both of there bases and its business as usual 

[ztransforms173]

Gotta admit it that Trudeau is really good at sounding like he is doing something when he is actually doing nothing. - you must live in a DIFFERENT REALITY than I do - the PM is a INCOMPETENT NARCISSISTIC FOOL who is DESTROYING the SOLID economic and educational base of the country, DEPRESSING the food supply and RADICALLY ALTERING the social fabric of the ONCE GREAT COURNTY that is in STEEP

[meritmat]

Hey as long as it gets him re-elected that's all he cares about 

[bttmfischer]

ZTR173,  some of us who RALLY are incompetent would be OFFENDED, by cally him incompetent!

[bttmfischer]

I just proved to be incompetent by mistyping "called".

[Experienced]

Sorry zt.....we are living in EV same reality.  My comment about Justine doing nothing was in the context of the original post by Obscure about cutting subsidies to the oil industry not what he is doing to the economy as a whole. I have commented many times before about how Trudeau has doubled the national debt in a few short years and saddled future generations with a huge debt burden.

[matt2018]

Obscure, Canada is getting out of the Oil business you say? Thats like saying..... Canada is going out of business. You seem to think the Liberals are going to be in power forever. What do you base that on? Key facts In 2021, Canada’s energy sector directly employed 264,700 people and indirectly supported over 369,900 jobs. Canada’s energy sector accounted for approximately 9.7% of

[oilandgasmick]

You are quite correct. Canada is not getting out of the oil business because in fact: -Most of the Saudi oil fields were discovered over 60 years ago and many including Ghawar have been on waterflood (secondary recovery) for decades which means that they are entering periods of serious decline Tertiary recovery is the last resort and its coming in the next decade. And believe me its very

[mrbb]

Quebec is very shrew, they milk the western provinces first until no more western oil (and no more transfer payment), then quebec will develop their own oil/gas resources.  OPEC ain't dumb either, they know production cut help extend reserve life for their own future too.  Why over produce their oil (also cost more money to increase production beyond current capability) and sell for

[mrbb]

it's also treasonous for those advising canada to throw away our strength and go compete with china on green hocus pocus green energy. China abide by no international environment law, trading law, labor law, human rights law. No way canada can compete with china at their level on manufacturing solar panel, wind mills, EV/storage batteries because mining and processing lithium, rare earth metal

[Kman86]

Keep drinking the kool aid.....