Latest news with #oilands
National Post
7 days ago
- Business
- National Post
Alberta and Ottawa are touting a grand bargain on 'decarbonized' oil but some are skeptical
OTTAWA — 'Grand bargain' was the phrase of the day on Parliament Hill after Prime Minister Mark Carney and his provincial counterparts found common ground on oil and gas development. Article content 'If (the Conservatives) were listening to yesterday, there is a grand bargain,' Energy Minister Tim Hodgson boasted to the Opposition benches. Article content 'There is a bargain that the premier of Alberta has signed onto.' Article content Article content Alberta Premier Danielle Smith left Monday's first ministers' meeting with a new deal exchanging oil sands access to coastal waters for massive investments in decarbonization technologies, but experts warn this could be a costly pipe dream. Article content 'I'm worried we're seeing (the first ministers) fall into a trap of wanting to have their cake and eat it too,' said Tim McMillan, a partner at Garrison Strategy and the former head of the Canadian Association of Petroleum Producers. Article content 'Let's call it the grand bargain,' Smith told reporters in Saskatoon, referring to the idea of twinning new pipeline proposals with large-scale decarbonization projects. Article content Carney said Monday that he'd consider fast-tracking a new oil pipeline to the West Coast if it shipped 'decarbonized barrels' to new markets. Article content Article content 'There's real potential there (and), if further developed, the federal government will look to advance it,' said Carney. Article content But McMillan says the devil could be in the details. 'I don't know exactly what they're talking about with decarbonization, but… it may be linked to carbon capture, which does not increase our exports (or) investability,' said McMillan. 'If (carbon capture) becomes a long-term requirement for new projects, it will likely have a negative effect on future investments in Canada's upstream oil and gas sector.' Article content The Calgary-based Pathways Alliance, a group of six major oil sands producers, has put forward a $16.5-billion decarbonization network that would reroute carbon emissions from nearly two dozen facilities to an underground hub near Cold Lake, Alta.
Bloomberg
23-05-2025
- Business
- Bloomberg
Cenovus CEO Downplays Chance of MEG Bid Amid Organic Growth Push
Cenovus Energy Inc.'s top executive downplayed the chance the oil sands producer would offer to buy MEG Energy Corp., saying he's more focused on expanding existing assets than making acquisitions. Cenovus has been named as a potential rival bidder for MEG after Strathcona Resources Ltd. unveiled plans last week to take a C$5.93 billion takeover offer to MEG's shareholders. Cenovus operates oil sands wells adjacent to MEG's 100,000-barrel-a-day operation.
CBC
23-05-2025
- Business
- CBC
'Energy is Canada's power': New federal energy minister touts past Alberta oilpatch ties
The new federal energy minister delivered a boisterous speech in support of the country's energy sector on Friday morning, while highlighting his past involvement in the sector and the urgent need to build a variety of new energy projects. Tim Hodgson spoke to a business crowd, which gave him loud applause at a sold-out event in downtown Calgary as part of his first appearance since the cabinet appointment by Prime Minister Mark Carney. "Energy is power. Energy is Canada's power. It gives us an opportunity to build the strongest economy in the G7, guide the world in the right direction, and be strong when we show up at a negotiation table," said Hodgson in his speech. Born and raised in Winnipeg, Hodgson served as a reserve officer in the Canadian Armed Forces from 1979 to 1985. Hodgson is most-known as a former banker with Goldman Sachs who served as an adviser to Carney at the Bank of Canada. Hodgson's resumé also includes the role of board chair at Hydro One, Ontario's public electricity provider. Still, for those in the oilpatch, his most relevant career experience was the three years he spent as a board member with MEG Energy, one of the top-15 largest oil and gas producers in Canada and one that operates an oilsands facility in Alberta. "At Goldman, one of my first major deals is also one of the deals I am still the proudest of today: The Alliance Pipeline." WATCH | Reaction in Alberta to the appointment of Tim Hodgson as federal energy minister: Reshaping Alberta's energy relationship with the federal government 10 days ago Duration 2:20 Alliance is a pipeline that transports natural gas from Alberta and British Columbia to the Chicago area. "We helped get that project off the ground," Hodgson said. "That pipeline closed the natural gas price differential, supported jobs, and brought Alberta better royalties and the federal government more revenue. A better price for Canadian energy helped every Canadian — just like more recently, with the building of the TMX expansion." The federal government under former Prime Minister Justin Trudeau purchased the Trans Mountain pipeline project and built the expansion pipeline to transport oil from Edmonton to an export terminal near Vancouver. "I want to be very clear. In the new economy we are building, Canada will no longer be defined by delay. We will be defined by delivery," he said. Hodgson repeated a phrase often promoted by the oil and gas sector about how the export of energy from Canada creates an overall benefit for the world. "Every barrel of responsibly produced Canadian oil and every kilowatt of clean Canadian power can displace less clean, riskier energy elsewhere in the world," he said. "Our exports can help our allies break dependence on authoritarian regimes and help the world reduce our emissions." Hodgson highlighted the need for various types of energy including nuclear power, while also pressing for the Pathways project to proceed, which is a proposed carbon-capture facility in the oilsands region of northern Alberta. "All of us, governments and industry, need to get the Pathways project done. This government will not be a government of talk, but a government of action. We need the same from the province of Alberta and the Pathways Alliance," he said. The Pathways organization is a collaboration between oilsands giants, including Suncor. The company's CEO Rich Kruger introduced Hodgson at the event, saying the government's focus on building is "music to our ears." He also praised Hodgson for his distinguished career. Several provincial leaders, including Alberta Premier Danielle Smith, have called for a political "reset" in how Ottawa engages with the West. Smith was also "very concerned" about the appointment of new Environment and Climate Change Minister Julie Dabrusin. "We are being forced to contend with yet another 'keep it in the ground' environment minister. This is a step in the wrong direction," Smith said, following the recent federal election. Industry sees Hodgson as 'a great pick' The Alberta government is much more open-minded about Hodgson's appointment, while those in the industry praised him as "a great pick" and "probably the best choice" for the job. Those in the industry hope Hodgson's combination of capital markets experience and knowledge of the oilpatch will help attract investment and shape policy that will help the sector blossom. During the election campaign, Carney said his government would make Canada the world's "leading energy superpower" to kick-start the country's economy, build energy corridors, and make faster regulatory decisions on major projects. The country is facing the possibility of an economic recession from the serious threat of U.S. President Donald Trump's tariffs. Hodgson's appointment could alleviate some of the frustrations voiced by oilpatch leaders about the re-election of the Liberals and the concerns of continued policies that target the sector. Over the last decade, oilpatch leaders have criticized the Liberal government for introducing legislation that harms the sector such as the clean fuel regulations, the proposed emissions cap and changes to the federal assessment of major projects.
National Post
13-05-2025
- Politics
- National Post
'Fire... meet gas': Alberta Premier Danielle Smith dismayed at Carney cabinet picks
OTTAWA — Alberta Premier Danielle Smith didn't hide her dismay at Prime Minister Mark Carney's choice of Toronto-area MP Julie Dabrusin as his new environment minister on Tuesday. Article content Article content 'I am very concerned the prime minister has appointed what appears to be yet another anti-oil and gas environment minister,' said Smith in a statement on Carney's cabinet picks. Article content 'Not only is (Dabrusin) a self-proclaimed architect of the designation of plastics as toxic, but she is a staunch advocate against oil sands expansion (and) proponent of phasing out oil and gas(.)' Article content Smith also said she was put off by Dabrusin's close ties to longtime thorn in her side Steven Guilbeault, to whom Dabrusin served as a parliamentary secretary for four years. Article content The premier's chief of staff, Rob Anderson, was even more blunt in his reaction to Dabrusin's appointment. Article content 'Fire… meet gas,' wrote Anderson on social media. Article content Carney's promotion of Dabrusin to Guilbeault's old job keeps Ottawa and Alberta on a collision course over Liberal net-zero climate policies. Article content Smith has warned Carney repeatedly that he'll need to scrap several of these policies — including the federal cap on oil and gas emissions and federal clean electricity regulations — if he wants to avoid an unprecedented national unity crisis. Article content On Monday, Smith announced that she was indefinitely freezing Alberta's industrial carbon price at $95 per tonne, setting up a clash with the Carney Liberals over their escalating federal carbon price. Article content Article content Just one Alberta MP, Edmontonian Eleanor Olszewski, was named to Carney's 28-member cabinet. Article content Rookie Calgary Liberal MP Corey Hogan was snubbed of either a cabinet or secretarial post. Article content The reaction to Carney's new cabinet in Alberta wasn't all negative, as some in the province's business community said they were encouraged by the appointment of ex-banker Tim Hodgson as energy minister. Article content 'Tim (Hodgson) has real life experience with Alberta's energy sector… he's seen firsthand the challenging policy environment that the federal government has put in place for the past ten years,' said Business Council of Alberta President Adam Legge. Hodgson was previously an executive with Calgary-based oil sands producer MEG Energy. Article content Calgary-based energy analyst Heather Exner-Pirot agrees that Hodgson's appointment is good news for Alberta's energy sector. Article content 'I don't think there's anyone else in the entire Liberal caucus who could've given as much cause for optimism as Hodgson,' said Exner-Pirot. Article content
