Speeches

Delivered March 23, 2009
Cuernavaca, Mexico

Introduction

• Thank you. And good afternoon everyone.

• On behalf of Premier Ed Stelmach and the Government of Alberta, it is a pleasure to be here today.

• Canada and Mexico have a rich history of cooperation…as do Alberta and Mexico.

• We share many common interests including agriculture, forestry and trade.

• And of course our neighbour…the largest economy in the world…the United States.

• But for me, one of the greatest linkages between Alberta and Mexico is energy.

• We are both major energy producers and net oil exporters…

• …and the success of our energy sectors is critical to our overall economies.

• However, in the 21st century, the development of energy is increasingly linked to constraints of climate change…

• Alberta believes this is for the better…

• And I am pleased that the energy panel here today includes experts on environmental management.

• But energy development and environmental responsibility need not be looked at independently.

• They must be linked.

• For the rest of my time today, I am going to touch on Alberta’s energy development…but I believe it is equally important to outline my province’s commitment to environmental responsibility.

• Alberta is fortunate to have more than 40 trillion cubic feet of proven natural gas reserves…

• And each day, we produce nearly 13.6 billion cubic feet.

• In fact, we currently account for 50 per cent of all US natural gas imports.

• Indeed, natural gas production is critical to our province.

• But, as many of you may know, Alberta’s oil sands are often what many think of when Alberta talks energy.

• The oil sands are the second largest proven reserve in the world and contain 173 billion barrels of oil.

• That puts our reserves second only to Saudi Arabia.

• In total, Alberta produces about 1.85 million barrels of oil per day…

• With the lion’s share, 1.35 million barrels, coming from the oil sands.

• The remainder is produced through conventional oil production.

• As with all forms of energy production, there are environmental effects from producing energy from the oil sands…

• …and Alberta realizes we must continue to do what is necessary to protect the environment.

• Alberta is committed to taking further action on climate change and building on our history of sound environmental practices.

• In fact, Alberta was the first jurisdiction in North America to adopt a climate change plan backed by legislation.

• We were also the first to require reporting and emissions reductions by large industry – a move that has resulted in 2.6 million tonnes of real reductions.

• Alberta also has an action plan to cut projected greenhouse gas emissions in half by 2050.

• We will do so by focusing on carbon capture and storage, energy efficiency and conservation and greener energy production.

• In fact, last summer, our Premier announced a major investment by Alberta to implement this action plan.

• The Premier directed 2 billion dollars toward research and development of large-scale carbon capture and storage projects.

• For us, it is an investment in the future.

• An investment that will help Alberta take meaningful action on climate change without endangering jobs, the economy, or our ability to support public services.

• Carbon capture and storage…commonly known as CCS…is one of a number of technologies that have been identified as being able to make a substantial reduction in global greenhouse gas emissions.

• For Alberta, our 2 billion dollar investment shows that we are serious about climate change.

• With this funding, we expect to see three to five large-scale projects developed, with the potential to permanently store up to five million tonnes of CO2 per year by 2015.

• That’s equivalent to taking a million cars – that’s every third car in Alberta – off the road.

• In addition to significant reductions, carbon capture and storage technology offers enormous potential for additional value-added development.

• As well as opportunities for enhanced oil recovery.

• CO2 can be injected into existing oil fields to increase recoveries by an estimated 500 million to two billion barrels.

• This will create new opportunities for the conventional oil sector, and result in more jobs for Alberta.

• An additional benefit is that the use of CO2 would reduce the need for water.

• And finally, we have the opportunity to develop expertise and technologies for carbon capture and storage in North America that we can share with the rest of the world.

• Recently, Alberta released its 20-year strategic plan for the oil sands…

• …our guide for developing this resource in an environmentally responsible way.

• It supports Alberta’s long-term vision for the oil sands, including:

  • a balanced approach to economic development and environmental stewardship;

  • innovative, responsible and collaborative development among all levels of government and stakeholders in the oil sands; and

  • clean, healthy and vibrant communities for Albertans.

• Carbon capture and storage is integral to this plan, but there is more to responsible oil sands production than reducing greenhouse gasses.

• This is why the plan also calls for enhanced land reclamation.

• It requires industry to achieve its project-reclamation requirements and milestones as a condition of further oil sands development.

• This means develop the oil sands while returning the land to its original state.

• The plan also calls for increased conservation…we must continue to establish protected areas in the oil sands regions to achieve biodiversity.

• We have also taken major steps to improve tailings pond management in the oil sands.

• For those of you who may not know, a tailings pond is a settling pond for oil sands water and by-product.

• Companies in Alberta will have to reduce tailings by 50 per cent by 2013.

• Due to of their scale and strategic security implications for North America, the oil sands often dominate my discussions on energy.

• However, it is also important to know that Alberta is aggressively pursuing renewable energy, which will play an important role in our long-term energy future.

• During President Obama’s recent visit to Canada, he alluded to the positive discussions he had with President Felipe Calderon on clean energy.

• Indeed, he spoke of the leadership Mexico has taken in this field…and Alberta looks forward to working with our friends in Mexico on clean energy development.

• I was pleased to learn that, in 2007, Mexico adopted a comprehensive climate-change mitigation strategy…

• …and that you have set an emission reduction target of 50 per cent below 2002 levels by 2050.

• Mexico is also looking to expand green power, including a proposed tenfold increase in the capacity of the La Venta wind farm over the next six years.

• I understand plans are already underway to build more than 3,000 turbines at this site.

• And Alberta shares Mexico’s desire for more green power.

• The expanded use of renewable and alternative sources of electrical energy is a key component of Alberta’s climate change efforts.

• To date, we have invested 239 million dollars into alternative energy.

• This has led to more than 850 million dollars in additional private investment to date in renewable energy.

• Alberta is also among the leaders in Canada in wind power development.

• And our provincial renewable fuel standard will require five per cent ethanol content in gasoline and two per cent renewable content in diesel by 2010.

• Alberta’s long-term environmental plan for the oil sands, and our entire energy basket, includes air, land and water.

• That said, we will continue to develop our energy resources…and for opportunities to partner with other global leaders…like Mexico.

• Whether it’s exploration, production, refining, distribution or renewable energy…there is endless potential for greater collaboration and cooperation.

• I was pleased to hear that there was much discussion this morning on how Alberta companies can help with the development of the Chicontepec (Chick-on-te-peck) basin.

• As the largest terrestrial oil reserves in Mexico, it provides tremendous opportunity for you to increase oil production.

• For Alberta, it provides a market for our companies’ expertise in directional and low permeability drilling.

• This is just one of the many examples of how Alberta and Mexico can work together to build on a historically strong partnership…

• Thank you for inviting me to speak today.

• I look forward to a strong and mutually beneficial future.

• Thank you.