Alberta
Where Iron and Earth Meet – Oil & Gas Workers for Renewable Energy
Iron and Earth is a Canadian non-profit organization led by oilsands workers who advocate for a balanced approach towards a green energy transition. The organization was founded in 2015 during the economic crisis that led to the termination of thousands of oil and gas workers nationwide. It began as a collective of boots-on-the-ground employees who had experienced the hard times brought on by the boom-bust nature of the oil and gas industry, and wanted to be a part of the movement to diversify and build resilience in Canada.
According to the Iron and Earth mission statement, Where Iron and Earth Meet, “There’s a place for the oilsands, and there’s a place for renewable energy. The intention is not to shut down the oilsands, but to see they are managed more sustainably while developing our renewable energy resources more ambitiously.”
Dialogues surrounding sustainability and diversification often place renewable energy alternatives at odds with the oil and gas industry, with little room for productive discussion. Iron and Earth provides a platform for oilsands workers, business owners, non-profits, politicians and consumers to meet at the same table and collaborate effectively to build a more sustainable future for all Canadians. Rather than contribute to divisive narratives that position oil and gas and renewable energy as mutually exclusive industries, Iron and Earth advocates for a balanced approach towards diversification, sustainability and a renewable transition.
“Iron and Earth is proof of the dichotomy of people working in the oil and gas industry who care about the environment very, very much,” says Bruce Wilson, board member for Iron and Earth. “There is a diverse array of political affiliations and backgrounds within the organization, from individuals presently working in oil and gas to those who have recently transitioned, to those who have never worked in the industry at all.” Wilson joined Iron and Earth in 2018 after more than 30 years in the oil and gas industry, including 17 years with Shell International.
By focusing on industry overlaps, Iron and Earth highlights the ways in which fossil fuels and renewable energy can be beneficial, reinforcing sectors that can produce positive outcomes for the Canadian workforce and the global climate crisis. “Fortunately for many of the workers who are affected by the ongoing boom and bust cycles of the oilsands, many renewable energy jobs require the same skills and tradespeople that are currently working in the Canadian oil and gas industry” (1).
Iron and Earth streamlines the transfer of skills between industries by offering a number of programs and resources to support workers seeking to transition away from fossil fuels into renewable energy. This includes offering training, classroom education, and hands-on experience to broaden the understanding of industry overlaps that will aid oil and gas workers in finding their fit in clean technology.
These processes and resources operate with respect to the reality that transitions away from oil and gas into renewables can be a daunting and difficult process for many. Former Canadian oil and gas worker and current Iron and Earth spokesperson, Nick Kendrick, came to Iron and Earth in 2018 after reaching a fork in the road in his own career path. After 5 years in oil and gas, Kendrick was faced with the employment insecurity many workers in the Canadian oil and gas industry are familiar with. “When I started in oil and gas, prices were booming,” he says, “but by the time I got up north, the industry was struggling. People were getting laid off, and I realized it might be time to make a move.”
Kendrick made the decision to return to school at the University of Calgary, where he pursued a Master’s Degree in Sustainable Energy. It was there he connected with Iron and Earth for his capstone project, where he facilitated the drafting of a strategic path forward for the organization. This included mapping out geographic locations that offered the most opportunity to deliver impactful training workshops and support upcoming renewable energy projects, as well as encourage Indigenous participation.
“Leaving oil and gas for renewables is a very scary thing, especially in Alberta,” says Kendrick, “I admire how Iron and Earth’s approach is not to completely abandon the oilsands. They’ve been very foundational for Canada, but they’re not sustainable. It’s time to help each other progress onto something new.”
In September 2020, Iron and Earth unveiled their Prosperous Transition Plan, framing the future for Canada’s green transition. The Prosperous Transition Plan boldly calls on the Trudeau Government to invest $110 billion over the next decade into a green recovery for Canada. The plan highlights four focal points of the Canadian economy: workforce, business, infrastructure and environment. With an emphasis on repurposing oil and gas infrastructure and getting people back to work, Iron and Earth’s Prosperous Transition Plan focuses on recovering from the COVID-19 pandemic, decarbonizing the economy and addressing inequality to ensure a prosperous future.
With more than 1000 active members across Canada from a variety of industrial trades, Iron and Earth is continually expanding and advocating for ethical, legitimate solutions to facilitate Canada’s transition to renewable energy. “These are not utopian suggestions,” says Wilson, “they are pragmatic solutions that require purposeful, ambitious action from the government … Change and thrive is the business model for the future.”
To learn more about Iron and Earth’s mission and Prosperous Transition Plan, visit https://www.ironandearth.org.
For more stories, visit Todayville Calgary.
Alberta
Alberta Next Panel calls for less Ottawa—and it could pay off
From the Fraser Institute
By Tegan Hill
Last Friday, less than a week before Christmas, the Smith government quietly released the final report from its Alberta Next Panel, which assessed Alberta’s role in Canada. Among other things, the panel recommends that the federal government transfer some of its tax revenue to provincial governments so they can assume more control over the delivery of provincial services. Based on Canada’s experience in the 1990s, this plan could deliver real benefits for Albertans and all Canadians.
Federations such as Canada typically work best when governments stick to their constitutional lanes. Indeed, one of the benefits of being a federalist country is that different levels of government assume responsibility for programs they’re best suited to deliver. For example, it’s logical that the federal government handle national defence, while provincial governments are typically best positioned to understand and address the unique health-care and education needs of their citizens.
But there’s currently a mismatch between the share of taxes the provinces collect and the cost of delivering provincial responsibilities (e.g. health care, education, childcare, and social services). As such, Ottawa uses transfers—including the Canada Health Transfer (CHT)—to financially support the provinces in their areas of responsibility. But these funds come with conditions.
Consider health care. To receive CHT payments from Ottawa, provinces must abide by the Canada Health Act, which effectively prevents the provinces from experimenting with new ways of delivering and financing health care—including policies that are successful in other universal health-care countries. Given Canada’s health-care system is one of the developed world’s most expensive universal systems, yet Canadians face some of the longest wait times for physicians and worst access to medical technology (e.g. MRIs) and hospital beds, these restrictions limit badly needed innovation and hurt patients.
To give the provinces more flexibility, the Alberta Next Panel suggests the federal government shift tax points (and transfer GST) to the provinces to better align provincial revenues with provincial responsibilities while eliminating “strings” attached to such federal transfers. In other words, Ottawa would transfer a portion of its tax revenues from the federal income tax and federal sales tax to the provincial government so they have funds to experiment with what works best for their citizens, without conditions on how that money can be used.
According to the Alberta Next Panel poll, at least in Alberta, a majority of citizens support this type of provincial autonomy in delivering provincial programs—and again, it’s paid off before.
In the 1990s, amid a fiscal crisis (greater in scale, but not dissimilar to the one Ottawa faces today), the federal government reduced welfare and social assistance transfers to the provinces while simultaneously removing most of the “strings” attached to these dollars. These reforms allowed the provinces to introduce work incentives, for example, which would have previously triggered a reduction in federal transfers. The change to federal transfers sparked a wave of reforms as the provinces experimented with new ways to improve their welfare programs, and ultimately led to significant innovation that reduced welfare dependency from a high of 3.1 million in 1994 to a low of 1.6 million in 2008, while also reducing government spending on social assistance.
The Smith government’s Alberta Next Panel wants the federal government to transfer some of its tax revenues to the provinces and reduce restrictions on provincial program delivery. As Canada’s experience in the 1990s shows, this could spur real innovation that ultimately improves services for Albertans and all Canadians.
Alberta
Ottawa-Alberta agreement may produce oligopoly in the oilsands
From the Fraser Institute
By Jason Clemens and Elmira Aliakbari
The federal and Alberta governments recently jointly released the details of a memorandum of understanding (MOU), which lays the groundwork for potentially significant energy infrastructure including an oil pipeline from Alberta to the west coast that would provide access to Asia and other international markets. While an improvement on the status quo, the MOU’s ambiguity risks creating an oligopoly.
An oligopoly is basically a monopoly but with multiple firms instead of a single firm. It’s a market with limited competition where a few firms dominate the entire market, and it’s something economists and policymakers worry about because it results in higher prices, less innovation, lower investment and/or less quality. Indeed, the federal government has an entire agency charged with worrying about limits to competition.
There are a number of aspects of the MOU where it’s not sufficiently clear what Ottawa and Alberta are agreeing to, so it’s easy to envision a situation where a few large firms come to dominate the oilsands.
Consider the clear connection in the MOU between the development and progress of Pathways, which is a large-scale carbon capture project, and the development of a bitumen pipeline to the west coast. The MOU explicitly links increased production of both oil and gas (“while simultaneously reaching carbon neutrality”) with projects such as Pathways. Currently, Pathways involves five of Canada’s largest oilsands producers: Canadian Natural, Cenovus, ConocoPhillips Canada, Imperial and Suncor.
What’s not clear is whether only these firms, or perhaps companies linked with Pathways in the future, will have access to the new pipeline. Similarly, only the firms with access to the new west coast pipeline would have access to the new proposed deep-water port, allowing access to Asian markets and likely higher prices for exports. Ottawa went so far as to open the door to “appropriate adjustment(s)” to the oil tanker ban (C-48), which prevents oil tankers from docking at Canadian ports on the west coast.
One of the many challenges with an oligopoly is that it prevents new entrants and entrepreneurs from challenging the existing firms with new technologies, new approaches and new techniques. This entrepreneurial process, rooted in innovation, is at the core of our economic growth and progress over time. The MOU, though not designed to do this, could prevent such startups from challenging the existing big players because they could face a litany of restrictive anti-development regulations introduced during the Trudeau era that have not been reformed or changed since the new Carney government took office.
And this is not to criticize or blame the companies involved in Pathways. They’re acting in the interests of their customers, staff, investors and local communities by finding a way to expand their production and sales. The fault lies with governments that were not sufficiently clear in the MOU on issues such as access to the new pipeline.
And it’s also worth noting that all of this is predicated on an assumption that Alberta can achieve the many conditions included in the MOU, some of which are fairly difficult. Indeed, the nature of the MOU’s conditions has already led some to suggest that it’s window dressing for the federal government to avoid outright denying a west coast pipeline and instead shift the blame for failure to the Smith government.
Assuming Alberta can clear the MOU’s various hurdles and achieve the development of a west coast pipeline, it will certainly benefit the province and the country more broadly to diversify the export markets for one of our most important export products. However, the agreement is far from ideal and could impose much larger-than-needed costs on the economy if it leads to an oligopoly. At the very least we should be aware of these risks as we progress.
Elmira Aliakbari
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