Cenovus aims to cut emissions, as industry starts counting carbon tax costs

|About: Cenovus Energy, Inc. (CVE)|By:, SA News Editor

Cenovus Energy (NYSE:CVE) CEO Brian Ferguson reiterates his support for a carbon tax, as competitor Suncor Energy (NYSE:SU) begins to quantify the per-barrel cost of the tax resulting from Alberta's climate policies.

SU released a climate report this week showing it expects Alberta’s carbon tax would cost it $0.60 per barrel of oil; SU produced an average of 622.8K bbl/day of oil last year, which would mean it would have paid ~$373/day in carbon taxes.

Ferguson does not provide a per-barrel cost estimate for how the carbon tax would affect CVE, but he believes the company could drive down related costs with new technology.

The new carbon tax came into effect in January and is set at $20/metric ton this year, rising to $30/ton in 2018; the tax is applied to emissions over the industry average, meaning higher emitters will pay more than companies that are able to reduce their emissions.