A Matter of Fact: AP news story misrepresents the oil sands by ignoring environmental progress

From the Canadian Energy Centre

Producers reducing emissions per barrel, on track for absolute emissions reductions

A widely-circulated article this week by the Associated Press misrepresents Canada’s oil sands industry by ignoring its progress improving environmental performance and its commitment to achieving climate targets.

Here are the facts.

Fact: Canadian oil is not “the world’s dirtiest”

The article repeats the false narrative that oil from the oil sands is far “dirtier” than other crudes produced around the world. This is not the case.

Analysis by S&P Global found that average oil sands emissions per barrel are in the range of other crude oils consumed in the United States, the industry’s main customer.

Average oil sands emissions per barrel range from 1.6 per cent below to 8.6 per cent above, depending on production process, S&P Global predecessor IHS Markit reported in 2018.

Canada’s oil sands producers are doing more to reduce emissions than operators in other countries, according to BMO Capital Markets.

Between 2013 and 2021, BMO estimates the average oil sands barrel shaved off more than 22 kilograms of emissions, compared to a reduction of just five kilograms per barrel for other major global oil producers.

Fact: Oil sands producers reducing emissions per barrel, on track for absolute emissions reductions

The AP article makes no mention of the success oil sands producers have achieved reducing emissions per barrel. That so-called emissions intensity is now estimated to be 23 per cent lower than it was in 2009, according to S&P Global.

Further, there is no mention that the success reducing emissions per barrel is catching up to production growth, and total oil sands emissions may be close to their peak.

Last year, for the first time since S&P Global started estimating the data, oil sands production went up, but emissions did not.

Total oil sands emissions were 81 megatonnes in 2022, nearly flat with 2021 despite a production increase of about 50,000 barrels per day.

Last year analysts predicted that absolute oil sands emissions would start going down by 2025. The new findings indicate that could happen sooner. And that’s before shovels hit the ground for the Pathways Alliance’s foundational carbon capture and storage (CCS) project.

Fact: Pathways Alliance collaboration is critical to emissions reduction

The AP article leaves out any mention of the Pathways Alliance, one of the most significant environmental initiatives ever undertaken in Canada.

Six companies representing 95 per cent of Canada’s oil sands production are working together with the goal of net zero emissions in their operations by 2050.

With anticipated co-funding support from Canadian governments, the Alliance has announced plans to invest about $24 billion before 2030 in the first phase of its plan.

This includes $16.5 billion on the foundational CCS project and $7.6 billion on other technologies like switching to clean hydrogen and electricity to power oil sands operations.

About half of the targeted 22 million tonne per year emissions reduction by 2030 will come from CCS, with a network connecting CO2 capture at an initial 14 oil sands facilities to a storage hub in northern Alberta.

Fact: CCS projects in Canada are working

The AP article perpetuates the inaccurate position that CCS is not a proven technology. But CCS in Canada has successfully operated for more than two decades.

Canada has six of the world’s 39 commercial CCS operations, accounting for about 15 per cent of global CCS capacity even though Canada generates less than two per cent of global CO2 emissions, according to the International CCS Knowledge Centre.

In Alberta, since 2015 two CCS projects – both tied to oil sands production – have safely stored more than 12 million tonnes of CO2, or the equivalent of taking more than 2.6 million internal combustion engine vehicles off the road.

Fact: The world needs oil now and long into the future

While activists trumpet the narrative that the world is rapidly transitioning away from fossil fuels, the reality is oil and gas will be around for a long, long time.

Even as more renewable and alternative energy sources become technically and economically feasible at a large scale, on the current trajectory the International Energy Agency (IEA) projects that oil alone will still supply 26 per cent of world energy needs in 2050. That’s down only modestly from 30 per cent in 2022.

Even in the IEA’s unlikely net zero scenario – which would require unprecedented global cooperation and includes more than a third of emissions reductions coming from technologies that do not yet exist – oil still accounts for 8 per cent of world energy supply in 2050.

Oil demand for non-energy use (like pavement, which improves in quality when using oil from Canada’s oil sands) even continues to increase in the IEA’s net zero scenario, rising to 6 per cent of world energy use in 2050, from five per cent in 2022.

Canada’s oil sands industry leads the world in its commitment to continuous improvement in environmental performance and emissions reduction, and this should be recognized by media outlets including the Associated Press.

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Alberta

Federal taxes increasing for Albertans in 2025: Report

Published on December 23, 2024

Todayville

From the Canadian Taxpayers Federation

By Kris Sims

The Canadian Taxpayers Federation released its annual New Year’s Tax Changes report today to highlight major tax changes in 2025.

The key provincial tax change expected for Alberta is a reduction in the income tax rate.

“The Alberta government promised to reduce our lowest income tax bracket from 10 down to eight per cent and we expect the government to keep that promise in the new year,” said Kris Sims, CTF Alberta Director. “The United Conservatives said this provincial income tax cut would save families about $1,500 each and Alberta families need that kind of tax relief right now.

“Premier Danielle Smith promised to cut taxes and Albertans expect her to deliver.”

Albertans will see several federal tax hikes coming from Ottawa in 2025.

Payroll taxes: The federal government is raising the mandatory Canada Pension Plan and Employment Insurance contributions in 2025. These payroll tax increases will cost a worker up to an additional $403 next year.

Federal payroll taxes (CPP and EI tax) will cost a worker making $81,200 or more $5,507 in 2025. Their employer will also be forced to pay $5,938.

Carbon tax: The federal carbon tax is increasing to about 21 cents per litre of gasoline, 25 cents per litre of diesel and 18 cents per cubic metre of natural gas on April 1. The carbon tax will cost the average household between $133 and $477 in 2025-26, even after the rebates, according to the Parliamentary Budget Officer.

Alcohol taxes: Federal alcohol taxes will increase by two per cent on April 1. This alcohol tax hike will cost taxpayers $40.9 million in 2025-26, according to Beer Canada.

Following Budget 2024, the federal government also increased capital gains taxes and imposed a digital services tax and an online streaming tax.

Temporary Sales Tax Holiday: The federal government announced a two month sales tax holiday on certain items like pre-made groceries, children’s clothing, drinks and snacks. The holiday will last until Feb. 15, 2025, and could save taxpayers $2.7 billion.

“In 2025, the Trudeau government will yet again take more money out of Canadians’ pockets with payroll tax hikes and will make life more expensive by raising carbon taxes and alcohol taxes,” said Franco Terrazzano, CTF Federal Director. “Prime Minister Justin Trudeau should drop his plans to take more money out of Canadians’ pockets and deliver serious tax relief.”

You can find the CTF’s New Year’s Tax Changes report HERE.

Alberta

Fraser Institute: Time to fix health care in Alberta

Published on December 22, 2024

Todayville

From the Fraser Institute

By Bacchus Barua and Tegan Hill

Shortly after Danielle Smith was sworn in as premier, she warned Albertans that it would “be a bit bumpy for the next 90 days” on the road to health-care reform. Now, more than two years into her premiership, the province’s health-care system remains in shambles.

According to a new report, this year patients in Alberta faced a median wait of 38.4 weeks between seeing a general practitioner and receiving medically necessary treatment. That’s more than eight weeks longer than the Canadian average (30.0 weeks) and more than triple the 10.5 weeks Albertans waited in 1993 when the Fraser Institute first published nationwide estimates.

In fact, since Premier Smith took office in 2022, wait times have actually increased 15.3 per cent.

To be fair, Premier Smith has made good on her commitment to expand collaboration with the private sector for the delivery of some public surgeries, and focused spending in critical areas such as emergency services and increased staffing. She also divided Alberta Health Services, arguing it currently operates as a monopoly and monopolies don’t face the consequences when delivering poor service.

While the impact of these reforms remain largely unknown, one thing is clear: the province requires immediate and bold health-care reforms based on proven lessons from other countries (e.g. Australia and the Netherlands) and other provinces (e.g. Saskatchewan and Quebec).

These reforms include a rapid expansion of contracts with private clinics to deliver more publicly funded services. The premier should also consider a central referral system to connect patients to physicians with the shortest wait time in their area in public or private clinics (while patients retain the right to wait longer for the physician of their choice). This could be integrated into the province’s Connect Care system for electronic patient records.

Saskatchewan did just this in the early 2010s and moved from the longest wait times in Canada to the second shortest in just four years. (Since then, wait times have crept back up with little to no expansion in the contracts with private clinics, which was so successful in the past. This highlights a key lesson for Alberta—these reforms are only a first step.)

Premier Smith should also change the way hospitals are paid to encourage more care and a more patient-focused approach. Why?

Because Alberta still generally follows an outdated approach to hospital funding where hospitals receive a pre-set budget annually. As a result, patients are seen as “costs” that eat into the hospital budget, and hospitals are not financially incentivized to treat more patients or provide more rapid access to care (in fact, doing so drains the budget more rapidly). By contrast, more successful universal health-care countries around the world pay hospitals for the services they provide. In other words, by making treatment the source of hospital revenue, hospitals provide more care more rapidly to patients and improve the quality of services overall. Quebec is already moving in this direction, with other provinces also experimenting.

The promise of a “new day” for health care in Alberta is increasingly looking like a pipe dream, but there’s still time to meaningfully improve health care for Albertans. To finally provide relief for patients and their families, Premier Smith should increase private-sector collaboration, create a central referral system, and change the way hospitals are funded.