No promises on pipelines
Trudeau preaches partnership in meeting with oilpatch execs
CALGARY Justin Trudeau’s pledges of help were met with guarded optimism in the heart of the oilpatch Thursday, even as the prime minister made no concrete promises around pipeline proposals.
As Trudeau and Premier Rachel Notley hosted a roundtable meeting in his first visit to Calgary since becoming prime minister, he told a group of top energy executives the government wanted to hear ways Ottawa “can be a better partner in helping you through this difficult time.”
When he spoke to reporters later after touring the downtown YWCA, Trudeau said he believes the battered energy sector is open to a different approach from the federal government.
“There is a sense of worry, yes. But also a sense of opportunity, that this is a time where we need to work together intelligently to prepare, not just for the difficult months to come, but for the opportunities in years to come,” said Trudeau.
“Natural resources will always be a core part of Canada’s economy. We have great natural resources the world wants and we need to make sure ... we’re developing them in a responsible and sustainable way.”
Among the executives at the meeting were industry heavyweights Brian Ferguson of Cenovus, Steve Williams of Suncor, Steve Laut of Canadian Natural Resources, Doug Suttles of Encana and Rich Kruger of Imperial Oil.
Williams, Suncor’s CEO, said the hour-long meeting went well and was “very encouraging.”
“What we got today was an understanding of the challenges we face and an agreement that we’re all going to do what’s in the best interest of Alberta and Canada, which is to start to work toward market access,” Williams told reporters following the meeting.
Oil prices that have plunged over the past year — closing Thursday at US$31.72 a barrel — have created havoc in the energy industry, leading to 40,000 layoffs and sending Alberta’s economy into recession.
Opening up markets for Alberta energy through new pipelines is seen by the oilpatch and provincial government as vital for restoring economic growth, enabling producers to access higher prices for their oil. But the federal Liberal government is feeling heat on the issue after introducing new interim measures that will extend the ongoing review for the Energy East and Trans Mountain pipeline projects.
Despite the positive tone of the meeting, there were no guarantees about pipeline approvals, said Williams, the head of Canada’s largest petroleum producer.
“I think assurances is too strong a word,” he said. “What we agreed was that we understood the need for (the new rules) and we’re all going to go away and work toward that end.”
Federal Natural Resources Minister Jim Carr, Veterans Affairs Minister and Calgary Centre MP Kent Hehr and provincial Energy Minister Marg McCuaig-Boyd were also at the meetings, which included a second roundtable with oilpatch service providers.
Mark Salkeld, CEO of the Petroleum Services Association of Canada, stressed the sector needs a signal on key issues such as market access.
“We weren’t looking for handouts,” he said. “This industry is essentially on its knees right now here in Canada. If we don’t get things moving relatively quickly, there’s going to be a generational loss and we can’t afford that.”
Asked if Trudeau should aggressively support Energy East right now, he noted former Tory prime minister Stephen Harper “was a strong champion of this industry and nothing happened.”
“I think to be enthusiastic, no. I think he needs to be engaged with everybody to get it done right.”
Trudeau, however, would not be drawn into offering support for Energy East if it wins formal approval through the National Energy Board, instead taking a swipe at Harper’s Conservative government.
“My predecessors have politicized that process. I’m not going to prejudge or shortcut the NEB process as it goes forward,” he said. “It’s important we have confidence in our regulators … and we’re going to allow them to do their job without political interference.”
In the House of Commons, however, Tory Leader Rona Ambrose continued to attack the Liberals for not taking a clear stand on Energy East, saying the prime minister’s non-response is “troubling to every resource worker that is laid off.”
“It would do a lot more for investor confidence and public confidence if the government would stand behind its own process,” Ambrose said during question period.
Notley, who also met with Trudeau at the provincial legislature on Wednesday, said Trudeau had seen first-hand the impact of the economic downturn in Calgary.
“If we are going to be successful in obtaining the energy infrastructure that is so critical to supporting our growth going forward, it is absolutely fundamental that we build a good relationship with the federal government,” she told reporters.