Alberta
Alberta joins provincial opposition to federal Clean Fuel Regulations gas tax
Alberta joins provinces opposing federal regulations: Minister Schulz
Minister of Environment and Protected Areas Rebecca Schulz sent a letter to federal Minister of Environment and Climate Change Steven Guilbeault on the upcoming Clean Fuel Regulations:
“Today, I sent a letter to Minister Steven Guilbeault informing him that the Government of Alberta is joining the Government of Saskatchewan and the Atlantic provinces in calling on the federal government to immediately halt the implementation of the federal Clean Fuel Regulations on July 1.
“The federal Clean Fuel Regulations will harm provincial economies in Alberta, Saskatchewan and Atlantic Canada. Combined with the federal government’s carbon tax increase, higher gasoline and diesel costs are expected, putting added cost pressures on other goods and services across the country.
“Now is not the time to drive up prices at the pump and increase expenses for vulnerable households, businesses and industries. Families and businesses cannot continue to afford reckless cost and tax increases imposed by the federal government.
“Alberta has released an Emissions Reduction and Energy Development Plan which is our best path to enhancing our position as a global leader in emissions reductions, clean technology and innovation, and sustainable resource development. It includes a realistic aspiration to have a carbon-neutral economy by 2050, without compromising the affordable, reliable and secure energy that we all rely on.
“What we need now is a concrete plan that will help move us forward in realistic and innovative ways. The federal government needs to stop moving ahead with their costly plans until a path forward can be found that supports all Canadians.”
The letter
Dear Minister Guilbeault:
On behalf of the Government of Alberta, I am joining the Government of Saskatchewan and the Atlantic provinces in calling on the federal government to immediately halt the implementation of the upcoming Federal Clean Fuel Regulations.
Alberta is committed to reducing emissions while keeping energy reliable, secure, and affordable. Our Emissions Reduction and Energy Development Plan works towards a carbon neutral economy; commits to reviewing renewable fuel standards; increases minimum requirements for blending for ethanol and bio based diesel; includes fuel emission intensity reductions; and other major steps forward. We believe this is a path forward that will work for our unique circumstances.
The Federal Clean Fuel Regulations, however, will harm provincial economies in Alberta, Saskatchewan and Atlantic Canada. A plan that unfairly increases costs on families and does not account for regional differences is no plan at all.
The Office of the Parliamentary Budget Officer (PBO) confirmed this in a May 2023 report that found that the Clean Fuel Regulations would hit Alberta, Saskatchewan, and the Atlantic provinces the hardest. The PBO’s report estimated that the cost increase to the average Alberta households in 2030 would be $1,117.
Canadians are already struggling with high inflation. Adding fuel to the fire by hiking the cost of gasoline and diesel will be devastating.
This issue requires immediate attention. Given the pending implementation date of July 1, 2023, Alberta is requesting that the regulations be halted until a path forward can be found that supports all Canadians and addresses the concerns of Alberta, Saskatchewan, and the Atlantic provinces.
Sincerely,
Rebecca Schulz
Minister of Environment and Protected Areas
From the Canadian Energy Centre
By Will Gibson
Alberta oil sands projects poised to grow on lower costs, strong reserves
As geopolitical uncertainty ripples through global energy markets, a new report says Alberta’s oil sands sector is positioned to grow thanks to its lower costs.
Enverus Intelligence Research’s annual Oil Sands Play Fundamentals forecasts producers will boost output by 400,000 barrels per day (bbls/d) by the end of this decade through expansions of current operations.
“Existing oil sands projects deliver some of the lowest-breakeven oil in North America at WTI prices lower than $50 U.S. dollars,” said Trevor Rix, a director with the Calgary-based research firm, a subsidiary of Enverus which is headquartered in Texas with operations in Europe and Asia.
Alberta’s oil sands currently produce about 3.4 million bbls/d. Individual companies have disclosed combined proven reserves of about 30 billion barrels, or more than 20 years of current production.
A recent sector-wide reserves analysis by McDaniel & Associates found the oil sands holds about 167 billion barrels of reserves, compared to about 20 billion barrels in Texas.
While trade tensions and sustained oil price declines may marginally slow oil sands growth in the short term, most projects have already had significant capital invested and can withstand some volatility.
Cenovus Energy’s Christina Lake oil sands project. Photo courtesy Cenovus Energy
“While it takes a large amount of out-of-pocket capital to start an oil sands operation, they are very cost effective after that initial investment,” said veteran S&P Global analyst Kevin Birn.
“Optimization,” where companies tweak existing operations for more efficient output, has dominated oil sands growth for the past eight years, he said. These efforts have also resulted in lower cost structures.
“That’s largely shielded the oil sands from some of the inflationary costs we’ve seen in other upstream production,” Birn said.
Added pipeline capacity through expansion of the Trans Mountain system and Enbridge’s Mainline have added an incentive to expand production, Rix said.
The increased production will also spur growth in regions of western Canada, including the Montney and Duvernay, which Enverus analysts previously highlighted as increasingly crucial to meet rising worldwide energy demand.
“Increased oil sands production will see demand increase for condensate, which is used as diluent to ship bitumen by pipeline, which has positive implications for growth in drilling in liquids-rich regions such as the Montney and Duvernay,” Rix said.
“If Ottawa had it’s way Albertans would be left to freeze in the dark”
The ineffective federal net-zero electricity regulations will not reduce emissions or benefit Albertans but will increase costs and lead to supply shortages.
The risk of power outages during a hot summer or the depths of harsh winter cold snaps, are not unrealistic outcomes if these regulations are implemented. According to the Alberta Electric System Operator’s analysis, the regulations in question would make Alberta’s electricity system more than 100 times less reliable than the province’s supply adequacy standard. Albertans expect their electricity to remain affordable and reliable, but implementation of these regulations could increase costs by a staggering 35 per cent.
Canada’s constitution is clear. Provinces have exclusive jurisdiction over the development, conservation and management of sites and facilities in the province for the generation and production of electrical energy. That is why Alberta’s government is referring the constitutionality of the federal government’s recent net-zero electricity regulations to the Court of Appeal of Alberta.
“The federal government refused to work collaboratively or listen to Canadians while developing these regulations. The results are ineffective, unachievable and irresponsible, and place Albertans’ livelihoods – and more importantly, lives – at significant risk. Our government will not accept unconstitutional net-zero regulations that leave Albertans vulnerable to blackouts in the middle of summer and winter when they need electricity the most.”
“The introduction of the Clean Electricity Regulations in Alberta by the federal government is another example of dangerous federal overreach. These regulations will create unpredictable power outages in the months when Albertans need reliable energy the most. They will also cause power prices to soar in Alberta, which will hit our vulnerable the hardest.”
Finalized in December 2024, the federal electricity regulations impose strict carbon limits on fossil fuel power, in an attempt to force a net-zero grid, an unachievable target given current technology and infrastructure. The reliance on unproven technologies makes it almost impossible to operate natural gas plants without costly upgrades, threatening investment, grid reliability, and Alberta’s energy security.
“Ottawa’s electricity regulations will leave Albertans in the dark. They aren’t about reducing emissions – they are unconstitutional, ideological activist policies based on standards that can’t be met and technology that doesn’t exist. It will drive away investment and punish businesses, provinces and families for using natural gas for reliable, dispatchable power. We will not put families at risk from safety and affordability impacts – rationing power during the coldest days of the year – and we will continue to stand up for Albertans.”
“Albertans depend on electricity to provide for their families, power their businesses and pursue their dreams. The federal government’s Clean Electricity Regulations threaten both the affordability and reliability of our power grid, and we will not stand by as these regulations put the well-being of Albertans at risk.”
Related information
- Conference Board of Canada socio-economic Impacts of Canada’s 2030 Emissions Reduction Plan – (April 2025)
- Alberta Electric System Operator’s position on Canadian Energy Regulations
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