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Report: Winning over First Nations key for resource projects
Gary Park For Petroleum News
Proponents of more than 600 resource projects carrying an estimated value of C$650 billion face what may be their toughest barrier in Canada — figuring out how to get on side with First Nations, suggests a report by the Fraser Institute.
The conservative think tank said there is “not a single oil or gas project” in Western Canada that does not affect at least one First Nations community and the willingness of those communities “to participate in energy development can be the factor that determines the success of a project.”
British Columbia poses the greatest challenge, with seven projects affecting an estimated 56 of 198 First Nations in the province, followed by Alberta with five projects touching 44 percent of the province’s aboriginal communities. Although Saskatchewan has only two projects in the category they impact 23 percent of that province’s First Nations.
Canada’s aboriginal population grew by 45 percent from 1996 to 2006, compared with 8 percent of the non-Native population, but because aboriginal communities are located in mostly remote, rural areas they have an unemployment rate of 23 percent compared with 7.1 percent for Canada as a whole.
Untapped labor force Ravina Bains, the report’s lead author, said the energy development opportunities are the only hope in most cases to correct the job imbalance and the best chance to take advantage of potential labor force.
The report noted that the First Nations population has a median age of 26, compared with the non-aboriginal median of 41, presenting an untapped labor force to develop through skills training.
“There are obstacles in place, but we’re at a unique point right now in terms of the demographics of these communities, in terms of the young population, that we can really tap into and make sure that we cultivate,” Bains said.
There is also a need to overcome differences between First Nations and the resource industry, she said, noting that Enbridge’s Northern Gateway pipeline and Kinder Morgan’s Trans Mountain expansion face potential failure because of First Nations opposition.
Emerging relationships However, Bains said there are examples of emerging relationships, including Haisla Nation participation in the Douglas Channel LNG partnership, the Kitimat LNG project by operator Chevron and Apache and Shell’s LNG Canada venture.
The report calls for better communication and transparency in dealings between industry and First Nations and efforts by industry to understand the communities involved, while governments should play a more active role in ensuring consultations take place.
The report said there has already been success in Alberta from First Nations communities working alongside industry to benefit from oil and gas development.
In 2010 more than 1,700 aboriginal people were directly employed in oil sands operations and, over the past 12 years, aboriginal-owned companies have secured more than C$5 billion worth of contracts from oil sands developers.
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