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Alberta

Pray for better days – a 3rd generation oil worker laments the end of an industry

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by Sheldon Gron (published with permission)

I’ve been debating on whether or even how to write this over the last few weeks. I’m a third generation oilfield worker, a large portion of my family being involved with the oilfield in some way. Its sad to say, but I really truly honestly feel that the oilfield in Canada is officially dead. Sure there will be a little here and there, some guys will get a little work and even less will get consistent work, but all in all, to be an oilfield worker as a career is over. Nothing pains me more than to be saying this as I myself have over 20 years in the industry, an industry which I used to love and was proud to be apart of.

The industry has always worked in cycles, most of us know this. It was feast or famine. Best you could do was get the money while the gettin’ was good and save the best you could to prepare for the next slow down. Some were smart, most were not. Debt would ring up, slow down would hit and more debt would add up until bankruptcy loomed. Most slow downs lasted at most a year but usually turned around and guys would get 3 or 4 years of good times to recover and prepare for the next one. Take this most recent slow down in 2014. Writing was on the wall BUT no one expected it to hit as hard as it did. The world shook as oil prices fell to near 1998 prices. Within a few years though prices started to climb, enough so that work started to return. Not a ton, but enough that the guys left in the patch were finding work.

2018 there was finally some hope, there seemed to be some sort of light at the end of the tunnel but this whole pipe line mess loomed over us. You see Canadian Crude has always had its own value, lately a value significantly lower that everyone else due to our lack of infrastructure to get oil to market. With our current government and their apparently efforts to stop the much needed pipe line, Western Crude prices fell, investments pulled and companies lost faith… Canada is now suffering another oilfield crash, on top of the previous one. Heres the problem.

Anyone that has survived thus far is at the end of their rope. Toys are sold, saving have been spent to survive these last 4 years and now that another slow down is here, there is nothing to fall back on. Faith in the patch is gone as the hands and small businesses are in real trouble this time.

We are 8-10 year away from any of this ever turning around at the earliest, save some major event happening that sends oil to 200 a barrel. Lets face it, without a means to get our oil to market, no one wants it and who can blame them. Our government has severely let us down and 2019 is going to mean some serious trouble for Canada. I have done every thing I can to stick it out in the only career I know and don’t know how much longer I can go living pay check to pay check meanwhile being away from my family 25 days a month just to get by, and thats when I’m busy. If I was young and new to the oilfield I wouldn’t come anywhere near the oilfield as its apparent there is no future. You used to come here to make money, now, when you can actually get work, the money isn’t that great anymore.

I know some of you have very little sympathy for oilfield workers because you have always seen the money they have made but let me explain the repercussions of no oilfield in Alberta, Sask or Northern BC. Before the crash, entry level oilfield workers made over 100K a year. In order to do this they usually spent about 230-250 days a year away from their friends and families in all weather conditions working all sorts of hours. At times these conditions could be some of the most gruelling with sometimes not the nicest people. But it was a job and it paid well. That’s from their perspective. These same people that do this job pay 30% or more in taxes to our government. They pay more in taxes that many people make in an entire year, thats entry level, now take the people that are pulling in 200-250K. All that tax money is gone, no longer paying for schools and hospitals and roads and such. Now consider those lifted trucks and toys they buy with the money they earned with their oilfield money. All that money went to local businesses and local people that didn’t work in the oilfield. Salaries were paid, cloths were bought with that money those people earned from selling that truck or quad or what ever they buy.

Also consider the money they spent in the places they worked, supporting locally. Hotels, gas stations and grocery stores, restaurants and bars and so on. Alberta was successful and one of the richest provinces for one reason, OIL MONEY and now it is gone. Go to another have not province and ask them what its like to not have jobs and see what they think. Ask the number of people born across Canada that have come to Alberta for the Alberta Advantage why they came. Our Federal government had one mission regarding Alberta, and that was to bring it to its knees and we have let them do it. The oil field is dead and we let it happen. They panic cause 2500 of Ontarios people lost their jobs because GM shut down a plant yet 150K Albertans have lost their jobs and more are coming.

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Alberta

Alberta awash in corporate welfare

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From the Fraser Institute

By Matthew Lau

To understand Ottawa’s negative impact on Alberta’s economy and living standards, juxtapose two recent pieces of data.

First, in July the Trudeau government made three separate “economic development” spending announcements in  Alberta, totalling more than $80 million and affecting 37 different projects related to the “green economy,” clean technology and agriculture. And second, as noted in a new essay by Fraser Institute senior fellow Kenneth Green, inflation-adjusted business investment (excluding residential structures) in Canada’s extraction sector (mining, quarrying, oil and gas) fell 51.2 per cent from 2014 to 2022.

The productivity gains that raise living standards and improve economic conditions rely on business investment. But business investment in Canada has declined over the past decade and total economic growth per person (inflation-adjusted) from Q3-2015 through to Q1-2024 has been less than 1 per cent versus robust growth of nearly 16 per cent in the United States over the same period.

For Canada’s extraction sector, as Green documents, federal policies—new fuel regulations, extended review processes on major infrastructure projects, an effective ban on oil shipments on British Columbia’s northern coast, a hard greenhouse gas emissions cap targeting oil and gas, and other regulatory initiatives—are largely to blame for the massive decline in investment.

Meanwhile, as Ottawa impedes private investment, its latest bundle of economic development announcements underscores its strategy to have government take the lead in allocating economic resources, whether for infrastructure and public institutions or for corporate welfare to private companies.

Consider these federally-subsidized projects.

A gas cloud imaging company received $4.1 million from taxpayers to expand marketing, operations and product development. The Battery Metals Association of Canada received $850,000 to “support growth of the battery metals sector in Western Canada by enhancing collaboration and education stakeholders.” A food manufacturer in Lethbridge received $5.2 million to increase production of plant-based protein products. Ermineskin Cree Nation received nearly $400,000 for a feasibility study for a new solar farm. The Town of Coronation received almost $900,000 to renovate and retrofit two buildings into a business incubator. The Petroleum Technology Alliance Canada received $400,000 for marketing and other support to help boost clean technology product exports. And so on.

When the Trudeau government announced all this corporate welfare and spending, it naturally claimed it create economic growth and good jobs. But corporate welfare doesn’t create growth and good jobs, it only directs resources (including labour) to subsidized sectors and businesses and away from sectors and businesses that must be more heavily taxed to support the subsidies. The effect of government initiatives that reduce private investment and replace it with government spending is a net economic loss.

As 20th-century business and economics journalist Henry Hazlitt put it, the case for government directing investment (instead of the private sector) relies on politicians and bureaucrats—who did not earn the money and to whom the money does not belong—investing that money wisely and with almost perfect foresight. Of course, that’s preposterous.

Alas, this replacement of private-sector investment with public spending is happening not only in Alberta but across Canada today due to the Trudeau government’s fiscal policies. Lower productivity and lower living standards, the data show, are the unhappy results.

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Alberta

‘Fireworks’ As Defence Opens Case In Coutts Two Trial

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From the Frontier Centre for Public Policy 

By Ray McGinnis

Anthony Olienick and Chris Carbert are on trial for conspiracy to commit murder and firearms charges in relation to the Coutts Blockade into mid-February 2022. In opening her case before a Lethbridge, AB, jury on July 11, Olienick’s lawyer, Marilyn Burns stated “This is a political, criminal trial that is un Canadian.” She told the jury, “You will be shocked, and at the very least, disappointed with how Canada’s own RCMP conducted themselves during and after the Coutts protest,” as she summarized officers’ testimony during presentation of the Crown’s case. Burns also contended that “the conduct of Alberta’s provincial government and Canada’s federal government are entwined with the RCMP.” The arrests of the Coutts Four on the night of February 13 and noon hour of February 14, were key events in a decision by the Clerk of the Privy Council, Janice Charette, and the National Security Advisor to the Prime Minister, Jody Thomas, to advise Prime Minister Justin Trudeau to invoke the Emergencies Act. Chief Justice Paul Rouleau, in submitting his Public Order Emergency Commission Report to Parliament on February 17, 2023, also cited events at the Coutts Blockade as key to his conclusion that the government was justified in invoking the Emergencies Act.

Justice David Labrenz cautioned attorney Burns regarding her language, after Crown prosecutor Stephen Johnson objected to some of the language in the opening statement of Olienick’s counsel. Futher discussion about the appropriateness of attorney Burns’ statement to the jury is behind a publication ban, as discussions occurred without the jury present.

Justice Labrenz told the jury on July 12, “I would remind you that the presumption of innocence means that both the accused are cloaked with that presumption, unless the Crown proves beyond a reasonable doubt the essential elements of the charge(s).” He further clarified what should result if the jurors were uncertain about which narrative to believe: the account by the Crown, or the account from the accused lawyers. Labrenz stated that such ambivalence must lead to an acquittal; As such a degree of uncertainty regarding which case to trust in does not meet the “beyond a reasonable doubt” threshold for a conviction.”

On July 15, 2024, a Lethbridge jury heard evidence from a former employer of Olienicks’ named Brian Lambert. He stated that he had tasked Olienick run his sandstone quarry and mining business. He was a business partner with Olienick. In that capacity, Olienick made use of what Lambert referred to as “little firecrackers,” to quarry the sandstone and reduce it in size. Reducing the size of the stone renders it manageable to get refined and repurposed so it could be sold to buyers of stone for other uses (building construction, patio stones, etc.) Lambert explained that the “firecrackers” were “explosive devices” packaged within tubing and pipes that could also be used for plumbing. He detailed how “You make them out of ordinary plumbing pipe and use some kind of propellant like shotgun powder…” Lambert explained that the length of the pipe “…depended on how big a hole or how large a piece of stone you were going to crack. The one I saw was about six inches long … maybe an inch in diameter.”

One of Olienick’s charges is “unlawful possession of an explosive device for a dangerous purpose.” The principal evidence offered up by RCMP to the Crown is what the officers depicted as “pipe bombs” which they obtained at the residence of Anthony Olienick in Claresholm, Alberta, about a two-hour drive from Coutts. Officers entered his home after he was arrested the night of February 13, 2022. Lambert’s testimony offers a plausible common use for the “firecrackers” the RCMP referred to as “pipe bombs.” Lambert added, these “firecrackers” have a firecracker fuse, and in the world of “explosive” they are “no big deal.”

Fellow accused, Chris Carbert, is does not face the additional charge of unlawful possession of explosives for a dangerous purpose. This is the first full week of the case for the defence. The trial began on June 6 when the Crown began presenting its case.

Ray McGinnis is a Senior Fellow with the Frontier Centre for Public Policy who recently attended several days of testimony at the Coutts Two trial.

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