Prime Minister Danielle Smith is ordering Alberta Minister of Energy to drive oil production, defend the province’s energy sector and advance in important pipeline projects.
In a new mandate letter signed on October 2, Smith instructed the Minister of Energy, Brian Jean, to “obtain the agreement and approval of the federal government for the construction of a new gas pipeline to the northwest coast of British Columbia.”
At the same time, Jean is expected to work to advance other projects in the United States, Ontario, Hudson’s bay and Arctic, indicates the letter.
The letter also highlights the need to implement a plan to increase Alberta oil production to six million barrels per day for 2030 and eight million barrels per day by 2035. A report published by ATB on Monday indicated that Alberta produced 4.2 million barrels per day in August, which described as the highest production recorded for that month.
“I think they are very realistic,” Jean said about the objectives in an interview with CBC. “I don’t think the Prime Minister includes them in a mandate letter unless you think we can achieve them.”
However, the road map can face political opposition, including environmental concerns and questions about interprovincial cooperation.
“I would like to say that it surprised me,” said Cameron Hunter, a conservation specialist at the Alberta Wilderness Association (Awa). “But it seems, perhaps, what I expected to assume this position: there is a great focus in the industry.”
Hunter said that although expanding oil production could be realistic from an economic point of view, doing so would collide with the Canadian emission reduction objectives under the Paris Agreement, which points to a reduction of 40 to 45 percent of greenhouse gas emissions by 2030.
“In the last year, we may only reduce it around seven percent,” said Hunter in an interview with CBC. “So it is difficult to say that it is a realistic objective.”
He added that Awa He believes that the energy development in Alberta should “significantly reduce provincial emissions and also help promote Canada’s commitment, or meet those goals or those objectives”, and instead promote renewable alternatives.
Despite the resistance expressed by some politicians of British Columbia and indigenous communities with respect to the proposal of a new pipeline to the west coast, Jean said that support remains strong, even among the people of the first nations he said he had spoken.
“I saw a couple of politicians and some first nations oppose him, but I saw hundreds and thousands of overwhelming people who support the pipeline and are excited about him,” he said.
Hunter indicated that he has not heard of much support from the people of British Columbia.
“Recent news has shown that the part of British Columbia does not support the project,” he said. “It does not seem that there is much support for the project outside Alberta at this time.”
Interprovincial challenges
An expected Ontario pipeline could have trouble crossing Manitoba.
This summer, Manitoba signed Memorands of Understanding with four other provinces to improve trade and labor mobility. However, these did not include a pipeline agreement with Ontario, Saskatchewan and Alberta.
Interprovincial and federal cooperation will be crucial to achieve the objectives of the Prime Minister, but Jean emphasized that Alberta has no intention of being arrested.
“You can’t be in Canada’s team if you’re not in Alberta’s team,” he said.
“Meanwhile, we will try to install our pipelines and take this product to international communities where we have the right to do it.”
Regulatory obstacles
In recent weeks, some observers questioned whether private companies have appetite for new pipelines, given the current regulatory barriers and a global transition towards renewable energy.
Jean rejected the idea.
“All pipeline companies are interested in building a pipeline,” he said. “But right now it is an illegal pipeline. They can’t build it because they can’t take it anywhere.”
Jean said federal legislation as bill C-69 and bill C-48 as key barriers.
“If they eliminated those laws, if they eliminated the prohibition of tank trucks or eliminated the law of no more C-69 pipelines, we would see many companies sit at the table,” he said.
The technical advisory group led by the government that analyzes a new pipeline to the coast of British Columbia includes three important pipeline companies (in Bridge, South Bow and Trans Mountain), although those companies would not necessarily be involved if the project continued.
Hunter warned that Alberta could be left behind and argued that the need for high carbon energy is decreasing.
“Alberta’s government is overlooking some of the risks associated with pipelines,” he said. “The mandate that has been issued is simply focused on increasing production and not necessarily on any industry protection.”
Jean said he is confident that Alberta inhabitants will support the new mandate, who believes he is directly related to his livelihoods.
“People on my tour by Fort McMurray and Lac La Biche … will be proud of it because all these things are things that really affect them, their jobs, their economy and their long -term quality of life,” he said.
