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8 FACTS YOU MUST KNOW – Canada Action on the proposed Teck Frontier Mine

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In an effort to help Albertans and Canadians understand each other and have meaningful conversations about energy, the environment, and the economy, Todayville presents this informative post from Canada Action.  We invite you to share your questions, comments and concerns.   Please note the first time you comment on a Todayville story you will be asked to register as a user.  Once registered you are also invited to contribute your own original posts to Todayville’s front page.  Thank you for taking part in these important community conversations.

 Diagrams and thumbnail photo from Teck.com

From Canada Action

Teck Frontier Mine: 8 Facts You Must Know

With the federal government’s decision on the Teck Frontier Mine coming soon (in February), there’s some important details about this new oil sands project that need to be brought into the limelight.

Teck’s new oil sands mine in northern Alberta will be one of the most innovative projects of its kind to-date, making use of industry-leading technologies to:

> Reduce greenhouse gas (GHG) emissions intensity

> Minimize water use and protect water quality

> Reclaim land as soon as mining begins

> Ensure safe, secure tailings storage with leading-edge technology

> Prevent or mitigate possible impacts to wildlife

Fact #1: Global Oil Demand is Growing

But before we discuss these further, it’s essential we are all reminded of the paramount fact that global oil demand is projected to grow by nearly 10 million barrels per day between now and 2040, as outlined in the International Energy Agency’s (IEA) most recent World Energy Outlook 2019.

Oil Sands Action@OilsandsAction

Canada should be a global energy supplier of choice because we have the highest standards for protecting people and the planet.
We are 4th in the world on the clean technology index and we should be proud. 🇨🇦

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Heck, that’s the whole reason why Teck has proposed this massive new oil sands mine in the first place. If oil sands growth forecasts by the Canadian Energy Regulator (CER)and U.S. Energy Information Administration (EIA) come even close to being true, with production increasing 50% by 2040 and even more so by 2050, the new Teck Frontier Mine is just a small part of the puzzle for Canada’s energy industry going forward.

We know about projected growth for oil and natural gas demand in the foreseeable future, so why would anyone not want Canada to have as much market share as possible? As one of the most transparent, regulated and environmentally responsible petroleum producers on the planet, it only makes sense that Canada should be one of the last producers “out of the pool.”

> Canadian Oil is in the World’s Best Interest: ESG Scorecard

> Canada Ranks 6th on Democracy Index 2018 (ESG Criteria)

> Canada Tops Environmental Performance Index Among Top 10 Oil Exporters

Canada’s record of oil and gas production is exemplified by Teck’s initiatives to make Frontier one of the best-in-class oil sands mines ever built in regards to both the environment and Indigenous support.

Fact #2: Land Reclamation Will Begin as Soon as Mining Starts

> Land reclamation will begin as mining progresses, adhering to strict regulations set forth by the Alberta Energy Regulator (AER)

> The actual footprint of active mining will be smaller than the total project area due to on-going reclamation efforts

> With a size of about 292 square kilometres, the mine’s total surface area is about half the size of Edmonton but this land will not be all disturbed at once

Fact #3: Frontier Will Have a Carbon Intensity Less than 50% of USA Refineries

teck frontier mine oil sands intensity less than 50% of USA oil

> GHG emissions intensity of the Frontier project will be about 50% less than the oil sands industry average

> Carbon intensity of the Frontier project will be less than half of the oil currently refined in the United States

> Energy efficient mining processes and cogeneration are among the industry-leading technologies that will help reduce GHG emissions

Fact #4: Extensive Work on Prevention & Mitigation for Wildlife

> Extensive assessments of potential effects on fish, wildlife and their habitat have been conducted to ensure the right steps are taken to prevent and mitigate effects during operations and after the mine is closed

> Any affected wildlife habitat will be fully reclaimed to a “…self-sustaining ecosystem with local vegetation and wildlife.” – AER

Fact #5: Frontier Will Have the Lowest Water Use Intensity

teck frontier mine water use intensity lowest in oil sands

> Teck’s Frontier Mine will have one of the lowest water use intensities in the oil sands

> About 90% of water used to process the bitumen will be recycled, minimizing fresh water withdrawals from the Athabasca river

> Off-stream water storage will help to reduce water withdrawals from the river during low flow periods

> Safeguards will ensure water quality is protected and there are no leaks into the water table

Fact #6: Leading-Edge Tailings Management & Technology

> Teck’s Frontier Mine project will use state-of-the-art practices to create a safe and secure placement for tailings

> Centrifuges will de-water tailings fluid before placement mined-out pits, eliminating the need for dams after operations cease and providing increased levels of security for tailings containment in the process

Fact #7: All 14 Indigenous Communities Support the Project

indigenous communities support teck frontier mine

> All 14 Indigenous groups in the region where the Teck Frontier Mine is proposed support the project. They include:

  • Athabasca Chipewyan First Nation
  • MikisewCree First Nation
  • Fort McKayFirst Nation
  • Fort Chipewyan Métis
  • Fort McKayMétis
  • Fort Mc Murray Métis1935
  • Fort McMurrayFirst Nation #468
  • MétisNation of Alberta- Region One and it’s member locals
  • Athabasca Landing Local # 2010
  • Buffalo Lake Local # 2002
  • ConklinLocal # 193
  • Lac La BicheLocal # 1909
  • Owl River Local # 1949
  • Willow Lake Local # 780

Fact #8: Teck Frontier Mine a Much-Needed Boon for the Energy Sector

> Frontier will employ up to 7,000 people during peak construction

> An additional 2,500 people will be employed throughout operations over a project life of 41 years

> 75,000 person-years of employment generated by the construction of Frontier

> $55 billion generated in provincial taxes and royalties

> $12 billion generated in federate corporate income and capital taxes

> $3.6 billion generated in municipal property taxes

Teck’s investment of $20.6 billion in northern Alberta comes at a time where a lack of new pipeline capacity and strangulating regulations have been choking the life out of one of Canada’s most valuable industries.

Frontier will create thousands of new employment opportunities, tens of billions in government revenues and provide a much-needed boost to an industry that has seen countless jobs and investor cash flee in droves to more competitive oil and gas producing jurisdictions over the past five years.

Much like the Trans Mountain Pipeline expansion, an approval of Teck’s Frontier Mine would help to restore investor confidence in Canada’s energy sector.

With the Trans Mountain Expansion, Keystone XL and Line 3 Replacement set to add more than a million barrels of additional pipeline capacity for Canada in the near future, it only makes sense that this project – with its low carbon intensity and leading-edge environmental initiatives – should provide some of the oil necessary to fill those pipes.

Learn more – Pipelines in Canada: What You Should Know

we should be proud canada action

Canada Action is an entirely volunteer created grassroots movement encouraging Canadians to take action and work together in support of our vital natural resources sector. We believe it’s critical to educate Canadians about the social and economic benefits provided by the resource sector and industry’s commitment to world-class environmental stewardship. We’re strong supporters of Canada’s oil sands and the resource sector generally because we know how important these industries are to Canada’s present and future prosperity.

We’re committed to engaging Canadians in a more informed conversation about resource development, about how important it is to our society and about how we’re doing it well today and improving our practices for the future. We believe that by educating Canadians on the importance of the country’s resource sector – they’ll act on that information, stand up and make their voices count.

After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Alberta

Start-up of Trans Mountain expansion ‘going very well’ as global buyers ink deals for Canadian crude

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A worker at Trans Mountain’s Burnaby Terminal. Photo courtesy Trans Mountain Corporation

From the Canadian Energy Centre

By Deborah Jaremko

Chinese refiner pays about US$10 more for oil off TMX compared to sales value in Alberta

Canada’s oil sands producers are “back in the limelight” for investors following completion of the Trans Mountain pipeline expansion, according to a report by Enervus Intelligence Research.

For the first time in the better part of a decade, there is now breathing room on the system to ship all of the oil producers are able to sell off the coast of B.C.

Up until this May, Trans Mountain was regularly overbooked. Not anymore.

The crude carrier Dubai Angel picked up the first shipment from the long-awaited expansion on May 22, setting sail for China and a customer of oil sands producer Suncor Energy.

Analysts estimate Trans Mountain loaded 20 vessels in June, compared to a pre-expansion average of five per month.

“You’re seeing multiple buyers. It’s going very well,” said Phil Skolnick, managing director of research with New York-based Eight Capital.

“You’re seeing the exact buyers that we always thought were going to show up, the U.S. west coast refineries and as well as the Asian refineries, and there was a shipment that went to India as well.”

The “Golden Weld” in April 2024 marked the mechanical completion and end of construction for the Trans Mountain expansion project. Photo courtesy Trans Mountain Corporation

Canadian crude in demand on the global market

Asian markets – particularly China, where refineries can process “substantial quantities” of extra heavy crude and bitumen – are now “opened in earnest” to Canadian oil, the International Energy Agency (IEA) said in its June Oil 2024 report.

“There’s demand for this crude and people are going to make deals,” said Kevin Birn, chief analyst of Canadian oil markets with S&P Global.

The IEA said Canadian crude will increasingly compete with heavy oil from other countries, particularly those in Latin America and the Middle East.

June’s loading of 20 vessels is slightly lower than the 22 vessels Trans Mountain had targeted, but Skolnick said a few bumps in the project’s ramp-up are to be expected.

“About three months ago, the shippers were telling investors on their calls, don’t expect it to be a smooth ramp up, it’s going to be a bit bumpy, but I think they’re expecting by Q4 you should start seeing everyone at peak rates,” Skolnick said.

Delivering higher prices

Trans Mountain’s expanded Westridge Terminal at Burnaby, B.C. now has capacity to load 34 so-called “Aframax” vessels each month.

One of the first deals, with Chinese refiner Rongsheng Petrochemical, indicates the Trans Mountain expansion is delivering on one of its expected benefits – higher prices for Canadian oil.

Canada’s Parliamentary Budget Office has said that an increase of US$5 per barrel for Canadian heavy oil over one year would add $6 billion to Canada’s economy.

The June deal between Rongsheng and an unnamed oil sands shipper saw a shipment of Access Western Blend (AWB) purchased for approximately US$6 per barrel below the Brent global oil benchmark. That implies an AWB selling price of approximately US$75 per barrel, or about US$10 more than the price received for AWB in Alberta.

Expanded export capacity at the Trans Mountain Westridge Terminal. Photo courtesy Trans Mountain Corporation

More pipeline capacity needed

Oil sands production – currently about 3.4 million barrels per day – is projected to rise to 3.8 million barrels per day by the end of the decade before declining slightly to about 3.6 million barrels per day in 2035, according to the latest outlook by S&P Global.

“Despite the recent completion of the Trans Mountain Expansion project, additional capacity will still be needed, likely via expansion or optimization of the existing pipeline system,” wrote Birn and S&P senior research analyst Celina Hwang in May.

“By 2026, we forecast the need for further export capacity to ensure that the system remains balanced on pipeline economics.”

Uncertainty over the federal government’s proposed oil and gas emissions cap “adds hesitation” to companies considering large-scale production growth, wrote Birn and Hwang.

Global oil demand rising

World oil demand, which according to the IEA reached a record 103 million barrels per day in 2023, is projected to continue rising despite increased investment in renewable and alternative energy.

June outlook by the International Energy Forum (IEF) pegs 2030 oil demand at nearly 110 million barrels per day.

“More investment in new oil and gas supply is needed to meet growing demand and maintain energy market stability, which is the foundation of global economic and social well-being,” said IEF secretary Joseph McMonigle.

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Alberta

Jordan Peterson Interviews Alberta Premier Danielle Smith – Preview

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This is a clip from tomorrow’s podcast release with Premier Danielle Smith. In it, she and Dr. Peterson discuss Trudeau’s stance against fossil fuels and the unreliability of so-called “renewables.”

Dr. Peterson’s extensive catalog is available now on DailyWire+: https://bit.ly/3KrWbS8

ALL LINKS: https://linktr.ee/drjordanbpeterson

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