Tag Archives: Alberta Oil

Albertans might need a public inquiry into the Public Inquiry into anti-Alberta Energy Campaigns

It was not a banner week for Alberta’s public inquiry into anti-Alberta energy campaigns.

It was supposed to look into the alleged foreign funding of “anti-Alberta energy campaigns,” but the $2.5 million public inquiry created by Premier Jason Kenney’s United Conservative Party government found itself in a credibility crisis this week after it was revealed that inquiry commissioner Steve Allan awarded the Calgary law firm Dentons a $905,000 sole-source contract for legal advice.

Allan’s son is a partner at Dentons’ Calgary office and Justice Minister Doug Schweitzer was a lawyer at that firm before he was elected to the Legislative Assembly. Schweitzer said he severed his connections to the firm earlier this year, but Allan’s son’s employment status at the firm raises some serious questions about conflict of interest.

New Democratic Party MLA Heather Sweet wrote to the Ethics Commissioner this week asking for an investigation into the sole-source contract. The Ethics Commissioner responded that she has no jurisdiction to investigate the inquiry’s contract with Dentons.

The inquiry’s business is shrouded in secrecy and it was designed by the government to be exempt from Freedom of Information requests that would allow a certain degree of transparency. For example, the inquiry website states that Allan intended to travel to Vancouver and Washington, DC in September 2019, and the North Coast of BC and Toronto in October 2019, but because the inquiry is exempt from FOIP requests, it is unclear who he met with during his travels.

But that has not stopped the media from digging, and the leaks from leaking.

Allen is being paid $291,000 for his one-year contract, according to information gathered by Alberta Today’s Allison Smith, and will be paid up to $800 per day to provide testimony following the completion of the inquiry’s investigation. The Edmonton Journal reported that the inquiry is hiring a part-time executive director for $108,123.

CBC also reported that Allan donated $1,000 Schweitzer’s campaign for the UCP leadership in 2017, which raises questions about the nature of his appointment as the inquiry’s commissioner.

Much of the basis of the inquiry’s investigation, that foreign-funded organizations like the Rockefeller Brothers Fund are responsible for secretly financing anti-pipeline and anti-oil groups in Canada, appears to have been discredited by investigative research done by the National Observer’s Sandy Garossino.

Garossino analyzed data on international charitable granting and found that international foundations, mostly American, have granted around $2 billion to Canadian groups over the last decade, but only 2 per cent of those funds (around $40 million) has gone towards pipeline opposition.

Of that $2 billion total in international funds, about 33 per cent came from the United States government. The second largest funder is the Bill and Melinda Gates Foundation, contributed $537 million. The Rockefeller Brothers Fund environmental grants, which have been demonized in Alberta’s political and media circles, amounted to “just two dollars per thousand in Canadian foreign grants.”

The Muttart Foundation, a non-profit foundation with a storied history in Edmonton, released a stinging criticism of the inquiry in its 174-page submission to the inquiry.

The Foundation’s submission included a report showing that funding from outside Canada represented 0.85% of total funding received by Canadian charities, and 0.26% of total funding received by charities based in Alberta.

The Foundation harshly criticized the rhetoric, fear-mongering, and false statements used to justify the inquiry and the government orders authorizing its creation.

To even imply that support of the energy industry or even agreement with government could become a criterion for determining whether an organization receives funding comes, we suggest, dangerously close to government direction of speech and thought. Leaving aside the legality of such an action, one could suggest that such a course of action would be contrary to the very principles of democracy.”

The inquiry is due to submit a final report to the Alberta government no later than July 2, 2020. In terms of the public inquiry’s credibility crisis and the damage it and the secrecy surrounding it could cause for our province’s reputation, Albertans might eventually need a public inquiry into the Public Inquiry into anti-Alberta Energy Campaigns.

International banks continue to divest from fossil fuels

While Steve Allan’s public inquiry is focused on anti-Alberta energy campaigns, the biggest threat to the oil and gas industry in Alberta might be the free market.

Sweden’s central bank announced this week that it no longer hold bonds issued by local authorities in Canada and Australia with high carbon-dioxide emissions. Bloomberg reported that the Riksbank said it had sold its holdings of securities from Alberta, where greenhouse gas emissions per capita are three times higher than in Ontario and Quebec.

The European Investment Bank, the EU’s financing department, also announced it will bar funding for most fossil fuel projects.

Premier Kenney’s principal secretary, David Knight-Legg, faced criticism this week after it was revealed that the senior political staffer stayed in upscale five-star hotels while travelling to London on Alberta government business. According to financial disclosures, Knight-Legg spent more than $45,000 on travel, including four trips to the British capital since the UCP formed government in April 2019.

The nature of Knight-Legg’s trips to London are not entirely clear, with the Premier’s office saying that he was there to fight defamation of Alberta’s oil and gas sector. The NDP is asking the Auditor General to investigate.

Meanwhile, the private corporation created by the Alberta government to fight defamation of the oil and gas sector has been running on silent. Not a peep has been heard from the $30 million War Room, now renamed the Canadian Energy Centre, since former reporter and defeated UCP candidate Tom Olsen was appointed as its managing director last month.

The War Room is also exempt from Freedom of Information requests.

(Photo source: Government of Alberta)

Alberta Separatism is the political equivalent of a toddler’s temper tantrum. It’s embarrassing and a bad idea.

Reading the pages of the Postmedia newspapers or the #ableg hashtag on Twitter you might believe that Albertans from roughneck Fort McMurray to trendy Kensington are calling for Independence and rising up in arms against their political overlords in Ottawa. 

Nope.

A flurry of recent opinion-editorials and columns in the pages of Canada’s Postmedia newspapers have been fanning the flames of discontent and frustration in Alberta. The discontent and perennial alienation from Ottawa is mostly a result of the economic slump and a delay in the expansion of the Trans Mountain Pipeline, but it is difficult to believe that there is any real appetite for Albertans to leave Canada, and the consequences that would follow.

University of Calgary economist Jack Mintz wrote in the Financial Post newspapers this week that an “Albexit” could draw inspiration from the United Kingdom’s disastrous “Brexit” from the European Union. Mintz drew inspiration from another European dumpster fire in 2015 when he penned another cringeworthy Financial Post op-ed predicting that “Alberta is not yet Greece, but it’s heading along that path.”

Three years later, Alberta is not Greece and probably should not be looking to Brexit for inspiration.

The arguments for Alberta’s separation from Canada are so weak and the concept of forming an Alberta Republic is so ridiculous that even the thought of writing this article made me cringe. It is the political equivalent of a toddler’s temper tantrum. But because I am a sucker for punishment, here I go.

Among the many of the disastrous consequences of Alberta leaving Canada would be that it would become virtually impossible to get any new pipelines constructed to the deep water ports that pipeline proponents argue the province’s oil industry needs. 

If you believe it has already been acrimonious to get the Trans Mountain Pipeline expansion built in two provinces, just imagine how difficult it would be to negotiate a pipeline project with a suddenly hostile foreign government, whether it be the prime minister of Canada in Ottawa or the president of the Pacific Republic of British Columbia in Victoria. Not to mention the inconvenient fact that the Government of Canada actually owns said pipeline and its expansion project.

Some will argue that the United States of America would open its borders to Alberta or even welcome it as the 51st State, but it seems unlikely that the American government would want to antagonize Ottawa by dealing with a landlocked rogue nation and cause trouble on it’s northern borders.

American corporations already dominate our economy, which saves the US government the messy business of having to govern us. And the likelihood that most Albertans would be inclined to vote for the Democratic Party would also make the statehood route less appealing for many in America’s political establishment.

The Canadian Government saved Trans Mountain by purchasing the pipeline and the expansion project just as Texas-based Kinder Morgan Inc. was preparing to withdraw their application for expansion. The government of Liberal Prime Minister Justin Trudeau paid $4.5 billion for the pipeline and project, and it is expected Ottawa could spend another $7 billion on the project after it meets the necessary conditions set by the Federal Court of Appeal. 

The Federal Court of Appeal ordered a stop to the project in August 2018 after the National Energy Board and federal government failed to conduct a proper environmental impact assessment of the increase of marine traffic and failed to properly consult First Nations communities along the route in the final phase of the approval process. 

While Trudeau clearly sees the pipeline expansion as a national priority worth spending serious political and real financial capital on, it is unlikely to bring him positive electoral returns in Alberta in 2019. Despite purchasing the pipeline, ensuring it will be built, and announcing $1.6 billion in loans and financial support to the oil and gas industry, support for Trudeau in Alberta has dropped like a lead balloon.

We didn’t ask for the opportunity to go further into debt as a means of addressing this problem,” Alberta Premier Rachel Notley said in response to the federal government’s bailout package.

It is unclear what Alberta’s politicians want to be done in the meantime. Many are calling the pipeline the only solution to Alberta’s economic problems. The big problem with that argument, if you believe pipelines are the solution, is that even if the Trans Mountain expansion project meets the conditions set by the Federal Court of Appeal in 2019 it might not actually be finished construction until 2022 or 2023. And even if other failed pipeline projects are resurrected, they might take even longer to complete.

That a Prime Minister named Trudeau is not popular in Alberta is no shock. The ingrained hatred for Trudeau and his father in the minds of many Albertans ensures that no matter what the Liberal government in Ottawa does to support our province, it will be seen as either a failure or a hostile attack.

While separatist sentiments bubble up in Alberta politics every decade or so, the last serious political push happened more than 35 years ago, when Western Canada Concept candidate Gordon Kesler won a February 17, 1982 by-election in the former Social Credit fortress of Olds-Didsbury.

The separatist MLA said at his swearing-in ceremony that he had “a lot of responsibility to those who believe in freedom and free enterprise,” but then spent the next few months in the Assembly railing against the metric system and official bilingualism. He and his party were crushed by Peter Lougheed’s Progressive Conservative juggernaut in the November 1982 general election.

Other separatist parties have come and gone since, but they have all faded in the right-wing fringes of Alberta politics.

And with provincial and federal general elections expected to be held in the next 10 months, Conservative Party leader Jason Kenney and federal opposition leader Andrew Scheer are only too happy to stoke the flames or western alienation and resentment over pipelines, equalization payments, and new energy regulations included in Bill C-69: An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts.

Meanwhile, outside of the margins of conservative opinion writers and anonymous twitter accounts, two recent polls show that while Albertans might be a little angrier, support for separation remains consistently low.

A recent poll conducted by the research company Ipsos found that “Albertans are a little angrier at the moment, but across the west there is little interest in separation and most measures of connection to Canada are consistent with prior polls taken conducted as long ago as 1997.

The level of support for the idea of an independent Alberta is roughly the same as it was in surveys conducted in 2014 and 2016,” said Mario Canseco, President of Research Co. “Four years ago, with a Progressive Conservative government in Edmonton and a Conservative government in Ottawa, the findings were similar to what is observed in 2018.”

The vast majority of Albertans remain proud Canadians regardless of which party has been elected to run the government in Ottawa. The frustration felt by many Albertans towards Ottawa over pipelines construction delays and the low international price of oil should not be ignored, but let’s not pretend that separating from Canada is a viable solution to our economic problems, because it’s not.

The Energy East Blame Game. Who blames who?

Today’s announcement by the TransCanada Corporation that it would no longer pursue the construction of the Energy East Pipeline from Hardisty, Alberta to Saint John, New Brunswick triggered a storm of statements, accusations and criticisms from politicians trying to drive their political narratives.

While the reasons for the TransCanada Corporation withdrawing its plans are likely influenced more by economics than by politics, there will certainly be political implications for the politicians – like Premier Rachel Notley – who have tethered their governing agenda to the approval of pipeline projects.

So, politics being politics, here is a quick look at who is blaming who for the demise of the Energy East Pipeline:

The TransCanada Corporation blames existing and likely future delays caused by the National Energy Board regulatory process, associated costs and challenging “issues and obstacles” facing the project.

Alberta Premier Rachel Notley blames “a broad range of factors that any responsible business must consider.”

New Brunswick Premier Brian Gallant doesn’t blame the TransCanada Corporation, but recognizes “recent changes to world market conditions and the price of oil have negatively impacted the viability of the project.”

Saskatchewan Premier Brad Wall blames Justin Trudeau, the federal government, and Montreal mayor Denis Coderre.

Minister of Natural Resources Jim Carr blames the decision to cancel the pipeline project as a business decision.

Conservative Party leader Andrew Scheer blames Prime Minister Justin Trudeau.

Alberta Liberal MPs Randy Boissonnault, Amarjeet Sohi and Kent Hehr blame “current market challenges related to world market conditions and lower commodity prices.

Calgary Conservative MP Michelle Rempel blames “Liberal ideological opposition to the wealth and prosperity of western Canada, to the detriment of the nation as a whole.”

United Conservative Party interim leader Nathan Cooper blames the Alberta NDP.

UCP leadership candidate Brian Jean blames Rachel Notley, Justin Trudeau and Denis Coderre.

UCP leadership candidate Jason Kenney blames the Alberta NDP carbon-tax and social license, and the Trudeau Liberals. He later also blames Denis Coderre.

UCP leadership candidate Doug Schweitzer blames Justin Trudeau and Rachel Notley.

Alberta Party leader Greg Clark blames the Alberta NDP.

Alberta Liberal leader David Khan blames economic factors, describing the decision as “a business decision by TransCanada based on current economic and political realities.”

UCP MLA Drew Barnes blames Justin Trudeau’s Liberals.

UCP MLA Prasad Panda blames the Alberta NDP’s carbon tax.