Cenovus CEO takes aim at oil and gas critics; says sector pays billions in taxes
Global News
The oil and gas industry is enjoying eye-popping profits in 2022 after Russia's invasion of Ukraine, which destabilized global energy markets and sent commodity prices soaring.
With oil and gas companies under increased scrutiny for how they choose to use their record-breaking profits in 2022, the chief executive of Cenovus Energy Inc. took aim at critics Wednesday by highlighting the billions of dollars the industry is expected to contribute in taxes and royalties this year.
In a conference call to discuss the company’s third-quarter earnings, Cenovus CEO Alex Pourbaix cited a recent analysis by investment firm Peters & Co. that predicts the oil and gas sector will return approximately $50 billion in the form of royalties and taxes to Canadian federal and provincial governments this year.
“That’s money that pays for health care, education, arts and culture and much more across this country,” Pourbaix said. “To put this in perspective, our sector’s anticipated government contributions this year are equivalent to more than two-thirds of the funding for all of Canada’s hospitals last year.”
Pourbaix’s comments come just days after President Joe Biden accused U.S. oil and gas companies of “war profiteering” and floated the possibility of a “windfall tax” on the sector unless it uses some of its record revenues to help lower fuel prices for American consumers.
Canada’s oil and gas sector is also under fire from critics who say companies should be using more of their hefty profits to invest in decarbonization projects.
Federal Environment Minister Steven Guilbeault has said the industry should be putting more money into clean energy projects instead of share buybacks and dividend increases.
The oil and gas industry is enjoying eye-popping profits in 2022 in the wake of Russia’s invasion of Ukraine, which destabilized global energy markets and sent commodity prices soaring.
On Wednesday, Cenovus Energy Inc. reported its third-quarter profit almost tripled compared with a year ago. The company earned $1.61 billion or 81 cents per diluted share for the quarter ended Sept. 30, up from $551 million or 27 cents per diluted share a year earlier.
