We’ve been hearing a lot about the proposed Teck Frontier oilsands mine in northern Alberta lately, and demands by Jason Kenney and a number of Conservative MPs that its approval be fast-tracked as close to immediate as possible. Energy economist Andrew Leach has a few thoughts on the matter, particularly of how to reconcile Teck in the broader scope.
Maybe if we ignore the issue, that will be fine? This is how the JRP into the Teck Frontier oil sands mine dealt with oil demand forecasts and a world acting on climate change. #ableg 1/N pic.twitter.com/ckzawBUV1L
— Andrew Leach (@andrew_leach) December 13, 2019
The IEA tests a number of scenarios, and they one which shows oil demand increasing to those levels is one where the world doesn't take aggressive action on climate change. They also model what happens if the world acts (Sust Dev Scenario) 3/N pic.twitter.com/yV74enx0sR
— Andrew Leach (@andrew_leach) December 13, 2019
Using all the runs from energy systems models feeding into the IPCC 1.5C report, there are scenarios of a 2C world where oil demand grows until 2040 (although not to 110 MMbbl/d) but the median scenario doesn't hold that at all. For 1.5C scenarios, no model does. 5/N
— Andrew Leach (@andrew_leach) December 13, 2019
That's certainly within the authority of the panel to adjudicate. It's also true that there is, "considerable uncertainty regarding forecasts for future oil
prices and […] about how Canada and other countries will address
greenhouse gas emissions targets in the future." 7/N— Andrew Leach (@andrew_leach) December 14, 2019
Let's jump next to some other aspects of the report. According to the panel summary, "Teck submitted that the Frontier project will be 'best in class' with respect to greenhouse gas emissions intensity. Teck's own numbers dispute that, as the panel acknowledges. 9/N
— Andrew Leach (@andrew_leach) December 14, 2019
The panel goes on to cite Alberta's CCIR policy as a means to drive emissions intensity reductions, but then they make a really incomprehensible statement about AB policy. I don't know where this comes from. 11/N
— Andrew Leach (@andrew_leach) December 14, 2019
The recommendations: "Develop [a GHG mgmt plan that] would include measures to demonstrate and measure how Teck will achieve emissions intensity “best-in-class” status." What now? This is the design of a new project. This is when a lot of this gets baked-in.
— Andrew Leach (@andrew_leach) December 14, 2019
"The panel accepts that Teck has committed to be a top quartile performer in oil sands GHG intensity and […] through the development and implementation of […] a detailed GHG plan […] and a continuous improvement approach, Teck should be able to realize its aspiration."
— Andrew Leach (@andrew_leach) December 14, 2019
You'd think that maybe, after NEB's decision to ignore that a pipeline connecting the oil sands to a tanker loading terminal might have marine implications became a key point in the FCA quashing the TMX permit, this JRP would have taken issues of scope a bit more seriously.
— Andrew Leach (@andrew_leach) December 14, 2019