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 Resource Now
Alberta renews call for West Coast oil pipeline amid shifting federal, geopolitical dynamics.
Just six months ago, talk of resurrecting some version of the Northern Gateway pipeline would have been unthinkable. But with the election of Donald Trump in the U.S. and Mark Carney in Canada, it’s now thinkable.
In fact, Alberta Premier Danielle Smith seems to be making Northern Gateway 2.0 a top priority and a condition for Alberta staying within the Canadian confederation and supporting Mark Carney’s vision of making Canada an Energy superpower. Thanks to Donald Trump threatening Canadian sovereignty and its economy, there has been a noticeable zeitgeist shift in Canada. There is growing support for the idea of leveraging Canada’s natural resources and diversifying export markets to make it less vulnerable to an unpredictable southern neighbour.
“I think the world has changed dramatically since Donald Trump got elected in November,” Smith said at a keynote address Wednesday at the Global Energy Show Canada in Calgary. “I think that’s changed the national conversation.” Smith said she has been encouraged by the tack Carney has taken since being elected Prime Minister, and hopes to see real action from Ottawa in the coming months to address what Smith said is serious encumbrances to Alberta’s oil sector, including Bill C-69, an oil and gas emissions cap and a West Coast tanker oil ban. “I’m going to give him some time to work with us and I’m going to be optimistic,” Smith said. Removing the West Coast moratorium on oil tankers would be the first step needed to building a new oil pipeline line from Alberta to Prince Rupert. “We cannot build a pipeline to the west coast if there is a tanker ban,” Smith said. The next step would be getting First Nations on board. “Indigenous peoples have been shut out of the energy economy for generations, and we are now putting them at the heart of it,” Smith said.
Alberta currently produces about 4.3 million barrels of oil per day. Had the Northern Gateway, Keystone XL and Energy East pipelines been built, Alberta could now be producing and exporting an additional 2.5 million barrels of oil per day. The original Northern Gateway Pipeline — killed outright by the Justin Trudeau government — would have terminated in Kitimat. Smith is now talking about a pipeline that would terminate in Prince Rupert. This may obviate some of the concerns that Kitimat posed with oil tankers negotiating Douglas Channel, and their potential impacts on the marine environment.
One of the biggest hurdles to a pipeline to Prince Rupert may be B.C. Premier David Eby. The B.C. NDP government has a history of opposing oil pipelines with tooth and nail. Asked in a fireside chat by Peter Mansbridge how she would get around the B.C. problem, Smith confidently said: “I’ll convince David Eby.”
“I’m sensitive to the issues that were raised before,” she added. One of those concerns was emissions. But the Alberta government and oil industry has struck a grand bargain with Ottawa: pipelines for emissions abatement through carbon capture and storage.
The industry and government propose multi-billion investments in CCUS. The Pathways Alliance project alone represents an investment of $10 to $20 billion. Smith noted that there is no economic value in pumping CO2 underground. It only becomes economically viable if the tradeoff is greater production and export capacity for Alberta oil. “If you couple it with a million-barrel-per-day pipeline, well that allows you $20 billion worth of revenue year after year,” she said. “All of a sudden a $20 billion cost to have to decarbonize, it looks a lot more attractive when you have a new source of revenue.” When asked about the Prince Rupert pipeline proposal, Eby has responded that there is currently no proponent, and that it is therefore a bridge to cross when there is actually a proposal. “I think what I’ve heard Premier Eby say is that there is no project and no proponent,” Smith said. “Well, that’s my job. There will be soon. “We’re working very hard on being able to get industry players to realize this time may be different.” “We’re working on getting a proponent and route.”
At a number of sessions during the conference, Mansbridge has repeatedly asked speakers about the Alberta secession movement, and whether it might scare off investment capital. Alberta has been using the threat of secession as a threat if Ottawa does not address some of the province’s long-standing grievances. Smith said she hopes Carney takes it seriously. “I hope the prime minister doesn’t want to test it,” Smith said during a scrum with reporters. “I take it seriously. I have never seen separatist sentiment be as high as it is now. “I’ve also seen it dissipate when Ottawa addresses the concerns Alberta has.” She added that, if Carney wants a true nation-building project to fast-track, she can’t think of a better one than a new West Coast pipeline. “I can’t imagine that there will be another project on the national list that will generate as much revenue, as much GDP, as many high paying jobs as a bitumen pipeline to the coast.”
Alberta
Alberta Premier Danielle Smith Discusses Moving Energy Forward at the Global Energy Show in Calgary
From Energy Now
At the energy conference in Calgary, Alberta Premier Danielle Smith pressed the case for building infrastructure to move provincial products to international markets, via a transportation and energy corridor to British Columbia.
“The anchor tenant for this corridor must be a 42-inch pipeline, moving one million incremental barrels of oil to those global markets. And we can’t stop there,” she told the audience.
The premier reiterated her support for new pipelines north to Grays Bay in Nunavut, east to Churchill, Man., and potentially a new version of Energy East.
The discussion comes as Prime Minister Mark Carney and his government are assembling a list of major projects of national interest to fast-track for approval.
Carney has also pledged to establish a major project review office that would issue decisions within two years, instead of five.
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