Federal Minister of Natural Resources Tim Hodgson emphasized Canada’s potential as a reliable energy supplier at the Global Energy Show in Calgary. However, the CEO of a prominent oilsands company questioned Canada’s commitment due to the condition set for supporting a new West Coast oilsands pipeline, which includes a significant emissions-reduction project and a carbon levy.
During the conference, Hodgson highlighted Canada’s reliability, democracy, and readiness for business amidst global energy market uncertainties. The event aimed to attract 30,000 attendees, with a higher international turnout compared to previous years.
Hodgson stressed the interconnectedness of energy policy with economic, security, trade, and investment policies, affirming that Canada is not delaying action but actively responding to global demands.
Alberta Premier Danielle Smith had previously advocated for a bitumen pipeline to the northwest coast, with the province planning to submit an application by July 1 to the federal major projects office. The project hinges on the success of the Pathways carbon storage initiative and a cooperative effort between industry and governments.
Cenovus Energy Inc. CEO Jon McKenzie acknowledged the positive collaboration between the federal and Alberta governments but expressed doubts regarding the memorandum of understanding and the proposed carbon pricing system. McKenzie stated that the industrial carbon tax could hinder investments in the energy sector, particularly in oilsands projects.
The Pathways project, aimed at reducing carbon dioxide emissions, involves transporting captured CO2 from oilsands sites to a storage facility in Alberta. McKenzie questioned the financial viability and benefits of such a project, estimating a substantial cost with minimal global emission reductions.
McKenzie also raised concerns about the financial burden on industry and governments, emphasizing the lack of a competitive investment environment for Canadian oilsands producers. He noted the challenges in financing the pipeline without significant private sector involvement.
The Alberta government targets the pipeline’s designation as a project of national interest by October, with construction potentially starting in September 2027. Premier Smith expressed confidence in achieving the project’s goals, signaling commitment to attract investments once progress is demonstrated.