The oilpatch has been rattled by concerns that the federal government’s proposed cap on oil and gas emissions could force the industry to curtail production in order to stay within a regulated limit by the end of the decade.
The federal government said this week that it is considering two options to drive down emissions in order to meet its climate promises: a cap-and-trade system with a set number of allowances distributed to oil and gas facilities, or a modified carbon-pricing system that could see the industry pay a higher carbon price.
So far, Prime Minister Justin Trudeau’s government hasn’t indicated where the ceiling on emissions could be set, but a new discussion paper on the proposed cap is causing a stir among the country’s oil producers.
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