A Response To: An Open Letter To Canadians From Oil And Gas Workers

Update – April 13th 2020: View Eavor Technologies CEO – John Redfern’s response here

A letter in response to this:

https://business.financialpost.com/opinion/an-open-letter-to-canadians-from-oil-and-gas-workers

Dear Albertan oil executives,

Canada’s oil and gas workers need your help. For decades, we have been asking you to diversify our economy and look for ways to avoid the boom and bust cycle. We are now in a perfect storm with oil prices falling and workers in isolation from a deadly virus. We need your leadership more than ever.

Unfortunately for us, you’ve chosen the least imaginative path possible: stay the course. In your April 6th Op-Ed in the Financial Post, you argued that the fossil fuel industry needs federal support in order to maintain a skilled workforce. For a province that prides itself on hard work and innovation, don’t you think we can do better?

The underlying assumption that you have made is that oil prices will return to a level that’s profitable for Alberta. But the historical trend doesn’t support your argument.

When you look at the historical price of WTI, Alberta’s golden years came from a bubble. In 2008 analysts all over the province were claiming oil would climb to $200 and Alberta would become the crown jewel of Canada. That turned out to be wishful thinking. You have dusted off that same playbook, claiming that oil will keep going up in price. The more likely scenario is that prices will return to their historical average.

We cannot rely on high oil prices for our economic survival.

(The picture was taken from https://tradingeconomics.com/commodity/crude-oil But any 30-year graph will do. )

I agree with you that we need to ensure that we can maintain our workforce. It’s essential that Alberta has skilled people working in our province so that we can develop our resources. Canada as a whole needs to maintain our skilled labour force and keep our economy functioning so that we can rebound once the pandemic is over. But putting those 200,000 people back to work into fossil fuels is a terrible idea.

So what do we do with hundreds of thousands of unemployed people and billions of dollars of idle equipment?

My suggestion is we find markets outside of oil and gas that require very similar skill sets. We leverage our existing infrastructure, supply chains, and experience to build new industries here in Alberta.

I’ve got three examples.

Geothermal Energy

Geothermal energy needs the same drilling rigs that the oil service industry has sitting idle. You can use your existing geologists, roughnecks, pipefitters, and welders to drill geothermal wells instead of oil wells. The end result is clean baseload power that can replace coal in this province and all over the world. The added benefit of developing geothermal is that we repurpose orphan wells into sources of heat and electricity. Companies like Eavor and DEEP have already started.

Battery Manufacturing

As we move to cleaner energy sources, batteries will become more important to the sustainability of our economy. Batteries need a lot of material to be manufactured and companies like E3 Metals are developing extraction techniques to create a lithium industry here in Alberta. There are plenty of technicians, engineers, and fabricators in our energy community that are entirely capable of working on projects like this.

Nuclear Power

While we are brainstorming ideas, let’s think big. If we are serious about providing clean, low carbon, environmentally friendly energy we have to look at nuclear. The folks at Terrestial Energy have designed a modular reactor that’s small, safe, and could absolutely be manufactured here in Alberta. I bet the mod yards would be jumping at the chance to have a backlog of work.

I agree with you that we absolutely need to support our workforce. However, I don’t think keeping our oil industry limping along can be the full answer for our skilled and versatile workforce. Our talented population needs options.

Please stop looking in the rearview mirror and start building for the future.

Update – April 13th 2020: View Eavor Technologies CEO – John Redfern’s response here

This article was originally published on April 8, 2020.

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Trudeau government wants to give CBC more money

Published on December 30, 2024

Todayville

From the Canadian Taxpayers Association

By Kris Sims

The CBC used to air The Simpsons after school.

One of the best episodes was the Cape Fear homage where an FBI agent is trying to change Homer’s last name to Thompson.

After hours of explanation, the kids have fallen asleep, Marge has given up and the agent says, “When I step on your foot and say: ‘Hello Mr. Thompson,’ you nod your head! Got it?!”

Homer did not get it.

The Liberal members of Parliament on the heritage committee still don’t get it either.

The committee has sent a report to the House of Commons urging the government to give the CBC even more money.

“That the Government of Canada provide a substantial and lasting increase in the parliamentary appropriations for CBC/Radio-Canada, allowing it to eliminate its paid subscription services and gradually end its reliance on commercial advertising revenues,” reads the report.

Really? More money? The CBC already takes $1.4 billion year from taxpayers. And that’s not enough?

That amount of money could already cover the salaries of about 7,000 police officers and 7,000 paramedics.

If Trudeau’s MPs want to give the CBC more money so that it can get rid of its advertising and subscription funding, that means a huge cost for taxpayers.

According it’s latest annual report, the CBC collected about $493 million in revenue other than government funding in 2023-24, the bulk being subscription fees and advertising.

This means these Trudeau government MPs want taxpayers to fund the CBC to the tune of about $2 billion per year.

This is the opposite of what needs to happen.

The CBC should be defunded for three key reasons.

The CBC is a huge waste of money, nearly nobody is watching it and journalists should not be paid by the government.

The committee knows this.

And we know they know because the Canadian Taxpayers Federation told them to their faces in testimony before the committee.

CBC CEO Catherine Tait repeatedly testified at the committee and each time she inadvertently made a stronger case to defund the CBC, due to her entitlement and lack of accountability.

Tait refused to say if she will take a severance when she leaves the CBC next year, claiming it’s a personal matter.

It’s not personal if it’s taxpayers’ money.

Documents obtained by the Canadian Taxpayers Federation show Tait is paid between $460,000 and $551,000 this year, with a bonus of up to 28 per cent.

That’s a bonus of up to $154,448. That’s more than the average Canadian family earns in a year.

Just before Christmas last year, Tait cried broke to the committee and afterwards the CBC announced lay offs in its newsrooms.

Documents obtained by the CTF show the CBC handed out big bonuses that year anyway, costing taxpayers $18 million.

As the CBC fan group Friends of Canadian Media put it: “This decision is deeply out of touch and unbefitting of our national public broadcaster.”

It gets worse because the state broadcaster isn’t even doing a good job.

According to the CBC’s latest quarterly report, CBC News Network’s national audience share is 1.7 per cent.

Documents obtained by the CTF show the CBC’s supper hour newscast drawing microscopic audiences, with 0.7 per cent of Toronto watching the six o’clock news on CBC.

Journalists should not be paid by the government because it’s an obvious conflict of interest.

You can’t hold the powerful government to account if you’re counting on that government for your paycheque.

Such government funding of media has contributed to the rapid erosion of trust in the news media, with 61 per cent of Canadians saying they think journalists are “purposely trying to mislead people by saying things they know are false or gross exaggerations.”

CBC’s entertainment programming barely fares better. The Murdoch Mysteries, which is not produced by the CBC, pulls in its biggest audience with about 1.9 per cent of the population watching.

The politicians on the committee know all of this, and yet, like Homer Simpson, they are not getting the message.

If the CBC needs money, it should earn that money itself.

Taxpayers can’t afford the state broadcast’s bill now, let alone hundreds of millions more.

It’s time to defund the CBC.

Kris Sims is the Alberta Director for the Canadian Taxpayers Federation and a former member of the Parliamentary Press Gallery.