By OGJ editors
HOUSTON, Dec. 10 -- The Canadian government is considering limiting the costs borne by energy companies under the country's anticipated acceptance of the Kyoto Protocol on Climate Change by Dec. 31.
As a ratifying party to the protocol, Canada would be required to reduce carbon dioxide emissions by 6% from 1990 levels by 2012.
"Absent curtailment, the country is expected to produce 33% more in 2010 than in 1990," said Tyler Dann, Houston-based analyst with Banc of America Securities.
Herb Dhaliwal, Canada's Natural Resource Minister, has said that the industry would only have to pay as much as $15 million (Can.)/tonne to reduce costs to meet the Kyoto standards, Dann said. The remaining cost reportedly would come from taxpayers.
"The news is a slight positive, bearing in mind that the current expected range of costs is $5-10 million (Can.)/tonne, below the ceiling anyway," Dann said.
Dann added that Canadian companies Suncor Inc. and Petro-Canada would be among those that would benefit most from the cost-saving efforts, as both firms have significant exposure to oil sands projects in that country.
