A recent study commissioned by 20 governments through the Climate Vulnerable Forum has identified climate change as one of the major causes of death for the foreseeable future. According to the report, by 2030 more than 100 million people will die and global economic growth will be cut by 3.2% if the world fails to tackle climate change due to greenhouse gases caused by the burning of fossil fuels. Usually with reports like this, the accusing eyes of the world turn to the oil industry and in particular the Oilsands, but this is hardly drilling deep – pardon the pun – to the heart of the real issue.
The Oilsands industry is invested in an ongoing drive to become cleaner and more efficient, but the vitriol directed its way ignores two very important facts. First, the industry has cleaned up in leaps and bounds over the last two decades and more so than almost any other in the mining and exploration sphere. Secondly, the vast majority of greenhouse gases are released through the burning – not generation – of fossil fuels.
According to a recent NASA study, road vehicles are the largest net contributors to greenhouse gas pollution, followed by the burning of firewood and then methane released through cattle rearing. It’s interesting to note that industrial complexes – such as Oilsand Upgraders – counteract some of their emission of greenhouse gases through the release of sulphates and other aerosols that actually cool the atmosphere. Add to these the fact that carbon dioxide release to the atmosphere is closely regulated, and it’s easy to see why the Oilsands feels like a scapegoat during this discussion.
Some will point out that it is the crude oil produced at such facilities that is used in the cars that pollute, and that is true. However, a cross-functional approach is required to develop more efficient fossil-based engines. There should also be a continuation of the recent drive by governments to increase emission standards, whether through more efficient engines, biofuel content in gasoline or the use of hydrogen/hybrid vehicles.
Renewable energies remain an option – and companies like Suncor are key players in their development and deployment – but until such a time as they become affordable not just for end-users but for mid-stream players like small- and medium-sized enterprises, energy sources will largely be fossil-based. Rather than victimize the industry for serving a global need and doing so within the existing regulatory framework, there will be more value in driving efficiency from automotive and aerospace companies as well as in driving consumers towards more environmentally-friendly products as a whole.
There’s room for improvement in the oil industry – and in the Oilsands – but the key to resolving the climate change issue in the short term is to ensure that the energy being deployed today is efficient and that every joule of it is put to work.