The energy industry may need to look to Asian markets to weather the latest “headwind” out of the south.
Mark Plamondon, executive director of Alberta’s Industrial Heartland Association, said Feb. 11 Asian markets may hold relief from the threat of a 10 per cent tariff from U.S. President Donald Trump.
The group represents the five municipalities directly linked to the 582-square-kilometre energy industry cluster roughly northeast of Edmonton.
“We have a wide range of companies that operate here and there's a wide range of products being produced," he said. “The majority of Industrial Heartland products move out of the region and the majority of those that moved out of the region, you know, move to the United States.
“So tariffs, of course, are a headwind for companies that operate here and they're a headwind for new investments. When companies are looking to invest in new projects, one of the greatest impediments to investment is uncertainty, right?”
It leads to inaction as companies wait to learn more about the framework they are trying to operate in.
“So that's always one of the immediate impacts of any threats or any talks about tariffs. It's a headwind for investment … we need to work those gently to try to drive investments where companies move products to other markets.”
Plamondon said there is “tremendous support” from all three levels of government for projects that would help move Alberta’s “low-cost, low-carbon” products to the West Coast and beyond to Asian markets should access to the U.S. change.
“I think a common thing, and then this is both at the provincial and federal level, always is around what can governments do to support infrastructure to ensure that industry can move their products competitively, right?” he said. “So all of your logistics links, all of your port infrastructure, all of that type of stuff that would help companies with the economics of their projects, I think all of that makes really good sense from a provincial and federal government standpoint.
“The more you can enhance infrastructure for Canadian companies to move their products to other markets, I think the better off everyone will be.
“I think there's still opportunity for Alberta and the Industrial Heartland. It's just may not be south of the border like we're seeing today.”
