"I have heard some proponents of the carbon tax defend it by suggesting that the world will require decarbonized oil barrels going forward. To be honest, Cenovus places over one million barrels a day across three continents, and none of our customers have ever suggested or even asked about the carbon intensity of Canadian crudes.
If customers were willing to pay for decarbonized barrels, we would certainly see these price signals and not require government interference.
The carbon tax escalates through time, making our industry less resilient at lower commodity prices, and will require the premature shut-in and reclamation of oil producing projects that would otherwise be economic to produce.
Much of this is being orchestrated in the belief that we can build a functioning carbon market. The reality is that carbon markets are a political construct and there are no examples of functioning, enduring, or investible carbon markets to draw from." /5