Support for the Energy Industry

The importance of the energy industry to Canada and Alberta are obvious, as is the impact to the local, provincial, and federal economies when changes occur in the energy industry:

• every annual average $1 increase in the WCS-WTI differential above US $22.40 per barrel costs the Alberta government $210 million in royalties;
• for every US $1 per barrel of oil discounted relative to world prices, there is an opportunity cost to the Canadian energy industry of $1.4 billion per year;
• for every CAD $1 million invested and generated in the Canadian energy sector, the Canadian GDP impact is CAD $1.2 million; and
• for every direct job created in the Canadian energy sector, 2 indirect and 3 induced jobs in other sectors are created in Canada on average.

Given these numbers, the need for the Canadian and Alberta governments to support a strong and vibrant energy sector is clear.

However, a campaign has been evolving over the last decade with the strategy to land-lock the oil sands and prevent it from reaching the international market where it could fetch a higher price per barrel. The US-funded campaign has allegedly given tens of millions to anti-pipeline Canadian green and social justice groups, including Greenpeace Canada and the Pembina Institute, essentially campaigning to rebrand the Alberta oil sands as “dirty oil”. Most recently, references to “dirty oil” were articulated on December 7, 2017 by Quebec’s Premier Legault who talked about “dirty energy” in reference to the oil sands and on December 23, a CBS affiliate in San Francisco reported that tankers may soon be transporting “the heaviest, dirtiest oil on the planet, tar sands crude from Alberta, Canada.”

On October 12, 2018, the Northern Alberta Mayors and Reeves Caucus hosted a presentation by a Canadian researcher. The presentation provided concerns about foreign interests funding environmental work in Canada with the intent to block development in the Canadian energy sector in order to protect foreign investments and market share. Further concerns included foreign charities providing inaccurate and misleading information on the Canadian energy sector via public relations campaigns.

While cross-border market competition and public relations marketing campaigns are an unavoidable reality in the energy sector, it is Strathcona County’s perspective that the best remedy for strong market competition and inaccurate public relations messaging affecting the Canadian energy sector is strong support and investment by the federal, provincial, and local governments. Comprehensive and relevant messaging by these important entities contributes to a more balanced public conversation in the marketplace and in political decision-making circles about the current and future impacts, disadvantages, and opportunities in Canada’s energy industry.

On December 2, 2018, the Government of Alberta mandated a short-term reduction in oil production to defend Alberta jobs and the value of energy resources. Starting in January 2019, production of raw crude oil and bitumen will be reduced by 325,000 barrels per day to address the storage glut, representing an 8.7 per cent reduction. The Alberta Energy Regulator will review the reduction amount every month to make sure production is in balance with transportation and storage capacity.

A resolution similar to this one was approved by the Rural Municipalities Association on March 20, 2019 with a majority of 98.8%.

Schedule A:

The elements of the properly resourced evidence-based education and marketing initiative include:

1. promote the world leading environmental, humans’ rights, and labour standards of the Alberta energy industry and its importance as an economic backbone of the country for jobs and supporting social programs;
2. highlight our energy industry as one of one of innovation, economic opportunity, and environmental sustainability;
3. educate the Canadian public on foreign de-marketing campaigns targeted at the Alberta and Canadian energy industry;
4. educate the public on the reality that wind, solar and alternative sources of energy are not currently able to supply the world’s energy needs;
5. educate the Canadian public on the unethical and hypocritical aspects of the energy de-marketing campaigns; and
6. educate the Canadian public on the benefits of the Alberta energy industry beyond traditional uses such as transportation, but as underlying element in over 6000 products from life-saving drugs, to computer components, to supporting alternative sources of energy.