A recent article in the Financial Post argues Canadian oil sands producers possess a ‘secret weapon’ against Saudi Arabia’s current competitive advantage in the market place – clean oil.
“Lower costs, borrow cash or liquidate” said Saudi Arabia’s Oil Minister, Ali al-Naimi at the Houston Energy conference late last month. However, the authors suggest that future market share may be determined by the amount of carbon consumption required to output each barrel of oil, not only how cheaply it can be produced.
With global attention shifting focus toward greener energy, some Canadian producers have been re-positioning themselves to win a larger share of the market by increasing their ‘carbon competitiveness’ as they simultaneously reduce operational costs using innovative GHG-reducing technologies.
Gordon Lambert, a former executive with Suncor Energy, said: “We have much greater urgency and much greater importance of innovating our way into the future. That innovation will lead to benefits in technology development and expertise. Carbon competitiveness is an important dimension of future success.”
With Saudi Arabia lagging behind on GHG-reducing strategies, and as Canadian producers become increasingly more efficient, the future global oil market may soon prefer Canada’s clean energy.
To read the full article in the Financial Post, click here.