According to the Canadian Association of Petroleum Producers, the EU’s new fuel quality directive (FQD) will treat Canada’s oilsands on a level playing field with other sources of oil around the world, creating new export opportunities for energy and allowing Canada to compete more freely in the global market.
Tim McMillan, CAPP President and Chief Executive Officer, commented: “This is an important signal for Canada as it means our oil will not face discrimination in Europe. It also opens the door further for Canadian companies to compete on a level playing field for new markets in Europe and abroad. Today’s development means market access, building the infrastructure to get Canadian oil to world markets by all means in all directions, should be a national priority to grow our economy”.
The EU’s original FQD proposal singled out Canadian oilsands crude as more carbon dioxide intensive than conventional oil. Late in 2014, the FQD was revised to avoid discrimination against Canada and to encourage transparent reporting from all countries. The EU’s deadline for comments on the current version of the FQD passed today without any proposed amendments.
“Canada has transparent industry performance reporting in place, which is not the case for many countries that supply oil to the EU”, McMillan said.
Exports of Canadian crude to Europe are just beginning to occur and expanded transportation infrastructure in Canada – with proposed pipeline such as the Energy East – will lead to increase exports in the future. While CAPP is not opposed to the concept of the fuel quality directive, CAPP and many others provided significant input to the EU throughout its extensive process to ensure a strong scientific and factual basis for the policy. Alberta has had a carbon dioxide reduction policy in place since 2007.
“Canada needs all pipelines in all direction to help Canadians get full value for their resources and to generate economic growth and create jobs across the country”, McMillan said. “For Europe, improved access to Canadian crude oil means we could provide stable, secure supply of responsibly produced energy and reduce Europe’s supply risk due to geopolitical factors”.
Oilsands crude has a similar carbon footprint to other heavy oils around the world and to conventional oils produced with associated flaring of natural gas. The oil and gas sector recognises the need to reduce greenhouse gas emissions from production and has reduced oilsands GHG emissions per barrel by approximately 28% since 1990.
“We are accelerating development and implementation of new technologies, with the goal of further reducing oilsands GHG emissions per barrel to be as good or better than competing supplies in global markets”, McMillan said.
Adapted from a press release by Emma McAleavey.
Read the article online at: https://www.energyglobal.com/downstream/refining/09022015/eu-to-treat-oilsands-more-fairly-208/