Emissions Reduction Work Will Reinforce Canada as Preferred Global Oil Supplier

April 05, 2023

A new international poll suggests actions taken by Canada’s oil and gas sector to decarbonize production, including an ambitious net zero goal for oil sands operations, position the country well to play a bigger role in meeting global energy security needs for many years to come, says an alliance of Canada’s six largest oil sands companies.

The Pathways Alliance points to data in the new Ipsos study of 28 countries showing Canada is the world’s preferred oil supplier, followed by Norway and the United States. The data shows that most people around the world want the oil and gas they need to come from democratic countries such as Canada and that support for the continued use of oil and gas is strong as long as efforts are being made to reduce emissions through technologies such as carbon capture and storage (CCS).

“Geopolitical instability has many around the world more conscious of where the energy they need comes from,” said Pathways Alliance President Kendall Dilling.

“We’re focused on helping Canada meet its climate goals with an aggressive plan to reduce emissions while ensuring we play an increasing role in meeting the world’s energy security needs.”

Forecasts such as the International Energy Agency’s World Energy Outlook Stated Policies Scenario show oil and gas will be needed for decades, emphasizing why any realistic plan to meet climate targets must have a collaborative approach between industry and government to reduce emissions from oil and gas operations, without forcing cuts in production.

The independent Ipsos study that Pathways Alliance and others subscribed to, asked participants to rank preferred oil producing jurisdictions – similar to the ranked ballot – from one to eight and then averaged them, with Canada coming out on top.

“This reinforces that North American energy is desired worldwide and if we work together and with governments to advance our climate goals, we can increase the global market share of responsibly produced energy – something that is good for the climate as well as jobs and economic growth on both sides of the border,” said Dilling.

Pathways Alliance is advancing a bold and realistic plan to reduce absolute emissions from production by 22 million tonnes annually by 2030 and achieve net zero operational emissions 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.

Of the $24 billion, approximately $16.5 billion, will support a proposed carbon capture and storage network in northeastern Alberta that, when constructed, will be among the largest facilities in the world. The remaining $7.6 billion investment is planned on major emissions reduction projects and technologies.

“We know of no other oil-producing jurisdiction where competitors have come together and done the work required to advance such an ambitious plan,” said Dilling.

Between 2012 and 2021, the Alliance’s six member companies invested more than $10 billion Cdn on R&D on various technologies in Canada’s oil sands. Some have helped the industry reduce average per-barrel CO2 emissions by about 22% between 2011 and 2019.

Updates include:

• Extensive work is underway on the CCS environmental program involving 135 experts ranging from aquatic and wildlife biologists to archeologists and paleontologists who have spent more than 1,600 hours in the field working to minimize environmental disturbance. Data will continue to be collected throughout 2023 documenting conditions and variations across seasons.
• Carbon sequestration evaluation agreement with the Government of Alberta.
• Ongoing detailed subsurface evaluation of the geological characteristics and properties of the proposed CCS sequestration hub including drilling of new test wells.
• Early engagement continues with more than 20 Indigenous communities along the proposed corridor, ahead of formal consultations, including a commitment to meaningful engagement throughout the full cycle of the network’s operations.
• Twelve carbon capture feasibility studies involving member companies on oil sands sites.
• Detailed engineering work on the sequestration hub is well underway.
• Design work on the 400-kilometer transportation line is underway with a $10-million engineering contract awarded.
• Regulatory application is being readied for the fourth quarter of 2023.
• Co-generation projects, steam reduction technology and electrification work underway by member companies.