Yes, at Whitecap we believe this incentive should support emitters who face very high costs to decarbonize. We don't think it's necessary for the capital spend on carbon dioxide enhanced oil recovery, or CO2-EOR, to attract the investment credit itself. However, it should support emitters who choose to implement carbon capture regardless of where the CO2 is stored, as long as emissions are being reduced and the carbon is permanently sequestered.
It's important to remember that CO2-EOR projects do target existing depleted reservoirs. The extended life of these reservoirs does help to reduce the surface environmental impacts of new exploration to meet existing and ongoing fuel demand.
While demand is strong, we do believe that Canadians are going to be proud to support the market with lower carbon intensity oil that comes from CO2-EOR, which is estimated by the Clean Air Task Force to have 37% fewer emissions than a conventional barrel.