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The
comments are a stark prediction in an industry that frequently
downplays the impact of electrification and points to forecasts
of rising global oil demand to justify new investment and
pipeline expansions.
Canada is the world's fourth-largest oil producer and the sector
accounts for 10.6% of the country's gross domestic product.
"While Canadian oil and gas will remain a significant part of
the global energy mix for some time, we have to take advantage
of new opportunities that offer attractive growth prospects,"
Suncor CEO Mark Little said in an opinion article for Canada's
Corporate Knights magazine.
"The temporary economic lockdown triggered by the 2020 pandemic
is giving us a glimpse into a not-too-distant future where the
transformation of our energy system could disrupt demand on a
similar scale."
Economic shutdowns to limit the outbreak's spread ground travel
to a halt, cutting fuel demand by roughly 30% worldwide. Suncor,
Canada's No. 2 oil producer, curtailed output and cut its
dividend by more than half. [nL2N2C31VY]
The sector also faces mounting pressure from a growing number of
investors who screen companies based on environmental, social
and governance guidelines.
Norway's $1 trillion wealth fund in May blacklisted Suncor and
other large oil sands producers for producing excessive
greenhouse gas emissions. [nL4N2CV14K]
Little called for federal investment to help the industry
diversify into hydrogen, renewable jet fuel and carbon fiber.
Bitumen is rich in asphaltenes, the feedstock for carbon fiber,
used for producing lighter vehicles including EVs, he said.
"If we can figure out how to do this affordably at scale, it has
the potential to quadruple the revenue from Alberta's current
bitumen output," he wrote.
(Reporting by Jeff Lewis; Editing by Lisa Shumaker)
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