Prime Minister Justin Trudeau is in Alberta now to consider stock of the devastation wrought by the collapse in oil prices.
Trudeau’s rebranding of Canada offers sunshine to Davos, but it is cold comfort for battered oilpatch
Like it or otherwise, he will also get an earful within the spate of anti-energy moves produced by his government that will make a recovery harder.
Indeed, despite declaring in Calgary within the final days of his election campaign last October that “Alberta matters deeply to me,” his policy choices so far show the alternative.
They include: Formalizing a moratorium on oil tanker traffic around the northern B.C. coast that handcuffs the already-permitted Northern Gateway pipeline; additional regulatory requirements for that proposed TransMountain pipeline expansion and the Energy East pipeline conversion that lengthen and duplicate already-unwieldy regulatory processes; reforms towards the National Energy Board that shake confidence in Canada’s ability to get anything built; along with a climate change test on export pipelines that gives Ottawa new powers over Alberta’s energy resources.
We know Canada’s economic engine is limping, and the fact that he is here is a clear indication he understands the federal government cannot be in the sidelines.
Trudeau pushed through the changes to achieve ‘social licence’ for pipelines after no progress was made underneath the Conservatives. The end result to date is that they have empowered opposition and fuelled anger and division, making solutions even more complicated to attain.
Still, there’s appreciation for the visit, which at the minimum shows good intentions so at the start of his mandate.
“It’s clear to me, according to everything in the public domain, the Prime Minister appreciates the degree of the problem,” said Asim Ghosh, president and CEO of integrated oil company Husky Energy Inc. “We know Canada’s economic engine is limping, cheap he’s here is a clear indication he understands the us government cannot be within the sidelines.”
Trudeau could help by providing timely review of pipelines, suggested Ghosh, whose clients are a sizable heavy oil and oilsands producer in Western Canada, and through being mindful of Canada’s competitiveness when boosting environmental requirements.
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“We have a situation where our biggest customer has turned itself into our biggest competitor,” he explained, talking about the United States. “Last time I checked, their oil production was up 75 percent within the last six years. Now more than ever before we must make use of Canadian resourcefulness to attract an investment which will revive activity and protect jobs within the natural resource sector.”
Meanwhile, Alberta within the humiliating position of getting to inquire about Trudeau for federal aid.
Alberta has done “a lot of heavy lifting” for Canada for several years, and now it’s the perfect time for many payback from Ottawa, Alberta Premier Rachel Notley said in front of ending up in Trudeau in Edmonton Wednesday. “Now it’s time whenever we need our authorities in the future here and also to use us, to aid us during the trying times that we’re facing.”
During the two-day visit, discussions between Trudeau and also the Alberta government were expected to focus on pipelines, job creation, economic diversification and federal infrastructure investment.
Trudeau was because of create a stay in Calgary on Thursday. Earlier within the week, he explained he’d talk with community and business leaders to speak about methods to Alberta’s rising unemployment and that there would be “concrete measures” within the upcoming federal budget to will help Alberta, and that the government has promised accelerated infrastructure spending to assist stimulate the economy.
What Albertans really want will be able to take proper care of themselves by growing exports of oil and gas, getting fair prices, with no amount of economic diversification help or federal handouts will replace that.
Frustration with the pipeline gridlock is widespread, and so is talk of retaliation and of greater Alberta independence.
Glen Schmidt, president and CEO of Laricina Energy Corp., one of Alberta’s junior oilsands companies, said it’s time for Alberta to play hardball.
For example, Alberta should oppose BC Hydro’s Site C Dam on the Peace River due to its potential effect on water levels in Alberta’s Wood Buffalo National Park, he suggested.
“If B.C. feels pipelines do not provide benefits to them, Alberta too should legitimately resist the possible lack of advantages of Dam C,” Schmidt said.
“Alberta can not be na?ve in a realm of self-interest. Ontario sees pension reform as moving too slowly, it goes its own way. B.C. re-writes the guidelines on inter-provincial pipelines. Alberta cannot concede to a national regulator if our interests are not respected, therefore we go our own way.”
It’s not idle talk, and Trudeau needs to deliver on his pipeline promises — or he’ll have a bigger problem than ‘social license’ in the hands.
ccattaneo@nationalpost.com
Twitter.com/cattaneooutwest
