Collaboration becomes vital for sands

Keeping a multibillion dollar spending program alive in the Alberta oil sands needs clearer government policies covering taxes and limits on greenhouse gas emissions, according to the professional services firm Deloitte.

“Industry and government must collaborate in order to avoid eventual collapse” of oil sands development and expansion, the report said.

To that end, the report said, the Canadian government must impose GHG reductions through tax measures and backs the construction of carbon dioxide pipelines and carbon sequestration, and the Alberta government ties its financial backing of carbon capture and sequestration (CCS) to upgrading and refining operations.

A spokesman for the Alberta government said the findings are in line with the province’s strategy to link financial support for solving CCS technological challenges (a C$2 billion program was unveiled in July) to greater industry investment in value-added projects, such as upgraders and refineries.

—Gary Park