Alberta
Have Alberta’s Skilled Workers had Enough?
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The Canadian oil and gas industry suffered another blow on Sunday, October 25, when Cenovus Energy Inc. announced a $3.8 billion merger with 82-year old Canadian oil and gas company, Husky Energy. Headquartered in Calgary, Alberta, Husky is projected to lose up to 25% of its workforce as a result of the merger, approximately 2,150 jobs – mainly in Calgary.
The news, which fell on Alberta’s increasingly restless population of unemployed workers and struggling families, many of whom believe Alberta has been left out in the cold for far too long already, has fueled ongoing discussions of a provincial brain drain.
Simply put, brain drain is defined as “the departure of educated or professional people from one country, economic sector or field, usually for better pay or living conditions”. Recent statistics show this concept is rapidly gaining traction in Alberta as residents seek to escape the increasingly grim economic landscape to pursue opportunities elsewhere, beyond the provincial borders.
As Canada’s largest producer of oil and natural gas, Alberta is no stranger to the boom and bust nature of the industry, experiencing cyclical periods of economic prosperity influenced by global conditions followed by detrimental crashes and ensuing hard times. Prior to this year, Alberta experienced a major economic crash in 2015, with the Canadian oil and gas industry suffering a $91 billion loss in revenue and layoffs reaching 35,000 workers in Alberta alone (1).
In the last 5 years, countless Albertans have struggled to regain their footing on shaky economic and political grounds, suffering substantial losses and insecurity. In this setting, the catastrophic impacts of the global COVID-19 pandemic, coupled with pipeline delays and ongoing cuts in the Canadian oil and gas sector have left many Albertans with the feeling of being kicked while already down.
According to the Government of Alberta Economic Dashboard, the price of oil for many Alberta oil producers fell 36.6% from September 2019, averaging $28.43 USD per barrel in September 2020, according to the Western Canada Select (WCS) price. The coinciding unemployment rate in Alberta was 11.7% in September 2020, down from its 15.5% spike in May 2020, but still 6.6% higher than in September 2019 (2).
At this point, it seems a number of Albertans have simply had enough. According to The Alberta Annual Population Report 2019/20, “Alberta’s interprovincial migration patterns are heavily influenced by the economic conditions in the province, and as the economy cooled, the province experienced net outflows.” The report shows that 2,733 residents left Alberta between April and June 2020.
The loss of another 2,150 oil and gas jobs as a result of the Cenovus merger comes as a disappointing yet predictable defeat for industry workers who have remained “down on their luck” for many years in Alberta. Effectively decimating industries worldwide, the pandemic has also successfully pulled the rug from beneath Alberta’s shaky footing, tanking oil and gas once more and leaving countless skilled workers with nowhere to go but out.
For more stories, visit Todayville Calgary.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
Alberta
Premier Smith and Health Mininster LaGrange react to AHS allegations
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Alberta Premier Danielle Smith and Health Minister Adriana LaGrange respond to allegations of political interference in the issuing of health-care contracts.
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