Like it or not, we live in a resource-based economy – a global, resource-based economy. Albertans are blessed by our fortunate geography sitting atop one of the largest oil deposits on the planet.
Fossil fuels get us to work and back, heat our homes, give us light with the flick of a switch, and fly us around the world, not to mention provide us with an endless list of consumer products. The sheer infrastructure, including gas stations, power plants and manufacturing facilities that support and use fossil fuels is worth trillions of dollars worldwide.
There is no question that we must find cost-effective, more environmentally friendly alternatives to fossil fuels. Today, however, the world is completely invested in fossil fuel industries – our global economies depend on them.
Alberta’s oilsands have been a juggernaut for the Canadian economy for decades, providing high-paying jobs and revenue streams for government. The oilsands’ importance to the Canadian economy cannot be denied, making it doubly perplexing that they are viewed as a liability by some Canadians.
Since the price of a barrel of oil tumbled over $60 in the last year, there has been a marked change in Canada’s political climate. There’s almost a sense of glee emanating from Ontario and Quebec over oil’s precipitous drop, akin to rich Alberta finally getting its comeuppance. This manifestation is evident in Canada’s inability to get a pipeline built from Alberta to any Canadian port.
During last month’s premiers gathering, it appeared as if Eastern Canada would call the shots before they’d support the Energy East pipeline. Quebec Premier Philippe Couillard won’t go that far unless Alberta gets serious with its climate change plan. Amazingly, Alberta Premier Rachel Notley seemed to capitulate to Couillard’s tough talk. “What I heard from him is that if we’re able to move forward on that in a meaningful and convincing way, that there’s more likelihood of Quebec being able to come to terms with it,” Notley said.
It took Saskatchewan Premier Brad Wall to put the oilsands in perspective. “Maybe we need to have equalization payments start flowing through a pipeline in order to finally get one approved through Central Canada.” Wall later added, “We need to be more sustainable in development, but increasingly the dialogue in the country seems to be heading in the direction where somehow oil and gas is something we ought to be ashamed of.”
Notley, by contrast, has not shown thus far that she strongly supports Alberta’s oilsands. When recently asked if her government would reconsider its policies on hiking the corporate tax rate from 10 to 12 per cent and conducting a royalty review, she responded, “Alberta still has, by far, the most competitive tax regime in the country. When times get tough, those who are profitable should be paying just a little bit more.”
Notley has also promised that by 2017, large emitters will have to reduce the intensity of greenhouse gases by 20 per cent, and added carbon levies will double to $30 a tonne from $15. An oilsands industry spokesman says the emissions charges and tax increases will cost the industry an additional $800 million over the next two years.
With oil prices in the tank and anti-oilsands rhetoric getting louder, now is the time Alberta needs to stand up for its interests. The problem is, who will stand up?
