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Press Release

Oil Sands Alliance Statement on Canada and Alberta Agreement

Published by Todd Bush on May 19, 2026

CALGARY, AB, May 15, 2026 /PRNewswire/ - Today the Alberta and Canadian governments announced their bi-lateral agreement on the implementation of a revised industrial carbon tax and other matters related to their November 27, 2025 Memorandum of Understanding (the "MOU"). Oil Sands Alliance appreciates the further clarity of that agreement and is reviewing it carefully.

The announced industrial carbon tax, while lower than the current industrial carbon tax, still maintains uncompetitive costs on the Canadian oil sands industry. No other major oil producing nation faces a similar tax.

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The MOU states an objective to reduce the carbon emissions intensity of Canadian heavy oil production to best in class in terms of the average for heavy oil by 2050. As set out in Canada's 2025 budget, the Canadian oil industry has a carbon emissions intensity that is already below the global average.

"Oil Sands Alliance is committed to advancing the Pathways carbon capture and storage project provided the necessary regulatory and fiscal terms are in place, to support the project and new oil sands growth in Canada," said Oil Sands Alliance President Kendall Dilling. "An industrial carbon tax only adds uncompetitive costs to industry on top of the costs of a carbon capture project."

While today's announcement provides greater clarity on the industrial carbon tax and the next steps between the two governments to advance a strategic oil pipeline project to Asian markets, it is critical that the overall regulatory and fiscal frameworks be put in place to enable the long-term competitiveness of the industry and to attract the billions of dollars required to grow production and fill future pipelines. We have provided concrete recommendations to both governments on the regulatory and fiscal frameworks to achieve those goals.

We fully support the Prime Minister and Premier's shared vision of making Canada an energy superpower and growing Alberta oil production. As we review the details of the announced agreement, we look forward to working constructively with both governments at a tri-lateral table to lay the foundation to achieve that vision.

SOURCE Oil Sands Alliance Inc.

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