Alberta
How natural gas supports one of Canada’s largest manufacturing sectors
Worker inspecting parts from plastic injection moulding machine in plastics factory. Getty Images photo
From the Canadian Energy Centre
‘When you think about the demand for more sustainable outcomes: clean air, clean water, clean energy, safe, nutritious, abundant food and electric vehicles, that’s more and more and more chemistry’
Canada’s chemical industry sold a record $72.7 billion of product last year amid recovery from COVID-19 and strong consumer demand, according to the Chemistry Industry Association of Canada (CIAC).
Natural gas is a key input to the chemistry sector, the broad term that refers to manufacturing a myriad of products used in everyday items from plastics to agriculture and pharmaceuticals.
“Chemistry products go into 95 per cent of finished goods. It’s an important sector,” says CIAC president Bob Masterson.
“It’s a sector that can grow as long as we fancy improving our lives and building a better world for tomorrow.”
Chemicals in Canada
Canada’s chemistry industry is the country’s fourth largest manufacturing sector by value of sales after food ($147 billion), transportation equipment ($119 billion), and petroleum/coal products ($118 billion).
It is primarily centered in Ontario, Alberta and Quebec.
The CIAC publishes an annual report on the sector’s activity using Statistics Canada data, separated into two categories: chemicals overall, and industrial chemicals.
Chemicals overall includes manufacturing of soaps, cleaning compounds, paints, coatings and adhesives, pesticides and fertilizers, pharmaceuticals, rubbers and synthetic fibres, and basic chemicals.
Industrial chemicals refers to the manufacturing of intermediate products used as inputs by industries including plastic and rubber products, forest products, transportation equipment, clothing, perfume and cosmetics, construction and pharmaceuticals.
Global Growth
According to Vantage Market Research, the global chemical market was valued at US$584 billion in 2022. It’s expected to grow by more than 55 per cent in the coming years to reach US$917 billion by 2030.
This isn’t just driven population growth, Masterson says.
“When you think about the demand for more sustainable outcomes: clean air, clean water, clean energy, safe, nutritious, abundant food and electric vehicles, that’s more and more and more chemistry,” he says.
“Some of the predictions are that the volumes of chemistry will double in the next 20 years. Canada and Alberta in particular are exceptionally well positioned to help meet future market demand for these products. The demand is not going away. There’s no question about that.”
Jobs
In 2022, Canada’s chemicals sector directly employed 90,800 people, or approximately the population size of Sudbury, Ontario. The industry paid about $7 billion in salary and wages.
That’s the direct impact of employment in the chemistry sector, but the CIAC estimates the full benefit to Canadians to be much higher as a result of indirect economic activity it supports.
CIAC estimates that every job in Canada’s chemistry sector creates another five indirect jobs in other parts of the economy. This means the sector supported 454,000 jobs across Canada in 2022.
Industrial chemicals alone directly employed 17,100 people and indirectly supported 85,600 jobs in the broader Canadian economy last year, the CIAC says.
Rising Trade
At a value of $72.7 billion, Canada’s overall chemical industry sales were their highest ever in 2022 – a 30 per cent increase compared to 2019, prior to the COVID-19 pandemic.
Industrial chemicals sales reached a record $34.2 billion, a 32 per cent increase compared to 2019.
Exports also increased last year, rising to a value of $52.8 billion compared to $45.9 billion in 2021. Of that, the sector exported $24.8 billion of industrial chemicals, up from $22.5 billion the previous year.
The United States is Canada’s main customer for chemical exports, representing 76 per cent of exports or $40.1 billion in 2022. The next largest export markets are China ($1.86 billion), the Netherlands ($1.7 billion), and the United Kingdom ($1.1 billion).
The Canada Advantage
Canada has distinct advantages as a chemical manufacturer and exporter including growing access to global markets, CIAC says.
In Alberta, the main advantage is access to low-cost natural gas resources – specifically valuable natural gas liquids like ethane, propane and butane.
“The rich abundance of natural gas liquids that come out of the ground when we drill for natural gas let Alberta be a low-cost chemistry producer despite being pretty much the only large chemistry industry worldwide that’s not on tidewater,” Masterson says.
Responsible Care
Since 1985, Canada’s chemistry industry has operated under an initiative called Responsible Care that encourages companies to innovate for safer and greener products.
CIAC reports that Responsible Care is now practiced in 73 countries and by 96 of the 100 largest chemical producers in the world.
Since 2005, CIAC members have reduced CO2 equivalent emissions by 13 per cent; reduced sulphur dioxide emissions by 94 per cent, and virtually eliminated large scale safety incidents. Since 2012, CIAC members have also reduced net water consumption by 13 per cent.
“We’re not standing in place,” Masterson says.
Alberta
Former senior financial advisor charged with embezzling millions from Red Deer area residents
News release from Alberta RCMP
Former senior financial advisor charged for misappropriating nearly $5 million from clients
On April 4, 2024, the RCMP’s Provincial Financial Crime Team charged a Calgary resident for fraud-related offences after embezzling millions of dollars from his clients while serving as a senior financial advisor.
Following a thorough investigation, the accused is alleged to have fraudulently withdrawn funds from client accounts and deposited them into bank accounts he personally controlled. A total of sixteen victims were identified in the Red Deer area and suffered a combined loss of nearly $5 million.
Marc St. Pierre, 52, a resident of Calgary, was arrested and charged with:
- Fraud over $5,000 contrary to section 380(1)(a) of the Criminal Code; and,
- Theft over $5,000 contrary to section 344(a) of the Criminal Code.
St. Pierre is scheduled to appear in Red Deer Provincial Court on May 14, 2024.
“The ability for financial advisors to leverage their position to conduct frauds and investment scams represents a significant risk to the integrity of Alberta’s financial institutions. The investigation serves as an important reminder for all banking clients to regularly check their accounts for any suspicious activity and to report it to their bank’s fraud prevention team.”
- Sgt. John Lamming, Provincial Financial Crime Team
The Provincial Financial Crime Team is a specialized unit that conducts investigations relating to multi-jurisdictional serious fraud, investments scams and corruption.
Alberta
Political parties will be part of municipal elections in Edmonton and Calgary pilot projects
Strengthening Alberta’s local elections
Alberta’s government is introducing legislation to ensure Albertans can rely on transparent, free and fair elections, and municipally-elected officials have clearer accountability measures.
In a democratic society, Albertans expect their local elections to be free and fair, and their elected officials to be held to account by clear rules that govern their local councils. The Municipal Affairs Statutes Amendment Act proposes amendments to the Local Authorities Election Act (LAEA) and the Municipal Government Act (MGA) to add greater transparency to local election processes and ensure local councils and elected officials continue to remain accountable to the citizens who elected them.
“Our government is committed to strengthening Albertans’ trust in their local governments and the democratic process that elects local leaders. The changes we are making increase transparency for Alberta voters and provide surety their votes will be counted accurately. We know how important local democracy is to Albertans, and we will work with local authorities to protect and enhance the integrity of local elections.”
Local Authorities Election Act
Albertans expect free and fair elections and that’s why it’s important we strengthen the rules that govern local elections. To strengthen public trust in local elections, Alberta’s government will eliminate the use of electronic tabulators and other automated voting machines. All Albertans should be able to trust the methods and results of local elections; requiring all ballots to be counted by hand, clarifying rules and streamlining processes for scrutineers will provide voters greater assurance in the integrity of the results.
All eligible Albertans should be able to vote in local elections without impediment. Alberta’s government will limit the barriers for eligible voters to cast a ballot by expanding the use of special ballots. Currently, special ballots can only be requested for very specific reasons, including physical disability, absence from the municipality, or for municipal election workers. By expanding the use of special ballots, the government is encouraging more voter participation.
Amendments in the Municipal Affairs Statutes Amendment Act would increase transparency in local elections by enabling political parties at the local level. Political parties would be enabled in a pilot project for Edmonton and Calgary. The act will not require candidates to join a political party in order to run for a local or municipal office, but will create the opportunity to do so.
In addition, proposed changes to the Local Authorities Election Act would allow municipalities the option to require criminal record checks for local candidates, thus increasing transparency and trust in candidates who may go on to become elected officials.
Municipal Government Act
The role of an elected official is one with tremendous responsibility and expectations. Changes proposed to the Municipal Government Act (MGA) will strengthen the accountability of locally elected officials and councils. These include requiring mandatory orientation training for councillors, allowing elected officials to recuse themselves for real or perceived conflicts of interest without third-party review and requiring a councillor’s seat to become vacant upon disqualification.
If passed, the Municipal Affairs Statutes Amendment Act will also unlock new tools to build affordable and attainable housing across Alberta. Proposed amendments under the MGA would also create more options for municipalities to accelerate housing developments in their communities. Options include:
- Exempting non-profit, subsidized affordable housing from both municipal and education property taxes;
- Requiring municipalities to offer digital participation for public hearings about planning and development, and restricting municipalities from holding extra public hearings that are not already required by legislation; and
- Enabling municipalities to offer multi-year residential property tax exemptions.
Municipal Affairs will engage municipalities and other partners over the coming months to hear perspectives and gather feedback to help develop regulations.
Quick facts
- The LAEA establishes the framework for the conduct of elections in Alberta municipalities, school divisions, irrigation districts and Metis Settlements.
- The MGA establishes the rules governing the conduct of local elected officials once on council, as well as the overall administration and operation of municipal authorities in Alberta, including any policy those authorities may wish to implement.
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