Hello Chestermere Anchor readers! I have just about warmed up again after the Polar Plunge this weekend in support of the Special Olympics. Please join me in cheering Alberta’s team on at the Special Olympics Canada Winter Games in Thunder Bay February 25 to 29. They’ll do us proud!
I’m sure that by the time you are reading this article, you will have had at least one conversation about Teck Resources Ltd.’s withdrawal of their application to build the Frontier oilsands project. Frontier was a 250,000 barrel per day, 20 billion dollar project that would have created 7,000 jobs and generated an estimated 70 billion dollars for the Alberta and Canadian economy. Teck spent years and over 1 billion dollars to get all required regulatory approvals and were waiting for a Federal Cabinet decision to allow it to proceed. So, let’s dig into what happened here. Our government takes the need to reduce emissions very seriously. Alberta has a strong regulatory framework and a commitment to reduce emissions from our oil and gas sector which satisfies all incoming Federal regulations. Teck Frontier met or exceeded all these regulations and had the support of the indigenous community in the project area. None of this mattered. In spite of meeting the highest regulatory standards, demonstrating the responsible resource stewardship that is a pillar of this province, and our position as world leaders, a vocal minority’s baseless claims have yet again damaged the livelihoods of Albertans. Let me be completely clear on this point, our world class energy industry is under attack by the misinformed few. Potential investors look at more than just resources, they take a number of factors into account. The unfair bias that is levied against our province is impacting projects that could employ thousands, generate the wealth that builds our roads and hospitals, and make a difference in the lives of so many of our families who are struggling to get by right now.
How is it that when we have such a large consensus of provinces and First Nations, a small group can determine the outcome of a project that would bring prosperity to all of our communities? Why are the few allowed to blockade and we are not free to work and develop the resources that belong to all of us? This project was in the best interest of all of us, and now here we are. You may have heard that current oil prices made this project less attractive but that is not the point. Companies like Teck do not base their investment decisions on short term price fluctuations. Approval of this project under our world leading environmental regulations would have opened the door to the world saying “look we are open for business” and would have shown the world that we are a place that is worth a second look to invest. This is about building our industry back up again. Instead we saw fierce opposition from small groups and a Federal government that was not willing to commit to approving and supporting a project that was in the best interests of Canada. Investors need certainty that once the regulations are satisfied the goalposts will not be moved. Teck went through years of work to pass through the regulatory process, and in the end the uncertainty in its approval was the final blow. Our government will continue to stand up for Alberta’s jurisdiction over energy policy and we remain committed to a regulatory framework that helps the environment and the economy.
As always, I love to hear from you.
