Crescent Point Energy Corp., Saskatchewan’s largest oil producer, and by far the most active driller in the country for the past several years, has had it with the Canadian Association of Petroleum Producer’s stance on carbon taxation, and its lack of attention to conventional oil. As a result, the company has not renewed its membership in CAPP, the industry association that represents the largest oil companies in the country.
Beyond simply ending their membership, Crescent Point’s president and CEO Scott Saxberg released the following statement by email on June 21:
“As one of Canada’s top producers and most active operator over the last several years, we chose not renew our membership with CAPP because we felt the association was not devoting a sufficient amount of time on conventional oil production, particularly in Saskatchewan.
“Furthermore, we were unaligned with CAPP on Saskatchewan’s efforts to mitigate climate change. We believe a carbon tax in Saskatchewan is ineffective in reducing emissions. Rather, we support a more pragmatic emissions reduction framework that focusses on innovation and investment in technology.
“Crescent Point has taken a progressive and proactive approach to reducing its footprint. Since the inception of our company, we have contributed $175 million to a fund dedicated for environmental clean-up, emissions reduction and end-of-life abandonment. In addition, we plan to set aside approximately $24 million for this fund in 2017.
“In Canada, each province will have its own policy that will work for its citizens and industries. Crescent Point stands behind Alberta’s Climate Leadership Plan, and we stand behind Saskatchewan as it establishes a solution that is appropriate for that province,” Saxberg concluded.
CAPP spokesperson Chelsie Klassen, also responded by email. She said, “CAPP represents a broad industry perspective and while there may be divisions among some members on policy positions, we attempt to speak for the entire industry. It is CAPP’s position that any carbon reducing mechanism, whether carbon pricing or otherwise, must ensure production is not displaced to countries like Nigeria and Venezuela and that Canada remains competitive on a global stage. This mechanism must enable investment in innovation and technology necessary for significant reductions in greenhouse gas emissions. As for our Saskatchewan members, we represent a broad range of members and currently work with those members on issues relating to liability, emissions management, pipeline frameworks and municipal issues.”
Former Saskatchewan minister responsible for Energy and Resources Tim McMillan is the president of CAPP.
During the past three years Crescent Point has typically eclipsed all other Canadian oil producers in terms of the number of active drilling rigs it employs, often 50 per cent or more than the number 2 driller. For instance, on June 27, sister publication Rig Locator reported Crescent Point had 15 active drilling rigs, while Tourmaline Oil Corp. and Canadian Natural Resources Limited had 10 each. From a Saskatchewan perspective, CNRL had one rig working in this province, while Crescent Point had 14 on that day. Tourmaline is not active here.
