Federal Minister of Natural Resources Tim Hodgson delivered a message to international delegates at the Global Energy Show in Calgary, emphasizing Canada’s potential as a reliable energy supplier in an uncertain world.
However, the CEO of a prominent oilsands producer expressed skepticism about Canada’s commitment, raising concerns about the conditions set for supporting a new West Coast oilsands pipeline, which include a significant emissions-reducing project and an industry carbon levy.
Hodgson highlighted Canada’s dependability, democratic values, and reinvigorated business environment during the conference, coinciding with global energy market tensions due to ongoing conflicts in the Middle East.
The event was anticipated to draw 30,000 participants, with a notable increase in international attendees compared to previous years.
Emphasizing the interconnectedness of energy policy with economic, security, trade, and investment policies, Hodgson stated, “Canada is not waiting for the world, and we are rising to the challenge.”
Last year, Alberta Premier Danielle Smith advocated for a new bitumen pipeline to the northwest coast, to be primarily industry-led.
The Alberta government aims to submit an application to the federal major projects office by July 1 for the pipeline, which currently lacks private-sector backing.
A comprehensive energy agreement between the province and Ottawa outlines the prerequisites for a new West Coast oil pipeline, hinging on the advancement of the Pathways carbon storage initiative.
Cenovus Energy Inc.’s CEO Jon McKenzie expressed optimism about the cooperative efforts of the federal and Alberta governments but raised concerns about the impact of a new carbon pricing framework on oilsands producers’ confidence and investments.
The Pathways project, spearheaded by Cenovus and other oilsands companies, aims to transport captured CO2 from northeastern Alberta to a storage hub near Cold Lake, Alberta, to reduce emissions.
McKenzie criticized the substantial costs of the Pathways project, estimating it to range from $20 billion to $30 billion while yielding minimal global emission reductions.
He emphasized the lack of financial feasibility for the private sector to fund the pipeline under current conditions, urging for a more competitive investment environment to drive growth.
The Alberta government targets designating the pipeline as a national interest project by October, with plans to commence construction as early as September 2027.
Smith acknowledged the challenges of translating plans into action but expressed confidence in the commitment demonstrated through the signed agreement, aiming to attract investments by showcasing progress towards set targets.