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Imperial (IMO) Lays Down Goals to Cut Oil Sands Emissions

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Canadian oil and gas major, Imperial Oil Limited (IMO - Free Report) , has revealed plans to bring down the intensity of greenhouse gas (GHG) emissions from its oil sands operations by around 30% by the end of 2030 compared with 2016 emission levels.

By using the latest technology available at its cold chain operation in Alberta, overall efficiency improvements, and using carbon capture and storage at its facilities, Imperial Oil intends to reduce the intensity of Scope 1 (directly generated from its operations) and 2 (caused by the electricity consumption to run its facilities) GHG emissions and is on track to meet its objective of reducing the same by 10% by the end of the next year compared with 2016 levels.

Aligned with the Canadian government’s vision to accomplish net-zero emissions by mid-century, IMO reasserted its larger objective of achieving net-zero Scope 1 and 2 GHG emissions in its oil sands operations by 2050. The company already invested around $2.1 billion over the past two decades in an attempt to deliver a better environmental outcome for its oil sands operations.

Founded in 1880, Calgary-based Imperial Oil Limited is one of the largest integrated oil companies of Canada, mainly engaged in oil and gas production, petroleum products refining and marketing and chemical business.  
Investors should know that Imperial Oil is a subsidiary of ExxonMobil (XOM - Free Report) — one of the world’s biggest publicly traded integrated oil companies — with the latter holding nearly a 70% stake in the Canadian operator. ExxonMobil also acts as IMO’s chief financier, which adds to the company’s financial stability and helps it access cheap capital.

Imperial Oil currently has Zacks Rank #4 (Sell). Some better-ranked stocks from the energy sector include Eni (E - Free Report) and Equinor (EQNR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Eni’s 2022 earnings is projected at $4.08 per share, which is an increase of 33.9% from the projected year-ago earnings of $3.05.

Eni stock has gone up 43.1% in a year. The Zacks Consensus Estimate for E’s 2022 earnings has been revised upward three times over the past 60 days.

The Zacks Consensus Estimate for Equinor’s 2022 earnings is projected at $3.87 per share, up about 17% from the projected year-ago earnings of $3.31.

The Zacks Consensus Estimate for Equinor’s 2022 earnings has been revised upward three times over the past 60 days from $3.46 to $ 3.87 per share. EQNR stock has increased around 49.7% in a year.


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