We are amidst a global, geo-political, and economic race towards achieving a low-carbon economy.
The pace of this shift is faster than anticipated, posing significant challenges and market risks for Canada’s oil sands sector.
China’s dominance prompts responses from other major players like the United States and Europe, significantly increasing investments in clean technologies. As competition intensifies and disruption becomes more pronounced, the oil sands industry is exposed to serious market risks.
Meanwhile, the oil and gas sector as a whole shifts towards a strategy focused on capital discipline, flat growth, and high shareholder returns. The critical question is whether the sector makes the necessary capital investments to prepare for these changes, ensuring its future viability and its ability to fulfill decarbonization promises.
In this analysis, we delve into the crucial developments reshaping the Canadian oil sands sector and the implications of these global energy system changes.
This inside look is presented by Investors for Paris Compliance’s Director of Corporate Engagement, Duncan Kenyon.