Ukraine calls on Canadian energy companies to invest in Europe | War in Ukraine

On her first official day in office, the ambassador described the critical shortage of hydrocarbons in Ukraine. Residents can only get 10 liters of petrol a day, she said. She added that Russian bombardments had rendered the country’s oil refineries unusable.

Ukraine and Europe need Canadian oil and gasshe said.

Speaking in front of an audience Global Energy Exhibitionin Calgary, Yulia Kovaliv asked Canadian companies still operating in Russia to leave as soon as possible.

She also thanked Canada for the new sanctions announced against Russia. Foreign Minister Mélanie Joly has introduced a new export ban on 28 services essential to the operation of the Russian oil and gas and chemical industries.

Reserves ready for Canadian investment

However, according to the ambassador, the situation is not only humanitarian in nature, but could also open up great business opportunities in Canada’s energy sector.

European sanctions against Russia will also lead to a complete transformation of the market, since by February 2023 most European countries have committed to reduce imports of oil, gas and oil products from Russia by 90%.

Correction:

The previous version of this text dealt with the export of Russian oil, gas and oil products. Rather, it is a reduction in Russian energy imports.

Canadian companies should take advantage of this opportunity to enter the European market. »

Quote from Yulia Kovaliv, Ambassador of Ukraine to Canada

Also on stage Global Energy Exhibitionthe leaders of the main Ukrainian hydrocarbon company Naftogaz explained that the Canadian experience could be useful in the exploitation of Ukrainian gas.

What we need? We need horizontal drilling technology from North Americasummed up Brian Sralla, director of non-traditional resources at Naftogaz.

According to the ambassador, the environmental concerns associated with increased oil and gas production are understandable, but in the short term, Europe’s needs are related to fossil fuels.

More complex help than just a button to press

Natural Resources Minister Jonathan Wilkinson has indicated in the past that Canada could increase oil and gas exports by 300,000 barrels a day by the end of the year.

Alberta premier Jason Kenney has estimated that with a little regulatory assistance from Ottawa, exports could increase by at least a million barrels, mostly to the US.

However, Cenovus President and CEO Alex Pourbay stressed on Tuesday that it is much more difficult to increase oil production in Alberta. just flip the switch. Growth in oil sands development requires millions of dollars of investment, he said.

Until now, oil companies have preferred to use their profits to pay off their debts and increase dividends to shareholders.

During another series of discussions at the Global Energy Show, Amrita Sen, an analyst at Energy Aspects, also recalled that European refineries are not suitable for the type of oil that is being exploited in Canada. In this sense, there are more business opportunities for Canadian companies in Asia.