Archive | Oil and Gas Sector-Politics and Image

Quebec is as much an oil state as Alberta — they just let others produce it – by Monte Solberg (Financial Post – November 19, 2019)

https://business.financialpost.com/

Monte Solberg, the principal at New West Public Affairs, is a former Alberta MP and cabinet minister

Take my hand, will you, and I will lead you through the wardrobe to a magical place, where the only energy is clean energy, where Tesla-driving Quebecers signal as they change lanes, and the only emissions are of a private nature.

Now, as we walk through a pristine old-growth forest we come upon a great eminence, a splendid figure who picks absent-mindedly at a glorious cape made entirely of recycled plastic straws. What is this place and who is this extraordinary man?

It is Imaginary Quebec of course, home to Yves-François Blanchet, leader of the Bloc Québécois. Here, he speaks for all of Quebec. Here he has declared that he will not help Alberta “create an oil state,” suggesting that the Quebec economy isn’t itself greased and fired by decayed dinosaurs. Continue Reading →

Alberta is facing a full-blown economic crisis and it needs support, not condescension – by Martin Pelletier (Financial Post – November 19, 2019)

https://business.financialpost.com/

Alberta’s billions in transfer payments have helped other provinces hurt by economic troubles, so where’s the compassion for the province now?

Western Canada is currently facing uncertain times not witnessed since the Petro-Canada Centre, better known as Red Square, was built to house the then Crown Corporation in downtown Calgary in 1983. And with no resolution in sight for the five-year-long rout in oil and natural gas prices, things are going to get a lot worse before they get better.

While Encana’s decision to move its headquarters to Denver made headlines, the reality is that business are leaving the province in droves. One local realtor, Robert Graham at Arrowstar, told Global News recently that Arrowstar alone has helped 100 Western Canadian companies relocate to the Houston area, 40 of those in the past year and a half.

Others are shutting up shop completely, or closing locations in the province: Chili’s shut all but three of its Alberta locations in 2017; Red Robin has plans to pull out of Alberta by year-end; and Starbucks has announced numerous closures in both Edmonton and Calgary. That on top of the multitude of mom-and-pop businesses that are simply going bust. Continue Reading →

OPINION: If Alberta retreats behind a firewall, the province risks getting burned – by Kenneth Whyte (Globe and Mail – November 16, 2019)

https://www.theglobeandmail.com/

The Conservative Party of Canada will likely have an opportunity to regain power in a year or two. How does that happen while Alberta, the keystone of Canadian conservatism, is making a bunker of itself?

Red Deer lies halfway between Edmonton and Calgary, roughly 150 kilometres from each, and despite snow and ice warnings in both directions, a couple of hundred people from all over Alberta turned up early at a hotel conference room last Saturday to address the big question: How should the province respond to a disappointing outcome in last month’s federal election?

This was a different gathering than the feral, amateurish Wexit rally at the Boot Scootin’ Boogie Dancehall in Edmonton on Nov. 2, the one with the Make Alberta Great Again hats and chants of “The West Wants Out!” The Red Deer crowd was composed of seasoned political operatives, the sort of people who run local campaigns and sit on boards of riding associations. Continue Reading →

$40 billion megaproject begins to take shape in Kitimat – by Nelson Bennott (Business in Vancouver – November 12, 2019)

https://biv.com/

One year ago, the partners behind LNG Canada formally sanctioned the $40 billion project. Today, roughly 1,000 workers are on site in Kitimat – about half of them from the Kitimat-Terrace area – and that’s just to set the stage for the main construction phase, which isn’t expected to start for another couple of years.

Last week, Business in Vancouver toured the project in Kitimat, which is booming, according to Kitimat Mayor Phil Germuth. “It’s definitely buzzing,” he said. “The hotels are full, there’s another brand new hotel that’s being built. There’s a brand new 35-unit townhouse development being done.”

Located at the mouth of Douglas Channel, next to the recently upgraded Rio Tinto (NYSE:RIO) aluminum smelter – the scale of which is impressive in its own right – the LNG Canada site at 400 hectares is about the size of 550 soccer fields. Continue Reading →

Flat drilling activity in Canada will result in more layoffs amid low-growth outlook for oil – by Geoffrey Morgan (Financial Post – November 13, 2019)

https://business.financialpost.com/

Next year could see almost 14,000 oilfield jobs lost: CAODC forecast

CALGARY – Drilling activity in Western Canada is poised to remain flat over the next year as drillers believe oil and gas sentiment is nearing an “all-time low” in the face of fresh forecasts that predict weak Canadian industry growth over the longer term.

The Canadian Association of Oilwell Drilling Contractors’ annual activity forecast released Wednesday predicted there will be 13,731 direct and indirect jobs losses in the oilfield during 2020.

The association has said its member companies have already moved 29 drilling rigs to the United States “in order to find work and generate cash flow” and those rigs include the larger, higher-technology rigs used to drill deep, horizontal wells in new formations in Western Canada. Continue Reading →

COLUMN-India’s economic woes hit coal imports, but crude oil soldiers on for now – by Clyde Russell (Reuters U.K. – November 12, 2019)

https://www.reuters.com/

LAUNCESTON, Australia, Nov 12 (Reuters) – A sharp plunge in India’s electricity demand in October has been matched by falling coal imports, but weakness in vehicle sales and fuel demand hasn’t yet showed up in crude oil imports.

Power demand in Asia’s third-largest economy slumped 13.2% in October from a year earlier, the steepest monthly decline in more than 12 years, according to government data.

Coal imports fell to 14.7 million tonnes in October, the lowest since January and the third straight month of declines, according to vessel-tracking and port data compiled by Refinitiv. Continue Reading →

Canadian carbon guilt belongs in a parallel universe – by Terence Corcoran (Financial Post – November 12, 2019)

https://business.financialpost.com/

Canada boasts that it has reduced coal usage. … India’s minister
of coals and mines said recently that Coal India, the government
-owned national producer, aimed to boost output to one billion
tonnes a year from about 700 million tonnes currently.

As the political convulsions within Canada over Alberta’s fossil fuel future unfold, including divisive talk of separation and Wexit, one has to wonder what alternative planet Canadians inhabit.

After an election filled with emergency calls to end fossil fuel use within a decade or two, the country that was built on natural resources is now being torn apart over whether to build a pipeline to carry a few driblets of oil through the Trans Mountain pipeline to the West Coast.

Driblets is the right word in the context of Planet Earth. Global oil production may already exceed 100 million barrels a day. The additional volume of oil to be delivered through the proposed TMX expansion line — about 600,000 barrels a day — is equivalent to 0.6 per cent of global production. By way of comparison, imagine standing in front of a supermarket aisle of 2,000 cans of beer; proportionately, TMX would add two six-packs. Continue Reading →

Kenney’s plan to get Alberta out from under Trudeau before he completely destroys it – by Diane Francis (Financial Post – November 11, 2019)

https://business.financialpost.com/

He also pointed out, to those who claim that the world must wean
itself from oil, that this is irrational. “The International Energy
Agency says global demand for oil will increase from 100 million
barrels per day to 110 million barrels a day by 2040. The same
agency says that, even if there is full compliance with the Paris
Treaty on climate, the demand by 2040 will be 80 million barrels
per day,” he said. “And natural gas demand globally will double”.

Prime Minister Justin Trudeau’s father rolled out the National Energy Program in 1980 — a punitive tax grab for Alberta’s oil revenues to pay for the Liberal welfare state. Years later, Justin Trudeau did a redo by discriminating against Alberta’s oil industry to pay for his welfare state, phoney climate agenda and Quebec goodies.

But again, the jig’s up and Alberta Premier Jason Kenney came out fighting this weekend and, as many of us have recommended, embarked on a “workaround” strategy to get out from under Trudeau and the Laurentian elites who still control Canada.

Instead of a national energy grab, this Trudeau has cloaked himself in green by attacking the oil industry without even addressing the real problem which is demand. Continue Reading →

It took decades to push Alberta to this point — but it was inevitable – by Kelly McParland (National Post – November 11, 2019)

https://nationalpost.com

Kenney’s panel will look at these and other issues, including
deep disgruntlement with the equalization program that treats
Alberta as a “have” province while sending $13 billion — 65
per cent of the national total — to “have not” Quebec. Quebec’s
payment rose sharply this year, even as it announced a $4
billion surplus. Alberta, in contrast, expects a shortfall of
$8.7 billion for the same period.

The combative address Jason Kenney delivered in Red Deer on Saturday didn’t come out of the blue. This is a storm cloud that’s been hovering around Alberta for a very long time. Eventually it was going to erupt.

There have been plenty of precursors. From Pierre Trudeau’s first lunge at Alberta’s oil wealth almost 40 years ago via the National Energy Program, Albertans have kept a wary eye on Ottawa and its grabby revenue fingers. Continue Reading →

OPINION: Beware foreign CEOs: Sometimes they just want to go home – by Eric Reguly (Globe and Mail – November 9, 2019)

https://www.theglobeandmail.com/

Want to lose another Canadian head office? Easy! Hire a non-Canadian CEO. Canadian boards of directors seem to have a fascination with foreign chief executive officers. Canada is (largely) an open economy, one with pretenses to corporate greatness, so why not pick the best and the brightest from the United States, Europe and elsewhere?

Load them up with fat salaries and share option packages, and watch them create a Niagara of shareholder value. And a flag-waving Canadian business champion as a bonus.

Canada and a few other countries that worship at the altar of shareholder value, Britain among them, have bought into the cult of the globalist CEO – big time. But the cult is wearing thin. Continue Reading →

Iran has discovered an oil field with an estimated 53 billion barrels of crude, Rouhani says – by Nada Altaher and Matthew Robinson (CNN Business – November 10, 2019)

https://www.cnn.com/

Abu Dhabi (CNN)A vast oil field containing an estimated 53 billion barrels of crude oil has been discovered in Iran, President Hassan Rouhani announced Sunday, a find that could boost the country’s battered economy amid stringent US sanctions.

The oil field in southwest Iran stretches over an area of 2,400 sq km (about 1,491 square miles) in the Khuzestan province and is around 80 meters (262 feet) deep, according to the Iranian leader.

It would be the country’s second largest oil field, behind one in Ahvaz containing an estimated 65 billion barrels. “We have discovered a new big oil field with 53 billion barrels of reserves,” Rouhani said in a speech Sunday in the city of Yazd, according to the semi-official Mehr news agency. Continue Reading →

OPINION: The Trans Mountain expansion is nation-building, pure and simple – by Victor Dodig (Globe and Mail – November 8, 2019)

https://www.theglobeandmail.com/

Victor Dodig is chief executive officer of Canadian Imperial Bank of Commerce.

Canada’s energy sector is our country’s “family business.” Even if we don’t work in it, we benefit from it economically and socially – and have for generations. The industry supports more than 800,000 direct and indirect jobs across the country, as well as vital social services such as health care and education.

In 2018 alone, the sector contributed $167-billion to Canada’s GDP; that’s more than the financial services and insurance industries combined. Today, we have a chance to build on this legacy and compete globally to support our country’s future prosperity.

Yet, it can feel as though we’re competing with ourselves. The family business has fallen on tough times, and it’s hurting all Canadians. As with any family, we must come together to find a solution. Let’s begin with two important truths. Continue Reading →

The West doesn’t need Quebec to get its oil flowing East. There is another way – by Terence Corcoran (Financial Post – November 6, 2019)

https://business.financialpost.com/

Oil could move year-round through a pipeline-to-tanker operation loaded from a facility on the West Coast of Hudson Bay

The future of Alberta’s oil and gas resources has never looked grimmer. Anti-pipeline activists promoting the ideology of climate change have infiltrated federal and provincial governments, leaving Canada’s fossil-fuel rich Western provinces in seeming isolation.

Some First Nation groups and environmentalists went to court Tuesday to shut down the Trans Mountain XL oilsands pipeline to Canada’s West Coast. In Quebec, Bloc Québécois federal leader Yves-François Blanchet and Premier François Legault promise to block any attempt to build new pipeline capacity through their province to Canada’s East Coast.

There is an alternative for the West, for Alberta’s oil and maybe for the future of Confederation. To put it bluntly, the West doesn’t need Quebec. To get oil to the East and other parts of the world, where fossil fuel demand is set to grow no matter how hard the United Nations tries to shut it down, veteran Canadian energy transport expert Michael H. Bell has a plan. Continue Reading →

Alberta needs a new deal, fast, or separation is inevitable – by Diane Francis (Financial Post – November 4, 2019)

https://business.financialpost.com/

Alberta is Canada’s breadwinner, but is treated like a stepchild

Alberta must adopt Quebec’s playbook and become a “nation” within a nation or threaten to leave. The ballot box does not work and Alberta is Canada’s breadwinner, but is treated like a stepchild.

Step one is for Alberta to demand the immediate construction of the TMX pipeline and the scrapping of Bills C-48 and C-69. No delays.

Then Alberta should stage a referendum before Christmas 2019 on opting out of, or revamping, Canada’s unjust equalization system. (Since 2010, Ottawa has taken an average of over $20 billion a year out of Alberta; Quebec receives $13 billion, or two-thirds of every dollar in the federal equalization program.) It’s a bribe to Quebec with Alberta money which is why Justin Trudeau recently extended the system to 2024 — an extension which should be nullified. Continue Reading →

Indigenous Canadians want natural resources development — why aren’t we being heard? – by Dale Swampy (Financial Post – November 1, 2019)

https://business.financialpost.com/

Opinion: Do not deny us our opportunity for well-being and prosperity simply to serve your stereotypes of what Indigenous peoples should be for and against

Many Canadians have a one-dimensional understanding of Indigenous cultural, political and economic realities, based on the stories they see and hear in the mainstream media and the messages they get from politicians.

We are often portrayed as a homogenous group with common interests, opinions and needs. One story that always gets attention is of Indigenous Canadians as victims of industry, protesting pipelines and other resource developments as they cross our territories.

The truth is, the vast majority of Indigenous communities in Canada are engaged in natural resource development, and on terms that we agree to. Indigenous communities have entered into over 450 agreements with mining companies since 2000, and 58 per cent have a contract or agreement with a forestry company. Continue Reading →