CALGARY — The man hired to turn around the flagging fortunes of Suncor Energy Inc. said Tuesday he believes the company has been too focused in recent years on the energy transition and must get back to an oil-centred business strategy.
His stated goal to refocus Suncor's efforts on its oilsands assets comes even as the company has publicly committed to achieving net-zero greenhouse gas emissions by 2050. Suncor is not alone in its strategy, said Duncan Kenyon, director of corporate engagement with shareholder advocacy group Investors for Paris Compliance. Ever since crude prices spiked in the aftermath of last year's Russian invasion of Ukraine, he added, energy companies have been laser-focused on maximizing profits from oil.
Instead, the company said at the time, it would focus on advancing the development of low-carbon fuels as well as the commercial-scale deployment of carbon capture technology. However, Kenyon said he thinks Suncor's focus on oil ignores the "demand erosion" risk the company faces as the pace of electric vehicle adoption picks up and buyers seek out lower-cost, lower-emission barrels in the future.