Released September 20, 2022 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Canada's oil-rich province of Alberta is a responsible producer that can address many of the looming concerns about global energy security, its energy minister said.
As of 2021, Alberta boasted proven oil reserves of about 161.7 billion barrels. It has been making strides to present itself as a solution to the energy crisis that's been brewing since Russian military forces invaded Ukraine in late February. Western sanctions have hobbled the flow of oil, natural gas and refined petroleum products from Russia, leaving the global energy sector scrambling for alternatives.
Alberta Energy Minister Sonya Savage took that message to New York City for the ABT Capital Markets fall energy conference. There, she met with state leaders from the U.S. and North American industry leaders to discuss energy security issues, as well as concerns about the energy transition.
It was the former point--energy security--where Alberta can make a difference, the minister said.
"Alberta is the solution to North American energy security," she said in a statement before her departure.
Alberta holds the fourth-largest proven deposits of crude oil in the world. If it were a member of the Organization of the Petroleum Exporting Countries (OPEC), it would sit behind Venezuela, Saudi Arabia and Iran, respectively, in terms of proven reserves.
Click on the image at right for a graph detailing the world's largest oil reserves in 2021, by country.
Nearly all of that, however, is in the form of oil sands, a viscous deposit that is highly polluting and difficult to extract. The federal government estimated that the oil and gas sector accounted for 27% of the nation's total greenhouse gas emissions last year, the largest and fastest-growing polluting industry in the country.
Advances in carbon, capture and storage (CCS) would help Alberta lower its environmental footprint, however. Provincial officials, meanwhile, estimate that hydrogen as an energy source could become an US$8 trillion industry by 2050. A provincial roadmap envisions an eventual 14 million-ton reduction in total greenhouse gas emissions by incorporating hydrogen into existing facilities.
For Savage, however, the theme for her New York visit seemed to be related more to fossil fuels.
"We must work together to establish a united front on energy security and affordability," she said. "This includes increasing Alberta's exports to the United States and the world."
Canada is already the top crude oil exporter to the U.S. by far. For the week ending September 9, Canada sent about 2.9 million barrels of oil per day (BBL/d) across the border. The No. 2 exporter, Mexico, sent only 484,000 BBL/d to its northern neighbor.
Canada's exports to the U.S., however, are about 8% below year-ago levels. That may be in no small part due to slow midstream developments. Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) is facing mounting protests against its Line 3 system, which feeds the U.S. Midwest market via the broader Lakehead oil pipeline system. A long-awaited expansion to the TransMountain network feeding Canada's western coast will not be completed mechanically until next year, and any hopes for the Keystone XL system have long since expired.
That means Alberta is essentially landlocked. Barely a trickle of its full oil export potential makes its way out of North America by way of arteries such as Marathon Pipe Line's Capline system, which allows for Canadian oil to be re-exported from the Gulf of Mexico. Marathon Pipe Line is a subsidiary of Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio).
That leaves Canada tied to its southern neighbor, unless it can overcome both domestic and broader environmental concerns that have stymied midstream developments for years. As such, Alberta's oil sector will remain linked to the U.S. for the foreseeable future.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
As of 2021, Alberta boasted proven oil reserves of about 161.7 billion barrels. It has been making strides to present itself as a solution to the energy crisis that's been brewing since Russian military forces invaded Ukraine in late February. Western sanctions have hobbled the flow of oil, natural gas and refined petroleum products from Russia, leaving the global energy sector scrambling for alternatives.
Alberta Energy Minister Sonya Savage took that message to New York City for the ABT Capital Markets fall energy conference. There, she met with state leaders from the U.S. and North American industry leaders to discuss energy security issues, as well as concerns about the energy transition.
It was the former point--energy security--where Alberta can make a difference, the minister said.
"Alberta is the solution to North American energy security," she said in a statement before her departure.
Alberta holds the fourth-largest proven deposits of crude oil in the world. If it were a member of the Organization of the Petroleum Exporting Countries (OPEC), it would sit behind Venezuela, Saudi Arabia and Iran, respectively, in terms of proven reserves.
Click on the image at right for a graph detailing the world's largest oil reserves in 2021, by country.Nearly all of that, however, is in the form of oil sands, a viscous deposit that is highly polluting and difficult to extract. The federal government estimated that the oil and gas sector accounted for 27% of the nation's total greenhouse gas emissions last year, the largest and fastest-growing polluting industry in the country.
Advances in carbon, capture and storage (CCS) would help Alberta lower its environmental footprint, however. Provincial officials, meanwhile, estimate that hydrogen as an energy source could become an US$8 trillion industry by 2050. A provincial roadmap envisions an eventual 14 million-ton reduction in total greenhouse gas emissions by incorporating hydrogen into existing facilities.
For Savage, however, the theme for her New York visit seemed to be related more to fossil fuels.
"We must work together to establish a united front on energy security and affordability," she said. "This includes increasing Alberta's exports to the United States and the world."
Canada is already the top crude oil exporter to the U.S. by far. For the week ending September 9, Canada sent about 2.9 million barrels of oil per day (BBL/d) across the border. The No. 2 exporter, Mexico, sent only 484,000 BBL/d to its northern neighbor.
Canada's exports to the U.S., however, are about 8% below year-ago levels. That may be in no small part due to slow midstream developments. Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) is facing mounting protests against its Line 3 system, which feeds the U.S. Midwest market via the broader Lakehead oil pipeline system. A long-awaited expansion to the TransMountain network feeding Canada's western coast will not be completed mechanically until next year, and any hopes for the Keystone XL system have long since expired.
That means Alberta is essentially landlocked. Barely a trickle of its full oil export potential makes its way out of North America by way of arteries such as Marathon Pipe Line's Capline system, which allows for Canadian oil to be re-exported from the Gulf of Mexico. Marathon Pipe Line is a subsidiary of Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio).
That leaves Canada tied to its southern neighbor, unless it can overcome both domestic and broader environmental concerns that have stymied midstream developments for years. As such, Alberta's oil sector will remain linked to the U.S. for the foreseeable future.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
