Oilpatch earnings soar but concerns over inflation, emissions cap loom

Calgary Herald: Chris Varcoe: 'A longer-term concern is also on the horizon: the incoming greenhouse gas emissions cap on the Canadian oil and gas industry being developed by the federal government.

'“I’m very worried that if we remain on this path, it could lead to shutting in production at a time when the world is literally crying out for more oil and gas production,” Cenovus Energy CEO Alex Pourbaix said on an earnings call.

'“Those are much more aggressive goals than are being asked of any of the other industrial sectors in the country . . . I don’t think they’re possible to hit.”

'Oilsands giant Cenovus and the country’s largest gas producer, Tourmaline Oil Corp., both released strong second-quarter results this week that showed a hefty jump in profits and cash flow.'