Isra-Mart srl : Solution to "dirty oil"

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Isra-Mart srl news:

In a book released today, Peter Silverstone examines the issue of the oil sands and greenhouse gas emissions from a completely independent perspective. He suggests a solution that “squares the circle”, i.e. the proposed solution significantly decreases greenhouse gas emissions while also providing significant increases in bottom-line profits for the oil industry. In addition, this solution may provide over $20 billion in additional revenues to the Alberta government during a 10-year period. More detailed information is available at www.greenestoil.com

Summary of “World’s Greenest Oil: Turning the Oil Sands from Black to Green”:

1. There is a increasing wave of negative publicity globally about the oil sands. This is leading to the oil sands being branded as “dirty oil”.
2. Extraction of oil from the oil sands will become increasingly “dirty” over the next few years, at least in terms of greenhouse gas emissions. This will occur even if the oil sands become “cleaner” in terms of effects on the boreal forest and water tailings.
3. This continued increase in greenhouse gas emissions will strongly increase the risk of regulatory actions. These regulations will most likely be designed to limit production and/or export of oil produced in Alberta.
4. Therefore, if nothing changes future developments of the oil sands are in significant jeopardy.
5. The solution proposed is to amend the current royalty rate regime such that it takes into account greenhouse gas emissions.
6. In such a solution royalty rates could be as low as 20% of net profits for companies with the lowest greenhouse gas emissions, to as high as 60% for companies with the highest greenhouse gas emissions.
7. This may be also linked to incentives to have companies upgrade their oil in Alberta.
8. Such a change will produce multiple winners. It will significantly decrease greenhouse gas emissions by up to 90 million tonnes/year, equivalent to 7% of Canada’s total CO2 emissions. It will also give very strong bottom-line incentives to companies to cut their emissions as their profits could increase considerably if they do so. In addition, this proposal may provide more than $20 billion in extra revenues to the Albertan Government over a 10-year period.