About US$727.6 billion in the Canadian government's share in the oil sands sector is at risk if the federal government moves forward with its net zero plan, according to a fact sheet published by the Canadian Energy Centre on Tuesday. .The fact sheet said the Canadian oil sands sector government take will rise from $29.4 billion in 2022 to $46.7 billion in 2050 in an Organization of the Petroleum Exporting Countries (OPEC) scenario. It said the Canadian government's take will drop to -$1.6 billion in 2050 if it follows through on net zero. .About $290.6 billion of the Canadian oil sands sector capital expenditures is also at risk under a net zero plan. .The Canadian oil sands sector capex can grow from $8 billion in 2022 to more than $14.2 billion in 2050 if it does what OPEC wants. It will drop to less than $370 million under net zero. .Around $907.9 billion of the industry’s free cash flow will be affected by a net zero scenario, says the report..Free cash flow can increase from $43.8 billion in 2022 to $45.3 billion by 2050 if it produces more fuel. It will fall to -$5.2 billion under net zero. .The Canadian Energy Centre said $355.6 billion in the industry’s net present value could be harmed by net zero. .The net present value would become $300.9 billion by meeting rising demands. It would drop to -$54.7 billion with net zero. .The fact sheet used data from data from the Rystad Energy Upstream Energy Transition Risk Dashboard to assess risk and to determine the Canadian upstream oil and gas sector under a net zero scenario..Prime Minister Justin Trudeau introduced a bill in 2020 to help Canada reach net zero by 2050. .READ MORE: Trudeau lays out plans for country to be a net-zero emitter by 2050.“Net zero is as much about avoiding the worst impacts of climate change as it is about creating good jobs and a competitive economy for years to come,” said Trudeau. .“Climate change remains one of the greatest challenges of our times.”
