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Canada’s Oil Sands Innovation Alliance: A Win-Win for Canada?. Emilson C. D. Silva, Professor and CAIP Chair, Alberta School of Business, University of Alberta Eric Geddes Breakfast Lecture, Royal Mayfair Golf Club May 24, 2013.
Emilson C. D. Silva, Professor and CAIP Chair,
Alberta School of Business, University of Alberta
Eric Geddes Breakfast Lecture, Royal Mayfair Golf Club
Former chairman (Mr. Dan McFadyen) of the Energy Resources Conservation Board (ERCB) stated that COSIA was partly motivated by the enactment of ERCB’s Directive 74, “Tailings Performance Criteria and Requirements for Oil Sands Mining Schemes.”
In such a case, some of the oil companies have reacted strategically to a stiffer regulation by forming a coalition to share R&D information on technologies that lower their environmental impacts.
This directive requires operators to
Operators are required to submit to the ERCB
“The performance criterion for fluid tailings reduction is based on fines captured in DDAs. Fines are mineral solids with particle sizes equal to or less than 44 micrometres (μm).
The criterion establishes a minimum mass of dry fines in the oil sands feed expressed as a percentage of total fines in feed that must report to the DDAs.
This requirement applies to a one-year period between surveys (expected to be July 1 to June 30 of the following year). The phase-in sequence will be as follows:
The Ministry of Environment and Sustainable Resource Development amalgamates the ministries of:
OSTC’s Four Principles
“Our companies pledge to:
The signatory companies in COSIA were
Definition of a game
First Research Project
The main objectives of this research projectsare to demonstrate that:
(a) all Oil Sands’ operators to join the club, to improve their environmental performances, and to increase their production levels; and
(b) the regulator to adjust its environmental regulations.
Strategic effects investigated
The collective actions of COSIA members lead to greater collective R&D effort and improved environmental performance of the entire industry, which then generate different regulatory responses.
Cost reductions promoted by collective action also improve the degree of competitiveness of each COSIA member in the global oil market relative to the degree of competitiveness of non-members.
Each COSIA member has incentives to remain in the coalition and each non-member has incentives to join the coalition.
Fair, Alan E. (2012), “Canada’s Oil Sands: A Collaborative Approach to Addressing Oil Sands Tailings, World Heavy Oil Congress Proceedings, forthcoming.