Alberta
Alberta responses to federal energy stimulus package: A good start!
From the Province of Alberta
Federal energy stimulus package: Premier Kenney
Premier Jason Kenney issued the following statement on the federal government’s energy stimulus package:
“How we come through this economic crisis will depend in large part on the survival and the successful recovery of our country’s largest industry – the energy sector – on which some 800,000 Canadian jobs depend. We thank the federal government for taking this important first step to support the folks who work in our energy sector.
“The $1 billion partnership to address inactive wells aligns with Alberta’s commitment to ensuring our resources are developed in an environmentally sustainable fashion. This funding will immediately save or create thousands of jobs, keeping energy service companies going during these devastating times. It will also help us bring sites back to their original condition, leaving a cleaner environment for future generations. The $200 million loan to the Orphan Well Association will also help these efforts, demonstrating our commitment to producing Canadian energy under the world’s highest environmental standards.
“More support is needed to deal with the crisis in Canada’s energy sector, but this is a great first step. Our energy sector is facing its biggest challenge ever, and we need to be sure that industry can access the capital it needs to survive and thrive in future years. When the auto sector and the banks were threatened during the global financial crisis a decade ago, the economic strength of Alberta, powered by the energy industry, ensured that Canada was able to provide the urgent support they needed. We will continue to work with the federal government to ensure that the energy sector now gets the support it needs as it faces its own threats from both the COVID-19 pandemic and the Saudi-Russia price war.
“This unprecedented disruption in the world energy markets will eventually recede. Better times for the industry are a matter of when – not if – but only if the industry survives the next couple of years. We need to make sure Alberta is prepared and ready for the global recovery when the time comes. Alberta’s energy industry is the lifeblood of our provincial economy – and the largest subsector of Canada’s economy, as well as one of its biggest employers. The energy sector helps some of our country’s most important industries thrive, including health care, manufacturing and transportation.
“We are grateful for this job-creating initiative, and we will continue to work with the federal government until the energy sector has what it needs to survive and thrive for the benefit of all Canadians.”
From the Alberta NDP Caucus
SCHMIDT STATEMENT ON FEDERAL SUPPORT FOR ENERGY INDUSTRY
Marlin Schmidt, NDP Environment Critic, issued the following statement regarding the federal government’s aid package for Alberta’s energy industry:
“Cleaning up oil and gas sites is good news for our energy sector workers, landowners, and our environment. From day one, we have been advocating for support to cleanup orphan wells. It will put thousands of Albertans back to work while supporting responsible resource development.
“The UCP government must use this money in a way that ensures polluters still pay for the cleanup of their sites. They must also set clear targets and timelines for well cleanup now and into the future. I also hope the UCP will ensure landowners and municipalities are compensated for wells on their land.
“While this is good news for our energy sector and landowners, there are still a lot of Albertans and businesses struggling to make ends meet. I wish Premier Kenney and the UCP would step up and provide real leadership to support all Albertans and all sectors of our province instead of constantly relying on the federal government to act first.”
From the Alberta Federation of Labour
Alberta unions applaud federal support for oil and gas workers
“The money for orphan wells and methane reduction, announced by the federal government today, will help the environment and create jobs at a time when they’re desperately needed,” says the president of Alberta’s largest worker advocacy organization.
“This is a classic win-win scenario,” says Gil McGowan, president of the Alberta Federation of Labour. “The $1.7 billion being dedicated to orphan and abandoned wells can be put to use almost immediately. It will help address a problem that has been simmering in Alberta for years and, in the process, it will put literally thousands of people in the oil field service industry back to work. There is no doubt in my mind that this is one of the most constructive things that the federal government can do to help oil and gas workers at this time. It’s greatly appreciated.”
McGowan says he’s also very happy with the work the federal government did to get input from a wide variety of stakeholders.
“Here in Alberta, we’re used to our provincial governments consulting only with industry and then making a policy based on that narrow range of perspectives. But the federal government took a very different approach, consulting with workers, environmental groups, landowners and others, in addition to industry. It’s very refreshing. And, I think it shows that you get better policy outcomes when you take the time to hear from a wider cross-section of people.”
Of the $1.7 billion ear-marked for well remediation, $200 million will go directly to Alberta’s Orphan Well Association and $1 billion will go directly to the Alberta government. Alberta will be required to address concerns about how the whole issue of orphan wells is managed going forward.
“That last point is really important to us,” concluded McGowan. “This money won’t just create jobs; it will also require the Alberta government to clean up its act when it comes to implementing and overseeing rules requiring oil and gas companies to clean up their acts. That’s very good news for our province.”
From the Progressive Contractors Association of Canada
PCA: Federal Aid Package for Oil and Gas Sector a Beginning
The $1.7 billion aid package announced today for the oil and gas sector is a welcome start, according to the Progressive Contractors Association of Canada (PCA) which has seen many of its member company operations in the oil sands sector scaled back, shut down or delayed, resulting in thousands of layoffs.
“It’s a good day when thousands of jobs in Western Canada can be saved,” said Paul de Jong, President of the Progressive Contractors Association of Canada (PCA). “However, with a record number of energy companies folding, it will take far more to stave off a full-scale collapse.”
Prime Minister Trudeau announced $1.7 billion in funding to clean up orphaned oil wells in Alberta, Saskatchewan and British Columbia. The aid is expected to maintain as many as 5,200 jobs in Alberta alone.
“We’re still waiting for a federal aid package that fairly reflects the value and importance of the oil and gas industry,” added de Jong. “Given that this sector accounts for more than a tenth of GDP and employs tens of thousands of workers, the government still has a long way to go in demonstrating a real commitment to its survival.”
Last week, PCA sent Trudeau a letter, urging his government to provide support to the oil and gas sector without further delay.
About the Progressive Contractors Association of Canada (PCA) With offices in BC, Alberta and Ontario, PCA is the voice of progressive unionized employers in Canada’s construction industry. Our member companies are responsible for 40 percent of energy and natural resource construction projects in British Columbia and Alberta and are leaders in infrastructure construction across Canada. PCA member companies employ more than 25,000 skilled construction workers in Canada, represented primarily by CLAC.
From the Canadian Association of Petroleum Producers
CAPP issues statement recognizing the Government of Canada’s support for the oil and natural gas industry
“The Canadian Association of Petroleum Producers (CAPP) recognizes the Government of Canada’s support for the oil and natural gas industry, and appreciates the initiatives announced today which will protect about 10,000 jobs across the country.
The $1.7 billion announced today, for the closure and reclamation of orphan and inactive wells in Saskatchewan, Alberta, and British Columbia, is welcome news. Reducing environmental liabilities is a priority for the oil and natural gas industry and this initiative will allow important work to accelerate, while supporting thousands of jobs.
The government also announced a $750 million emissions reduction fund which will help companies continue their progress to reduce methane emissions. Canada’s oil and natural gas industry has committed to a 45 percent reduction of methane emissions by 2025, and the government is helping ensure that innovation and progress in this key area can continue during the economic crisis.
We are also encouraged by news that the government is working with the Business Development Bank of Canada and Export Development Canada to strengthen support for corporations who are most at risk. Liquidity is a real and immediate challenge for oil and natural gas producers and CAPP has been working with the federal government to identify urgent action needed to address the dire situation. We are awaiting additional details on the expansion of support — a critically important matter as companies try to weather the current crisis.
CAPP will continue to talk with all levels of government to ensure adequate support is in place to help businesses and jobs survive this unprecedented economic crisis. Survival of the energy sector will be crucial to Canada’s economic recovery.”
-Tim McMillan, President and CEO – Canadian Association of Petroleum Producers
From Cenovus, Brett Harris, Manager of Communications
We are appreciative that the federal government recognizes the dire situation the energy industry is in with the decrease in oil demand due to COVID-19 resulting in unprecedented low oil prices. The industry is in survival mode and needs the government to provide support to help companies preserve cash and access additional liquidity so they can still be here to help rebuild the economy once the immediate crisis passes.
We need more details about the federal aid for inactive and abandoned wells and methane emissions reduction. Cenovus has a strong history of addressing these areas of environmental responsibility and we will continue to take proactive actions so the government funding may help us progress these activities. Again, we still need to see the details.
The most important action the federal government can take to ensure the industry remains strong is by providing a temporary safety net in the form of increased access to liquidity. There are many options for this support to be delivered and we are urging the government to take swift action to pursue that.
From LifeSiteNews
Under the proposed law, international treaties or accords signed by the federal government would not apply in Alberta unless approved through its own legislation.
Alberta’s Conservative government introduced a new law to protect “constitutional rights” that would allow it to essentially ignore International Agreements, including those by the World Health Organization (WHO), signed by the federal Liberal government.
The new law, Bill 1, titled International Agreements Act and introduced Thursday, according to the government, “draws a clear line: international agreements that touch on provincial areas of jurisdiction must be debated and passed into law in Alberta.”
Should the law pass, which is all but certain as Alberta Premier Danielle Smith’s Conservatives hold a majority government, it would mean that any international treaties or accords signed by the federal government would not apply in Alberta unless approved through its own legislation.
“As we return to the legislature, our government is focused on delivering on the mandate Albertans gave us in 2023 to stand up for this province, protect our freedoms and chart our path forward,” Smith said.
“We will defend our constitutional rights, protect our province’s interests and make sure decisions that affect Albertans are made by Albertans. The federal government stands at a crossroads. Work with us, and we’ll get things done. Overstep, and Alberta will stand its ground.”
According to the Alberta government, while the feds have the “power to enter into international agreements on behalf of Canada,” it “does not” have the “legal authority to impose its terms on provinces.”
“The International Agreements Act reinforces that principle, ensuring Alberta is not bound by obligations negotiated in Ottawa that do not align with provincial priorities,” the province said.
The new Alberta law is not without precedent. In 2000, the province of Quebec passed a similar law, allowing it to ignore international agreements unless approved by local legislators.
The Smith government did not say which current federal agreements it would ignore, but in theory, it could apply to any agreement Canada has signed with the United Nations or the WHO.
From the Fraser Institute
By Julio Mejía and Elmira Aliakbari
Bill C-69 (a.k.a. the “no pipelines act”) has added massive uncertainty to the project approval process, requiring proponents to meet vague criteria that go far beyond any sensible environmental concerns—for example, assessing any project’s impact on the “intersection of sex and gender with other identity factors.”
In case you haven’t heard, the Alberta government plans to submit a proposal to the federal government to build an oil pipeline from Alberta to British Columbia’s north coast.
But B.C. Premier Eby dismissed the idea, calling it a project imported from U.S. politics and pursued “at the expense of British Columbia and Canada’s economy.” He’s simply wrong. A new pipeline wouldn’t come at the expense of B.C. or Canada’s economy—it would strengthen both. In fact, particularly during the age of Trump, provinces should seek greater cooperation and avoid erecting policy barriers that discourage private investment and restrict trade and market access.
The United States remains the main destination for Canada’s leading exports, oil and natural gas. In 2024, nearly 96 per cent of oil exports and virtually all natural gas exports went to our southern neighbour. In light of President Trump’s tariffs on Canadian energy and other goods, it’s long past time to diversify our trade and find new export markets.
Given that most of Canada’s oil and gas is landlocked in the Prairies, pipelines to coastal terminals are the only realistic way to reach overseas markets. After the completion of the Trans Mountain Pipeline Expansion (TMX) project in May 2024, which transports crude oil from Alberta to B.C. and opened access to Asian markets, exports to non-U.S. destinations increased by almost 60 per cent. This new global reach strengthens Canada’s leverage in trade negotiations with Washington, as it enables Canada to sell its energy to markets beyond the U.S.
Yet trade is just one piece of the broader economic impact. In its first year of operation, the TMX expansion generated $13.6 billion in additional revenue for the economy, including $2.0 billion in extra tax revenues for the federal government. By 2043, TMX operations will contribute a projected $9.2 billion to Canada’s economic output, $3.7 billion in wages, and support the equivalent of more than 36,000 fulltime jobs. And B.C. stands to gain the most, with $4.3 billion added to its economic output, nearly $1 billion in wages, and close to 9,000 new jobs. With all due respect to Premier Eby, this is good news for B.C. workers and the provincial economy.
In contrast, cancelling pipelines has come at a real cost to B.C. and Canada’s economy. When the Trudeau government scrapped the already-approved Northern Gateway project, Canada lost an opportunity to increase the volume of oil transported from Alberta to B.C. and diversify its trading partners. Meanwhile, according to the Canadian Energy Centre, B.C. lost out on nearly 8,000 jobs a year (or 224,344 jobs in 29 years) and more than $11 billion in provincial revenues from 2019 to 2048 (inflation-adjusted).
Now, with the TMX set to reach full capacity by 2027/28, and Premier Eby opposing Alberta’s pipeline proposal, Canada may miss its chance to export more to global markets amid rising oil demand. And Canadians recognize this opportunity—a recent poll shows that a majority of Canadians (including 56 per cent of British Columbians) support a new oil pipeline from Alberta to B.C.
But, as others have asked, if the economic case is so strong, why has no private company stepped up to build or finance a new pipeline?
Two words—bad policy.
At the federal level, Bill C-48 effectively bans large oil tankers from loading or unloading at ports along B.C.’s northern coast, undermining the case for any new private-sector pipeline. Meanwhile, Bill C-69 (a.k.a. the “no pipelines act”) has added massive uncertainty to the project approval process, requiring proponents to meet vague criteria that go far beyond any sensible environmental concerns—for example, assessing any project’s impact on the “intersection of sex and gender with other identity factors.” And the federal cap on greenhouse gas (GHG) emissions exclusively for the oil and gas sector will inevitably force a reduction in oil and gas production, again making energy projects including pipelines less attractive to investors.
Clearly, policymakers in Canada should help diversify trade, boost economic growth and promote widespread prosperity in B.C., Alberta and beyond. To achieve this goal, they should put politics aside, focus of the benefits to their constituents, and craft regulations that more thoughtfully balance environmental concerns with the need for investment and economic growth.
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