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Did the Environment Minister announce the end of Alberta’s Oil and Gas Industry at COP 27?

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Steven Guilbeault (center) arrested after climbing the CN Tower for a Greenpeace protest on July 16, 2001.

PHOTO BY AARON HARRIS/THE CANADIAN PRESS

News Release From the Alberta Institute

Stop The Federal Cap On Oil And Gas

This week, Environment and Climate Change Minister, Steven Guilbeault, effectively announced the end of Alberta’s oil and gas industry.

In Egypt, at COP27, he announced that his government will cap oil and gas sector emissions from the end of next year, and work to reduce them after that.

Remember, even Justin Trudeau said that no country would find 173 billion barrels of oil in the ground and just leave them there.

But that, of course, was before he was Prime Minister.

Radical environmental activist Steven Guilbeault does believe we should leave 173 billion barrels of oil in the ground.

Now, yes, technically, he said he would cap and reduce emissions, not oil and gas production, and some energy companies are confident they can find efficiencies to allow them to continue producing some oil and gas without increasing emissions.

But anyone who’s been in the game long enough has seen the goalposts moved often enough to recognize another goalpost shifting when they see it, and that’s exactly what happened today.

How so?

Well, you would think Minister Guilbeault’s friends in the eco-activist industry – the same people who just a few years ago were calling for this cap on emissions – would be happy about this week’s announcement, wouldn’t you?

But no, these same people who were calling for exactly this policy just a few years ago actually attacked his announcement.

They think that this week’s announcement – the policy they were calling for until recently – is woefully inadequate.

They now want, you guessed it, a cap on production.

They don’t actually care about the level of carbon emissions, they don’t actually care whether emissions go down, they want the amount of oil and gas producedto go down.

This, fellow Albertans, is what Alberta is up against.

The radical eco-activist environmental movement doesn’t want Alberta’s oil and gas industry to be more environmentally friendly, they want Alberta’s oil and gas industry to die.

Meanwhile, having shifted the goalposts a dozen times already – the federal government’s environmental policies are as close to a complete ban on oil and gas as you can get, without actually banning it.

One more goalpost shift, and it will be an outright ban.

The environmental groups are pushing for that last final goalpost shift.

And Albertans are just supposed to trust the federal government that, despite all the previous times they shifted the goalposts, this time they definitely won’t.

The time to stand up for Alberta, and stand up for Albertans is now.

If we don’t do so right now, it might be too late.

In the 1980s, Alberta Premier, Peter Lougheed, fought for – and won – an amendment to the Canadian Constitution – Section 92A – that gave Alberta (and the other Provinces) the exclusive right to explore, develop, conserve, and manage their natural resources.

This amendment made clear that these resources belonged to the Provinces, not the federal government, and Alberta would not have signed on to the Constitution had that clause not been included.

Justin Trudeau and Steven Guilbeault do not believe in that clause in the Canadian Constitution.

They have already ignored it many times, and intend to continue to ignore it.

Justin Trudeau’s view is that Alberta can do whatever we want with our resources… as long as whatever we want to do is exactly what the federal government wants us to do.

And the federal Minister of Environment and Climate Change’s view is that we should leave them in the ground – all of them.

Enough is enough.

Now is the time for every Albertan – and the Alberta government – to stand up to the federal government.

If you agree, please join our campaign to stop the federal cap on oil and gas:

Please also consider forwarding this email to your friends, family, colleagues, and every Canadian.

Regards,

The Alberta Institute Team

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Canadian Energy Centre

Cross-Canada economic benefits of the proposed Northern Gateway Pipeline project

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From the Canadian Energy Centre

Billions in government revenue and thousands of jobs across provinces

Announced in 2006, the Northern Gateway project would have built twin pipelines between Bruderheim, Alta. and a marine terminal at Kitimat, B.C.

One pipeline would export 525,000 barrels per day of heavy oil from Alberta to tidewater markets. The other would import 193,000 barrels per day of condensate to Alberta to dilute heavy oil for pipeline transportation.

The project would have generated significant economic benefits across Canada.

Map courtesy Canada Energy Regulator

The following projections are drawn from the report Public Interest Benefits of the Northern Gateway Project (Wright Mansell Research Ltd., July 2012), which was submitted as reply evidence during the regulatory process.

Financial figures have been adjusted to 2025 dollars using the Bank of Canada’s Inflation Calculator, with $1.00 in 2012 equivalent to $1.34 in 2025.

Total Government Revenue by Region

Between 2019 and 2048, a period encompassing both construction and operations, the Northern Gateway project was projected to generate the following total government revenues by region (direct, indirect and induced):

British Columbia

  • Provincial government revenue: $11.5 billion
  • Federal government revenue: $8.9 billion
  • Total: $20.4 billion

Alberta

  • Provincial government revenue: $49.4 billion
  • Federal government revenue: $41.5 billion
  • Total: $90.9 billion

Ontario

  • Provincial government revenue: $1.7 billion
  • Federal government revenue: $2.7 billion
  • Total: $4.4 billion

Quebec

  • Provincial government revenue: $746 million
  • Federal government revenue: $541 million
  • Total: $1.29 billion

Saskatchewan

  • Provincial government revenue: $6.9 billion
  • Federal government revenue: $4.4 billion
  • Total: $11.3 billion

Other

  • Provincial government revenue: $1.9 billion
  • Federal government revenue: $1.4 billion
  • Total: $3.3 billion

Canada

  • Provincial government revenue: $72.1 billion
  • Federal government revenue: $59.4 billion
  • Total: $131.7 billion

Annual Government Revenue by Region

Over the period 2019 and 2048, the Northern Gateway project was projected to generate the following annual government revenues by region (direct, indirect and induced):

British Columbia

  • Provincial government revenue: $340 million
  • Federal government revenue: $261 million
  • Total: $601 million per year

Alberta

  • Provincial government revenue: $1.5 billion
  • Federal government revenue: $1.2 billion
  • Total: $2.7 billion per year

Ontario

  • Provincial government revenue: $51 million
  • Federal government revenue: $79 million
  • Total: $130 million per year

Quebec

  • Provincial government revenue: $21 million
  • Federal government revenue: $16 million
  • Total: $37 million per year

Saskatchewan

  • Provincial government revenue: $204 million
  • Federal government revenue: $129 million
  • Total: $333 million per year

Other

  • Provincial government revenue: $58 million
  • Federal government revenue: $40 million
  • Total: $98 million per year

Canada

  • Provincial government revenue: $2.1 billion
  • Federal government revenue: $1.7 billion
  • Total: $3.8 billion per year

Employment by Region

Over the period 2019 to 2048, the Northern Gateway Pipeline was projected to generate the following direct, indirect and induced full-time equivalent (FTE) jobs by region:

British Columbia

  • Annual average:  7,736
  • Total over the period: 224,344

Alberta

  • Annual average:  11,798
  • Total over the period: 342,142

Ontario

  • Annual average:  3,061
  • Total over the period: 88,769

Quebec

  • Annual average:  1,003
  • Total over the period: 29,087

Saskatchewan

  • Annual average:  2,127
  • Total over the period: 61,683

Other

  • Annual average:  953
  • Total over the period: 27,637

Canada

  • Annual average:  26,678
  • Total over the period: 773,662
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Alberta

Albertans need clarity on prime minister’s incoherent energy policy

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From the Fraser Institute

By Tegan Hill

The new government under Prime Minister Mark Carney recently delivered its throne speech, which set out the government’s priorities for the coming term. Unfortunately, on energy policy, Albertans are still waiting for clarity.

Prime Minister Carney’s position on energy policy has been confusing, to say the least. On the campaign trail, he promised to keep Trudeau’s arbitrary emissions cap for the oil and gas sector, and Bill C-69 (which opponents call the “no more pipelines act”). Then, two weeks ago, he said his government will “change things at the federal level that need to be changed in order for projects to move forward,” adding he may eventually scrap both the emissions cap and Bill C-69.

His recent cabinet appointments further muddied his government’s position. On one hand, he appointed Tim Hodgson as the new minister of Energy and Natural Resources. Hodgson has called energy “Canada’s superpower” and promised to support oil and pipelines, and fix the mistrust that’s been built up over the past decade between Alberta and Ottawa. His appointment gave hope to some that Carney may have a new approach to revitalize Canada’s oil and gas sector.

On the other hand, he appointed Julie Dabrusin as the new minister of Environment and Climate Change. Dabrusin was the parliamentary secretary to the two previous environment ministers (Jonathan Wilkinson and Steven Guilbeault) who opposed several pipeline developments and were instrumental in introducing the oil and gas emissions cap, among other measures designed to restrict traditional energy development.

To confuse matters further, Guilbeault, who remains in Carney’s cabinet albeit in a diminished role, dismissed the need for additional pipeline infrastructure less than 48 hours after Carney expressed conditional support for new pipelines.

The throne speech was an opportunity to finally provide clarity to Canadians—and specifically Albertans—about the future of Canada’s energy industry. During her first meeting with Prime Minister Carney, Premier Danielle Smith outlined Alberta’s demands, which include scrapping the emissions cap, Bill C-69 and Bill C-48, which bans most oil tankers loading or unloading anywhere on British Columbia’s north coast (Smith also wants Ottawa to support an oil pipeline to B.C.’s coast). But again, the throne speech provided no clarity on any of these items. Instead, it contained vague platitudes including promises to “identify and catalyse projects of national significance” and “enable Canada to become the world’s leading energy superpower in both clean and conventional energy.”

Until the Carney government provides a clear plan to address the roadblocks facing Canada’s energy industry, private investment will remain on the sidelines, or worse, flow to other countries. Put simply, time is up. Albertans—and Canadians—need clarity. No more flip flopping and no more platitudes.

Tegan Hill

Tegan Hill

Director, Alberta Policy, Fraser Institute
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