Imperial Oil unmoved by renewable energy

While many Canadian oil and gas companies are investing in renewable energy projects, Imperial Oil won't be joining them anytime soon.

After Imperial's presentation at its annual general meeting on Friday failed to mention anything about green energy, 91-year-old shareholder Eric Wicherts wanted to know why.

I'll never say never, but...- Rich Kruger, Imperial Oil

"What is Imperial doing [about]research or developmentin renewables?" asked Wicherts. "I may suggest solar or wind possibly. I know if the wind doesn't blow you don't get energy, the sun doesn't shine you don't get energy. But, after all, it is a very much developing situation all over the world. Maybe Imperial could take part in this."

CEO Rich Krugerreplied by suggesting the company is focused on producing oil and gas for decades to come, although it looks atrenewables every now and then.

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"We periodically look at alternatives. The vast majority of alternatives today, renewables, have a pretty heavy subsidy requirements to make them commercial," said Kruger.

"I'll never say never, but our efforts are focused on what we have and our view of the world, the strength of our assets, their long term value. [Those efforts] are indeedfocused on oil and gas."

Rich Kruger on not investing in renewable energy

8 years ago

Duration 1:16

Imperial Oil's CEO is asked why the company doesn't invest in green energy projects.

Research spending

That's why the company is spending its research dollars on improving production at its facilities and trying to reduce emissions. Its Kearlmineis regarded as one of the most efficient facilities in the oilsands.

Imperialis majority owned byoilgiantExxonMobilCorp, Last year, Exxon Mobil CEO Rex Tillerson toldshareholders his firm hadn't invested in renewable energy because "We choose not to lose money on purpose."

Traditional oil and gas companiesare constructing much of the green energy projects in the Canada.

Capital Power, for example, has several wind and solar power plants in North America, while also operatinga coal mine andcoal- and natural gas-fired plants.

The main source of revenue for TransCanada Corpis its oil and natural gas pipelines, but the firm also owns wind and hydro power plants.

First loss in decades

Imperialhas faired better than most of its Canadian oil and gas competitors during the currentdownturn as it has yet to cut any of its staff members.

The plunge in oil prices caught up to the company in the most recent quarter as it posted its first loss in22 years.

Imperial lost $101 million in its latest quarter.Revenue and other income totalled $5.22 billion, down from $6.2 billion a year ago.