Alberta
Alberta extracting more value from oil and gas resources: ATB
From the Canadian Energy Centre
By Will Gibson
Investment in ‘value-added’ projects more than doubled to $4 billion in 2024
In the 1930s, economist Harold Innis coined the term “hewers of wood and drawers of water” to describe Canada’s reliance on harvesting natural resources and exporting them elsewhere to be refined into consumer products.
Almost a century later, ATB Financial chief economist Mark Parsons has highlighted a marked shift in that trend in Alberta’s energy industry, with more and more projects that upgrade raw hydrocarbons into finished products.
ATB estimates that investment in projects that generate so-called “value-added” products like refined petroleum, hydrogen, petrochemicals and biofuels more than doubled to reach $4 billion in 2024.
“Alberta is extracting more value from its natural resources,” Parsons said.
“It makes the provincial economy somewhat more resilient to boom and bust energy price cycles. It creates more construction and operating jobs in Alberta. It also provides a local market for Alberta’s energy and agriculture feedstock.”
The shift has occurred as Alberta’s economy adjusts to lower levels of investment in oil and gas extraction.
While overall “upstream” capital spending has been rising since 2022 — and oil production has never been higher — investment last year of about $35 billion is still dramatically less than the $63 billion spent in 2014.
Parsons pointed to Dow’s $11 billion Path2Zero project as the largest value-added project moving ahead in Alberta.
The project, which has support from the municipal, provincial and federal governments, will increase Dow’s production of polyethylene, the world’s most widely used plastic.
By capturing and storing carbon dioxide emissions and generating hydrogen on-site, the complex will be the world’s first ethylene cracker with net zero emissions from operations.
Other major value-added examples include Air Products’ $1.6 billion net zero hydrogen complex, and the associated $720 million renewable diesel facility owned by Imperial Oil. Both projects are slated for startup this year.
Parsons sees the shift to higher value products as positive for the province and Canada moving forward.
“Downstream energy industries tend to have relatively high levels of labour productivity and wages,” he said.
“A big part of Canada’s productivity problem is lagging business investment. These downstream investments, which build off existing resource strengths, provide one pathway to improving the country’s productivity performance.”
Heather Exner-Pirot, the Macdonald-Laurier Institute’s director of energy, natural resources and environment, sees opportunities for Canada to attract additional investment in this area.
“We are able to benefit from the mistakes of other regions. In Germany, their business model for creating value-added products such as petrochemicals relies on cheap feedstock and power, and they’ve lost that due to a combination of geopolitics and policy decisions,” she said.
“Canada and Alberta, in particular, have the opportunity to attract investment because they have stable and reliable feedstock with decades, if not centuries, of supply shielded from geopolitics.”
Exner-Pirot is also bullish about the increased market for low-carbon products.
“With our advantages, Canada should be doing more to attract companies and manufacturers that will produce more value-added products,” she said.
Like oil and gas extraction, value-added investments can help companies develop new technologies that can themselves be exported, said Shannon Joseph, chair of Energy for a Secure Future, an Ottawa-based coalition of Canadian business and community leaders.
“This investment creates new jobs and spinoffs because these plants require services and inputs. Investments such as Dow’s Path2Zero have a lot of multipliers. Success begets success,” Joseph said.
“Investment in innovation creates a foundation for long-term diversification of the economy.”
Alberta’s government is helping students discover their skills and interests today, to help them find careers for tomorrow.
If passed, Budget 2025 will provide more than $100 million over three years for school boards to grow career education programs, including funding for more collegiate and dual-credit programs across Alberta.
“We are working to set students up for success by strengthening job-focused education. This money is helping schools partner with businesses, universities and colleges to create programs that will help students hit the ground running after they graduate.”
Career education helps students gain credits towards graduation while earning hands-on experience in fields like the trades, computer programming, health care, agriculture, culinary arts and more. These career education programs support a strong economy by helping students learn the skills they need to get in-demand jobs.
Collegiate schools
Collegiate schools work with businesses, universities and colleges to offer classes that give students pathways to education and careers in the job of their choice. There are 12 collegiate schools in Alberta, offering many different types of programming for grades 7-12, including aviation, graphic design, trades and more.
If passed, Budget 2025 provides more than $21 million to school boards to help fund special classrooms like carpentry workshops, film and media rooms, science laboratories, heavy equipment simulators and aircraft hangars. Another $6 million is being invested to support the start-up costs for new collegiate schools.
Dual-credit programs
Budget 2025, if passed, also provides $4.6 million in 2025/26 to start new or improve existing dual-credit programs. In partnership with universities and colleges, dual-credit programs give students a head start on rewarding careers by allowing them to earn high-school and post-secondary credits at the same time. Of the $4.6 million, $550,000 is being provided by Alberta Seniors, Community and Social Services for new and improved dual-credit health care aide programs.
“Health care aides play a critical role in ensuring Albertans receive the continuing care services they need to maintain their health, independence and quality of life. Our investments into career pathways for health care aides will provide opportunities for young Albertans to develop the skills they need to build a rewarding career in Alberta’s continuing care workforce.”
Another $1.4 million is being invested to support students participating in off-campus career education programs through CAREERS. This non-profit connects students to jobs in high-demand fields, such as the trades, technology, health, forestry and agriculture.
“Investments in collegiate and dual-credit programming are significant for Calgary Catholic as they further strengthen our collegiate and dual-credit programming. This programming will open opportunities for our students and help them to realize their full potential.”
“Before Fusion Collegiate, I felt lost and wasn’t really sure what to do after high school. Thanks to its career-focused learning and the opportunities through Fusion and The Educational Partnership Foundation, I’m now working as a first-year apprentice plumber with Mr. Rooter. The hands-on trades training, high school credits, safety certifications, and real-world skills I picked up completely changed my life. I’m excited about where my career is headed and really thankful for the support that helped me get here.”
Budget 2025 is meeting the challenge faced by Alberta communities with continued investments in education and health, lower taxes for families and a focus on the economy.
Quick facts
- If passed, Budget 2025 invests $102.4 million over three years to provide sustainable, predictable career education funding, and to increase access to career education for Alberta students.
- This includes $8.4 million over 2026-27 and 2027-28 to raise awareness among students and families of career education programs and pathways available to Alberta students.
- Career education in Alberta includes career and technology courses, Career and Life Management (CALM), dual-credit courses, collegiate schools, apprenticeships and off-campus education programming.
- Since 2013, more than 95,000 high school students participated in at least one dual–credit course.
- In spring 2025, Alberta Education will engage with education partners on best practices to bring more career education opportunities to students.
- Since 2022, education partners and almost 5,000 Albertans have provided their feedback on career education and workforce needs.
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Alberta
Photo radar to be restricted to School, Playground, and Construction Zones as Alberta ends photo radar era
Alberta’s government is fulfilling its promise to end Automated Traffic Enforcement (ATE) in select locations while enhancing safety with a new Traffic Safety Fund.
For years, Alberta has had the most ATE sites of any jurisdiction in Canada with many serving as a “cash cow,” generating millions of dollars in revenue with no clear evidence they were improving traffic safety. Now, following thorough consultation and review of existing ATE sites, Alberta’s government is making significant changes to restore public trust in the use of photo radar.
Effective April 1, the updated ATE Technology Guideline will prohibit photo radar on numbered provincial highways and connectors, restricting it only to school, playground and construction zones. Intersection safety devices in Alberta will also be limited to red light enforcement only, ending the “speed-on-green” ticketing function.
“We have officially killed the photo radar cash cow and the revenue-generating “fishing holes” that made Alberta the biggest user of photo radar in Canada. The updated guideline will ensure that photo radar is used for safety only. The new provincial traffic safety fund will support municipalities in physical improvements at key intersections, helping to reduce traffic risks and enhance safe roads.”
Alberta’s government has also created a new $13-million Traffic Safety Fund for municipalities to upgrade local roads and intersections that pose demonstrated safety risks. Details will be made available on how to apply for the Traffic Safety Fund, once the application process has been finalized.
“This shift ensures that photo radar is used where it matters most – near schools, playgrounds and construction zones. Traffic enforcement should be about protecting people, not generating revenue. The new Traffic Safety Fund gives municipalities the tools to make targeted improvements to roads and intersections with real safety concerns. Keeping Edmontonians safe on our streets must always remain the priority.”
“Shifting photo radar to playgrounds and construction zones enhances safety where it matters most – protecting our children and workers on Calgary’s roads. I’m proud to back this important step toward safer communities.”
“The Traffic Safety Fund is a welcome addition to the overall funding available to municipalities. The Rural Municipalities of Alberta support a dynamic approach to managing traffic safety.”
Municipalities are encouraged to use traffic calming measures instead of photo radar but may request provincial approval for an exemption to the photo radar ban in high-collision locations. To do so, municipalities must submit a business case detailing high-collision frequency and severity at the site, relative to similar locations, and demonstrate how other safety measures are not possible or will be ineffective. To be approved for an exemption, they must also commit to audit the exempted site every two years to assess the effectiveness of photo radar in reducing collisions at that location.
The updated ATE Technology Guideline also includes parameters around equipment testing and maintenance, data collection and reporting requirements, traffic safety plans, signage and public communication of photo radar locations.
Quick facts
- On April 1, the new ATE 2025 Technology Guideline comes into force.
- The newly created Traffic Safety Fund will provide $13 million over three years to help municipalities re-engineer intersections to reduce collisions:
- $1 million in 2025-26
- $2 million in 2026-27
- $10 million in 2027-28
- Alberta first introduced photo radar in 1987.
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