Fraser Institute study says Alberta carbon tax and capture rules could raise energy costs and hurt competitiveness with US states

A new Fraser Institute study warns that Alberta's industrial carbon tax and carbon capture requirements could make the province's energy sector less competitive compared to major US producing states like Texas and New Mexico. The study, authored by Jack Mintz, estimates that by 2040 the cost to produce a barrel of conventional oil in Alberta could rise from US$43 to US$54, a 25.6 percent increase. Oilsands costs could climb from US$51 to US$61 per barrel, a 19.6 percent jump. Natural gas production costs could rise 39 percent and electricity generation costs could increase 36 percent, according to the report. The Fraser Institute argues that these added costs, driven by Alberta's $140 per tonne industrial carbon tax and carbon capture requirements, could push investors toward US energy producing states like Texas and New Mexico where similar policies do not apply. The study warns that higher electricity costs would also raise expenses for other industries across the province, making their goods and services more expensive. The report focuses on competitiveness in Alberta's oil, natural gas, and electric power sectors under current and proposed carbon policies.