Ottawa’s about-turn to allow access to federal tax credits for capture carbon projects that then use the C02 to boost oil production in old wells is a “game changer” for industry, the oil services sector says.

The change was part of the energy accord signed by Prime Minister Mark Carney and Alberta Premier Danielle Smith on Thursday. Not only could it boost production, it can make Western Canada’s conventional oil sector more competitive with its peers in the United States, says Mark Scholz, chief executive of the Canadian Association of Energy Contractors, which represents the energy industry’s services sector.

Enhanced oil recovery, or EOR, is a process in which carbon-dioxide gas from carbon capture utilization and storage (CCUS) projects is injected underground to draw oil to t

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