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Prentice puts energy first New Alberta premier adds 2 cabinet portfolios to his duties — keys to approval chances for new pipelines for oil sands development Gary Park For Petroleum News
Jim Prentice has been sworn in as the 16th premier in Alberta’s 110-year history making explicit to his friends and foes that his “highest priority” is to open new markets for the province’s oil and natural gas.
To that end, he has taken on the ministries of Aboriginal Relations and International and Intergovernmental Relations - two key elements in tackling Alberta’s uncertain economic future at a time when opposition from First Nations and environmentalists has stonewalled progress on quadrupling output from the oil sands.
But, as a former federal minister of Aboriginal Affairs, Prentice extended a hand to Alberta’s First Nations to strengthen his case for building pipelines to the British Columbia coast to export oil sands bitumen.
“I can tell you that amongst the strongest allies that Alberta has at the table are the First Nations of this province who are in the energy business themselves and who are passionate about achieving West Coast access,” he told his first news conference.
He said good work has already been done on connecting with and consulting aboriginals, including “excellent discussions” this summer which establish Prentice’s resolve to get personally involved in seeking common-ground with First Nations.
Just as quickly he was confronted with a United Nations report that underscores the growing global resistance to the use of fossil fuels.
Prentice left no doubt that he is prepared to wage battle with those who stand in the way of dealing with the most critical issues facing Alberta since the 1970s when the oil sands first emerged as a commercial resource.
However, he has made equally clear his determination to put Alberta in the forefront of trying to turn the tide on climate change.
He told the Calgary Herald editorial board in July that if Alberta hopes to excel in the energy business it must excel in the environment arena, even though he will not agree to the province unilaterally raising its carbon levy if that eroded its competitive position.
Warning from UN report Prentice moved into the premier’s office at the same time the United Nations Global Commission on the Economy and Climate issued a report warning that countries and companies that rely on investments in fossil-fuel industries are running a risk as the world embarks on a low-carbon path.
The result could be that resources such as oil sands bitumen and coal (which generates 85 percent of Alberta’s electricity) will be left in the lurch, the commission said.
The report sets the stage for the United Nations’ Secretary-General’s climate summit in New York later in September which is intended to be the forerunner of a global agreement in Paris in late 2015.
“It is possible to get economic growth and at the same time tackle climate change,” commission co-Chair Felipe Calderon, a former president of Mexico, told a conference call. “But it will require structural changes in the coming years.”
The commission called for a dramatic reduction in the use of coal-fired power, an end to fossil-fuel subsidies, a strong and growing carbon price and the adoption of energy sources that do not emit greenhouse gases.
Prentice said Alberta will make progress towards those objectives “where we can,” which he indicated is primarily in the coal sector by advancing electricity generated from solar and wind sources.
Pipelines key objectives But he is leaving no doubt that moving oil sands bitumen through such contentious pipelines as Keystone XL, Northern Gateway, Trans Mountain and Energy East will remain key objectives for his government, which presents him with a stern test to negotiate agreements with First Nations in particular.
In naming his 20-member cabinet Prentice stirred some criticism in filling the energy post with Frank Oberle, a little-known figure despite serving as Minister of Sustainable Resources Development in 2011 and 2012, then as Minister of Aboriginal Affairs.
However, during his time in sustainable resources he may have learned how the forestry industry overcame environmental opposition in the 1990s, which could translate into a positive in his new cabinet role.
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