Oil and Gas Contractors Demand Federal Cash to Decarbonize

The organization representing Canada’s oil and gas drilling sector is asking the federal government to create a new tax credit it says it needs to help the industry decarbonize, with one member saying the industry is “finally fun again”.

The Canadian Association of Energy Contractors (CAOEC)—which represents drilling rig and service rig companies across Western Canada, as well as offshore drilling rigs in Atlantic Canada—is lobbying the government for a 50% refundable tax credit for drillers seeking to develop and deploy new carbon abatement technologies, The Canadian Press reports https://www.jwnenergy.com/article/2022/11/23/oil-and-gas-drilling-sector-wants-federal-tax-cred/.

“Our members have technology they could deploy in a very short amount of time,” CAOEC President Mark Scholz told reporters in Calgary last Wednesday, following the organization’s annual state of the industry event.

“The challenge for our industry is there’s a lack of capital interest in the energy services space,” he added. “We’re excited about the future, but we need support to get there.”

So far, the major oilsands companies have received most of the net-zero limelight. They’re touting a massive proposed carbon capture and storage network they say would trap emissions from oilsands sites in northern Alberta, though they’re holding back https://www.theenergymix.com/2022/10/16/oilsands-alliance-demands-feds-back-for-24-1b-ccs-project/ on any investments unless Ottawa increases the already lavish subsidies https://www.theenergymix.com/2022/10/20/ottawa-overspends-on-ccs-neglects-worker-skills-iron-earth/ they’re in line to receive.
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