The way forward for energy development? Cenovus commits to building hundreds of homes in communities closest to their oil sands operations

From Cenovus Energy

Our Indigenous Housing program, the largest community investment initiative in Cenovus’s history, is aimed at addressing one of the most pressing issues facing Indigenous communities in Canada – the lack of adequate housing that is forcing many families to live in overcrowded and unsafe conditions.

The program involves a plan to commit $10 million per year for at least five years to build much-needed new homes in six First Nations and Métis communities closest to our oil sands operations in northern Alberta, with the potential to extend the project to 10 years. We see this initiative as an important way to contribute to reconciliation with Indigenous peoples.

We also plan to work with the communities to develop training programs, so that local residents can participate in the building and maintenance of the new homes.

The communities that are part of this program are:

Beaver Lake Cree Nation
Chard Métis (Local 218)
Chipewyan Prairie Dene First Nation
Cold Lake First Nations
Conklin Métis (Local 193)
Heart Lake First Nation

More information including comments from the surrounding communities

Cenovus to help address Indigenous housing crisis in northern Alberta

Project aims to provide about 200 new homes as well as jobs and training opportunities

Cenovus Energy Inc. has launched a major initiative aimed at addressing one of the most pressing issues facing Indigenous communities in Canada – the lack of adequate housing that is forcing many families to live in overcrowded and unsafe conditions. Cenovus is committing $10 million per year for five years to build much-needed new homes in six First Nations and Métis communities closest to its oil sands operations in northern Alberta, with the potential to extend the project to 10 years. The company sees this initiative as an important way to contribute to reconciliation with Indigenous peoples.

“Investing in Indigenous communities near our operations and ensuring they share in the benefits of resource development has always been part of how we do business. Today, we see an opportunity to step up and do more,” said Alex Pourbaix, Cenovus President & Chief Executive Officer. “We can’t solve the Indigenous housing crisis by ourselves, but through this initiative, we have the opportunity to significantly improve the lives of many families currently living in overcrowded and unsafe conditions.”

Developed as part of Cenovus’s recent 10th anniversary celebration, the housing initiative is the single largest community investment in the company’s history. It’s a testament to the strong positive relationships Cenovus has built over many years working with Indigenous communities near its Christina Lake and Foster Creek oil sands projects. Cenovus has met with leaders from Beaver Lake Cree Nation, Chard Métis (Local 218), Chipewyan Prairie Dene First Nation, Cold Lake First Nations, Conklin Métis (Local 193) and Heart Lake First Nation to begin planning the implementation of the housing program starting this year.

Cenovus plans to work with leaders from the six communities to determine the most effective ways of delivering new homes based on the specific needs of each community. It’s anticipated the communities will be able to build about 200 new houses in total over five years. Cenovus will also work with the communities to develop training programs, so that local residents can participate in the building and maintenance of the new homes. This will potentially create valuable education and employment opportunities for them in the long term. Depending on the success of the initiative, including meeting Cenovus’s performance expectations, the company may consider extending the program to 10 years with a total investment amount of $100 million.

“In addition to creating training and employment opportunities and funding the construction of new houses, Cenovus will also work with communities to raise awareness about the Indigenous housing shortage and help advocate for solutions,” said Pourbaix. “Communities have done an admirable job in managing their housing with limited resources. But this is a complex issue that will require new ideas and collaboration among many stakeholders. We hope to inspire other companies, governments and organizations to get involved.”

Separately, Cenovus has engaged its Indigenous Inclusion Advisory Committee, created in 2017 and comprised of senior leaders from various company functions, to help increase Indigenous inclusion in the company’s business. Since its inception in 2009, Cenovus has signed nine long-term benefits agreements with Indigenous communities near its oil sands operations and spent almost $3 billion with Indigenous owned and operated businesses. On January 9, 2020, Cenovus announced ambitious new targets in four environmental, social and governance (ESG) focus areas, including Indigenous engagement, climate & greenhouse gas emissions, land & wildlife, and water stewardship. A significant element of the Indigenous engagement ESG target commits Cenovus to spend at least an additional $1.5 billion with Indigenous businesses through 2030. Cenovus also continues to provide scholarships to Indigenous youth who are pursuing a full-time degree, diploma or certified trade program. More than 190 scholarships have been awarded since the Indigenous scholarship program started in 2013.

Shirley Paradis, Councillor, Beaver Lake Cree Nation

“Beaver Lake Cree Nation has always had housing issues. We’re at a capacity where we are trying to keep up with families’ needs. The most crucial thing is understanding that we have help now. Cenovus is stepping forward and saying: ‘We’re here to help, how do we help your community?’ There is going to be a sigh of relief for us.”

Justin Herman, CEO, Chard Métis (Local 218)

“What I am taking away from Cenovus’s announcement about the new housing initiative – it’s absolutely amazing and groundbreaking, and I hope it sets a precedent for the rest of the industry to follow the lead of Cenovus. We are excited and honoured to be part of this housing initiative.”

Vern Janvier, Chief, Chipewyan Prairie Dene First Nation

“We’re getting to the point where we have two families living in one house, and in some cases three. On top of the houses that are in disrepair, we have demand for another 50 houses. That’s how it builds up on us. And that’s just our reserve.”

Roger Marten, Chief, Cold Lake First Nations

“We have about 3,000 band members and only 300 homes. So, the crisis is always there and is always ongoing. The relationship has always been a great one with Cenovus; they have always listened and try to do the best they can to help us along the way.”

Val Quintal, Board member, Conklin Resource Development Advisory Committee, representing Conklin Métis (Local 193)
“Housing is a critical need for Conklin, and we are so pleased that Cenovus has come forward to help our community address this issue.”

Curtis Monias, Chief, Heart Lake First Nation

“I am really excited for Heart Lake. I look forward to working with all the surrounding communities, with industry, and I’m excited to build homes back home for my people.”

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Low oil prices could have big consequences for Alberta’s finances

Published on April 26, 2025

Todayville

From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

Alberta

Governments in Alberta should spur homebuilding amid population explosion

Published on April 26, 2025

Todayville

From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in Calgary, Edmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.