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Alberta

Alberta extracting more value from oil and gas resources: ATB

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4 minute read

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

New pipeline from Alberta would benefit all Canadians—despite claims from B.C. premier

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From the Fraser Institute

By Kenneth P. Green

The pending Memorandum of Understanding between the Carney government and the Alberta governments will reportedly support a new oil pipeline from Alberta’s oilsands to British Columbia’s tidewater. But B.C. Premier David Eby continues his increasingly strident—and factually challenged—opposition to the whole idea.

Eby’s arguments against a new pipeline are simply illogical and technically incorrect.

First, he argues that any pipeline would pose unmitigated risks to B.C.’s coastal environment, but this is wrong for several reasons. The history of oil transport off of Canada’s coasts is one of incredible safety, whether of Canadian or foreign origin, long predating federal Bill C-48’s tanker ban. New pipelines and additional transport of oil from (and along) B.C. coastal waters is likely very low environmental risk. In the meantime, a regular stream of oil tankers and large fuel-capacity ships have been cruising up and down the B.C. coast between Alaska and U.S. west coast ports for decades with great safety records.

Next, Eby argues that B.C.’s First Nations people oppose any such pipeline and will torpedo energy projects in B.C. But in reality, based on the history of the recently completed Trans Mountain Expansion (TMX) pipeline, First Nations opposition is quite contingent. The TMX project had signed 43 mutual benefit/participation agreements with Indigenous groups along its route by 2018, 33 of which were in B.C. As of March 2023, the project had signed agreements with 81 out of 129 Indigenous community groups along the route worth $657 million, and the project had resulted in more than $4.8 billion in contracts with Indigenous businesses.

Back in 2019, another proposed energy project garnered serious interest among First Nations groups. The First Nations-proposed Eagle Spirit Energy Corridor, aimed to connect Alberta’s oilpatch to a port in Kitimat, B.C. (and ultimately overseas markets) had the buy-in of 35 First Nations groups along the proposed corridor, with equity-sharing agreements floated with 400 others. Energy Spirit, unfortunately, died in regulatory strangulation in the Trudeau government’s revised environmental assessment process, and with the passage of the B.C. tanker ban.

Premier Eby is perfectly free to opine and oppose the very thought of oil pipelines crossing B.C. But the Supreme Court of Canada has already ruled in a case about the TMX pipeline that B.C. does not have the authority to block infrastructure of national importance such as pipelines.

And it’s unreasonable and corrosive to public policy in Canada for leading government figures to adopt positions on important elements of public policy that are simply false, in blatant contradiction to recorded history and fact. Fact—if the energy industry is allowed to move oil reserves to markets other than the United States, this would be in the economic interest of all Canadians including those in B.C.

It must be repeated. Premier Eby’s objections to another Alberta pipeline are rooted in fallacy, not fact, and should be discounted by the federal government as it plans an agreement that would enable a project of national importance.

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Alberta

Premier Danielle Smith says attacks on Alberta’s pro-family laws ‘show we’ve succeeded in a lot of ways’

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From LifeSiteNews

By Anthony Murdoch

Recent legislation to dial back ‘woke progressivism’ is intended to protect the rights of parents and children despite opposition from the left.

Alberta Premier Danielle Smith took a shot at “woke progressivism” and detractors of her recent pro-family laws, noting that because wokeness went “too far,” the “dial” has turned in favor of parental rights and “no one” wants their “kid to transition behind their back.”

“We know that things went a little bit too far with woke progressivism on so many fronts and we’re trying to get back to the center, trying to get them back to the middle,” Smith said in a recent video message posted on the ruling United Conservative Party’s (UCP) official X account.

Smith, who has been battling the leftist opposition New Democratic Party (NDP) attacks on her recent pro-family legislation, noted how “we’ve succeeded in a lot of ways.”

“I think we have moved the dial on protecting children and the right of girls and women to participate in sports without having to face born male athletes,” mentioning that the Olympics just announced gender-confused athletes are not allowed to compete in male or female categories.

“I think we’re moving the dial on parental rights to make sure that they know what’s going on with their kids. No one wants their kid to be transitioned behind their back and not know. I mean, it doesn’t matter what your background is, you want to know what’s going on with your child.”

Smith also highlighted how conservatives have “changed the entire energy conversation in the country, we now have we now have more than 70 percent of Canadians saying they believe we should build pipelines, and that we should be an energy superpower.’

As reported by LifeSiteNews, Smith recently said her government will use a rare constitutional tool, the notwithstanding clause, to ensure three bills passed this year – a ban on transgender surgery for minors, stopping men from competing in women’s sports, and protecting kids from extreme aspects of the LGBT agenda – remain law after legal attacks from extremist activists.

Bill 26 was passed in December 2024, amending the Health Act to “prohibit regulated health professionals from performing sex reassignment surgeries on minors.”

Last year, Smith’s government also passed Bill 27, a law banning schools from hiding a child’s pronoun changes at school that will help protect kids from the extreme aspects of the LGBT agenda.

Bill 29, which became law last December, bans gender-confused men from competing in women’s sports, the first legislation of its kind in Canada.  The law applies to all school boards, universities, and provincial sports organizations.

Alberta’s notwithstanding clause is like all other provinces’ clauses and was a condition Alberta agreed to before it signed onto the nation’s 1982 constitution.

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