Top 10
Top 10: Enviro watchdog
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1. ENVIRO WATCHDOG
Monitoring system for oilsands recommended
A federally appointed advisory panel has told Ottawa and Alberta to put politics aside and set up a world-class environmental monitoring system for the oilsands. Former environment minister Jim Prentice appointed the panel to review concerns about oilsands pollution entering the Lower Athabasca River basin and connected waterways, and whether environmental monitoring systems are well designed and implemented. The panel, which released its results before Christmas, recommended a new system be set up to establish baselines, collect relevant data and refer it to a group of renowned scientists for review.
WHY IT MATTERS: “How Canada addresses the environmental issues surrounding the current and projected growth of the industry is of fundamental importance to Canadian trade and national and international energy security,” said the panel. “Until this situation is fixed, there will continue to be uncertainty and public distrust in the environmental performance of the oilsands industry and government oversight.”
2. GETTING WINDY
Companies plan Alberta’s largest wind farm
Calgary-based Greengate Power will work with Edmonton-based Capital Power to develop, build and operate what it expects will be the largest wind farm in Alberta, located 275 kilometres northeast of Calgary. The 150-megawatt Halkirk 1 project is scheduled for commercial operation in late 2011 or early 2012. It will produce enough electricity to power about 50,000 homes.
WHY IT MATTERS: Companies continue to pursue wind power development in Alberta. Privately held Greengate is developing nine wind projects in Alberta with an aggregate capacity of 1,550 megawatts. The Halkirk project will contribute to the municipal tax base and create jobs, while diversifying the province’s energy production base.
3. THE THREE AMIGOS
Western provinces to seek new energy markets
Alberta, British Columbia and Saskatchewan have agreed to unite to improve access to Asian markets and promote interprovincial and energy industry collaboration. A memorandum of understanding was signed in December between the three provinces. The pact builds on the New West Partnership agreement signed earlier in 2010 by the premiers of the same provinces to promote co-operation between them.
WHY IT MATTERS: “It’s never good business to be reliant on only one customer,” said Alberta Energy Minister Ron Liepert. He underscored the importance of finding Asian markets for the provinces’ natural gas rather than relying exclusively on the gas-glutted United States market. The provinces also want to reduce cross-border regulatory burdens.
4. TAILINGS TARGET
Industry collaboration to target challenge of oilsands tailings management
Seven oilsands mining companies announced in December that they plan to work together in a unified effort to advance tailings management as well as to foster innovation and collaboration in research and development relating to tailings. The companies include Canadian Natural Resources, Imperial Oil, Shell Canada, Suncor Energy, Syncrude Canada, Teck Resources and Total E&P Canada.
WHY IT MATTERS: The oilsands miners believe the partnership is a key step towards tailings solutions that will allow them to accelerate the pace of reclamation using the most advanced environmental measures. Each company has pledged to share its existing tailings research and technology and to remove barriers to collaborating on future tailings research and development.
5. UPGRADER ACTION
Total and Suncor form alliance, but Strathcona upgrader shelved
French oil giant Total and Calgary-based Suncor Energy have strengthened their oilsands alliance, inking partnership agreements to develop the Suncor-operated Fort Hills mining project, the Total-operated Joslyn mining project and the Suncor-operated Voyageur upgrader project. As a result of the agreements, however, Total will no longer proceed with its planned construction of a 295,000-barrel-per-day upgrader at Strathcona, near Edmonton, since its Joslyn mine will use Suncor’s Voyageur upgrader near Fort McMurray.
WHY IT MATTERS: While the news isn’t the best for those trying to promote an upgrader hub near Edmonton, the alliance is another shot in the arm for the oilsands sector and leaves little doubt that that the industry is back on track. Suncor’s Voyageur project was halted in 2008 as the worldwide economic downturn flattened construction plans.
6. EXTREME MAKEOVER
Juniors succeeding with shift towards oil production
Junior producers have been swinging their budgets away from natural gas for the past year and appear to be having success both expanding oil and liquids production as well as beefing up the percentage of liquids content in their total output. Some of these smaller companies are dedicating their entire capital program to oil-related pursuits in 2011.
WHY IT MATTERS: In light of the low natural gas price outlook, many junior producers have repositioned for oil production growth — even companies that were known as pure gas companies — to ensure their long-term survival.
7. LAND BONANZA
Producers spent $2.41 billion at Alberta land sales in 2010
Oil and gas producers spent $2.41 billion on Alberta oil and gas rights in 2010, a sign of industry’s renewed interest in the province following the introduction of a revised royalty regime. The 2010 tally was second only to the amount spent in 2006, when Alberta attracted $3.43 billion in bonus bids thanks to heavy spending for oilsands acreage.
WHY IT MATTERS: The land sale results solidify Alberta’s status as a jurisdiction that industry wants to invest in. It also signifies that oil and gas producers are encouraged by opportunities in the province, and bodes well for the Alberta economy in 2011.
8. GETTING TO THE ROUTE OF IT
AltaLink chooses power link routes
Calgary-based AltaLink has identified preferred and alternate routes for a $1.1-billion north-south power line in Alberta. The Western Alberta Transmission line would run from the coal-fired power plants in the Genesee area west of Edmonton to the Langdon area east of Calgary. Both routes go straight south from Genesee, with the preferred path cutting east across Highway 2 just north of Crossfield, 50 kilometres north of Calgary, and the other turning east earlier, north of Ponoka.
WHY IT MATTERS: The AltaLink project is the first stage of a $3.5-billion upgrade that includes another north-south high-voltage DC line running the length of the east side of the province. ATCO was assigned to build the second line. If the Alberta Utilities Commission approves the AltaLink application, construction could begin in the summer of 2012 and power start to flow by 2015.
9. JOBS, JOBS, JOBS
Alberta job growth to lead Canada in 2011
Increased oilsands development will brighten Alberta’s employment picture in 2011. The province is expected to lead the country in employment growth in 2011 with an increase of 2.3 per cent, up from a “scant” 0.5 per cent in 2010, says a report released in December by RBC Economics. The anticipated increase represents the creation of 37,000 jobs.
WHY IT MATTERS: Alberta’s economy continues to recover from the worldwide recession that began in 2008. Improvements in the employment market will help spread recovery more widely throughout Alberta’s economy next year, with a positive effect on retail sales.
10. FUELLING GREEN GROWTH
Federal government’s renewable fuels standard comes into force
The federal government’s renewable fuels standard (RFS) officially came into force on Dec. 15. The RFS will add some two billion litres of renewable fuels, such as ethanol and biodiesel, into the Canadian gasoline pool each year and change the way Canadians drive going forward.
WHY IT MATTERS: Gordon Quaiattini, president of the Canadian Renewable Fuels Association, says ethanol and biodiesel will help diversify the country’s fuel supply, add new income for farmers and reduce greenhouse gas (GHG) emissions. According to a recent third-party study, Canadian ethanol reduces GHG emissions by 62 per cent compared to fossil fuels and biodiesel generates a 99 per cent reduction. The RFS represents an annual GHG cut of 4.2 megatonnes — the equivalent of removing one million cars from Canada’s highways.
