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What will the carbon price cost the oilsands? A Timbit per barrel, one analysis says
The carbon price increase to $130 per tonne could raise costs for Alberta oilsands producers by about 50 cents per barrel, with facility costs ranging from credits to nearly $4 per barrel.
- On March 12, 2026, the Canadian Climate Institute's analysis shows Alberta oilsands producers would pay about 50 cents per barrel if the minimum carbon price rises to $130 per tonne.
- The November memorandum of understanding between Alberta and Ottawa requires the two sides to reach a carbon‑pricing deal, with the deadline shaping debate.
- At individual sites, outcomes range from nearly $4 per barrel at Strathcona's Tucker Thermal to about $2.23 per barrel in credits at Canadian Natural Resources' Peace River, based on the institute's calculator.
- Alberta's finances are sensitive to oil prices, as Oilsands production accounts for about 13 per cent of Canada's emissions, and Dale Beugin says the MOU aims to 'stop some of the whiplash' to support long-term investment certainty.
- Beyond Alberta, critics warn market distortions and low trading prices in the Alberta carbon credit market raise questions about a national carbon pricing regime, says energy economist Andrew Leach.
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13 Articles
The Toronto Star+10 Reposted by 10 other sources
What will the carbon price cost the oilsands? A Timbit per barrel, one analysis says
The industrial carbon price will cost Alberta's oilsands producers on average the equivalent of about a Timbit per barrel of oil, according to a climate think tank's new analysis intended
·Toronto, Canada
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Study says stronger carbon pricing would add less than 50 cents per barrel for oil sands
OTTAWA — Strengthening industrial carbon pricing in line with a federal-provincial agreement would have only a minimal impact on the cost of producing oil from Alberta’s oilsands, according to new research from the left wing Canadian Climate Institute. The institute said analysis of project-level compliance costs found oilsands producers would pay on average less than 50 cents per barrel by 2030 if carbon credit prices rise to $130 per tonne. Th…
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Total News Sources13
Leaning Left9Leaning Right0Center2Last UpdatedBias Distribution82% Left
Bias Distribution
- 82% of the sources lean Left
82% Left
L 82%
C 18%
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