Tag Archives: Tim McMillan

Postmedia columnists and Fraser Institute team up to attack the Alberta’s climate change plan

The full court press against the Alberta government’s Climate Leadership Plan continued today as Postmedia business columnists Gary Lamphier and Claudia Cattaneo dutifully and uncritically weighed in on the latest report from the right-wing Fraser Institute. The report claims the emissions cap included in Alberta government’s climate change plan will cost Canada’s oil sands industry $250 billion and is the latest in a concerted effort by conservative opponents of the NDP to undermine its flagship policy.

Gary Lamphier

Gary Lamphier

Both columnists unquestioningly quoted in length the dire warnings of the Fraser Institute report, with Ms. Cattaneo giving the closing word in her column to Wildrose Party leader Brian Jean, who surprised no one by describing the emissions cap as “damaging.” Focused on attacking the government’s policy, neither columnist bothered to provide any actual analysis of the report or delve into what a Wildrose government would do, if anything, to reduce carbon emissions.

Some Wildrose MLAs do not appear to believe the science of climate change, and reportedly neither does the person managing Jason Kenney‘s bid to merge the Wildrose and Progressive Conservative parties. The old PC government acknowledged the existence of climate change but never actually bothered to take meaningful action.

Neither columnist bothered to mention that the oilsands emission cap enjoyed rare support from both energy industry and environmental leaders when Premier Rachel Notley and Environment and Parks Minister Shannon Phillips unveiled the government’s Climate Leadership Plan in November 2015.

Premier Rachel Notley and Environment Minister Shannon Phillips release Alberta's climate change plan.

Premier Rachel Notley and Environment Minister Shannon Phillips release Alberta’s climate change plan in November 2015.

Offering their support for the Climate Leadership Plan at the November 2015 press conference were industry heavy hitters like Canadian Natural Resources Limited chair Murray Edwards, who said: “The framework announced will allow ongoing innovation and technology investment in the oil and natural gas sector. In this way, we will do our part to address climate change while protecting jobs and industry competitiveness in Alberta. (Ms. Catteneo actually interviewed Mr. Edwards a few days after this announcement)

And Brian Ferguson, President & Chief Executive Officer of Cenovus Energy, who said: “We fully support the Government’s new climate policy direction. It enables Alberta to be a leader, not only in climate policy, but also in technology, innovation, collaborative solutions and energy development.”

And Steve Williams, President and Chief Executive Officer of Suncor, who said: “Today we reach a milestone in ensuring Alberta’s valuable resource is accompanied by leading carbon policy. It’s time that Alberta is seen as a climate, energy and innovation leader.”

And  Lorraine Mitchelmore, President and Country Chair of Shell Canada and EVP Heavy Oil for Shell, who said: “Today’s announcement sets Canadian oil on the path to becoming the most environmentally and economically competitive in the world.”

And finally, Tim McMillan, president and chief executive officer of the Canadian Association of Petroleum Producers, who said: “…the province’s climate strategy may allow our sector to invest more aggressively in technologies to further reduce per barrel emissions in our sector and do our part to tackle climate change. That’s what the public expects, and that’s’ what we expect of ourselves.”

Not to mention praise the climate change plan has received from Bank of England Governor Mark Carney and a little known political figure by the name of Barack Obama.

It is not to say that these energy executives will agree with every policy the Alberta government will implement over the next three years, but these two Postmedia business columnists owe it to their readers not to omit these important facts from their columns.


Note: The results of the Fraser Institute report are disputed by the Pembina Institute‘s Simon Dyer, who told the CBC that the report “is based on unreasonable production levels that don’t consider the world making progress on climate change.” University of Alberta economist Andrew Leach, who chaired the Climate Change Review Panel, told the CBC that “given what I can tell, the study does not assume any progress in oilsands emissions per barrel and no ability to reduce emissions other than shutting in production.”

They did what?! Reaction to the NDP Royalty Review from across the political spectrum

Here is what energy industry executives, progressive advocates and opposition politicians had to say about the Royalty Review panel report released on Friday, Jan. 29, 2016:

“Our new royalty framework recognizes the economic context of Alberta’s energy industry and the need to protect and promote good jobs. Our new system will gradually deliver greater revenue to Albertans while building a more competitive energy sector enhanced by greater transparency and performance measurements to allow Albertans to hold government and industry to our commitments.” – Rachel Notley, Premier of Alberta (press release)

“Our history of innovation has made Alberta into one of the world’s top energy producers. With the changing world we face today, it’s even more important to encourage innovation and ensure Alberta can compete. That way, everyone benefits. Our panel is proud to deliver these recommendations to improve our energy industry’s future.” – Dave Mowat, Royalty Review Advisory Panel Chair  (press release)

“Virtually none of our concerns or suggestions are reflected in the royalty report… Those ideas were passed over in favour of a plan that could have been introduced by a PC or Wildrose government… We had high hopes at least some of those progressive alternatives would have found their way into the final report. But they didn’t.” – Gil McGowan, President of the Alberta Federation of Labour (reported in the Calgary Sun and AlbertaPolitics.ca)

“Together, we created a meaningful dialogue around the energy issues both in Alberta and across Canada. I believe that together, we have developed an enduring framework and set of recommendations that will contribute to Alberta’s future prosperity.” – Leona Hanson, Panel member and Mayor of Beaverlodge  (press release)

“The most glaring omission is the complete absence of any kind of incentive for environmental improvement by industry. Under this new royalty system the government is rewarding the environmental status quo. Alberta’s energy industry is innovative and they deserve the opportunity to be rewarded for improved environmental practices. This is particularly prevalent in the decision to ignore the oilsands royalty process completely.” – David Swann, MLA for Calgary-Mountain View and interim leader of the Liberal Party (press release)

“The new royalty framework is principle-based and provides a foundation to build the predictability industry needs for future investment… The report recognizes royalties are just one part of the competitiveness equation for Alberta. With today’s economic situation, now is the time for industry and the Alberta government to work together on solutions that will make Alberta a world-class province to do business… Today’s announcement has been the result of a fair and credible process, one Albertans can trust.” – Tim McMillan, president and chief executive officer of the Canadian Association of Petroleum Producers (press release)

“They’ve done some good things that were laudable, but that keeping the royalty rates and structure was disappointing. There was a lot of room for improvement to capture a greater share of the resource generated by the industry in a high-price environment; holding the line doesn’t accomplish that.” – Ricardo Acuna, executive director of the Parkland Institute (Globe & Mail)

“I was impressed with the efforts of the Panel to understand and balance the interests of the public, the Province and the industry, but I was particularly impressed with how all of the input was considered and integrated to the Modernized Royalty Framework report. I believe the Panel’s recommendations significantly update and improve the Alberta royalty framework which should ultimately encourage investment in Alberta’s resources.” – Kevin ‎Neveu, President and CEO of Precision Drilling Corp.  (press release)

“Just like in our royalty plan, the panel has found that Albertans are getting a fair share from oil and gas royalties, and that our royalties today are globally competitive. As well, they also agreed with our plan that oil sands royalties are fair as-is, and that further transparency is needed. I urge them to take this one step further by compiling and issuing an annual Resource Owners Report, both to inform and educate Albertans as to the many ways we benefit from our energy industry.” – Greg Clark, MLA for Calgary-Elbow and leader of the Alberta Party (press release)

“We see this as a good start on increasing competitiveness and enhancing the province’s financial strength. We look forward to seeing the final details, but at this stage, we commend the Panel on delivering what looks to be a thorough and credible framework that can help Alberta companies compete in difficult market circumstances while providing a more transparent and suitable royalty system.” – Pat Carlson, CEO of Seven Generations Energy Ltd.  (press release)

“Our heart goes out to the Albertans who suffered job losses because of the instability caused by calling the royalty review. The next step is to recover from the damage done by this review and the series of poorly thought out policies that are harming our energy sector. Alberta needs to start seriously evaluating how to restore our competitiveness on the world stage.” – Brian Jean, MLA for Fort McMurray-Conklin and leader of the Wildrose Party (press release)

“We are pleased the government has concluded that the oil sands royalty framework provides the appropriate share of value to Albertans. Completion of the royalty review provides certainty, predictability and helps increase investor confidence in the Province. Industry and government can now focus on initiatives to lower costs, improve efficiencies and enhance environmental performance—all with the goal of getting Albertans working again.” – Bill McCaffrey, President and CEO of MEG Energy Corp.  (press release)

“It is no surprise to see that the Panel found the existing royalty structure to be fair and equitable for Albertans. It’s sad that this government had to create such havoc within the industry only to find out that the regime created by the Progressive Conservatives gives Albertans their fair share of resource revenues.” – Richard Gotfried, Progressive Conservative MLA for Calgary-Fish Creek

Premier Rachel Notley and Environment Minister Shannon Phillips release Alberta's climate change plan.

Pigs fly as oil industry and environmental groups endorse NDP’s ambitious Made-in-Alberta Climate Change Plan

Pigs continued to fly in Alberta politics today as energy industry leaders and environmental groups joined Premier Rachel Notley and Environment and Parks Minister Shannon Phillips at a press conference to release Alberta’s much anticipated plan to take action against Climate Change. The Alberta government received the final report from the independent panel led by University of Alberta economics professor Andrew Leach and announced its plans to phase out coal burning electricity plants, phase in a price on carbon, introduce a limit on overall emissions from the oil sands and introduce an energy efficiency strategy.

Ms. Notley will now take the report and the made-in-Alberta plan to address climate change to a meeting with Prime Minister Justin Trudeau and other premiers tomorrow and to the United Nations Framework Convention on Climate Change (COP21) in Paris next week.

Here is what energy industry executives, environmental leaders and opposition politicians had to say about today’s climate change announcement:

Responding to climate change is about doing what’s right for future generations of Albertans – protecting our jobs, health and the environment. It will help us access new markets for our energy products, and diversify our economy with renewable energy and energy efficiency technology. Alberta is showing leadership on one of the world’s biggest problems, and doing our part.” – Rachel Notley, Premier of Alberta (full release)

I thank the panel members and the many Albertans, including Indigenous people, industry, environmental groups, municipalities and other partners and stakeholders for their contribution. This is the right plan for our province, and now is the right time to implement it.” – Shannon Phillips, Minister of Environment and Parks (full release)

The announcement is a significant step forward for Alberta. We appreciate the strong leadership demonstrated by Premier Notley and her government. The framework announced will allow ongoing innovation and technology investment in the oil and natural gas sector. In this way, we will do our part to address climate change while protecting jobs and industry competitiveness in Alberta.” – Murray Edwards, Chair, Canadian Natural Resources Limited (full release)

Today we are making history, with Alberta taking its rightful place as a leader on the world stage. Premier Notley promised Albertans leadership on the issue of climate change and she and her government have delivered. This is the right thing to do for both for our environment and our economy. The world needs more of this kind of leadership from major energy producing jurisdictions if we are to avoid dangerous climate change.” – Ed Whittingham, Executive Director, Pembina Institute (full release)

We fully support the Government’s new climate policy direction. It enables Alberta to be a leader, not only in climate policy, but also in technology, innovation, collaborative solutions and energy development. I believe it will lead to Albertans and Canadians receiving full value for their oil and natural gas resources, while addressing climate change.” – Brian Ferguson, President & Chief Executive Officer of Cenovus Energy (full release)

After a string of pipeline victories and over a decade of campaigning on at least three different continents, the Alberta government has finally put a limit to the tarsands. Today they announced they will cap its expansion and limit the tarsands monster to 100 megatonnes a year.” – Mike Hudema, Greenpeace (full release)

This new carbon tax will make almost every single Alberta family poorer, while accelerated plans to shut down coal plants will lead to higher power prices and further jobs losses. Wildrose will be looking at every detail of this plan closely, and we will speak out against policies that hurt Albertans and the economy.” – Brian Jean, leader of the Wildrose Party (full release)

Canadians have high expectations of themselves when it comes to protecting the environment and managing economic growth, and the world expects much of Canada. Alberta’s new climate change policy sends a clear message that Alberta intends to live up to those expectations. Today’s announcement sets Canadian oil on the path to becoming the most environmentally and economically competitive in the world.” – Lorraine Mitchelmore, President and Country Chair Shell Canada and EVP Heavy Oil for Shell (full release)

Now it’s time for the government to unapologetically promote Alberta’s emissions reduction successes to date and clearly articulate support for the long-term growth of Alberta’s energy industry, including the oil sands, conventional production, natural gas power, cogeneration and renewable energy.” – Greg Clark, leader of the Alberta Party (full release)

Today we reach a milestone in ensuring Alberta’s valuable resource is accompanied by leading carbon policy. It’s time that Alberta is seen as a climate, energy and innovation leader. This plan will make one of the world’s largest oil-producing regions a leader in addressing the climate change challenge.” – Steve Williams, President and Chief Executive Officer, Suncor (full release)

“On a public policy Richter scale, Alberta’s new Climate Leadership Plan is an 11. It is enormously positive and forward-looking and will yield measurable benefits for the health and quality of life of Albertans. Significantly, the new plan is supported by oil industry leaders, environmental organizations and other important stakeholders.” – Rick Smith, executive director of the Broadbent Institute

Alberta’s decision to move away from coal-fired electricity generation and dramatically increase its use of renewable energy reflects a trend happening in countries all over the world. More renewable energy in Alberta will reduce greenhouse gas emissions, clean the air, and produce significant new investment and jobs – particularly in rural areas of the province.” – Robert Hornung, President of CanWEA (full release)

As Premier Notley said today, we expect today’s announcement to further enhance the reputation of our sector and improve our province’s environmental credibility as we seek to expand market access nationally and internationally. As well, the province’s climate strategy may allow our sector to invest more aggressively in technologies to further reduce per barrel emissions in our sector and do our part to tackle climate change. That’s what the public expects, and that’s’ what we expect of ourselves.” – said Tim McMillan, president and chief executive officer of the Canadian Association of Petroleum Producers (full release)

“This is a sale of a depleting resource that’s owned by the people. Once a barrel of oil goes down the pipeline it’s gone forever. It’s like a farmer selling off his topsoil,” former Premier Peter Lougheed once said.

Let’s Review Oil Royalties and Start Acting Like Owners Again.

Alberta’s new NDP government has taken steps to fulfill one of their key election promises by appointing a panel to ensure Albertans are receiving their fair share from their natural resource wealth through the royalty rates paid by the oil industry to the Alberta government.

Rachel Notley Alberta NDP leader

Rachel Notley

The choice of Alberta Treasury Branches President Dave Mowat, energy economist Peter Tertzakian, former Alberta deputy minister of finance Annette Trimbee, and Mayor of Beaverlodge Leona Hanson to review Albertans royalties should calm any anxiety industry leaders may have had with this process. These are sensible choices for this important review.

Like the panel reviewing Alberta’s climate change strategy, the royalty review panel is stacked with knowledgable appointees who cannot be accused being partisan New Democrats. And while some industry leaders are still uncomfortable with this year’s election results, Mr. Tertzakian has some advice for conservative-connected business leaders.

Peter Tertzakian

Peter Tertzakian

“The industry needs to have more than just an open mind — I think you have to go with forward thinking and that this is an opportunity to get away from business as usual,” Mr. Tertzakian told a business reporting website after Rachel Notley‘s NDP was elected with a majority government on May 2015.

The appointment of Mr. Tertzakian received immediate praise online from two prominent conservative voices –  former Wildrose MLA Heather Forsyth and former Wildrose leader Danielle Smith.

The panel has an important task ahead of it and has a mandate to “optimize” returns to Albertans as owners of the resource, industry investment, diversification opportunities, such as value-added processing, and responsible development of Alberta’s resources.

Bill Hunter, who chaired the 2007 royalty review panel established by former Premier Ed Stelmach, wrote in his final report that “Albertans do not receive their fair share from energy development. Albertans own the resource. The onus is on their government to re-balance the royalty and tax system so that a fair share is collected.”

Marg McCuaig Boyd (photo by Connor Mah)

Marg McCuaig Boyd (photo by Connor Mah)

Nearly a decade after Mr. Hunter penned those words, the responsibility once again falls on Alberta’s government to ensure that Albertans are receiving their fair share from energy development.

It is up to the current panel to consult with Albertans and industry to determine what that proper balance will be.

Part of that balance will be timing, as Energy Minister Marg McCuaig-Boyd told reporters today that any changes to royalties will not be implemented until 2017. And like any other panel review, Ms. McCuaig-Boyd and Ms. Notley have the leeway to ignore any recommendations that might appear to be politically unpalatable or carry too much risk. This is why government’s like to employ these types of panels to review potentially controversial policy changes.

Politicians from the opposition benches have been fiercely critical of NDP plans to review royalties. The WildroseAlberta PartyLiberal and the Progressive Conservative opposition have described the review as “job killing.” A September 3 by-election in Calgary-Foothills has escalated the partisan rhetoric from the opposition, who see a by-election win as a way to discredit the new government’s agenda.

Dave Mowatt

Dave Mowat

But others, like Alberta Oil Magazine editor Max Fawcett, argue that now is the perfect time for a royalty review. Canadian Association of Petroleum Producers president Tim McMillan has said he does not want the government to delay the review, and even Mr. Stelmach has said the review should happen.

Comparisons can be made to a rookie PC government led by Peter Lougheed, which reviewed royalties during its first year in office, to the consternation of industry leaders who had grown accustomed to a comfortable relationship with the old Social Credit government.

“The oil companies, not unexpectedly, are howling – while the natural gas industry is quaking in its boots because the government also has made clear it is going to change its taxes in the fall,” the Ottawa Citizen reported on May 8, 1972.

Ed Stelmach

Ed Stelmach

“This is a sale of a depleting resource that’s owned by the people. Once a barrel of oil goes down the pipeline it’s gone forever. It’s like a farmer selling off his topsoil,” Mr. Lougheed once said while encouraging Albertans to think like owners.

As the owners of the resources, Albertans deserve to know whether we are getting our fair share. But the result of a royalty review is made more important if the government does something meaningful with the funds collected through the rent of our natural resources.

Alberta launched the Alberta Heritage Savings Trust Fund in 1976. Under Mr. Lougheed’s leadership, the Heritage Fund initially received 30% of government resource revenues and was worth $12.7 billion in 1986, when the PCs began a 17 year freeze on new deposits into the fund. The Heritage Fund is now worth only $17.4 billion. Despite an embarrassment of riches during most of its 44-years in power, the old conservative government proved to be poor financial managers once Mr. Lougheed retired.

In their 2015 election platform, the NDP campaigned on the promise that “100% of incremental royalty revenue, above the sums earned by Alberta under the current regime, will be invested into Alberta’s Heritage Fund.

The current downturn in the price of oil will certainly change some of the new government’s short-term plans when the budget is tabled in October 2015, but significant investment in the Heritage Fund when oil prices do rise again will pay off for Albertans in the long-term. And ensuring that the owners – Albertans – are receiving their fair share from energy development, as Mr. Hunter wrote in 2007, will be key to this long-term planning.

Alberta Politics Roundup – Eve of Fall Sitting

Alberta Legislative Assembly

Alberta’s Legislative Assembly will begin the fall session on Monday, November 17, 2014.

Fall Legislative Session
November 17, 2014 will mark the start of the first legislative session for new Premier Jim Prentice, Health Minister Stephen Mandel and Education Minister Gordon Dirks. The 43-year old governing Progressive Conservatives have promised to introduce new laws focusing on property rights and ‘ending entitlements’ for their MLAs.

This will be Rachel Notley’s first session as leader of the NDP Caucus. And Liberal MLA Laurie Blakeman will introduce a private members’ bill supporting students who want to create Gay-Straight Alliances in their schools. Newly Independent MLA Joe Anglin is also expected to introduce a private members’ bill.

With the price of oil declining to the mid-$70 range and next year’s budget being prepared, Jonathan Teghtmeyer has shared 9 ways that Alberta could better manage our resources.

Constitutional Property Rights
Flanked by Lethbridge Conservative Member of Parliament Jim Hillyer and Lacombe-Ponoka MLA Rod Fox, Wildrose leader Danielle Smith announced her plans to introduce a motion calling on property rights to be included in the Charter of Rights and Freedoms.

The Wildrose motion will likely call for stronger action than will be included in Mr. Prentice’s flagship property rights bill. Also, it is almost politically impossible to amend the Canadian Constitution.

Wildrose in Red Deer
The Wildrose Party is holding its annual convention in Red Deer on November 14 and 15 (the PCs will meet in Banff). Sparks are expected to fly as activists vent their frustration about the party’s poor showing in four recent by-elections.

The departure of Mr. Anglin, a cancelled leadership review and a controversial motion to take away the ability of MLAs to remove their leader and the leader’s staff are also expected to fuel intense debate.

Government House leader
CBC reporter John Archer tweeted news that Justice Minister Jonathan Denis has replaced Municipal Affairs Minister Diana McQueen as Government House leader. Ms. McQueen was appointed to the position two months ago.

Tobacco
Mr. Mandel has announced plans to make it illegal for adults to smoke tobacco in vehicles with children and ban flavoured tobacco, but not menthol cigarettes. Menthol cigarettes are said to be favoured by seniors, who also tend to vote in larger numbers.

In 2012, Liberal leader Raj Sherman introduced the Tobacco Reduction (Protection of Children in Vehicles) Amendment Act, which would have made it illegal for adults to smoke tobacco in vehicles with children. Dr. Sherman’s bill was passed but never proclaimed by the PC Government.

Tailing Ponds
It has been one year since a breach of a containment pond at the Obed Mine spilled 670 million litres of toxic tailings into the Athabasca River and its tributaries.

The Alberta Wilderness AssociationMikisew Cree and Athabasca Chipewyan First Nations  and other groups are criticizing the federal and provincial governments for laying charges against the mine’s former owners, Sherritt International, or new owners, Westmoreland Coal Company.

Pro-pipeline Democrats force Keystone XL Vote
Hoping to stave off defeat in a December 6, 2014 runoff vote, Louisiana Democratic Senator Mary Landrieu is trying to force the United States Senate to vote on approval of the Keystone XL Pipeline before the end of 2014. Approval of the pipeline’s crossing the US-Canada border ultimately rests in the hands of President Barack Obama.

Yellowhead by-election
Voters in the Yellowhead federal riding will cast ballots in a by-election on Monday, November 17, 2014. Although Conservative candidate Jim Eglinski is expecting an easy victory, federal Liberal leader Justin Trudeau visited the constituency to campaign with candidate Ryan Mahugn last week.

Calgary Liberals
November 28. Kent Hehr expected to be acclaimed as federal Liberal candidate in Calgary-Centre. The popular MLA was first elected in Calgary-Buffalo in 2008. It is unclear if Mr. Hehr and fellow Liberal MLA Darshan Kang, who is running for the federal Liberals in Calgary-Skyview will resign their provincial positions before the next federal election.

Borderlands By-election
Voters on the Saskatchewan side of the divided city of Lloydminster elected a new MLA in a by-election held yesterday. Saskatchewan Party candidate Colleen Young was elected with 64% of the vote, defeating second place New Democrat Wayne Byers, who earned 29%. It is almost impossible to image an NDP candidate receiving that much support on the Alberta side of Lloydminster.  

Ms. Young replaces former Rural and Remote Health Minister Tim McMillan, who resigned in September to become the President of the Canadian Association of Petroleum Producers.

A plug…
I had the pleasure of joining the good folks at The Unknown Studio podcast to chat about Alberta politics this week. I also appeared on this week’s Alberta Primetime politics panel with Edmonton lawyer Roberto Noce and Mount Royal University professor Lori Williams.