Alberta
‘Significant change’ in oil sands emissions growth while sector nears $1 trillion in spending
In situ oil sands project in northern Alberta. Photo courtesy MEG Energy
From the Canadian Energy Centre
‘The oil sands are Canada’s winning lottery ticket’
As Alberta’s oil sands sector reaches a major economic milestone, a new report shows that emissions growth continues to slow.
There is a clear “structural break” for the industry where production growth is beginning to rise faster than emissions growth, according to S&P Global Commodity Insights. While last year’s oil sands production was nine per cent higher than in 2019, total emissions rose by just three per cent.
“It’s not driven solely by slower production growth because production growth has continued. This is a notable, significant change in oil sands emissions,” said Kevin Birn, head of S&P Global’s Centre for Emissions Excellence.
Birn said that in many cases oil sands growth is coming from optimization, where for example instead of companies building new equipment to generate more steam to inject underground, they have found ways to produce more oil with the steam they already have.
Emissions per barrel, or so-called “emissions intensity” is now 28 per cent lower than it was in 2009.
Earlier this year, S&P Global raised its oil sands production outlook, now projecting the sector will reach 3.8 million barrels per day by 2030, compared to 3.2 million barrels per day in 2023.
Analysts continue to expect total oil sands emissions to peak in the next couple of years, absent the federal government’s proposed oil and gas emissions cap.
“Certainly, there’s potential for that to occur later if there’s more volume than we anticipate, but it’s also the time when we start to see the potential for large-scale decarbonizations to emerge towards the end of this decade,” Birn said.
Meanwhile, before the end of this year the oil sands sector will hit approximately $1 trillion of cumulative spending over the last 25 years, according to a joint report by the Macdonald-Laurier Institute and Pathways Alliance.
That is, not profits or dividends, but investment in operations, building new facilities, and government payments including taxes and royalties.
“The oilsands are Canada’s winning lottery ticket,” wrote MLI’s Heather Exner-Pirot and Pathways’ Bryan Remillard.
They noted that oil sands producers have paid more than $186 billion in royalties and taxes to Canadian governments, representing more than the last five years of Canadian defense spending.
“Far from just an Alberta success story, the oilsands are a quintessentially Canadian sector. More than 2,300 companies outside of Alberta have had direct business with the oilsands, including over 1,300 in Ontario and almost 600 in Quebec,” wrote Exner-Pirot and Remillard.
“That juggernaut could keep Canada’s economy prosperous for many more decades, providing the feedstock for chemicals and carbon-based materials whenever global fuel consumption starts to decline.”
That is, unless companies are forced to cut production, which credible analysis has found will happen with Ottawa’s emissions cap – well over one million barrels per day by 2030, which Exner-Pirot and Remillard said would have to come almost entirely from Canada’s exports to the United States.
“If companies are forced to cut their production, they won’t be able to afford to aggressively cut emissions. Nor will they be able to make other investments to maximize and sustain the value of this resource.”
Alberta
‘Weird and wonderful’ wells are boosting oil production in Alberta and Saskatchewan
From the Canadian Energy Centre
Multilateral designs lift more energy with a smaller environmental footprint
A “weird and wonderful” drilling innovation in Alberta is helping producers tap more oil and gas at lower cost and with less environmental impact.
With names like fishbone, fan, comb-over and stingray, “multilateral” wells turn a single wellbore from the surface into multiple horizontal legs underground.
“They do look spectacular, and they are making quite a bit of money for small companies, so there’s a lot of interest from investors,” said Calin Dragoie, vice-president of geoscience with Calgary-based Chinook Consulting Services.
Dragoie, who has extensively studied the use of multilateral wells, said the technology takes horizontal drilling — which itself revolutionized oil and gas production — to the next level.
“It’s something that was not invented in Canada, but was perfected here. And it’s something that I think in the next few years will be exported as a technology to other parts of the world,” he said.
Dragoie’s research found that in 2015 less than 10 per cent of metres drilled in Western Canada came from multilateral wells. By last year, that share had climbed to nearly 60 per cent.
Royalty incentives in Alberta have accelerated the trend, and Saskatchewan has introduced similar policy.
Multilaterals first emerged alongside horizontal drilling in the late 1990s and early 2000s, Dragoie said. But today’s multilaterals are longer, more complex and more productive.
The main play is in Alberta’s Marten Hills region, where producers are using multilaterals to produce shallow heavy oil.
Today’s average multilateral has about 7.5 horizontal legs from a single surface location, up from four or six just a few years ago, Dragoie said.
One record-setting well in Alberta drilled by Tamarack Valley Energy in 2023 features 11 legs stretching two miles each, for a total subsurface reach of 33 kilometres — the longest well in Canada.
By accessing large volumes of oil and gas from a single surface pad, multilaterals reduce land impact by a factor of five to ten compared to conventional wells, he said.
The designs save money by skipping casing strings and cement in each leg, and production is amplified as a result of increased reservoir contact.
Here are examples of multilateral well design. Images courtesy Chinook Consulting Services.
Parallel
Fishbone
Fan
Waffle
Stingray
Frankenwells
Alberta
Alberta to protect three pro-family laws by invoking notwithstanding clause
From LifeSiteNews
Premier Danielle Smith said her government will use a constitutional tool to defend a ban on transgender surgery for minors and stopping men from competing in women’s sports.
Alberta Premier Danielle Smith said her government will use a rare constitutional tool, the notwithstanding clause, to ensure three bills passed this year — a ban on transgender surgery for minors, stopping men from competing in women’s sports, and protecting kids from extreme aspects of the LGBT agenda — stand and remain law after legal attacks from extremist activists.
Smith’s United Conservative Party (UCP) government stated that it will utilize a new law, Bill 9, to ensure that laws passed last year remain in effect.
“Children deserve the opportunity to grow into adulthood before making life-altering decisions about their gender and fertility,” Smith said in a press release sent to LifeSiteNews and other media outlets yesterday.
“By invoking the notwithstanding clause, we’re ensuring that laws safeguarding children’s health, education and safety cannot be undone – and that parents are fully involved in the major decisions affecting their children’s lives. That is what Albertans expect, and that is what this government will unapologetically defend.”
Alberta Justice Minister and Attorney General Mickey Amery said that the laws passed last year are what Albertans voted for in the last election.
“These laws reflect an overwhelming majority of Albertans, and it is our responsibility to ensure that they will not be overturned or further delayed by activists in the courts,” he noted.
“The notwithstanding clause reinforces democratic accountability by keeping decisions in the hands of those elected by Albertans. By invoking it, we are providing certainty that these protections will remain in place and that families can move forward with clarity and confidence.”
The Smith government said the notwithstanding clause will apply to the following pieces of legislation:
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Bill 26, the Health Statutes Amendment Act, 2024, prohibits both gender reassignment surgery for children under 18 and the provision of puberty blockers and hormone treatments for the purpose of gender reassignment to children under 16.
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Bill 27, the Education Amendment Act, 2024, requires schools to obtain parental consent when a student under 16 years of age wishes to change his or her name or pronouns for reasons related to the student’s gender identity, and requires parental opt-in consent to teaching on gender identity, sexual orientation or human sexuality.
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Bill 29, the Fairness and Safety in Sport Act, requires the governing bodies of amateur competitive sports in Alberta to implement policies that limit participation in women’s and girls’ sports to those who were born female.”
Bill 26 was passed in December of 2024, and it amends the Health Act to “prohibit regulated health professionals from performing sex reassignment surgeries on minors.”
As reported by LifeSiteNews, pro-LGBT activist groups, with the support of Alberta’s opposition New Democratic Party (NDP), have tried to stop the bill via lawsuits. It prompted the Smith government to appeal a court injunction earlier this year blocking the province’s ban on transgender surgeries and drugs for gender-confused minors.
Last year, Smith’s government also passed Bill 27, a law banning schools from hiding a child’s pronoun changes at school that will help protect kids from the extreme aspects of the LGBT agenda.
Bill 27 will also empower the education minister to, in effect, stop the spread of extreme forms of pro-LGBT ideology or anything else to be allowed to be taught in schools via third parties.
Bill 29, which became law last December, bans gender-confused men from competing in women’s sports, the first legislation of its kind in Canada. The law applies to all school boards, universities, and provincial sports organizations.
Alberta’s notwithstanding clause is like all other provinces’ clauses and was a condition Alberta agreed to before it signed onto the nation’s 1982 constitution.
It is meant as a check to balance power between the court system and the government elected by the people. Once it is used, as passed in the legislature, a court cannot rule that the “legislation which the notwithstanding clause applies to be struck down based on the Charter of Rights and Freedoms, the Alberta Bill of Rights, or the Alberta Human Rights Act,” the Alberta government noted.
While Smith has done well on some points, she has still been relatively soft on social issues of importance to conservatives , such as abortion, and has publicly expressed pro-LGBT views, telling Jordan Peterson earlier this year that conservatives must embrace homosexual “couples” as “nuclear families.”
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