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Now that Teck Frontier is dead, is there a future for Canada's oilsands? – CBC.ca

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Alberta’s oilpatch was dealt another devastating blow this week with Teck Resources’ decision to pull the plug on its Frontier oilsands mining project — a move that has some analysts wondering whether the sector has a future in the long term.

Beyond Teck, all the major oilsands players have cancelled projects, indefinitely delayed final decisions or dramatically scaled back investments in recent months.

The industry is facing a perfect storm of low oil prices, legal challenges, regulatory uncertainty, Indigenous opposition, constrained pipeline capacity and a government in Ottawa seized with stopping and reversing the disastrous effects of climate change.

Oil is still Canada’s most valuable export, and the volume this country sells abroad is still growing year-over-year thanks to companies squeezing more from existing operations. But long-term growth prospects are in doubt, analysts say.

“A lot of companies are saying, ‘Why bother with Canada, forget it, we’re going elsewhere,'” said Laura Lau, who helps manage $2 billion in assets at Brompton Corp. in Toronto.

The Frontier project may very well be the last open-pit mining operation ever pitched in Canada, she said.

‘This may be the nail in the coffin’

The only projects likely to move forward now, she said, are expansions to existing operations and those that use steam to extract crude from deep under the earth — known as “in-situ” projects.

“This may be the nail in the coffin,” Lau said.

Teck reduced the emissions intensity of its operations, committed to going net-zero by 2050 and signed impact benefit agreements with every First Nations in the area — and it still wasn’t enough to get the project over the line, she said.

“They did everything the federal government asked them to do and it still wasn’t good enough. So the question is, what is good enough?” Lau said. “The political risk is just too high for these companies.”

Harrie Vredenburg is a professor of global energy at the University of Calgary’s school of business. He said persistently low oil prices are party to blame for Teck’s decision — but so too is Ottawa’s handling of the rail blockades.

“The political morass we’re in, it’s a mess. What you have are investors or directors of a company like Teck who are saying, ‘This isn’t the kind of place we want to be investing in,'” Vredenburg said.

He said the headwinds faced by the Coastal GasLink project — which is to carry natural gas, not oil, to the coast for export — has also created a chilling effect.

While that project’s proponent, TC Energy, has received the necessary provincial permits and secured agreements with all of the neighbouring elected Indian Act band councils, some hereditary chiefs derailed years of planning by blocking a single roadway, Vredenburg said.

Protesters man a rail blockade near Hamilton, Ont., on Feb. 25, 2020, disrupting GO Transit on the morning commute. The protest is in support of Wet’suwet’en hereditary chiefs who oppose the Coastal GasLink natural gas pipeline project in B.C. (Evan Mitsui/CBC)

‘Existential crisis’

“Companies comply with all the regulations and in the end it still comes down to a political decision. There’s a lot of ambiguity and uncertainty in this country for investment in any type of resource,” he said.

“This is a serious existential crisis for this country.”

He said federal-provincial “bickering” over the country’s energy policy, and how it agrees with a national commitment to lower greenhouse gas emissions and address decades-old questions about Indigenous rights and title, has sent capital fleeing to safer jurisdictions.

Teck’s president and CEO, Don Lindsay, cited this uncertainty as reason enough to cancel major capital investments like the $20 billion the mining firm was ready to invest in the Frontier mine.

Lindsay said Teck did not want to be “at the nexus of much broader issues that need to be resolved … there is no constructive path forward.”

Map showing the location of the Ronald Lake Bison Range in relation to where Teck Resources planned to build the Frontier mine. (CBC News Graphics)

Alberta has seen foreign investment all but evaporate — some $30 billion in foreign capital has fled in the last five years — leaving only the domestically owned players ready to invest in the sector.

“If you’re on the outside looking in, you’re saying, ‘Whoa, we’ll wait to see if that ever passes.’ Canada is all risk, risk, risk,” Vredenburg said.

Lau said Teck’s decision validates earlier moves by France’s Total and Norway’s Equinor, among others, to divest their Canadian oilsands assets and jump ship for projects elsewhere.

“Oil and gas projects are getting built all over the world right now, everywhere except Canada. Death by delay is a tactic that Justin Trudeau has used for years to kill energy projects that are of national importance,” said Conservative MP Shannon Stubb, the party’s energy critic.

Natural Resources Minister Seamus O’Regan said Ottawa isn’t abandoning the sector.

“Important parts of Canada’s economy have been built on our natural resource sector and the workers across the country who have powered it for generations. Our government is committed to developing our natural resources sustainably and to creating good, middle class jobs,” he said in a statement after the Teck decision was announced.

But the list of projects that companies say they’re willing to build is literally shrinking by the day.

Only days ago, the Alberta Energy Regulator (AER) approved the Meadow Creek West development — but the proponent, Suncor, has said it’s not ready yet to make a final investment decision. One of the company’s most promising developments has been deferred. Suncor has said that construction of Meadow Creek — if it happens — is still years away and wouldn’t start producing oil until closer to end of the decade.

Last November, Imperial put its Aspen oilsands project in northern Alberta on hold. The company, owned in part by U.S. giant ExxonMobil, also shelved plans for a $2.4 billion expansion of its existing Cold Lake operation in favour of a much smaller investment in another site.

Imperial Oil president and CEO Rich Kruger prepares to address the company’s annual meeting in Calgary on April 26, 2019. (The Canadian Press/Jeff McIntosh)

Cenovus finished a large expansion of its Christina Lake facility early last year but it has yet to pump more oil from the site because Alberta’s oil curtailment policy — enacted because Canadian oil prices are substantially lower than the going world rate — has limited the possibility of profits.

Canadian Natural Resources Limited (CNRL) bought a controlling stake in the proposed Pike development, a project that has secured all of the necessary permits, but the company just isn’t ready to commit.

Investors have noticed: Cenvous is trading near five-year lows despite a moderate improvement in oil prices in recent months. Suncor’s share price also has been battered. Imperial Oil trades at just half of where it was some six years ago.

In addition to the political and legal risks, the cost of extracting oil from Alberta’s oilpatch is higher than it is in other jurisdictions.

Based on estimates reported by the Alberta Energy Regulator (AER) and the Canadian Energy Research Institute (CERI), the break-even price for a new stand‑alone mine like Frontier is currently within the US$75‑85 a barrel range.

The break-even price for new steam‑assisted gravity drainage (SAGD) operations, the most commonly used technique for the thermal in‑situ recovery, is around US$60 a barrel.

West Texas Intermediate (WTI) traded at just US$50 a barrel at close Tuesday. Western Canadian Select, which includes product from the oilsands, changed hands at US$28.93 — meaning many projects are simply unviable given the existing cost structures of the Canadian industry.

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Mitchell throws two TD passes as Ticats earn important 37-21 home win over Redblacks

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HAMILTON – It remains faint but Bo Levi Mitchell and the Hamilton Tiger-Cats still have a playoff pulse.

Mitchell threw two touchdown passes as Hamilton defeated the Ottawa Redblacks 37-21 in the CFL’s annual Hall of Fame game Saturday afternoon. The Ticats (4-9) earned a second straight win to move to within six points of the third-place Toronto Argonauts (7-6) in the East Division.

Hamilton visits Toronto on Friday night.

“Obviously they’re (wins) huge now,” Mitchell said. “We didn’t do ourselves any favours by getting into this position and not being able to really control our own destiny.

“But right now, we need certain people to win at certain times. Our job is to go out there and try to win the next five, then the next three after that.”

Mitchell finished 20-of-27 passing for 299 yards and an interception. He entered weekend action leading the CFL in passing yards (3,383) and TD strikes (21).

Greg Bell’s 15-yard TD run at 11:30 of the fourth and two-point convert put Hamilton up 36-21 after backup Jeremiah Masoli led Ottawa on two scoring drives. Following a 13-yard TD strike to Andre Miller at 2:53, Masoli found Dominique Rhymes on a 10-yard touchdown pass at 7:43 before Khalan Laborn’s two-point convert cut Hamilton’s lead to 29-21.

“When you’re scoring from (15) yards out on a run play, that makes offence easy,” Mitchell said. “It’s one of those things when you get down there as a quarterback, it takes you sometimes five, eight, 10 plays and now it’s ‘OK, now we have to create some stuff and find something.’

“When you hand the ball off and you’re scoring from (15) yards, it makes the offence really easy.”

Ottawa (8-4-1) would have clinched a playoff spot with a victory.

Ottawa committed six turnovers (three interceptions, two fumbles, once on downs) before an announced Tim Hortons Field gathering of 22,119. Lawrence Woods III also returned a punt 83 yards for a touchdown at 11:51 of the first quarter that put Hamilton ahead 10-3.

“You’ve got to bring your best every single week and this wasn’t our best, all of us, from coaches to the players,” said Ottawa head coach Bob Dyce. “If you don’t play great for four quarters, I don’t care who you’re playing you’re not going to have a successful day.

“We should’ve made the tackle (on Woods), we had him wrapped up it’s that simple. Even though we didn’t make the play on that, there should’ve been extra bodies there to clean it up when he did break the tackle.”

Hamilton also tied the season series with Ottawa 1-1. The teams meet again at TD Place on Oct. 25.

“If we didn’t turn it over today I would’ve said we played really well offensively and that to me is what the biggest difference is,” said Hamilton head coach Scott Milanovich. “Even the turnovers today (interception, fumble), at least they were in their end and we weren’t giving them a short field.

“The biggest play of the game was Woodsie’s return. It got us jump-started, gave us the lead and we were kind of off after that.”

Ottawa starter Dru Brown was 17-of-27 passing for 164 yards and an interception. Masoli entered late in the third and finished 13-of-19 passing for 183 yards with two TDs and two interceptions, but Dyce said Brown will start next weekend against Montreal (10-2-1), which earned a 19-19 tie Saturday night with Calgary (4-8-1).

The Canadian Football Hall of Fame’s ’24 class of S.J. Green, Chad Owens, Weston Dressler, Vince Goldsmith and Vince Coleman, along with builders Ray Jauch and Ed Laverty (posthumously), was honoured at halftime. All were enshrined Friday night.

Steven Dunbar Jr. and Ante Litre had Hamilton’s other touchdowns. Marc Liegghio kicked two field goals, three converts and two singles.

Ottawa’s Lewis Ward booted two field goals and a convert.

Mitchell culminated a five-play, 96-yard march with a 20-yard TD pass to Litre at 13:34 of the third. It followed Jonathan Moxey’s interception.

Liegghio’s single at 7:05 of the third put Hamilton up 22-6.

Mitchell’s 54-yard TD strike to Dunbar at 14:18 of the second staked Hamilton to its 21-6 halftime lead. The advantage was well-deserved as the Ticats had more first downs (12-six), net offensive yards (260-144) and scored on both offence and special teams.

Mitchell was 14-of-20 passing for 210 yards and a TD, but his interception cost Hamilton at least a field-goal attempt. Dunbar had five receptions for 113 yards and the touchdown.

Brown completed 13-of-21 passes for 127 yards.

Liegghio’s missed 47-yard attempt went for the single at 12:45 to put Hamilton ahead 14-6. It followed a Kiondre Smith catch that was ruled incomplete and at the very least cost the Ticats a first down that would’ve kept the drive alive.

Ward’s 30-yard kick at 9:15 had pulled Ottawa to within 13-6.

Liegghio’s 19-yard field goal at 5:13 pushed Hamilton’s lead to 13-3. It followed the defence stopping Ottawa’s Dustin Crum on third-and-one, giving the Ticats possession at the Redblacks 40.

Liegghio’s 47-yard field goal opened the scoring at 2:42 before Ward tied in with a 24-yard boot at 8:44.

UP NEXT

Redblacks: Host the Montreal Alouettes (10-2-1) next Saturday, Sept. 21.

Tiger-Cats: Visit the Toronto Argonauts (7-6) on Friday.

This report by The Canadian Press was first published Sept. 14, 2024.



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Toronto FC downs Austin FC to pick up three much-needed points in MLS playoff push

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TORONTO – Needing three points to keep their playoff push alive, Toronto FC’s Jonathan Osorio and Deandre Kerr stepped up with first-half goals against Austin FC on Saturday with goalkeeper Sean Johnson doing his bit at the other end.

A 76th-minute goal by Austin’s Owen Wolff made for a nervy ending but TFC hung on for a 2-1 win.

While Toronto (11-15-3) remains on the Major League Soccer playoff bubble in eighth place in the Eastern Conference (the eighth- and ninth-place teams in each conference square off in a wild-card playoff with the winner facing the top seed in the conference), other results went their way.

Seventh-place Charlotte, 10th-place Atlanta and 11th-place Philadelphia all lost while ninth-place D.C. United tied.

Toronto midfielder Alonso Coello called it “a game we had to win.”

“It’s a big win … To see that fight tonight was important,” added coach John Herdman.

Austin (9-12-7) came into the game in 11th place in the West, two points below ninth-place Minnesota. The Texas side has won just one of its last six league games (1-4-1).

Austin outshot Toronto 7-6 (6-2 edge in shots on target) in the first half but found itself trailing 2-0 at the break as Toronto took advantage of its chances and the visitors didn’t in their first-ever visit to BMO Field, before an announced crowd of 25,538.

Toronto had a dream start, catching Austin on the counterattack in the seventh minute. A sliding Austin player dispossessed an onrushing Kerr, who had been set free by a long ball from Coello, but the ball bounced to Osorio, who beat goalkeeper Brad Stuver with a rising shot.

It was the Toronto captain’s second goal of the season in league play and his 65th for TFC in all competitions. Only Sebastian Giovinco (83) and Jozy Altidore (79) scored more in Toronto colours.

TFC went ahead on another counterattack in the 30th minute after an Austin giveaway. Osorio found Richie Laryea outpacing his marker and the wingback unselfishly sent a perfect low cross across goal for Kerr to knock home for his third of the season.

Wolff, the son of Austin head coach Josh Wolff, made it interesting with his late strike. The 19-year-old U.S. youth international, controlling a long ball, beat defender Raoul Petretta and then waited out Johnson before slotting it home for his first of the season.

Toronto survived a nervy six minutes of stoppage time as Austin pressed for the equalizer. Austin outshot Toronto 14-9 (8-3 in shots on target) and had 52.5 per cent possession.

The win evened Toronto’s home record at 7-7-0, while Austin slipped to 3-8-3 on the road.

It was a costly evening for Austin with defender Brendan Hines-Ike, midfielder Jhojan Valencia and star attacker Sebastian Driussi allpicking up cautions to miss Wednesday’s game with Los Angeles FC due to yellow-card accumulation.

Toronto defender Shane O’Neill will miss Wednesday’s game against visiting Columbus for the same reason. Toronto could be short mid-week, too. The hope is veteran centre back Kevin Long, who missed Saturday’s game after tweaking his hamstring in training, will be good to go.

Toronto has five games remaining, including three more at home as it looks to return to the post-season for the first time since 2020 when it lost to Nashville after extra time at the first hurdle.

It is a challenging road.

TFC hosts Columbus, the New York Red Bulls and Inter Miami while playing away at the Colorado Rapids and Chicago Fire. All but Chicago are in playoff positions.

The only previous meeting between Toronto and Austin was in May 2023, when Zardes scored a 91st-minute winner to give Austin a 1-0 win over visiting Toronto, which was then mired at the bottom of the Eastern Conference. That loss prompted a post-game outburst from Italian star Federico Bernardeschi about TFC’s drab play.

Then-coach Bob Bradley benched Bernardeschi for the next game.

Current coach John Herdman made four changes to his starting 11 with Bernardeschi and Osorio returning from suspension and Coello and Kerr also slotting in. Coello, who had missed the last eight league games with a hamstring injury, was impressive in his 59-minute return.

Both Toronto and Austin suffered home losses last time out going into the international break. Toronto was beaten 3-1 by D.C. United while Austin lost 1-0 to Vancouver.

Follow @NeilMDavidson on X platform.

This report by The Canadian Press was first published Sept. 14, 2024.

The Canadian Press. All rights reserved.



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CF Montreal finds its groove with 2-1 win over Charlotte

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MONTREAL – CF Montreal is back in the win column after securing a 2-1 Major League Soccer win over Charlotte FC on Saturday night at Stade Saputo.

Montreal’s form had suffered of late, with just one win in MLS since July, but Laurent Courtois’ squad showed a level of poise and control over the tempo of the game that had not been seen since the beginning of the season.

“What we’ve changed in the last few weeks or months in terms of our methodology or coaching, is nothing. We did the exact thing, We had the exact same words, and we expressed them the exact same way,” said Courtois. “Today, everything just clicked.”

Caden Clark scored for the first time as a Montreal (7-12-9) player in the 23rd minute, in addition to Bryce Duke’s goal three minutes later that ended up being the winner, while Tim Ream found the back of the net for Charlotte (10-10-8).

Montreal had the first major scoring chance of the match after 15 minutes of play. With a free kick roughly 25 metres away from goal, Gabriele Corbo sent a near-perfect shot smashing off the crossbar.

Montreal would continue to dictate the tempo in the opening phase, finding first blood just seven minutes later.

Following a phenomenal triple-save from Charlotte goalkeeper Kristijan Kahlina, the ball fell to Clark who volleyed the ball into the wide-open net, picking up his first goal for the club.

“I think you don’t lose the feeling (of scoring), everything happens for a reason, you just can’t lose yourself in the chaos,” said Clark, who had missed a full season due to injury and was briefly without a club, but was grateful for Courtois’ confidence in him.

“(To have a coach’s confidence) is huge and is something I’ve had both ends of so you just can’t take advantage of that in the wrong way. I’m going to keep my discipline with the game plan and keep my head right.”

With momentum completely on their side, the home side doubled the lead just three minutes later. Montreal continued to build up play on the left flank and found a streaking Raheem Edwards in behind the defence who cut the ball back to Duke, sending the Stade Saputo crowd into a frenzy.

Just after the half-hour mark, Charlotte pulled one back through a set piece — something Montreal has struggled defending all season — as Ream rose above everyone at the back post to score his first with his new club.

The second half began in a similar fashion to the end of the first, with Charlotte pressing high up the pitch and forcing several turnovers in dangerous areas. After surviving the pressure, Montreal began to regain control of the game near the hour mark, enjoying the lion’s share of the possession while Charlotte looked to hit back on the counterattack.

“I think when we conceded that goal we were like ‘here we go again.’ 2-1 is a tough lead before halftime … and at the beginning of the half we kind of shot ourselves in the foot and they pressed a bit more, they moved a bit more forward and that opened some gaps,” said captain Samuel Piette.

“I was happy with that, it shows character. At the end of the day, we just wanted the three points and that’s what we got.”

As the game progressed, Charlotte pushed harder to find an equalizer but to no avail. With only one shot on target conceded, the second-worst defence in the league put up an impressive front and confidently rebuffed every single Charlotte attack.

“I’m a big fan of the back five’s performance in their discipline, competitiveness, and synchronization with balls in behind,” said Courtois.

“We can’t explain sometimes in a game it’s not there, they’re capable and today they showed it. Let’s see tomorrow.”

UP NEXT

Both teams are back in action on Sept. 18 away from home as Montreal will look to avenge a 5-0 rout against the New England Revolution while Charlotte visits Orlando City SC.

This report by The Canadian Press was first published Sept. 14, 2024.

The Canadian Press. All rights reserved.



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