Publication / 28 Jul 2008

Oil Sands: Exposure to Energy and Carbon Costs

Trucost has assessed how carbon intensity could affect profit opportunities from oil sand projects.

Oil sand projects vary widely in their energy efficiency and in turn, their carbon intensity. Trucost’s analysis of eight projects reveals a range in carbon emissions per unit of production.

Findings reflect the strong correlation between the energy and carbon intensity of different projects. Using carbon efficiency as a proxy for energy efficiency, Trucost can help investors understand which projects are most exposed to related operating costs. Canadian regulations set targets to reduce the carbon intensity of production at oil sands facilities. Despite carbon costs, oil sands developments will remain profitable and rapid expansion is likely to continue. Carbon is a proxy for energy use in projects, and operating costs from fuel consumption are spiraling. Oil and gas companies with carbon-intensive oil sands projects could face higher energy and carbon costs than sector peers.

Trucost identified projects with high and rising carbon intensity, which are more exposed to energy and carbon costs. The carbon intensity of the extraction projects analysed ranges from 9 kg of CO2e/barrel of oil to 106 kg CO2e/bbl. Syncrude’s oil sands project in Alberta is becoming increasingly carbon intensive, while its energy efficiency has deteriorated. Two Royal Dutch Shell oil sands projects analysed have relatively low or declining exposure to energy and carbon costs.

3 February, 2020
Events Green Finance Summit – Phoenix – 3 – 4, 2020

The GreenFin Summit follows a successful launch event in 2019. That invitation-only event brought together 100 corporate sustainability leaders, major public-sector pension fund executives and leading financial institutions, with over a trillion dollars of combined assets under management. The discussion broached vital topics in ESG that will be expanded upon at the 2020 Summit. Richard Mattison...

Find out more
1 October, 2019
Events Webinar: Incorporating Physical Risk in TCFD Portfolio Climate Reporting

Join Trucost's complimentary webinar to hear expert opinion on how physical risk factors can impact TCFD reporting.

Find out more
25 September, 2019
Events Sustainable Investment Forum – New York – 25th September

As finance becomes the number one focus for the UN SDGs, what is your organisation doing to invest in our future?

Find out more

VIEW ALL NEWS & INSIGHTS