Federal Minister of Natural Resources, Tim Hodgson, addressed international delegates at the Global Energy Show in Calgary, emphasizing Canada’s potential as a crucial supplier in an uncertain global landscape.
However, the CEO of a prominent oilsands company expressed skepticism about Canada’s commitment, citing reservations about tying support for a new West Coast oilsands pipeline to a multibillion-dollar emissions reduction project and an industry carbon levy.
Hodgson, speaking at the conference, highlighted Canada’s reliability, democracy, and renewed openness for business, especially as global energy markets face instability due to ongoing conflicts in the Middle East.
With an anticipated attendance of 30,000, including a higher number of foreign participants, this year’s event highlighted the intersection of energy policy with economic, security, trade, and investment considerations, according to Hodgson.
Alberta Premier Danielle Smith had previously advocated for a new bitumen pipeline to the northwest coast, with the province aiming to submit an application to the federal major projects office by July 1, despite lacking private sector support.
A recent energy agreement between Alberta and the federal government outlined the prerequisites for a new West Coast oil pipeline, hinging on the progress of the Pathways carbon storage initiative. Cenovus Energy Inc.’s CEO, Jon McKenzie, acknowledged the cooperative stance from both levels of government but expressed concerns about the impact of a new carbon pricing regime on oilsands producers’ confidence and investment.
The Pathways project aims to reduce carbon dioxide emissions by 16 megatonnes by 2045 by capturing CO2 from various oilsands sites in northeastern Alberta and transporting it to a storage facility near Cold Lake.
McKenzie raised doubts about the financial viability and environmental benefits of the Pathways project, estimating a substantial cost without significant emission reductions. He criticized the industrial carbon tax, stating it undermines the competitiveness of Canadian energy investments and oilsands production.
Regarding the proposed pipeline, McKenzie highlighted the financial challenges faced by Canadian oilsands producers in funding such large-scale projects under the current investment climate.
The Alberta government’s target is to designate the pipeline as a project of national interest by October, with construction potentially commencing as early as September 2027. Premier Smith acknowledged the need for efficient execution of plans to attract investments and demonstrate commitment to achieving set targets.