Pathways Alliance or Oil Sands Pathways Alliance is a consortium established on June 15, 2022[1] of Canada's largest oil sands producers—Canadian Natural Resources, Cenovus Energy, Imperial Oil, MEG Energy, Suncor Energy and ConocoPhillips—with the goal of achieving "net-zero by 2050". Together these companies represent about 95% of "Canada’s oil sands production."[2][3] Pathways' president is Kendall Dilling.[4] According to Pathways, the alliance's decarbonization work has amounted to $1.8 billion from 2021 to November 2023. Their major proposed project is a potential $16.5 billion carbon capture and storage network that would be built in northern Alberta.[4] which initially included a March 2023 request that the federal government cover 75% of the cost.[2][5]

Background

The Canada's Oil Sands Innovation Alliance (COSIA) was established on 2 March 2012 by oil sands producers to accelerate responses to Environmental Priority Areas (EPAs).[6][7] It was described in a 2013 Geoscience Canada journal article as a "new kind of industry association" that was created in the early stages of a new environment management regime in Alberta—2010 to 2013.[8]

On 19 June 2021, with the price of oil plummeting during the COVID-19 pandemic the Oil Sands Pathways to Net-Zero was unveiled.[9] It predated the increase in the price of oil and included a call for the federal government to finance 75% of the proposed projects.[2]

By November 2021, Suncor, Imperial, Canadian Natural Resources, MEG Energy, ConocoPhillips, and Cenovus, were testing their Oil Sands Pathway Alliance campaign with focus groups.[10]

Oil Sands Pathways to Net Zero Alliance, Canada's Oil Sands Innovation Alliance (COSIA), and the Oil Sands Community Alliance (OSCA) [1]

In June 2022, the Oil Sands Pathways to Net Zero Alliance described their plan for reaching net-zero that "centers on carbon capture and storage (CCUS) processes and "other emerging technologies like direct air capture".[11]

On June 15, 2022, Canadian Natural Resources, Cenovus Energy, Imperial Oil, MEG Energy, Suncor Energy and ConocoPhillips established Pathways Alliance.[1]

In 2022, Pathways Alliance "announced that exploratory drilling would begin that winter to create underground reservoirs in northern Alberta, where carbon captured during the process of oil sands extraction would be stored. The proposal, which may take several years to gain regulatory approval, includes the construction of a pipeline to transport captured carbon from over twenty oil sands facilities to an underground storage facility near Cold Lake".[3]

By January 2023, Phase 1 was under construction with a $500 million already invested by the consortium.[12] On 4 January 2023, the Pathways Alliance and the Alberta Government entered into a Carbon Sequestration Evaluation Agreement.[13]

In March 2023, Pathways president, Kendall Dilling, called on the federal government to financially support their CCUS projects.[5]

According to a 4 October 2023 Deloitte Canada report, with the completion of the TransMountain pipeline in 2024, the price of Western Canada Select—the benchmark Canadian heavy oil—price differential will decrease and the WCS price will increase as oil production expands.[14] The report also said that the pipeline expansion will result in an increase in Canadian oil production—which in effect means Pathways Alliance members—in 2024 and 2025 to an estimated total representing more than the total production from 2018 to 2023."[14]

Proposed CCS system

Pathways Alliance's major project is a potential $16.5 billion carbon capture and storage network to be constructed in northern Alberta.[4]

According to a 2023 Bloomberg News report, Pathways Alliance members are waiting for responses from the Alberta government and the federal government regarding their request for government financial assistance before "greenlighting construction" of the $16 billion CCS network that they say would cut "22 million metric tons of emissions by 2030".[15] In 2022, Pathways had requested that the federal government cover 75% of the cost.[2] This request was confirmed again in 2023.[5] As of 28 October, the federal government confirmed that their offer of 50% tax credits towards the building costs of CCS plants is already "robust" and would not be increased. The Alberta government were in discussion with Pathways in regards to the provincial financial supports to the oil and gas industry's potential CCS project.[15]

Concerns have been raised about the Pathways' reliance on the expensive carbon capture and storage technology (CCS), which can only be extracted and stored at "large industrial sites" Greenpeace says that since the majority of emissions from fossil fuels comes from their consumption so CCS would not reduce those emissions. The risk of leakage in the storage process is another concern.[16]

Cap on oil and gas emissions

While Pathways Alliance says that it does not oppose a cap on oil and gas emissions, they raise concerns that a cap that is "too restrictive" would limit the oil and gas industry's ability to "grow its production".[17]

COP28

Pathways Alliance members participated at the 2023 United Nations Climate Change Conference (COP28) in Dubai from 30 November until 12 December 2023.[17]

Concerns about Pathway Alliance

In March 2023, Greenpeace Canada filed a complaint against Pathways Alliance with the Competition Bureau, alleging that the consortium had "been running a misleading advertisement campaign to influence federal regulations and manipulate public support for oil sands development."[18]

An October 2023 Greenpeace article said that the members of the Alliance—who control approximately 63% of Canada's total oil production—in 2022 collectively posted a record profit of over $35 billion.[16]

Citations

See also

References

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  • Al-Aini, Eyab; Severson-Baker, Chris; Gorski, Jan (March 2022). Getting on Track: A primer on challenges to reducing carbon emissions in Canada's oilsands (PDF). Pembina Institute (Report). p. 68. ISBN 978-1-897390-56-6. Retrieved 20 July 2022.
  • Al Mallees, Nojoud (25 January 2023). "Oilsands execs say they can't invest in decarbonization any faster, despite profits". Canadian Press via Financial Post. Retrieved 20 July 2023.
  • Atayero, Adeoluwa (16 March 2023). ""Let's clear the air": Greenpeace Canada launches complaint against oil sands alliance for misleading advertising campaign". Greenpeace Canada. Retrieved 20 July 2023.
  • Atayero, Adeoluwa (23 October 2023a). "What is the Pathways Alliance and why should we worry about It?". Greenpeace Canada. Retrieved 2 December 2023.
  • Anderson, Drew (30 November 2021). "Carbon emissions to pool noodles: oilsands producers seek a 'beautiful' rebrand". The Narwhal. Retrieved 20 July 2023.

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