Alberta’s energy minister is being directed by Premier Danielle Smith to boost oil production, defend the province’s energy sector and advance major pipeline projects.
In a new mandate letter signed on Oct. 2, Smith instructed Energy Minister Brian Jean to “secure agreement and approval from the federal government for the construction of a new bitumen pipeline to the northwest coast of British Columbia.”
At the same time, Jean is expected to be working to advance other projects to the United States, Ontario, Hudson Bay and the Arctic, the letter indicates.
The letter also highlights the need to implement a plan to increase Alberta oil production to six million barrels per day by 2030 and eight million barrels per day by 2035. A report issued by ATB on Monday stated that Alberta produced 4.2 million barrels per day in August, which it called the highest output on record for that month.
“I think they’re very realistic,” Jean said about the goals in an interview with CBC. “I don’t think the premier would put them in a mandate letter unless she thought we could achieve them.”
However, the roadmap may face political opposition, including environmental concerns, and questions about interprovincial co-operation.
“I would like to say I was surprised,” said Cameron Hunter, a conservation specialist at the Alberta Wilderness Association (AWA). “But it seems to be, perhaps, what I’ve been expecting kind of getting into this role — there’s a very heavy focus on industry.”
Hunter said that while expanding oil production could be realistic from an economic standpoint, doing so would clash with Canada’s emissions reduction targets under the Paris Agreement, which aims for a 40 to 45 per cent reduction in greenhouse gas emissions by 2030.
“In the last year, we maybe only reduced it about seven per cent,” Hunter said in an interview with CBC. “So it’s hard to say that it’s a realistic goal.”
He added that AWA believes energy development in Alberta should ” significantly reduce provincial emissions and also help kind of further Canada’s commitment, or meet those goals or those targets,” and advance renewable alternatives instead.
Despite resistance expressed by some B.C. politicians and Indigenous communities regarding a proposed new pipeline to the West Coast, Jean said support for it remains strong, including among First Nations individuals that he said he has spoken to.
“I did see a couple of politicians and a few First Nations oppose it, but I saw the overwhelmingly hundreds and thousands of people that do support the pipeline and are enthusiastic about it,” he said.
Hunter indicated he is not hearing about a lot of support coming from people in B.C.
“Recent news has been showing that the B.C. side of it is not supportive of the project,” he said. “It doesn’t seem that there’s a lot of support for the project outside of Alberta at this point in time.”
Interprovincial challenges
A hoped-for pipeline to Ontario could have issues crossing Manitoba.
This summer, Manitoba signed memorandums of understanding with four other provinces to improve trade and labour mobility. However, these did not include a pipeline agreement with Ontario, Saskatchewan and Alberta.
Interprovincial and federal co-operation will be crucial to achieve the premier’s goals, but Jean stressed that Alberta doesn’t intend to be stopped.
“You can’t be on Team Canada if you’re not on Team Alberta,” he said.
“In the meantime, we’re going to try to get our pipelines into the ground and get this product to international communities where we have the right to do so.”
Regulatory roadblocks
In recent weeks, some observers questioned whether private companies have an appetite for new pipelines given current regulatory barriers and a global transition toward renewable energy.
Jean pushed back on the notion.
“All of the pipeline companies are interested in building a pipeline,” he said. “But right now, it’s an illegal pipeline. They will not be able to build it because they can’t build it to nowhere.”
Jean pointed to federal legislation like Bill C-69 and Bill C-48 as key barriers.
“If they removed those laws, if they removed the tanker ban or removed the no more pipeline law of C-69, you would see many companies come to the table,” he said.
The government-led technical advisory group looking at a new bitumen pipeline to the B.C. coast includes three major pipeline companies — Enbridge, South Bow and Trans Mountain — although those companies would not necessarily be involved if the project were to proceed.
Hunter warned that Alberta could be getting left behind as he argued that the need for high-carbon energy is waning.
“The Alberta government is glossing over some of the risks that are associated with pipelines,” he said. “The mandate that has been put out is just focusing on increasing production and not necessarily any protections from industry.”
Jean said he’s confident Albertans will support the new mandate, one he believes directly ties to their livelihoods.
“People in my riding of Fort McMurray and Lac La Biche … they will be proud of it because all of these things are things that really touch them and their jobs and their economy and their quality of life long term,” he said.
