ENERGY KEY TO B.C., TOO

The importance of the energy sector was once again made clear this week, when it was discovered the British Columbia Investment Management Corp., which handles the pension funds of B.C.’s public-sector workers, holds the shares of many oil and gas companies in its $135.5-billion portfolio.

The Crown agency even has a US$18-million stake in Kinder Morgan Inc., the U.S. company that is behind the Trans Mountain pipeline expansion. The Texas-based company owns about 70 per cent of the voting interests of its subsidiary, Kinder Morgan Canada Ltd.

So while B.C. Premier John Horgan continues to dream up ways of stopping the pipeline, the experts working to ensure public-sector workers are secure in their retirement, are investing in the critical energy sector. Indeed, securities filings show the management corporation bought 21,214 shares in Kinder Morgan in the fourth quarter of 2017 alone.

The corporation has not only purchased shares in Kinder Morgan, but in a number of North American companies involved in the energy sector. It’s proof that the smart money knows that oil and gas will be around for decades to come, notwithstanding the desire to slowly shift away from fossil fuels.

The corporation’s holdings include the shares of major oilsands producers such as Suncor Energy Inc. and Cenovus Energy Inc., both which have committed to shipping oil through the expanded pipeline between Alberta and B.C.

Horgan has said little about the disconnect between his meddling with the pipeline and the conviction of his province’s public pension managers that such infrastructure represents a solid investment. That hasn’t stopped others from commenting, of course. People in his own province are accusing Horgan’s government of “rank hypocrisy.”

“Even if you bike to work every day, your food and supplies are delivered to you via trucks using oil and gas, and in many cases, your retirement funds are directly tied to this vital industry,” says Kris Sims, B.C. director of the Canadian Taxpayers Federation.

“The B.C. government needs to wake up to this reality, and fast, before they do further damage to Canadians.”

Quite right. Horgan’s antics don’t stand up to scrutiny. Perhaps the ultimate irony is that Horgan, who has spent much of his life on the public payroll, finds himself partially reliant on Kinder Morgan and other energy companies for his future — just as everyone depends on fossil fuels to varying degrees.

Thankfully, B.C. investment managers are guided by common sense and not blinded by politics.