Speeches

Tuesday, April 7, 2009
Calgary Telus Convention Centre

• Thank you Chris.

• And thank you to Annette and Michal (Michael) for their insightful words and perspectives.

• The theme for our panel today is the new US energy policy…

• …and I was asked to discuss the implications for Alberta and why we need to be actively engaged in North American climate change discussions.

• The answer is quite simple.

• Alberta is an energy producing province that relies on oil and gas production to power our economy and in large part, the Canadian economy…

• …and provide the fuel Canadians and Americans use to drive to work, school, and recreation, and to transport goods via truck and plane.

• However, many questions remain regarding the new US energy policy and have many Albertans, Canadians and Americans wondering about its implications, costs and timing.

• In the 21st century there is no such thing as a standalone energy policy.

• The global financial uncertainty, fluctuating demand and concerns over climate change have forced us all to consider the delicate balance of the triple E’s.

  • Energy, environment and the economy.

• I actually believe it can be a very good thing that policy makers see the need to balance energy production, environmental responsibility and economic growth.

• Although we may never find the perfect balance, doing what we can to get ourselves there benefits taxpayers, industry and governments on both sides of the 49th.

• My goal is to leave you with a clear understanding that in Alberta, we are committed to working with the Canadian federal government and the Obama Administration to develop policies that protect our planet, our economies and our citizens’ way of life.

• We also believe that our federal government has a duty to actively engage the provinces.

• Neither Canada nor the United States has a fully formed “new” policy as it relates to energy and the environment.

• The result in a degree of uncertainty.

• And for the business folks in the room, there is nothing more difficult than uncertainty.

• Let’s just look at what we have on the table right now.

• In the fall of 2008, the Canadian federal government called for a North American climate change agreement.

• And when President Obama came to Canada, both sides decided to pursue a “Clean Energy Dialogue.”

• However, it remains unclear on whether the US has any interest in a continental cap and trade system, an idea Ottawa floated last fall.

• We know the president has asked congress to draft a U.S. climate change bill.

• A discussion draft of the bill was released last week and included language on a cap and trade system.

• While some states like the idea of cap and trade, others – like Texas – are against the idea; and many are unclear as to what it is or what it means.

• An internal battle will begin to heat up as more and more states see themselves either as winners or losers under such an approach.

• At this point, it still remains to be seen how Canada would fit into a US cap and trade system.

• Also, some states and provinces have joined the Western Climate Initiative…others, like Alberta, are working to deliver technology like carbon capture and storage.

• And a number of politicians, pundits and ENGOs on both sides of the border are advocating for large-scale investment in renewable energy such as wind, hydro and solar power.

• I could add that California and a few other states are trying to move forward with a Low Carbon Fuel Standard…a policy that some in Washington like, but others don’t.

• And of course, in December, the world’s leading economies will get together in Copenhagen to discuss the next global approach to addressing climate change.

• But regardless of what form our dialogue or discussions with the US eventually take, we know that our economies are inextricably linked.

• So despite the uncertainty, Canada must act quickly to build a national consensus on climate change policy that it can take into future North American and global discussions.

• So where does this leave Alberta?

• I argue that it leaves us in a favourable position to be able to positively influence the outcome from both an energy and environmental perspective.

• We have – in the oil sands – a strategic resource that has the potential to significantly improve the state of affairs for national and local economies in both countries.

• We are committed to developing our resource in an environmentally responsible manner.

• And we continue to back this commitment with leading-edge environmental policies and investments.

• Some of these investments – I might add – are globally unprecedented.

• Make no mistake, we need to continue to do more on the environment front.

• However it is imperative that Canada emphasize the tremendous strategic resource we have here.

• President Obama does not shy away from highlighting the environmental challenges facing the US coal industry.

• But he makes sure that every time he raises those concerns, he talks about the industry as an important strategic resource…

• …Canada must do more of that when it comes to our energy resources.

• And we must start immediately, which is why Alberta strongly believes now is the time for discussion and consensus within Canada on climate change policy.

• It won’t be easy.

• Because consensus within Canada cannot be a one size fits all approach.

• There are regional strengths and differences that must be taken into account…

• Alberta has a lot to offer those discussions, including energy and environmental expertise and 2 billion dollars on the table for carbon capture and storage.

• Alberta is also open to exploring a variety of policy options during these discussions so long as we remain focused on environmental improvement and economic growth.

• A few weeks ago, President Obama spoke about the need to strike a balance with regional differences, when considering the new US energy policy.

• The exact quote was, “The way it’s structured has to take into account regional differences, it has to protect consumers from huge spikes in electricity prices…”

• I could not agree more, and Alberta will share a similar message with other provinces and the federal government.

• Because I believe that with the help of the provinces, Canada can emerge with a policy that properly balances sound environmental management with economic growth.

• In fact, the Constitution requires the consent of provinces to implement international treaties in areas of provincial jurisdiction…

• …And fundamentally, the issue of climate change is about energy and how we use our natural resources.

• Both of these issues fall squarely within provincial jurisdiction.

• Alberta is encouraged by the process offered by the federal government for provinces to be actively involved in preparations for the international climate change meeting in Copenhagen later this year.

• As our Premier advocated to the Prime Minister, a similar process should be followed for discussions with the US Administration.

• So Canada still has work to do to move toward a national consensus on climate change policy.

• But as this process unfolds, Alberta will continue to do all it can to advocate the strategic importance of our energy to the United States.

• Indeed, we must do two things:

  • demonstrate the strategic importance of Alberta’s oil and natural gas, and

  • show the US that Alberta wants to be a partner in achieving our similar goals of energy security, environmental responsibility and economic growth.

• The oil sands, as the second largest proven oil reserve in the world, provide the US with security of supply from a good neighbor who shares their desire for cleaner energy development.

• We must present a compelling argument that the energy we produce is critical to the United States…

• And that we are committed to developing it responsibly.

• I am pleased to say that is exactly what we are doing.

• Our envoy in Washington, Gary Mar, is speaking with Congressional leaders, staffers, and representatives from the Administration…as well as those who influence policy like the American Petroleum Institute and environmental NGOs.

• Gary is highlighting our 2 billion investment in carbon capture and storage, as well as our history of environmental leadership, including

  • Being the first jurisdictions to legislate greenhouse gas reductions for large emitters.

• He is also reinforcing that the US receives more oil from Alberta than Saudi Arabia, Nigeria or Venezuela.

• And that 50 per cent of our natural gas production is sent south of the border.

• Now I’ve known Gary for many years…and there is no question he is doing an outstanding job for Albertans…but Gary is only one man.

• So the premier has decided to give him some help.

• The province has retained two influential consulting firms to assist with our advocacy efforts.

• They are headed up by:

  • James Blanchard, a former U. S. ambassador to Canada under the Clinton administration, and

  • Paul Frazer, a former minister of public affairs at the Canadian Embassy in Washington

• These firms have important contacts within Congress and the Obama Administration, and in talking to Gary, their experience and history in DC are already opening new doors.

• Now our advocacy efforts extend beyond the DC beltway.

• The province uses well-established relationships, such as our involvement in the Pacific Northwest Economic Region, the Council of State Governments and the Western Governors’ Association, as forums to share our message.

• Meanwhile Ministerial and Premier missions south of the border provide us the opportunity to stretch our message from DC to Houston to Chicago.

• The Clean Energy Dialogue that the Prime Minister and the President agreed on appears to be a tremendous opportunity for our country to engage with the US.

• And Alberta strongly believes we can be a constructive partner within Canada to formulate a national consensus on the dialogue…

• A dialogue that includes CCS, which is something Alberta knows a lot about.

• All of that said, it is pretty safe bet to say that DC is where the new US energy policy will originate.

• In fact, the House Energy and Commerce Committee Chairman Henry Waxman, wants a finalized climate-change bill out of his committee by the end of May.

• As I mentioned earlier, he has already released a tidy 600-plus page discussion draft that will be the building block for the new US climate change policy.

• I must point out that the US legislative process is very complex and many House, Senate and Oval Office hands will touch and shape this bill as it moves forward.

• Regardless of who is championing a climate change bill, Alberta remains committed to a dialogue sharing with Congress and the Administration.

• We are encouraged that Congress has released this discussion draft to get input into the final shape of the legislation.

• Alberta believes this is an important opportunity to highlight the strategic importance of our energy.

• And to demonstrate, that in Alberta, we are serious about action on climate change.

• 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.

• As I mentioned earlier, Alberta has committed 2 billion dollars to carbon capture and storage…but that is only one of the many concrete steps we have taken to protect our environment.

• Our oil sands strategy 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.

• 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.

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

• The expanded use of renewable and alternative sources of electrical energy is also 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 in renewable energy.

• 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.

• I could go on…but it is clear that in Alberta, we back our talk with action.

• And we set achievable goals to build on.

• I believe that our success allows us to build momentum towards even greater achievements.

• This is the Alberta way.

• Ladies and gentlemen in both Canada and the United States, there are many unanswered questions and unknown implications of climate change policy.

• Again, industry and the Canadian economy need certainty…and the sooner we achieve that…the better equipped we are to continue to bring economic growth and stability.

• For Alberta, this means working with the federal government and other provinces to establish a national consensus on climate change policy before entering international agreements with the US and the world.

• And Alberta strongly encourages the federal government to initiate a consultative process.

• For our relations with the United States, it is about using every opportunity to remind lawmakers and influencers of the strategic importance of Alberta’s energy.

• And being proud of our commitment to environmental responsibility.

• With that, I will turn this discussion back over to Chris and I welcome any questions.

• Thank you.