Alberta
Northern Alberta Métis community launches seven new oil sands partnerships to boost economic opportunity
L-R (seated): Great Northern Bridgeworks president Steve Ross, Enviromulch Mulching & Logging superintendent Phil Mamers, Lynco Energy Services owner Doug Golosky, Surerus Murphy Joint Venture chairman Sean Surerus, Brothers HDD owner Jamie McClennon, Gateway Mechanical Services account executive Dean Seiz, Dorval O & M Services owner Brent Dorval (sitting in for Global Fusion Coating general manager Chad Olsen). L-R (standing): CRDAC directors Stacey Atkinson, Valerie Quintal, Shirley Tremblay, Margaret Quintal, and Grace Richards. Photo courtesy CRDAC
From the Canadian Energy Centre
About 150 kilometres south of Fort McMurray, the Conklin region is responsible for nearly 1/3 of oil sands production
The predominantly Métis community of Conklin has launched seven new business partnerships in a bid to lift its opportunities in one of Alberta’s busiest oil sands regions.
From drilling to heavy machinery and pipelines, the new ventures will bring an economic and social boost to the community of 300 residents about 150 kilometres southeast of Fort McMurray.
“We’d like to focus more on getting local opportunities such as training, employment, maybe some subcontracting, to build the local businesses up and build our people up for local employment,” said Valerie Quintal, president of Conklin Métis Local 193.
“We are going to be planning with each one of them how we could better serve our community members.”
Quintal is also a director of the Conklin Resource Development Advisory Committee (CRDAC), which brokered the deals with companies including Brothers HDD, Gateway Mechanical Services and Surerus-Murphy Joint Venture.
CRDAC was established in 2008 to help the community engage with growing oil sands development in the Conklin region, said CEO Scott Duguid.
The area has become a hub for development using a technology called steam assisted gravity drainage (SAGD), which involves drilling horizontal well pairs and steam injection to produce oil sands crude.
“It was really developed when a lot of the SAGD development was in the application or the environment assessment phase and there was a huge push for regulatory consultation and engagement with government on regulatory applications for SAGD,” he said.
Métis cultural heritage is displayed alongside a map of development activity in the Conklin region. Photo courtesy CRDAC
The area around Conklin is now home to six major oil sands projects owned by the industry’s biggest producers. This includes Cenovus Energy’s Christina Lake facility, the largest so-called “in situ” project in the oil sands.
As of January 2024, the region produced more than 550,000 barrels per day, or nearly one-third of all oil sands production, according to the Alberta Energy Regulator.
CRDAC has partnerships in place with the big players in the region including Cenovus, Canadian Natural Resources and MEG Energy, Duguid said (including a unique home construction program with Cenovus).
But the new ventures take opportunity to the next layer, with companies that service or work for oil sands producers, he said.
Duguid said the group has partnerships in place with the big players in the region such as Cenovus, MEG, CNRL, and Harvest.
“There’s a fair amount of wealth being generated in the region and out of the South Athabasca oilsands. There’s a lot of work happening,” said Duguid.
“We as sort of a community representative organization are trying to put our hands up with some of these smaller industry players and saying ‘hey, we’re here, we have community members, we have a potential workforce, we may need training, we may need some capacity to ensure that our residents can be meaningfully employed, but we can work with you and for you.’”
The hope is that partnering with these mid-level businesses will provide an opportunity for grassroots Conklin businesses to grow, he said.
Some of the revenue from the partnerships will come back to the community to support social programs such as healthcare, housing, and substance abuse treatment.
“It’s hugely significant for the community,” Duguid said.
Gateway Mechanical Services’ Dean Seiz said the company reached out to CRDAC last year to see if they would be interested in a working relationship.
“Basically, the long-term goal is to see if there are any community members that would be interested in maybe getting into the trades that Gateway does,” Seiz said.
The company, with its head office in Edmonton, provides heating, ventilation and air conditioning (HVAC), plumbing and refrigeration services across Western Canada. It has nine locations for regional offices with about 275 technicians.
“It’s a work in progress with Scott [Duguid] and the community to see what’s important to the community to make things work,” Seiz said.
From the Fraser Institute
By Tegan Hill
According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.
The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.
For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).
And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.
In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.
This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.
Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.
Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.
Of course, if the government falls back into deficit there are implications for everyday Albertans.
When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.
According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.
Author:
Better, faster, more affordable auto insurance
Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.
After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.
Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”
Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.
Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.
Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.
In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.
Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.
By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”
Quick facts
- Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
- A 2023 report by MNP shows
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