Energy vs Climate

Energy vs Oilsands: How did we get to 3.5m bbl/day and what do we need to do about it?

Mar 13, 2024

Dr. Andrew Leach, energy economist, discusses Canada's oil sands, CO2 emissions, refinery economics, growth plans, and the role of critical minerals in clean energy transitions. Topics include oil market reports, benefits of oil sands to Canadians, net zero goals, GHG emissions intensity, and challenges in the oil sands industry.

56:02

Episode guests

Andrew Leach

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Quick takeaways

Oil sands contribute significantly to Canadian GDP and employment, impacting federal and provincial budgets.

Oil sands industry remains a major emitter of greenhouse gases in Canada, presenting challenges for emissions reduction goals.

Productivity challenges in the oil sands sector spark debates on future operations, government interventions, and economic transitions.

Deep dives

Impact of Canadian Oil Sands Growth on National and Provincial Economies

Canadian oil sands have significantly grown output to 3.5 million barrels per day, a major contributor to Canadian oil production growth. The oil sands dominate the sector, providing a massive 10% of the Canadian GDP and 300,000 jobs. Alberta relies heavily on oil sands royalties, making up over a quarter of its budget. The federal government benefits from taxes on oil companies and personal income, influenced by the oil sector's impact on the Canadian dollar.

Introduction

2min

The Impact of Oil Sands on Canada's Economy

22min

Strategic Decisions and Competing Interests in Oil Rent Extraction

2min

Navigating Investment Trends and Business Strategies in the Oil Sands Industry

8min

Navigating the Transition: Oil Sands, Emissions Reduction, and Technological Innovation

12min

Navigating the Oil Sands Dilemma

6min

Navigating the Economic and Climate Trade-offs in Canadian Policy Making

4min

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Co-hosts David, Sara, Ed, and energy/environmental economist Dr. Andrew Leach of the University of Alberta unpack the past, present and future of Canada's oilsands.

About Our Guest:
Andrew Leach is an energy and environmental economist and is Professor at the University of Alberta, with a joint appointment in the Department of Economics (Arts) and the Faculty of Law. His research spans energy and environmental economics. His most recent book is Between Doom and Denial: Facing facts about climate change.

Show Notes:

(00:46) – Oil Market Report - November 2023

(01:57) – A Matter of Fact: How the oil sands benefits Canadians

(05:06) – Canada’s oil and gas sector, the road to net zero and regional fairness

(06:16) – Making progress on Canadian oil sands CO2 emissions intensity

(06:36) – This oil sands crude has lower GHG emissions intensity than the U.S. average

(12:45) – Crude Oil Forecast Markets & Transportation

(16:16) – Refinery Economics

(25:30) – What's in store for 2024 — Part 3: Growth Plans at Alberta's largest in-situ producers

(28:19) – Not Fit for Purpose: Oil Sands Mines and Alberta’s Mine Financial Security Program

(29:53) – Fiscal Plan A Responsible Plan for a Growing Province 2024-27

(38:02) – CCS Won’t Happen in Oilsands Without Bigger Subsidies, Cenovus Exec Warns