Alberta
A Matter of Fact: AP news story misrepresents the oil sands by ignoring environmental progress
A truck approaches Wapisiw Lookout, the first reclaimed tailings pond in the oil sands industry. Photo courtesy Suncor Energy
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.
Front entrance of the new Red Deer Justice Centre.
New courthouse in downtown Red Deer will improve justice services for the region’s growing population and address space constraints.
Red Deer residents are one step closer to enhanced justice services in a state-of-the-art facility. The newly built Red Deer Justice Centre will replace the city’s existing outdated court facilities that have been operating at capacity. The new centre has space for 16 courtrooms, with 12 courtrooms fully built and the ability to add up to four additional courtrooms for future use.
With construction complete, Alberta Infrastructure is turning the building over to Alberta Justice, who will outfit the facility with furniture and modern equipment to prepare the building for the public. The centre is expected to officially open and begin operating in early 2025.
“This new, state-of-the-art courthouse will increase access to justice services for residents of Red Deer and central Alberta. The new facility will meet the space and service needs of residents for generations to come.”
Construction on the new Red Deer Justice Centre began in August 2020. The new centre includes spaces for alternative approaches to the traditional courtroom trial process, with three new suites for judicial dispute resolution services, a specific suite for other dispute resolution services, such as family mediation and civil mediation, and a new Indigenous courtroom able to accommodate smudging. Additionally, it will include modern technology to replace legacy systems at the current courthouse.
“Along with building a new justice centre for Red Deer, Alberta’s government is preparing to expand pre-court services, such as mediation, in Red Deer early in 2025. This new facility has the space to offer these services while also allowing more court cases to be heard, increasing Albertans’ access to justice.”
“As MLA for Red Deer-North, I am thrilled this new justice centre will open its doors to serve our growing community soon. When it opens, it will provide essential space and resources to support timely legal services, reflecting our commitment to improve legal access for the people of Red Deer and central Alberta.”
“Central Alberta is a wonderful, attractive place for individuals to work, live and raise families, and many are choosing our region for these reasons. The Red Deer Justice Centre will improve justice services for a growing population of individuals, families and businesses. This centre is a testament to Red Deer and central Alberta’s growth and our government’s commitment to it.”
Building the vital public infrastructure that Albertans need, creating jobs and attracting investment is integral to Alberta’s economic development. The project supported about 1,100 construction-related jobs from start to finish.
Quick facts
- Red Deer’s current court facilities include seven courtrooms that were built in the 1980s.
- Since then, Red Deer’s population has almost doubled.
- The approved project funding is about $203.1 million.
- The new 312,000 sq ft (29,000 m2) Red Deer Justice Centre is built to LEED Silver standards to ensure reduced energy consumption and operational costs and increased durability of the building.
- The new facility was designed by Group2 Architecture and Interior Design, in conjunction with justice facility specialists DLR Group.
- There are currently five courthouse capital projects in planning or design throughout the province.
From the Fraser Institute
Even if Canada eliminated all its GHG emissions expected in 2030 due to the federal cap, the emission reduction would equal only four-tenths of one per cent of global emissions—a reduction unlikely to have any impact on the trajectory of the climate in any detectable manner or produce any related environmental, health or safety benefits.
After considerable waiting, the Trudeau government released on Monday draft regulations to cap greenhouse gas (GHG) emissions from Canada’s oil and gas producers.
The proposed regulations would set a cap on GHG emissions equivalent to 35 per cent of the emissions produced in 2019 and create a GHG emissions “cap and trade” system to enable oil and gas producers (who cannot reduce emissions enough to avoid the cap) to buy credits from other producers able to meet the cap. Producers unable to meet the cap will also be able to obtain emission credits (of up to 20 per cent of their needed emission reductions) by investing in decarbonization programs or by buying emission “offsets” in Canada’s carbon markets.
According to the government, the cap will “cap pollution, drive innovation, and create jobs in the oil and gas industry.” But in reality, while the cap may well cap pollution and drive some innovation, according to several recent analyses it won’t create jobs in the oil and gas industry and will in fact kill many jobs.
For example, the Conference Board of Canada think-tank estimates that the cap would reduce Canada’s GDP by up to $1 trillion between 2030 and 2040, kill up to 151,300 jobs across Canada by 2030, and national economic growth from 2023 to 2030 would slow from 15.3 per cent to 14.3 per cent.
Not surprisingly, Alberta would be hardest hit. According to the Board, from 2023 to 2030, the province’s economic growth would fall from an estimated 17.8 per cent to 13.3 per cent and employment growth would fall from 15.8 per cent to 13.6 per cent over the same period. Alberta government revenues from the sector would decline by 4.5 per cent in 2030 compared to a scenario without the cap. As a result, Alberta government revenues would be $4.5 billion lower in nominal terms in fiscal year 2030/31. And between 54,000 to 91,500 of Canada’s job losses would occur in Alberta.
Another study by Deloitte estimates that, due to the federal cap, Alberta will see 3.6 per cent less investment, almost 70,000 fewer jobs, and a 4.5 per cent decrease in the province’s economic output (i.e. GDP) by 2040. Ontario would lose more than 15,000 jobs and $2.3 billion from its economy by 2040. And Quebec would lose more than 3,000 jobs and $0.4 billion from its economy during the same period.
Overall, according to Deloitte, Canada would experience an economic loss equivalent to 1.0 per cent of GDP, translating into lower wages, the loss of nearly 113,000 jobs and a 1.3 per cent reduction in government tax revenues. (For context, Canada’s economic growth in 2023 was only 1.1 per cent.)
And what will Canadians get for all that economic pain?
In my study published last year by the Fraser Institute, I found that, even if Canada eliminated all its GHG emissions expected in 2030 due to the federal cap, the emission reduction would equal only four-tenths of one per cent of global emissions—a reduction unlikely to have any impact on the trajectory of the climate in any detectable manner or produce any related environmental, health or safety benefits.
Clearly, the Trudeau government’s new proposed emissions cap on the oil and gas sector will impose significant harms on Canada’s economy, Canadian workers and our quality of life—and hit Alberta with a wallop. And yet, as a measure intended to avert harmful climate change, it’s purely performative (like many of the government’s other GHG regulations) and will generate too little emission reductions to have any meaningful impact on the climate.
In a world of rational policy development, where the benefits of government regulations are supposed to exceed their costs, policymakers would never consider this proposed cap. The Trudeau government will submit the plan to Parliament, and if the cap becomes law, it will await some other future government to undo the damage inflicted on Canadians and their families.
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