The biggest names in energy laid out their 2022 spending plans over the last few weeks. As one might have predicted, those plans are awash in oil and gas. But many companies, like Calgary-based pipeline giant Enbridge, also outlined goals to continue widening their renewables portfolios. Meanwhile, billions of dollars are being poured across the industry into massive carbon-capture and -storage (CCS) projects in a bid to drive down emissions. Here’s what else we learned about the oil patch’s energy transition:
- Enbridge detailed $1.1 billion in new capital projects, including $100 million toward an offshore wind farm off the southern coast of France. The company said it would spend another $200 million on six new solar-powered pumping facilities along its pipelines. (The stations have traditionally run on natural gas.) Last month, Enbridge announced a partnership with Capital Power to build a CCS project near Warburg, Alta., that could store up to three million tonnes of emissions per year.
- As Alberta’s oil patch looks to diversify its revenue base and drive down greenhouse gas emissions, TC Energy plans to reduce emissions 30 per cent by 2030, and reach net zero by 2050, largely by continuing its investment in low-carbon and renewable sources like hydro. Both pipeline companies have become major investors in renewables; Enbridge now boasts 23 wind farms and 17 solar installations in its portfolio.
- Oil producers made similar pledges. Suncor Energy is targeting 10 million tonnes’ worth of annual emissions cuts by 2030, and has said it would achieve net zero by 2050. The company has already invested heavily in CCS and electric-vehicle infrastructure. (Suncor has installed enough charging stations along the Trans-Canada Highway to support an entire cross-country trip in an EV.)
- Cenovus Energy, another oil-sands giant, is targeting a 35 per cent reduction in absolute emissions by the end of 2035. The company told investors this week that it was eyeing CCS projects alongside other potential partners in the oilsands.
All hype? Oil companies emphasized their emissions targets and tech investments, but fossil fuels are likely to dominate their bottom lines for years to come. Spending plans outlined by Enbridge, like other companies, remain largely focused on maintenance and cost-cutting on existing oil-related operations. In 2020, just four per cent of Enbridge’s earnings came from renewables; pipelines accounted for 55 per cent, and energy transmission 45 per cent. Completing its clean transition will cost billions—and take years. Yet, daunting as it may seem, the transition could bring billions in fresh opportunities, according to a recent report.