Latest news with #oil sands
Yahoo
22-07-2025
- Politics
- Yahoo
André Pratte: Dialogue key to decreasing tensions between Alberta and Quebec
Seven years ago, Quebec Premier François Legault made a very unfortunate comment, calling oil from Alberta's oil sands 'dirty energy.' 'I am not embarrassed to refuse dirty energy while we are offering clean energy at a competitive price,' Legault said, rejecting the idea of a pipeline crossing Quebec's territory to reach the port of Saint John, New Brunswick. Albertans were incensed, and rightfully so, considering that Quebec receives billions in equalization payments thanks, in part, to Alberta's prosperity. Consider also that Quebecers consume millions of barrels of gas from the oil sands each year. Last week, at a hearing held by the Alberta Next panel, Premier Danielle Smith made a derogatory comment about Quebec that went largely unnoticed. Regarding the possibility that her province might withdraw from the national supply management regime, Smith stated: 'Creating our own Alberta version of supply management, maybe as a pathway to a market system and … just because it would stick our finger in the eye of Quebec … might be (something) we want to do a little consultation on.' Let's leave aside that sticking a finger in fellow Canadians' eyes is a very poor basis for crucial policy decisions. Her comment is of the kind that responsible politicians in Canada should not encourage, let alone make. There is enough anti-Alberta, anti-Toronto, anti-Quebec prejudice in our country; while defending their province's interests, provincial premiers should avoid language that escalates rather than calms tensions within our federation. I understand why many Albertans are angry with Quebec. I also understand how Quebecers came to hold negative views about the oil sands. I believe that such misunderstandings can be alleviated by dialogue. Unfortunately, few of our elected officials, federally or provincially, appear willing to engage in such open-minded discussions. Politically, it is often easier to ride on people's prejudices than to challenge them. This is certainly what Legault has been doing since being elected in 2018. Unfortunately, Mr. Legault has invested very little energy in improving relationships between Quebec and other provinces. My impression is that Smith is doing exactly the same in encouraging the view that Alberta's problems are mainly caused by a federal government controlled by Ontario and Quebec. I noticed that the Premier's message on Canada Day said very little about what unites Canadians; it was all about Alberta. It is unclear how Mr. Legault feels about Canada, so we should not expect more from him. But we know that Smith is a proud Canadian; her words and actions should reflect that. I am afraid that, for the moment, the Alberta Premier is more concerned about not losing the separatist vote than about promoting Alberta's interests within a united Canada. This is a time where Canadians need to hold hands to face the new, threatening world we live in. This can only happen if we overcome our simplistic views of Canadians from other regions, cultures, religions, age groups, etc. Diversity is Canada's strength, we often hear. However, we need to go beyond flowery statements. Our national unity is based on respect for diversity. This requires hard work from everybody, especially our leaders. I had the privilege of sitting in Canada's Senate for three and a half years. There are things I did not like in the Red Chamber, which is why I resigned. What I enjoyed the most was working with thoughtful Canadians from all walks of life and regions in order to solve common problems, from pipelines to supply management, from the environment to public finance, from official languages to national unity. The vast majority of Senators I worked with were willing to listen to my concerns, and I certainly tried my best to listen, really listen, to theirs. In the end, most of the time, we found a pathway to a win-win solution. Sitting beside me in the Senate for two years was Murray Sinclair, who sadly passed last year. Murray, as we all know, had courageously chaired the Truth and Reconciliation Commission of Canada. I learned more from Senator Sinclair during those two years, not only about Indigenous issues but about life in general, than in my 35 years in journalism. I could say the same about quite of few of my former colleagues. Listening and keeping an open mind is the key to keeping this country together at a crucial time in our common history. Our past demonstrates that we are up to the task if we put our hearts into it. Let's begin. André Pratte, a former Senator, is a communications consultant and a doctoral student in history. National Post Jesse Kline: Give 16-year-olds the vote? Only if you want never-ending socialism Adam Pankratz: Roberts and McAfee are right — no one cares what sports personalities think about politics
National Post
22-07-2025
- Politics
- National Post
André Pratte: Dialogue key to decreasing tensions between Alberta and Quebec
Seven years ago, Quebec Premier François Legault made a very unfortunate comment, calling oil from Alberta's oil sands 'dirty energy.' 'I am not embarrassed to refuse dirty energy while we are offering clean energy at a competitive price,' Legault said, rejecting the idea of a pipeline crossing Quebec's territory to reach the port of Saint John, New Brunswick. Albertans were incensed, and rightfully so, considering that Quebec receives billions in equalization payments thanks, in part, to Alberta's prosperity. Consider also that Quebecers consume millions of barrels of gas from the oil sands each year. Article content Article content Last week, at a hearing held by the Alberta Next panel, Premier Danielle Smith made a derogatory comment about Quebec that went largely unnoticed. Regarding the possibility that her province might withdraw from the national supply management regime, Smith stated: 'Creating our own Alberta version of supply management, maybe as a pathway to a market system and … just because it would stick our finger in the eye of Quebec … might be (something) we want to do a little consultation on.' Article content Article content Let's leave aside that sticking a finger in fellow Canadians' eyes is a very poor basis for crucial policy decisions. Her comment is of the kind that responsible politicians in Canada should not encourage, let alone make. There is enough anti-Alberta, anti-Toronto, anti-Quebec prejudice in our country; while defending their province's interests, provincial premiers should avoid language that escalates rather than calms tensions within our federation. Article content I understand why many Albertans are angry with Quebec. I also understand how Quebecers came to hold negative views about the oil sands. I believe that such misunderstandings can be alleviated by dialogue. Unfortunately, few of our elected officials, federally or provincially, appear willing to engage in such open-minded discussions. Article content Article content Politically, it is often easier to ride on people's prejudices than to challenge them. This is certainly what Legault has been doing since being elected in 2018. Unfortunately, Mr. Legault has invested very little energy in improving relationships between Quebec and other provinces. Article content Article content My impression is that Smith is doing exactly the same in encouraging the view that Alberta's problems are mainly caused by a federal government controlled by Ontario and Quebec. I noticed that the Premier's message on Canada Day said very little about what unites Canadians; it was all about Alberta. Article content It is unclear how Mr. Legault feels about Canada, so we should not expect more from him. But we know that Smith is a proud Canadian; her words and actions should reflect that. I am afraid that, for the moment, the Alberta Premier is more concerned about not losing the separatist vote than about promoting Alberta's interests within a united Canada. Article content This is a time where Canadians need to hold hands to face the new, threatening world we live in. This can only happen if we overcome our simplistic views of Canadians from other regions, cultures, religions, age groups, etc. Diversity is Canada's strength, we often hear. However, we need to go beyond flowery statements. Our national unity is based on respect for diversity. This requires hard work from everybody, especially our leaders.
Yahoo
16-07-2025
- Business
- Yahoo
How Canada's oil sands transformed into one of North America's lowest-cost plays
By Amanda Stephenson CALGARY (Reuters) -Giant shovels, driverless trucks and a dog-like robot have all helped Canada's oil sands companies including Imperial Oil and Suncor become some of North America's lowest-cost oil producers, driving down overheads even as the worst inflation in a generation pushed U.S. shale costs up. As the global oil industry enters a downturn due to economic uncertainty related to U.S. tariffs policy and OPEC+ pumping more barrels, Canada's oil sands industry finds itself in a position of strength. In the years following the oil price crash of 2014-15, international oil majors including BP, Chevron and Total sold their interests in Canadian oil sands. At the time, they classified the Canadian operations as among their more expensive, and therefore less profitable, projects worldwide. They directed their capital to cheaper oil production, and favored U.S. shale for its quicker drilling time and returns. Since then, new technology and cost-cutting efforts have driven meaningful improvement in the industry's competitiveness that make oil sands among the cheapest producers, according to a dozen industry insiders and a Reuters analysis of the latest U.S. and Canadian company earnings. While U.S. shale companies are responding to this year's oil price downturn by dropping rigs, slashing capital spending and laying off workers, the oil sands' position of strength means Canadian companies have made virtually no changes to their previously announced production or spending plans. Some Canadian politicians are now calling for a new crude pipeline from Alberta to the Pacific coast, as part of a broader effort to strengthen the country's economy in the face of U.S. tariff threats. The lower crude prices this year have little impact on the Canadian oil sector, Cenovus CEO Jon McKenzie said in an interview earlier this year. "This is an industry that has become much more resilient through time," he said. In one example, two four-legged robots— each nicknamed Spot because of their dog-like appearance — prowl Imperial's vast 45-year-old Cold Lake operation in Alberta, conducting routine equipment inspections and maintenance such as heat exchanger optimizations, and oil/water tank interface monitoring. The Spots free up human workers for other work and save Imperial CDN$30 million ($22 million) a year, the company said. Exxon-owned Imperial and its competitor Suncor have also switched to autonomous mining vehicles, eliminating the need to hire drivers to transport oil sands ore. The switch has improved oil output productivity at Imperial's Kearl oil sands mine by 20% since 2023, the company said. Suncor operates a 900-tonne truck at its Fort Hills operation north of Fort McMurray, Alberta, which the company says is the world's largest hydraulic mining shovel. Suncor CEO Rich Kruger said the shovel's larger bucket and more powerful digging force deliver faster ore loading and less spillage. Oil sands producers have also made improvements in equipment reliability and performance. At Kearl, for example, Imperial has reduced expenses related to turnarounds — an industry term for the costly periods of required maintenance that often involve temporarily shutting down production — by CDN$100 million annually since 2021. The company cut the time between turnarounds from 12 to 24 months in 2024, and aims to extend that interval to 48 months in future. Suncor credits efforts including standardizing maintenance practices across mines and improving management of site water to get more production out of existing assets for contributing to the company's US$7 per barrel reduction in its West Texas Intermediate (WTI) break-even price in 2024 to $42.90. This long-term focus on cost-cutting means Canada's five biggest oil sands companies can break even — and still maintain their dividends — at WTI prices between $43.10 and $40.85, according to a Bank of Montreal analysis for Reuters. That means oil sands producers have lowered their overall costs by approximately $10 a barrel in about seven years. Oil sands had an average break-even price of $51.80/bbl between 2017 and 2019, according to BMO. In contrast, a recent Dallas Federal Reserve survey of over 100 oil and gas companies in Texas, New Mexico and Louisiana found that shale oil producers need a WTI oil price of $65 per barrel on average to profitably drill. Back in 2017-2019, U.S. shale producers had a break-even price of between $50 and $52 per barrel. HIGH STARTUP COSTS, BUT LONG LIFESPANS Part of the reason that the oil sands industry has become so cost competitive is the nature of the extraction process. Producing the thick, sticky oil that is found in the sands of Alberta is in some locations more akin to mining than oil drilling. Where the oil is very close to the surface, companies operate massive mines, scraping up huge volumes of sand and clay and then filtering out the oil. When the oil is deeper, companies inject steam underground to loosen the deposits and then use a drilling process. An oil sands mine has big initial start-up costs but once it is operational, it can run for decades with very low production decline rates. Canadian Natural Resources, for example, at the end of 2024 had proved and probable reserves amounting to 20.1 billion barrels of oil equivalent in its portfolio, giving its oil sands mining and upgrading assets a remaining reserve lifespan of 43 years. The company's Horizon oil sands mine has been producing since 2009. Shale oil wells, by contrast, have low start up costs. Oil output from the wells, however, begins to decline within months. Prices have begun to climb because after years of heavy drilling in the top shale fields, the most productive areas have been exhausted. Drillers are moving onto secondary areas, so they have to drill more wells to achieve the same output and that has driven up costs. Canadian oil sands companies have also paid down debt in the past five years, allowing them to reallocate profits away from shoring up their balance sheets and towards rewarding shareholders with dividends and buybacks. According to the Bank of Montreal, oil sands producers Canadian Natural Resources, Suncor, Cenovus, Imperial Oil and MEG Energy currently have combined net debt, excluding lease liabilities, of C$33.9 billion after paying down a combined total of almost C$22 billion in debt between 2021 and 2024. As returns grow, Canadian oil sands producers are an increasingly attractive investment for those looking to make money from the energy industry, said Kevin Burkett, portfolio manager with Vancouver-based Burkett Asset Management. "(Canada's oil sands) are not geopolitically risky, and they have some very appealing characteristics around productivity and costs," said Burkett, who has shares of Canadian Natural Resources and Cenovus in his portfolio. (C$1 = US$0.73) Sign in to access your portfolio
Reuters
16-07-2025
- Business
- Reuters
How Canada's oil sands transformed into one of North America's lowest-cost plays
CALGARY, July 16 (Reuters) - Giant shovels, driverless trucks and a dog-like robot have all helped Canada's oil sands companies including Imperial Oil and Suncor become some of North America's lowest-cost oil producers, driving down overheads even as the worst inflation in a generation pushed U.S. shale costs up. As the global oil industry enters a downturn due to economic uncertainty related to U.S. tariffs policy and OPEC+ pumping more barrels, Canada's oil sands industry finds itself in a position of strength. In the years following the oil price crash of 2014-15, international oil majors including BP, Chevron and Total sold their interests in Canadian oil sands. At the time, they classified the Canadian operations as among their more expensive, and therefore less profitable, projects worldwide. They directed their capital to cheaper oil production, and favored U.S. shale for its quicker drilling time and returns. Since then, new technology and cost-cutting efforts have driven meaningful improvement in the industry's competitiveness that make oil sands among the cheapest producers, according to a dozen industry insiders and a Reuters analysis of the latest U.S. and Canadian company earnings. While U.S. shale companies are responding to this year's oil price downturn by dropping rigs, slashing capital spending and laying off workers, the oil sands' position of strength means Canadian companies have made virtually no changes to their previously announced production or spending plans. Some Canadian politicians are now calling for a new crude pipeline from Alberta to the Pacific coast, as part of a broader effort to strengthen the country's economy in the face of U.S. tariff threats. The lower crude prices this year have little impact on the Canadian oil sector, Cenovus CEO Jon McKenzie said in an interview earlier this year. "This is an industry that has become much more resilient through time," he said. In one example, two four-legged robots— each nicknamed Spot because of their dog-like appearance — prowl Imperial's vast 45-year-old Cold Lake operation in Alberta, conducting routine equipment inspections and maintenance such as heat exchanger optimizations, and oil/water tank interface monitoring. The Spots free up human workers for other work and save Imperial CDN$30 million ($22 million) a year, the company said. Exxon-owned Imperial ( opens new tab and its competitor Suncor ( opens new tab have also switched to autonomous mining vehicles, eliminating the need to hire drivers to transport oil sands ore. The switch has improved oil output productivity at Imperial's Kearl oil sands mine by 20% since 2023, the company said. Suncor operates a 900-tonne truck at its Fort Hills operation north of Fort McMurray, Alberta, which the company says is the world's largest hydraulic mining shovel. Suncor CEO Rich Kruger said the shovel's larger bucket and more powerful digging force deliver faster ore loading and less spillage. Oil sands producers have also made improvements in equipment reliability and performance. At Kearl, for example, Imperial has reduced expenses related to turnarounds — an industry term for the costly periods of required maintenance that often involve temporarily shutting down production — by CDN$100 million annually since 2021. The company cut the time between turnarounds from 12 to 24 months in 2024, and aims to extend that interval to 48 months in future. Suncor credits efforts including standardizing maintenance practices across mines and improving management of site water to get more production out of existing assets for contributing to the company's US$7 per barrel reduction in its West Texas Intermediate (WTI) break-even price in 2024 to $42.90. This long-term focus on cost-cutting means Canada's five biggest oil sands companies can break even — and still maintain their dividends — at WTI prices between $43.10 and $40.85, according to a Bank of Montreal analysis for Reuters. That means oil sands producers have lowered their overall costs by approximately $10 a barrel in about seven years. Oil sands had an average break-even price of $51.80/bbl between 2017 and 2019, according to BMO. In contrast, a recent Dallas Federal Reserve survey of over 100 oil and gas companies in Texas, New Mexico and Louisiana found that shale oil producers need a WTI oil price of $65 per barrel on average to profitably drill. Back in 2017-2019, U.S. shale producers had a break-even price of between $50 and $52 per barrel. Part of the reason that the oil sands industry has become so cost competitive is the nature of the extraction process. Producing the thick, sticky oil that is found in the sands of Alberta is in some locations more akin to mining than oil drilling. Where the oil is very close to the surface, companies operate massive mines, scraping up huge volumes of sand and clay and then filtering out the oil. When the oil is deeper, companies inject steam underground to loosen the deposits and then use a drilling process. An oil sands mine has big initial start-up costs but once it is operational, it can run for decades with very low production decline rates. Canadian Natural Resources ( opens new tab, for example, at the end of 2024 had proved and probable reserves amounting to 20.1 billion barrels of oil equivalent in its portfolio, giving its oil sands mining and upgrading assets a remaining reserve lifespan of 43 years. The company's Horizon oil sands mine has been producing since 2009. Shale oil wells, by contrast, have low start up costs. Oil output from the wells, however, begins to decline within months. Prices have begun to climb because after years of heavy drilling in the top shale fields, the most productive areas have been exhausted. Drillers are moving onto secondary areas, so they have to drill more wells to achieve the same output and that has driven up costs. Canadian oil sands companies have also paid down debt in the past five years, allowing them to reallocate profits away from shoring up their balance sheets and towards rewarding shareholders with dividends and buybacks. According to the Bank of Montreal, oil sands producers Canadian Natural Resources, Suncor, Cenovus, Imperial Oil and MEG Energy ( opens new tab currently have combined net debt, excluding lease liabilities, of C$33.9 billion after paying down a combined total of almost C$22 billion in debt between 2021 and 2024. As returns grow, Canadian oil sands producers are an increasingly attractive investment for those looking to make money from the energy industry, said Kevin Burkett, portfolio manager with Vancouver-based Burkett Asset Management. "(Canada's oil sands) are not geopolitically risky, and they have some very appealing characteristics around productivity and costs," said Burkett, who has shares of Canadian Natural Resources and Cenovus in his portfolio.
CTV News
12-06-2025
- Automotive
- CTV News
Alberta to explore injecting oil sands tailings underground as one management option
A highway loops around a tailings pond at the Syncrude facility as seen from a helicopter tour of the oil sands near Fort McMurray, Alta., on July 10, 2012. THE CANADIAN PRESS/Jeff McIntosh
