Latest news with #TedMorton
Edmonton Journal
6 days ago
- Business
- Edmonton Journal
Varcoe: Alberta wants a new oil pipeline — history warns of billion-dollar risk and reward of government financial backing
As Canadians watch a new debate unfold over what it will take to get a new oil pipeline built to the Pacific Coast, former Alberta energy minister Ted Morton has sage advice for provincial or federal politicians. Article content Don't forget about history. Article content Article content Past Alberta governments have a painful record of losing money when they get directly involved in major projects, seeking to de-risk developments and encourage the private sector to build. Article content Article content 'The track record is, I think, pretty one sided . . . not in the favour of governments and taxpayers,' he said this week. Article content 'The bottom line is governments routinely get out-negotiated, and the public, the taxpayer, gets stuck with the bill.' Article content Today, the country is contemplating building new energy infrastructure after the Carney government passed Bill C-5, which will fast-track nation-building projects. The prime minister has also said he wants Canada to become an energy superpower. Article content Article content In Alberta, part of the discussion has focused on how to best attract the private sector to develop a greenfield pipeline project to move more oil to the B.C. coast for export. Article content Will it require direct government involvement to make it happen, given the past failures of Energy East and Northern Gateway to proceed, and the high cost needed to get the Trans Mountain expansion built? Article content Will it be enough if Ottawa scraps legislation such as the tanker ban off the northern B.C. coast, the Impact Assessment Act and the oilpatch emissions cap? Article content 'There are only two ways for governments to de-risk (a pipeline). The easy way — and the wrong way — is to pony up, cover costs or reimbursement. (In) both Keystone and Trans Mountain, that's what happened,' said Morton. Article content That could happen with Bill C-5 being passed, although the concept still needs to be proven.
Calgary Herald
6 days ago
- Business
- Calgary Herald
Varcoe: Alberta wants a new oil pipeline — history warns of billion-dollar risk and reward of government financial backing
Article content As Canadians watch a new debate unfold over what it will take to get a new oil pipeline built to the Pacific Coast, former Alberta energy minister Ted Morton has sage advice for provincial or federal politicians. Article content Don't forget about history. Article content Article content Past Alberta governments have a painful record of losing money when they get directly involved in major projects, seeking to de-risk developments and encourage the private sector to build. Article content Article content 'The track record is, I think, pretty one sided . . . not in the favour of governments and taxpayers,' he said this week. Article content Article content One of those projects — the Sturgeon Refinery northeast of Edmonton — saw a $588-million net loss (a 62 per cent reduction from the previous year) recorded in the latest annual report of the Alberta Petroleum Market Commission (APMC), which was released last month. Today, the country is contemplating building new energy infrastructure after the Carney government passed Bill C-5, which will fast-track nation-building projects. The prime minister has also said he wants Canada to become an energy superpower. Article content Article content In Alberta, part of the discussion has focused on how to best attract the private sector to develop a greenfield pipeline project to move more oil to the B.C. coast for export. Article content Will it require direct government involvement to make it happen, given the past failures of Energy East and Northern Gateway to proceed, and the high cost needed to get the Trans Mountain expansion built? Article content Will it be enough if Ottawa scraps legislation such as the tanker ban off the northern B.C. coast, the Impact Assessment Act and the oilpatch emissions cap? Article content 'There are only two ways for governments to de-risk (a pipeline). The easy way — and the wrong way — is to pony up, cover costs or reimbursement. (In) both Keystone and Trans Mountain, that's what happened,' said Morton. Article content That could happen with Bill C-5 being passed, although the concept still needs to be proven.
