Alberta
Wetlands spontaneously forming in oil sands region’s reclaimed boreal forest
Suncor Energy employees monitoring wetlands in the oil sands in northern Alberta. Photo courtesy Suncor Energy
From the Canadian Energy Centre
By Will GibsonWetlands and peatlands are a crucial part of the boreal forest’s ecosystem
A zoologist by training, Jan Ciborowski has spent more than three decades wading through wetlands in the Great Lakes and northeastern Alberta. During that time, he has come to appreciate how nature can change the best laid plans of even the smartest scientists and engineers.
Ciborowski and a team of undergraduate and graduate students are now studying a recently documented phenomenon that highlights nature’s guiding hand: spontaneous wetlands forming in reclaimed areas in the oil sands.
These so-called “opportunistic wetlands” began developing on oil sands sites reclaimed and planted to become forests decades ago at Suncor Energy’s Base Mine and Syncrude’s Mildred Lake Mine north of Fort McMurray.
“Up to 18 per cent of the reclaimed area expected to become forests have seen wetlands spontaneously forming. We are investigating whether they are likely to persist and forecast whether they will be able to sustain themselves,” says Ciborowski, who has held the NSERC/COSIA Industrial Research Chair in Oilsands Wetlands Reclamation at the University of Calgary’s Department of Biological Sciences since 2019.
“We can make forecasts about what will develop over hundreds of years when you reclaim an area but it’s not in our hands. Nature makes those decisions.”
Wetlands and peatlands are a crucial part of the boreal forest’s ecosystem, serving as vital habitat to hundreds of species of wildlife, including waterfowl, songbirds, and mammals such as beaver and moose. They act like sponges, absorbing precipitation and run-off that prevents flooding, and providing water during dry periods to the surrounding upland forests. Peatlands also serve as sinks to store carbon.
Because oil sands companies are legally committed to reclaim their leases to a status equivalent to prior to disturbance, they benefit from wetlands on their reclaimed sites.
The two oldest mining operations — Suncor’s Base Mine and Syncrude’s Mildred Lake Mine — have constructed man-made wetlands on reclaimed sites, where the companies have conducted research.
This is why the presence of opportunistic wetlands, which have been forming on their own, have created a great deal of interest within the industry.
Ciborowski’s team is studying 120 wetlands in the region ranging from two to 40 years of age. Half are on reclaimed oil sands sites and the other half are not.
“These are all very young compared to mature peatlands that have taken hundreds of years to develop. We are monitoring water quantity, water quality, landscape disturbance, and the colonizing plants and animals to understand how conditions develop and to forecast wetlands’ succession,” he says.
Outside of the oil sands, opportunistic wetlands can form when water balances change after forest fires consume the trees, or when beaver activity causes ponds to start forming.
“These can be our frame of reference for comparison with the wetlands forming on reclaimed landscapes. The real challenge is being able to understand whether those wetlands will remain when the trees grow to maturity,” he says.
While it is hard to forecast the future for opportunistic wetlands, Ciborowski has seen how early studies have influenced the science of reclamation and practices within the industry.
“What’s exciting about our work is we’ve gathered experts in a number of different disciplines — hydrology, geosciences, plant ecology, aquatic ecology to name a few — to work together on reclamation science. My belief in research is that collaboration is crucial. One can’t expect to find the necessary breadth of expertise to do it in a single lab.”
Alberta
Alberta government should eliminate corporate welfare to generate benefits for Albertans
From the Fraser Institute
By Spencer Gudewill and Tegan Hill
Last November, Premier Danielle Smith announced that her government will give up to $1.8 billion in subsidies to Dow Chemicals, which plans to expand a petrochemical project northeast of Edmonton. In other words, $1.8 billion in corporate welfare.
And this is just one example of corporate welfare paid for by Albertans.
According to a recent study published by the Fraser Institute, from 2007 to 2021, the latest year of available data, the Alberta government spent $31.0 billion (inflation-adjusted) on subsidies (a.k.a. corporate welfare) to select firms and businesses, purportedly to help Albertans. And this number excludes other forms of government handouts such as loan guarantees, direct investment and regulatory or tax privileges for particular firms and industries. So the total cost of corporate welfare in Alberta is likely much higher.
Why should Albertans care?
First off, there’s little evidence that corporate welfare generates widespread economic growth or jobs. In fact, evidence suggests the contrary—that subsidies result in a net loss to the economy by shifting resources to less productive sectors or locations (what economists call the “substitution effect”) and/or by keeping businesses alive that are otherwise economically unviable (i.e. “zombie companies”). This misallocation of resources leads to a less efficient, less productive and less prosperous Alberta.
And there are other costs to corporate welfare.
For example, between 2007 and 2019 (the latest year of pre-COVID data), every year on average the Alberta government spent 35 cents (out of every dollar of business income tax revenue it collected) on corporate welfare. Given that workers bear the burden of more than half of any business income tax indirectly through lower wages, if the government reduced business income taxes rather than spend money on corporate welfare, workers could benefit.
Moreover, Premier Smith failed in last month’s provincial budget to provide promised personal income tax relief and create a lower tax bracket for incomes below $60,000 to provide $760 in annual savings for Albertans (on average). But in 2019, after adjusting for inflation, the Alberta government spent $2.4 billion on corporate welfare—equivalent to $1,034 per tax filer. Clearly, instead of subsidizing select businesses, the Smith government could have kept its promise to lower personal income taxes.
Finally, there’s the Heritage Fund, which the Alberta government created almost 50 years ago to save a share of the province’s resource wealth for the future.
In her 2024 budget, Premier Smith earmarked $2.0 billion for the Heritage Fund this fiscal year—almost the exact amount spent on corporate welfare each year (on average) between 2007 and 2019. Put another way, the Alberta government could save twice as much in the Heritage Fund in 2024/25 if it ended corporate welfare, which would help Premier Smith keep her promise to build up the Heritage Fund to between $250 billion and $400 billion by 2050.
By eliminating corporate welfare, the Smith government can create fiscal room to reduce personal and business income taxes, or save more in the Heritage Fund. Any of these options will benefit Albertans far more than wasteful billion-dollar subsidies to favoured firms.
Authors:
Alberta
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