Stelmach advising Ukraine on gas development plans
Former Alberta premier Ed Stelmach is using his expertise on the energy industry to help the Ukrainian government improve development of its gas resources.
According to a recent article in the Kyiv Post, Stelmach travelled to the eastern European country last month to advise investment in shale gas technology, coal bed methane extraction and improved production from existing gas wells.
“This is a huge, huge milestone for Ukraine,” Stelmach said in a Jan. 18 interview from Kyiv, where he was participating in a conference on Ukraine’s energy future. “If they can at least manage their natural gas and get the formula right and the predictability in their regulatory regime, I am positive that we’re going to see significant investment in exploration.”
The interview was conducted by a reporter for the Ukrainian News, a bi-weekly newspaper based in Edmonton.
Stelmach is still out of the country and could not be reached by The Journal for comment. However, in a message relayed through his Fort Saskatchewan-vegreville constituency assistant, he said the article was “fairly accurate.”
In the article, Stelmach acknowledged Ukraine has a more difficult energy climate than Alberta.
He said the country’s goal is to eliminate its energy dependence on Russia, which supplies much of its gas, but that will require foreign investment to help develop the resources. Currently, many investors are wary of involvement in Ukraine, in part due a regulatory process that is unpredictable and difficult to understand, he said. Stelmach ran into trouble in that area himself a few years ago when his decision to change Alberta’s royalty framework angered energy companies.
According to the article, Stelmach also told Ukrainian authorities to use scientists or other experts to explain the gas extraction process and clear up public misconceptions — another strategy his government tried to use while he was premier.
The article does not say how much Stelmach was paid for his visit to Ukraine, or whether he will have an ongoing consultant’s role. The former premier has spoken often about his Ukrainian heritage, including his grandparents’ immigration to Canada from Ukraine in the late 1800s.
Ethics commissioner Neil Wilkinson said backbench MLAS such as Stelmach are permitted to accept employment with outside organizations, whereas cabinet ministers are restricted. He said he didn’t know the rationale for the rule.
Former cabinet ministers are also subject to a 12-month “cooling off” period in which they are banned from lobbying the provincial government or working for any organization they dealt with as a minister.
It’s unlikely the rule would apply to Stelmach’s work in Ukraine, though Wilkinson said he couldn’t discuss a specific case.
Stelmach left the premier’s office in early October but is keeping his role as the MLA for Fort Saskatchewan-vegreville until the next election.
A spokesman for Alberta Energy said the department had no concerns about Stelmach’s activities in Ukraine.
Stelmach is not the first premier to jump into advisory work after leaving office. Peter Lougheed served on a number of corporate boards, became involved in the development of a gas pipeline to the eastern U.S., and worked as a consultant with Nova Scotia and Newfoundland. Don Getty established his own consulting company, while Ralph Klein worked for a law firm advising foreign oil and gas clients on how to set up in Alberta’s market.
kgerein@edmontonjournal.com