TORONTO— The shift in order to electric vehicles and other low-carbon technologies could disrupt commodity future trading demand on a similar level to the COVID-19 pandemic, Suncor Energy Inc. ’ s i9000 chief executive said on Mon.
The comments really are a stark prediction in an market that frequently downplays the particular impact of electrification plus points to forecasts associated with rising global oil need to justify new expense and pipeline expansions.
Canada is the world’ s fourth-largest oil maker and the sector accounts for ten. 6 percent of the country’ s gross domestic item.
“ Whilst Canadian oil and gas will remain a substantial part of the global energy blend for some time, we have to take advantage of brand new opportunities that offer attractive development prospects, ” Suncor TOP DOG Mark Little said within an opinion article for Canada’ s Corporate Knights journal.
“ The particular temporary economic lockdown activated by the 2020 pandemic is usually giving us a glance into a not-too-distant future in which the transformation of our energy program could disrupt demand on the similar scale. ”
Economic shutdowns in order to limit the outbreak’ h spread ground travel to the halt, cutting fuel need by roughly 30 percent globally. Suncor, Canada’ s Number 2 oil producer, cut down output and cut the dividend by more than half.
The sector furthermore faces mounting pressure from the growing number of investors that screen companies based on environment, social, and governance recommendations.
Norway’ ersus $1 trillion wealth finance in May blacklisted Suncor as well as other large oil sands makers for producing excessive green house gas emissions.
Little called for federal expense to help the industry diversify straight into hydrogen, renewable jet gasoline, and carbon fiber.
Bitumen is rich in asphaltenes, the feedstock for carbon-fiber-reinforced polymer, used for producing lighter automobiles including EVs, he mentioned.
“ Whenever we can figure out how to do this affordably at scale, it has the to quadruple the income from Alberta’ s present bitumen output, ” this individual wrote.
By Jeff Lewis