Toronto | Traditional territories of the Huron-Wendat, the Anishnaabeg, Haudenosaunee, Chippewas and the Mississaugas of the Credit First Nation
On the eve of the COP27 climate negotiations in Egypt, Canada’s oil and gas companies have posted another quarter of eye-popping profits. The country’s five largest oil & gas producers reported combined profits of $11.12 billion. This comes at a time when the world is calling for wealthy companies and governments to pay for the loss and damages caused by climate change. These Q3 profits once again show that the money is there, but is being used for share buybacks and to enrich shareholders. The Canadian government needs to institute a windfall profits tax and direct that money towards its share for climate loss and damage at COP27. And Canada needs to stop subsidizing these companies and force them to clean up their mess.
ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.
- Third quarter (Q3) financial results for Canada’s largest oil and gas companies have recently been announced. The combined profits (net earnings) of the biggest five are over $11 billion:
- Suncor $2.565 billion*
- CNRL $2.814 billion
- Imperial Oil $2.03 billion
- Cenovus $1.609 billion
- Tourmaline $2.098 billion
- This represents a major increase from Q3 in 2021 (Suncor net earnings were $1.043 billion*, CNRL $2.202 billion, Imperial Oil $908 million, Cenovus $551 million, Tourmaline $361 million), which totalled $5.065 billion.
- The increase in profits from Q2 2021 to Q2 2022 is more than a doubling.
- Q3 2022 profits decreased slightly from last quarter’s (Q2 2022) blockbuster profits of $12.8 billion combined between these five companies.
- *Suncor’s results are taken from their “adjusted operating earnings” for the quarter, instead of “net earnings.” News outlets such as Reuters are reporting the company’s adjusted operating earnings as its profit this quarter, as the best indicator of financial performance. The company posted a “net loss” in Q3 due to an “impairment” loss on the book value of the Fort Hills mine – this was an accounting change in the value of one of their assets, and not a cash or operating loss.
- The oil and gas sector is Canada’s largest and fastest-growing source of greenhouse gas emissions, contributing 26% of Canada’s total emissions. Over the past 30 years, sector emissions have increased 87%, even as other industries have reduced emissions.
- Emissions intensity of Canadian oil & gas has gotten worse over the last decade.
- After years of promises from the oil & gas industry that it can reduce emissions from production, the industry now says it cannot meet the government’s climate targets and timelines. According to CBC.ca, industry is asking for more time and/or more subsidies to reduce emissions.
- Running List of Federal Fossil Fuel Subsidies in Canada in 2022, compiled by Environmental Defence.
- A letter from 86 civil society and grassroots organizations to Prime Minister Justin Trudeau in March, calling on him to impose a windfall tax on soaring oil and gas profits and to stand firm and redouble efforts on climate action in the face of profiteering attempts from the fossil fuel lobby.
- Environmental Defence’s COP27: Canada Expectation Setting backgrounder, published November 2022.
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For more information or to request an interview, please contact:
Dave Gray-Donald, Environmental Defence, firstname.lastname@example.org