Canada wrestles with a produce more/emit less paradox

The requirement to cut the upstream industry’s carbon footprint places a chokehold on growth ambitions

The Canadian oil and gas sector has faced numerous headwinds over the past 15 years or so, many of tsunami intensity. But it has, on the whole, come out the other side stronger—especially in terms of oil production and exports—and more profitable. But its biggest challenge may still be ahead. These headwinds included the 2007-09 global financial crisis; a well-funded and sophisticated environmental campaign against oil sands development; the US shale oil and gas revolution; the 2014-16 oil price slump; federal climate policy and regulatory morass; an exodus of IOCs from the oil sands; the 2018 Western Canadian oil price implosion—due to a lack of egress from the region—and subsequent curtail