Getting better value for our resources

Getting better value for our resources

As we all know too well, Calgarians are feeling the weight of the price differential for Canadian crude. We are forced to sell our resources at low rates because we only have one choice of customer to sell to: the United States. It's a very difficult time for many people.

This problem is decades in the making - and we are working to solve it. We know that getting our resources to non-US markets is the ultimate solution to relieve this pain. 

When the federal Conservatives came into power in 2006, 99% of our oil went to the USA. After a decade in power, that number was still 99%. Not one inch of pipeline was built to new energy markets.

Our Liberal government is committed to getting pipelines built. 

We approved the Enbridge Line 3 pipeline project, which is currently under construction. In 2019, it should come into operation and relieve some of the pipeline pressure. Keystone XL will relieve it even further. 

We are so committed to the Trans Mountain Pipeline Expansion that we bought the project to ensure it would proceed in the right way - and we plan to sell it once it has crossed the finish line. 

Right now, we are full-steam-ahead with the enhanced, more meaningful consultations with Indigenous groups. This will do two important things: 1) it will ensure the project is done the right way, and 2) it will demonstrate to the court that we've taken the appropriate steps, so the court will allow the project to move forward. It's the right thing to do, and it's the most efficient path forward. Minister Amarjeet Sohi has already personally met with 40 First Nations and Metis leaders in this regard.

In the short term, to deal with the immediate issue, the federal government launched a non-partisan working group of government experts from Canada, Alberta and Saskatchewan - including finance, rail, and energy experts. This group has been analyzing options, including the oil by rail proposal that we received from Alberta government, to relieve the pain being felt by so many. This rail proposal is not an immediate fix however, as it would take at least nine months to get the trains running. 

Recently in Calgary, the Prime Minister and I met with leaders in the oil and gas industry. While there is no consensus among industry for an immediate solution, everyone agrees that when one part of the sector loses, we all lose. 

In our fall economic update last month, Canada moved forward over $770 million for infrastructure improvements through the national transportation corridors initiative, which will help open up new rail efficiencies for crude, with tight coordination across other crucial sectors like grain, lumber and potash.

The refineries that went offline in October and November (which significantly hurt the price of Alberta oil) are now back online and ramping up production. This will bring some welcomed relief and capacity to the system, and begin to deal with the storage backlog.

We just launched an accelerated capital cost initiative across industry. The Canadian oil and gas sector will be able to reduce year one capital costs by three times as much as before.

We're also helping producers build up refining and partial upgrading capacity here in Canada. More in-Canada refining and partial upgrading means more value for every barrel. Partially up-graded bitumen can get an extra $10-$15 USD for every barrel. 

Through programs like the Clean Tech program, we have invested over $50 million in oil and gas projects, including for partial upgrading.

Currently, we're meeting with Canadian commodities shippers to advance rail solutions that work for everyone - including Albertans.

I am here to work every day for Calgarians. We need to ensure we are getting the highest value possible for our product. We need to finally diversify our exports to non-US markets so we are not beholden to a single customer. We need to upgrade and refine our products, so we can get that higher value. We need to continue to become the leading country in the world in clean technology, including in the oil and gas sector, so we continue to reduce heavy pollution. We need to increase our competitiveness. 

And if we work together on this, we will succeed.

Karl Loew

Superintendent at PCL Builders

6 年

First of all I would like to wish you and your family a Merry Christmas . I truly believe you were doing the what you thought was the right thing for this truly great?province of Alberta?. If that was the case you would not be receiving all this negative emails from the people that voted you into Office . Please for Alberta's future and the 50,000 people that have lost their Jobs in Alberta please step down from the Liberals and join the Conservative ?Party. Please send a message from you and the Alberta people that?we had enough of foreign interest groups . Alberta needs no handouts ,Canadians deserve leadership and make the hard decisions required for the people of Canada . There is a massive movement growing in Alberta and getting bigger by the hour .

When is the last time you voiced anything in the house of commons in support of Alberta?? You might as well do it now as in 10 months you wont have a voice anymore.?

Scott Leroux

Vice President | Geologist | Director

6 年

Kent, I hope you take the time to read the comments you get on LinkedIn. Looking back at your posts and resulting comments I have noticed that you trigger a mind-boggling amount of negative comments. In fact I don't think I have read a single one that believes, or supports anything you have ever said. You also don't often take the time to respond to your comments which may lead people to believe that you either don't read the comments or simply ignore them. Assuming you value the largely educated and concerned folks that you are trying to reach out to on this platform, you may want to re-think your strategy. Inflaming everyone with your tone deaf posts is clearly not working for you.

John Hogg

President at Skybattle Resources Ltd.

6 年

Kent, so much Liberal propaganda, so little truth. You supported cancelling Northern Gateway. You supported changes to the NEB process for downstream emissions for Energy East. You support Bill C-69. You support the tanker ban, Bill C-48. What have you done as a Liberal to help Calgary or Alberta in the worst Liberal mess since the 1980 National Energy Policy days. I look forward to your defeat next year.

I don’t blame you, but your PM is tone deaf and insulting. Comes to Calgary, “feels the pain” and then gives $600 m the next day to media. The social license Notley and your PM created is dead and was delusional. Even if you get the TMX approved Albertan’s will not forgive the self righteous claims on the environmental illegitimacy of fossil fuels by the environment minister. Your PM said we should phase out the oil sands which is as ludicrous as saying we should phase out the auto sector. Oh wait, he has managed his best to eradicate confidence in both sectors. Please refrain from cheer leading.

要查看或添加评论,请登录

Kent Hehr的更多文章

社区洞察

其他会员也浏览了