Canada's oil and gas sector is raking in unprecedented profits while Canadians nationwide are buckling under skyrocketing inflation..Higher oil prices pushed Imperial Oil Ltd. to publish its highest first quarter profit in more than 30 years on Friday. Its first quarter profits were $1.17 billion. Production at Imperial’s Kearl oilsands mine was lower than expected, however, and was the result of extreme cold weather and unscheduled interruptions..Oilsands giant Suncor Energy tripled its earnings, and then some, in huge contrast to its figures in the same period last year. Profits leapt from $821 million to $2.95 billion in the first quarter..Canadian Natural Resources made $2 billion in net income in the fourth quarter of 2021, and Enbridge landed $1.84 billion in net income last year.Earnings were boosted by the Russian invasion of Ukraine. The February invasion has driven the price and demand for global oil higher as the EU proposes blocking Russian oil imports. .NDP Finance Critic Daniel Blaikie and NDP Critic for Innovation, Science and Industry Brian Masse, discussed with the press the price of gas and the toll it’s taking on Canadians. New Democrats are calling an excess profit tax on oil companies who are making billions in profits..“The steep climb in the cost of gas is making day-to-day life even harder for Canadians who need to drive to work, get their kids, to school and visit loved ones after months of isolation during the pandemic,” said Blaikie..“Meanwhile, many of the biggest corporations are lining their pockets with profits way above their pre-pandemic norm. The rigged system set up by Liberals and Conservatives mean the ultra-rich can walk away with that cash while the rest of us are left to figure out how to foot the bill. This isn’t right and it’s time something is done about it.”.The NDP says the government should step in and stand up to huge oil corporations that are making enormous profits at the pumps at the expense of struggling Canadian drivers, as well as businesses clawing their way out of the COVID-19 economic doldrums..Alberta Premier Jason Kenney, speaking at a Tuesday University of Calgary press conference, was asked to comment on the oil sector's unprecedented profits. He began by encouraging the oil companies to reinvest the windfall capital.."We would love to see an increase in their investments in upstream exploration and production, new greenfield projects in the oil sands to create more jobs in Alberta. As I've said recently, we're concerned that these very strong commodity prices and big profits are not turning into jobs," Kenney said..Kenney told reporters Alberta's oil sector is still reeling from the 2020 oil prices and that they have to answer to their investors.."I understand that the industry was devastated in 2020 with the price collapse, that they're coming off of several tough years, that they're under investor pressure, to strengthen their balance sheets, pay down debt, increase dividends, and buy back shares. And it's not for the government to dictate their financial strategy," he said..The premier added Albertans have the right to see some of the benefit of the provinces energy profits since the resources belong to all Albertans.."Alberta owns the resource that they develop. They have the privilege of developing the resource that belongs to Albertans, and Albertans rightly expect to see real economic benefit, particularly when prices and profits are this high. I once again urge those companies to invest in the future of the industry in a meaningful way," Kenney said..First-quarter profits could be just the beginning of even higher earnings to follow as the fiscal year progresses and production ramps up as weather improves..“The first quarter in any year is expected to be our lowest production quarter at Kearl … however, this winter saw unusually severe cold weather,” said Kearl's president and CEO, Brad Corson, in a conference call with analysts at the end of April..Canadian Environment Minister Steven Guilbeault recently called for oil giants to pour their industry profits into emission-reduction projects. ."We want to invest in your sector to ensure that the sector and workers still have jobs, 10, 15 years from now, when more and more, the world will be moving toward a low-carbon future," Guilbeault said. "So we're putting our money where our mouth is, and we think that they should do the same.".His comments were met with mixed reviews..At press time, West Texas Intermediate crude for June delivery CL.1, -3.30% CL00, -3.30% CLM22, -3.30% rose $5.40, or 5.3%, to close at $107.81 a barrel on the New York Mercantile Exchange.
