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A Response To: An Open Letter To Canadians From Oil And Gas Workers

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Update –  April 13th 2020: View Eavor Technologies CEO – John Redfern’s response here

A letter in response to this:

https://business.financialpost.com/opinion/an-open-letter-to-canadians-from-oil-and-gas-workers

 

 

Dear Albertan oil executives,

 

Canada’s oil and gas workers need your help. For decades, we have been asking you to diversify our economy and look for ways to avoid the boom and bust cycle. We are now in a perfect storm with oil prices falling and workers in isolation from a deadly virus. We need your leadership more than ever. 

 

Unfortunately for us, you’ve chosen the least imaginative path possible: stay the course. In your April 6th Op-Ed in the Financial Post, you argued that the fossil fuel industry needs federal support in order to maintain a skilled workforce. For a province that prides itself on hard work and innovation, don’t you think we can do better? 

 

The underlying assumption that you have made is that oil prices will return to a level that’s profitable for Alberta. But the historical trend doesn’t support your argument. 

 

When you look at the historical price of WTI, Alberta’s golden years came from a bubble. In 2008 analysts all over the province were claiming oil would climb to $200 and Alberta would become the crown jewel of Canada. That turned out to be wishful thinking.  You have dusted off that same playbook, claiming that oil will keep going up in price. The more likely scenario is that prices will return to their historical average. 

 

We cannot rely on high oil prices for our economic survival. 

(The picture was taken from https://tradingeconomics.com/commodity/crude-oil But any 30-year graph will do. )

 

I agree with you that we need to ensure that we can maintain our workforce. It’s essential that Alberta has skilled people working in our province so that we can develop our resources. Canada as a whole needs to maintain our skilled labour force and keep our economy functioning so that we can rebound once the pandemic is over.


But putting those 200,000 people back to work into fossil fuels is a terrible idea.

 

So what do we do with hundreds of thousands of unemployed people and billions of dollars of idle equipment? 

 

My suggestion is we find markets outside of oil and gas that require very similar skill sets. We leverage our existing infrastructure, supply chains, and experience to build new industries here in Alberta.

I’ve got three examples. 

 

Geothermal Energy

Geothermal energy needs the same drilling rigs that the oil service industry has sitting idle. You can use your existing geologists, roughnecks, pipefitters, and welders to drill geothermal wells instead of oil wells. The end result is clean baseload power that can replace coal in this province and all over the world. The added benefit of developing geothermal is that we repurpose orphan wells into sources of heat and electricity. Companies like Eavor and DEEP have already started. 

Battery Manufacturing

As we move to cleaner energy sources, batteries will become more important to the sustainability of our economy. Batteries need a lot of material to be manufactured and companies like E3 Metals are developing extraction techniques to create a lithium industry here in Alberta. There are plenty of technicians, engineers, and fabricators in our energy community that are entirely capable of working on projects like this. 

Nuclear Power

While we are brainstorming ideas, let’s think big. If we are serious about providing clean, low carbon, environmentally friendly energy we have to look at nuclear. The folks at Terrestial Energy have designed a modular reactor that’s small, safe, and could absolutely be manufactured here in Alberta. I bet the mod yards would be jumping at the chance to have a backlog of work. 

 

I agree with you that we absolutely need to support our workforce. However, I don’t think keeping our oil industry limping along can be the full answer for our skilled and versatile workforce. Our talented population needs options.

 

Please stop looking in the rearview mirror and start building for the future.

 

Update – April 13th 2020: View Eavor Technologies CEO – John Redfern’s response here

This article was originally published on April 8, 2020.

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Pierre Poilievre – Per Capita, Hardisty, Alberta Is the Most Important Little Town In Canada

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From Pierre Poilievre

The tiny town of Hardisty, Alberta (623 people) moves $90 billion in energy a year—that’s more than the GDP of some countries.

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Why it’s time to repeal the oil tanker ban on B.C.’s north coast

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The Port of Prince Rupert on the north coast of British Columbia. Photo courtesy Prince Rupert Port Authority

From the Canadian Energy Centre

By Will Gibson

Moratorium does little to improve marine safety while sending the wrong message to energy investors

In 2019, Martha Hall Findlay, then-CEO of the Canada West Foundation, penned a strongly worded op-ed in the Globe and Mail calling the federal ban of oil tankers on B.C.’s northern coast “un-Canadian.”

Six years later, her opinion hasn’t changed.

“It was bad legislation and the government should get rid of it,” said Hall Findlay, now director of the University of Calgary’s School of Public Policy.

The moratorium, known as Bill C-48, banned vessels carrying more than 12,500 tonnes of oil from accessing northern B.C. ports.

Targeting products from one sector in one area does little to achieve the goal of overall improved marine transport safety, she said.

“There are risks associated with any kind of transportation with any goods, and not all of them are with oil tankers. All that singling out one part of one coast did was prevent more oil and gas from being produced that could be shipped off that coast,” she said.

Hall Findlay is a former Liberal MP who served as Suncor Energy’s chief sustainability officer before taking on her role at the University of Calgary.

She sees an opportunity to remove the tanker moratorium in light of changing attitudes about resource development across Canada and a new federal government that has publicly committed to delivering nation-building energy projects.

“There’s a greater recognition in large portions of the public across the country, not just Alberta and Saskatchewan, that Canada is too dependent on the United States as the only customer for our energy products,” she said.

“There are better alternatives to C-48, such as setting aside what are called Particularly Sensitive Sea Areas, which have been established in areas such as the Great Barrier Reef and the Galapagos Islands.”

The Business Council of British Columbia, which represents more than 200 companies, post-secondary institutions and industry associations, echoes Hall Findlay’s call for the tanker ban to be repealed.

“Comparable shipments face no such restrictions on the East Coast,” said Denise Mullen, the council’s director of environment, sustainability and Indigenous relations.

“This unfair treatment reinforces Canada’s over-reliance on the U.S. market, where Canadian oil is sold at a discount, by restricting access to Asia-Pacific markets.

“This results in billions in lost government revenues and reduced private investment at a time when our economy can least afford it.”

The ban on tanker traffic specifically in northern B.C. doesn’t make sense given Canada already has strong marine safety regulations in place, Mullen said.

Notably, completion of the Trans Mountain Pipeline expansion in 2024 also doubled marine spill response capacity on Canada’s West Coast. A $170 million investment added new equipment, personnel and response bases in the Salish Sea.

“The [C-48] moratorium adds little real protection while sending a damaging message to global investors,” she said.

“This undermines the confidence needed for long-term investment in critical trade-enabling infrastructure.”

Indigenous Resource Network executive director John Desjarlais senses there’s an openness to revisiting the issue for Indigenous communities.

“Sentiment has changed and evolved in the past six years,” he said.

“There are still concerns and trust that needs to be built. But there’s also a recognition that in addition to environmental impacts, [there are] consequences of not doing it in terms of an economic impact as well as the cascading socio-economic impacts.”

The ban effectively killed the proposed $16-billion Eagle Spirit project, an Indigenous-led pipeline that would have shipped oil from northern Alberta to a tidewater export terminal at Prince Rupert, B.C.

“When you have Indigenous participants who want to advance these projects, the moratorium needs to be revisited,” Desjarlais said.

He notes that in the six years since the tanker ban went into effect, there are growing partnerships between B.C. First Nations and the energy industry, including the Haisla Nation’s Cedar LNG project and the Nisga’a Nation’s Ksi Lisims LNG project.

This has deepened the trust that projects can mitigate risks while providing economic reconciliation and benefits to communities, Dejarlais said.

“Industry has come leaps and bounds in terms of working with First Nations,” he said.

“They are treating the rights of the communities they work with appropriately in terms of project risk and returns.”

Hall Findlay is cautiously optimistic that the tanker ban will be replaced by more appropriate legislation.

“I’m hoping that we see the revival of a federal government that brings pragmatism to governing the country,” she said.

“Repealing C-48 would be a sign of that happening.”

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