Let the market rule, says oil sands study

Market-based principles should be the overriding consideration in the pace of oil sands development, says an interim report by an Alberta government committee.

It suggested that, within certain constraints and parameters, economic development of the resource should be driven by the market — a setback for those clamoring for greater government intervention in the pace of development because of the pressures on public infrastructure and services.

However, the committee called for more careful planning and implementation to achieve orderly infrastructure and community development and for timely funding for infrastructure and services for those communities most directly impacted by oil sands growth. It said development should also honor the rights of aboriginal communities, provide a high quality of life, ensure a healthy environment, build healthy communities and provide high-quality infrastructure and services.

The committee also said the province should pursue a “value-added” objective, pointing to increased upgrading and refining of bitumen in Alberta, adding that the province should maximize the commercial value of the resource while upholding the integrity of ecological and social systems. Another recommendation urges “reasonable certainty and predictability in regulatory structures and systems.”

The committee has set a June 30 deadline for the next phase, which involves developing a framework for oil sands development based on its stated principles and the creation of action plans.

—Gary Park