Alberta
Northern Alberta Métis community launches seven new oil sands partnerships to boost economic opportunity
L-R (seated): Great Northern Bridgeworks president Steve Ross, Enviromulch Mulching & Logging superintendent Phil Mamers, Lynco Energy Services owner Doug Golosky, Surerus Murphy Joint Venture chairman Sean Surerus, Brothers HDD owner Jamie McClennon, Gateway Mechanical Services account executive Dean Seiz, Dorval O & M Services owner Brent Dorval (sitting in for Global Fusion Coating general manager Chad Olsen). L-R (standing): CRDAC directors Stacey Atkinson, Valerie Quintal, Shirley Tremblay, Margaret Quintal, and Grace Richards. Photo courtesy CRDAC
From the Canadian Energy Centre
About 150 kilometres south of Fort McMurray, the Conklin region is responsible for nearly 1/3 of oil sands production
The predominantly Métis community of Conklin has launched seven new business partnerships in a bid to lift its opportunities in one of Alberta’s busiest oil sands regions.
From drilling to heavy machinery and pipelines, the new ventures will bring an economic and social boost to the community of 300 residents about 150 kilometres southeast of Fort McMurray.
“We’d like to focus more on getting local opportunities such as training, employment, maybe some subcontracting, to build the local businesses up and build our people up for local employment,” said Valerie Quintal, president of Conklin Métis Local 193.
“We are going to be planning with each one of them how we could better serve our community members.”
Quintal is also a director of the Conklin Resource Development Advisory Committee (CRDAC), which brokered the deals with companies including Brothers HDD, Gateway Mechanical Services and Surerus-Murphy Joint Venture.
CRDAC was established in 2008 to help the community engage with growing oil sands development in the Conklin region, said CEO Scott Duguid.
The area has become a hub for development using a technology called steam assisted gravity drainage (SAGD), which involves drilling horizontal well pairs and steam injection to produce oil sands crude.
“It was really developed when a lot of the SAGD development was in the application or the environment assessment phase and there was a huge push for regulatory consultation and engagement with government on regulatory applications for SAGD,” he said.
Métis cultural heritage is displayed alongside a map of development activity in the Conklin region. Photo courtesy CRDAC
The area around Conklin is now home to six major oil sands projects owned by the industry’s biggest producers. This includes Cenovus Energy’s Christina Lake facility, the largest so-called “in situ” project in the oil sands.
As of January 2024, the region produced more than 550,000 barrels per day, or nearly one-third of all oil sands production, according to the Alberta Energy Regulator.
CRDAC has partnerships in place with the big players in the region including Cenovus, Canadian Natural Resources and MEG Energy, Duguid said (including a unique home construction program with Cenovus).
But the new ventures take opportunity to the next layer, with companies that service or work for oil sands producers, he said.
Duguid said the group has partnerships in place with the big players in the region such as Cenovus, MEG, CNRL, and Harvest.
“There’s a fair amount of wealth being generated in the region and out of the South Athabasca oilsands. There’s a lot of work happening,” said Duguid.
“We as sort of a community representative organization are trying to put our hands up with some of these smaller industry players and saying ‘hey, we’re here, we have community members, we have a potential workforce, we may need training, we may need some capacity to ensure that our residents can be meaningfully employed, but we can work with you and for you.’”
The hope is that partnering with these mid-level businesses will provide an opportunity for grassroots Conklin businesses to grow, he said.
Some of the revenue from the partnerships will come back to the community to support social programs such as healthcare, housing, and substance abuse treatment.
“It’s hugely significant for the community,” Duguid said.
Gateway Mechanical Services’ Dean Seiz said the company reached out to CRDAC last year to see if they would be interested in a working relationship.
“Basically, the long-term goal is to see if there are any community members that would be interested in maybe getting into the trades that Gateway does,” Seiz said.
The company, with its head office in Edmonton, provides heating, ventilation and air conditioning (HVAC), plumbing and refrigeration services across Western Canada. It has nine locations for regional offices with about 275 technicians.
“It’s a work in progress with Scott [Duguid] and the community to see what’s important to the community to make things work,” Seiz said.
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.
Alberta
Punishing Alberta Oil Production: The Divisive Effect of Policies For Carney’s “Decarbonized Oil”
From Energy Now
By Ron Wallace
The federal government has doubled down on its commitment to “responsibly produced oil and gas”. These terms are apparently carefully crafted to maintain federal policies for Net Zero. These policies include a Canadian emissions cap, tanker bans and a clean electricity mandate.
Following meetings in Saskatoon in early June between Prime Minister Mark Carney and Canadian provincial and territorial leaders, the federal government expressed renewed interest in the completion of new oil pipelines to reduce reliance on oil exports to the USA while providing better access to foreign markets. However Carney, while suggesting that there is “real potential” for such projects nonetheless qualified that support as being limited to projects that would “decarbonize” Canadian oil, apparently those that would employ carbon capture technologies. While the meeting did not result in a final list of potential projects, Alberta Premier Danielle Smith said that this approach would constitute a “grand bargain” whereby new pipelines to increase oil exports could help fund decarbonization efforts. But is that true and what are the implications for the Albertan and Canadian economies?
The federal government has doubled down on its commitment to “responsibly produced oil and gas”. These terms are apparently carefully crafted to maintain federal policies for Net Zero. These policies include a Canadian emissions cap, tanker bans and a clean electricity mandate. Many would consider that Canadians, especially Albertans, should be wary of these largely undefined announcements in which Ottawa proposes solely to determine projects that are “in the national interest.”
The federal government has tabled legislation designed to address these challenges with Bill C-5: An Act to enact the Free Trade and Labour Mobility Act and the Building Canada Act (the One Canadian Economy Act). Rather than replacing controversial, and challenged, legislation like the Impact Assessment Act, the Carney government proposes to add more legislation designed to accelerate and streamline regulatory approvals for energy and infrastructure projects. However, only those projects that Ottawa designates as being in the national interest would be approved. While clearer, shorter regulatory timelines and the restoration of the Major Projects Office are also proposed, Bill C-5 is to be superimposed over a crippling regulatory base.
It remains to be seen if this attempt will restore a much-diminished Canadian Can-Do spirit for economic development by encouraging much-needed, indeed essential interprovincial teamwork across shared jurisdictions. While the Act’s proposed single approval process could provide for expedited review timelines, a complex web of regulatory processes will remain in place requiring much enhanced interagency and interprovincial coordination. Given Canada’s much-diminished record for regulatory and policy clarity will this legislation be enough to persuade the corporate and international capital community to consider Canada as a prime investment destination?
As with all complex matters the devil always lurks in the details. Notably, these federal initiatives arrive at a time when the Carney government is facing ever-more pressing geopolitical, energy security and economic concerns. The Organization for Economic Co-operation and Development predicts that Canada’s economy will grow by a dismal one per cent in 2025 and 1.1 per cent in 2026 – this at a time when the global economy is predicted to grow by 2.9 per cent.
It should come as no surprise that Carney’s recent musing about the “real potential” for decarbonized oil pipelines have sparked debate. The undefined term “decarbonized”, is clearly aimed directly at western Canadian oil production as part of Ottawa’s broader strategy to achieve national emissions commitments using costly carbon capture and storage (CCS) projects whose economic viability at scale has been questioned. What might this mean for western Canadian oil producers?
The Alberta Oil sands presently account for about 58% of Canada’s total oil output. Data from December 2023 show Alberta producing a record 4.53 million barrels per day (MMb/d) as major oil export pipelines including Trans Mountain, Keystone and the Enbridge Mainline operate at high levels of capacity. Meanwhile, in 2023 eastern Canada imported on average about 490,000 barrels of crude oil per day (bpd) at a cost estimated at CAD $19.5 billion. These seaborne shipments to major refineries (like New Brunswick’s Irving Refinery in Saint John) rely on imported oil by tanker with crude oil deliveries to New Brunswick averaging around 263,000 barrels per day. In 2023 the estimated total cost to Canada for imported crude oil was $19.5 billion with oil imports arriving from the United States (72.4%), Nigeria (12.9%), and Saudi Arabia (10.7%). Since 1988, marine terminals along the St. Lawrence have seen imports of foreign oil valued at more than $228 billion while the Irving Oil refinery imported $136 billion from 1988 to 2020.
What are the policy and cost implication of Carney’s call for the “decarbonization” of western Canadian produced, oil? It implies that western Canadian “decarbonized” oil would have to be produced and transported to competitive world markets under a material regulatory and financial burden. Meanwhile, eastern Canadian refiners would be allowed to import oil from the USA and offshore jurisdictions free from any comparable regulatory burdens. This policy would penalize, and makes less competitive, Canadian producers while rewarding offshore sources. A federal regulatory requirement to decarbonize western Canadian crude oil production without imposing similar restrictions on imported oil would render the One Canadian Economy Act moot and create two market realities in Canada – one that favours imports and that discourages, or at very least threatens the competitiveness of, Canadian oil export production.
Ron Wallace is a former Member of the National Energy Board.
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