Emissions reduction work will reinforce Canada as a preferred global oil supplier

Calgary, AB – April 5, 2023

A new international poll suggests actions taken by Canada’s oil and gas sector to decarbonize production, including an ambitious net zero goal for oil sands operations, position the country well to play a bigger role meeting global energy security needs for many years to come, says an alliance of Canada’s six largest oil sands companies.

The Pathways Alliance points to data in the new Ipsos study of 28 countries showing Canada is the world’s preferred oil supplier, followed by Norway and the United States. The data shows that most people around the world want the oil and gas they need to come from democratic countries such as Canada, and that support for the continued use of oil and gas is strong as long as efforts are being made to reduce emissions through technologies such as carbon capture and storage (CCS).

“Geopolitical instability has many around the world more conscious of where the energy they need comes from,” said Pathways Alliance President Kendall Dilling.

“We’re focused on helping Canada meet its climate goals with an aggressive plan to reduce emissions, while ensuring we play an increasing role in meeting the world’s energy security needs.”

Forecasts such as the International Energy Agency’s World Energy Outlook Stated Policies Scenario show oil and gas will be needed for decades, emphasizing why any realistic plan to meet climate targets must have a collaborative approach between industry and government to reduce emissions from oil and gas operations, without forcing cuts in production.

The independent Ipsos study that Pathways Alliance and others subscribed to, asked participants to rank preferred oil producing jurisdictions – similar to ranked ballot – from one to eight and then averaged them, with Canada coming out on top.

“This reinforces that North American energy is desired worldwide and if we work together and with governments to advance our climate goals, we can increase global market share of responsibly produced energy – something that is good for the climate as well as jobs and economic growth on both sides of the border,” said Dilling.

Pathways Alliance is advancing a bold and realistic plan to reduce absolute emissions from production by 22 million tonnes annually by 2030 and achieve net zero operational emissions by 2050.

With anticipated co-funding support from Canadian governments, the Alliance has announced plans to invest about $24 billion before 2030 in the first phase of its plan.

Of the $24 billion, approximately $16.5 billion, will support a proposed carbon capture and storage network in northeastern Alberta that, when constructed, will be among the largest facilities in the world. The remaining $7.6 billion investment is planned on major emissions reduction projects and technologies.

“We know of no other oil-producing jurisdiction where competitors have come together and done the work required to advance such an ambitious plan,” said Dilling.

Between 2012 and 2021, the Alliance’s six member companies invested more than $10 billion Cdn on R&D on various technologies in Canada’s oil sands. Some have helped the industry reduce average per barrel CO₂ emissions by about 22% between 2011 and 2019.

Backgrounder

While Pathways Alliance works constructively with governments on the necessary regulatory and co-funding frameworks that will allow for several billions of dollars of investment in its foundational carbon capture and storage (CCS) project, approximately $500 million has already been spent on early work on the CCS project and other Pathways Alliance member company operational emissions reduction projects and technologies to meet the 2030 goal.

Advisory

Cautionary Statement: Statements of future events or conditions in this press release, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Forward-looking statements can be identified by words such as achieve, aspiration, believe, anticipate, intend, propose, plan, goal, seek, project, predict, target, estimate, expect, forecast, vision, strategy, outlook, schedule, future, continue, likely, may, should, will and/or similar references to outcomes in future periods. Forward-looking statements in this press release include, but are not limited to, references to the viability, timing and impact of the net zero plan and the development of pathways in support of a net-zero future; support for the pathways from the Government of Alberta and the Government of Canada; the ability to enable net zero emissions from oil production and preserve economic contribution from the industry; the deployment of technologies to reduce GHG emissions; the ability to create jobs, accelerate development of the clean tech sector, provide benefits for other sectors and help maintain Canadians’ quality of life; and making economic investments to ensure a successful transition to a net zero world and delivering long term value to shareholders. All net-zero references in this announcement apply to emissions from oil sands operations (defined as scope 1 and scope 2 emissions).

Forward-looking statements are based on current expectations, estimates, projections and assumptions at the time the statements are made. Actual future results, including expectations and assumptions concerning: demand growth and energy source, supply and mix; amount and timing of emissions reductions; the adoption and impact of new facilities or technologies, including on reductions to GHG emissions; project plans, timing, costs, technical evaluations and capacities, and the ability to effectively execute on these plans and operate assets; that any required support for the pathways from the Government of Alberta and the Government of Canada will be provided; applicable laws and government policies, including climate change and restrictions in response to COVID-19; production rates, growth and mix; general market conditions; and capital and environmental expenditures, could differ materially depending on a number of factors. These factors include global, regional or local changes in supply and demand for oil, natural gas, and petroleum and petrochemical products and the resulting price, differential and margin impacts; political or regulatory events, including changes in law or government policy and actions in response to COVID-19; the receipt, in a timely manner, of regulatory and third- party approvals including for new technologies; lack of required support from the Government of Alberta and the Government of Canada; environmental risks inherent in oil and gas exploration and production activities; environmental regulation, including climate change and GHG regulation and changes to such regulation; availability and allocation of capital; availability and performance of third-party service providers; unanticipated technical or operational difficulties; project management and schedules and timely completion of projects; reservoir analysis and performance; unexpected technological developments; the results of research programs and new technologies, and ability to bring new technologies to commercial scale on a cost-competitive basis; operational hazards and risks; general economic conditions, including the occurrence and duration of economic recessions; and other factors referenced by the Pathways member companies’ in their most recent respective annual reports and management’s discussion and analysis, as applicable.

Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to the companies. Actual results may differ materially from those expressed or implied by its forward-looking statements and readers are cautioned not to place undue reliance on them. Neither Pathways Alliance Inc. nor the Pathways member companies undertake any obligation to update any forward-looking statements contained in this press release, except as required by applicable law.