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Back to the real world Alberta, Saskatchewan turn screws on federal government to approve crude export pipelines; Notley won’t take ‘no’ for an answer By GARY PARK For Petroleum News
There are clear signs that Canada’s two leading oil and gas producing provinces, despite their own vastly different political ideologies, have declared an end to the six-month honeymoon for the Canadian government of Prime Minister Justin Trudeau.
Saskatchewan Premier Brad Wall, whose right-leaning government won a sweeping third majority on April 4, and Alberta’s socialist Premier Rachel Notley, whose approval rating has tumbled to 33 percent from 53 percent since she was elected a year ago, have apparently decided to abandon their roles as Mr. and Mrs. Nice Guy.
Wall suddenly finds he is no longer the lone voice among Canada’s political leaders making a case for expansion of their oil and natural gas sectors.
Notley, consistently slow to advocate for the oil patch, now says she won’t take no for an answer on getting oil sands bitumen to export terminals on Canada’s west and east coasts.
Notley: Support runs both ways In a televised speech she said Alberta “can’t continue to support Canada’s economy unless Canada supports us. That means one thing: building a modern and carefully regulated pipeline (to a tanker port). I can promise you this: I won’t let up. We must get to ‘yes’ on a pipeline.”
Notley forecast that Alberta’s revenues from oil and gas royalties will plunge from C$10 billion two years ago to about C$1 billion in the upcoming fiscal year.
“It is in everyone’s interest to ensure that the energy exports that are permitted under our climate leadership plan get the best possible world price.”
She said the Trudeau government must give Alberta the tools to better manage its economic crisis by allowing its oil to reach new markets.
During her election campaign last year, Notley said she would not lobby for TransCanada’s Keystone XL pipeline to Texas or Enbridge’s Northern Gateway pipeline to the British Columbia coast, leaving open Energy East and Kinder Morgan’s tripling of capacity on its Trans Mountain system to a tanker port in Vancouver.
Brian Jean, the leader of Alberta’s Wildrose Party opposition, said Notley’s message was too little, too late from a premier who has “let other provinces and governments demonize our industry. Albertans need more than just standing up (to the federal government) when we are obviously being treated blatantly unfairly.” Wall defending province’s interests Wall followed his election triumph by setting his course to make a case for Saskatchewan on the national stage.
“We’re not trying to be a thorn in anyone’s side, but we’re going to defend our interests and advocate for our energy sector,” he told reporters.
That means Wall will continue fighting for improved employment insurance from the Canadian government, while “making a case that now is not the right time for a tax of any kind on our economy, including a carbon tax.”
Without attaching any names to the message, Wall was clearly directing that warning to Trudeau, who is reportedly mulling a national tax of C$30 per metric ton on carbon. No support What he apparently won’t get is any support from Trudeau’s energy point-man, Natural Resources Minister Jim Carr, despite the prime minister’s vague statements of support for building pipelines to export terminals.
Carr ended any questions about where he stands in speaking to a business audience in Calgary.
“It’s not a job for me to advocate on behalf of a particular industry,” he said. “It’s my job ... to advocate on behalf of creating conditions that will allow us to create jobs sustainably within the natural resource sector.
“It’s an interesting question about the way our democracy works - that I should be an advocate for a particular sector. That’s not the way it works.
“Our role is to be part of a team of ministers who represent the diversity of the country.
“Industry can expect that I understand the power of wealth creation in the private sector.
“Industry can expect that I will always be available to them if they think we’re off the rails or if you have a creative idea that maybe we haven’t heard yet and to be available, accessible and have an open mind,” Carr said.
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