Speeches

Monday, May 4, 2009
Crowne Plaza (International Ball Room)

• Thank you Ron, and good morning everyone.

• It is indeed an honour to be here today.

• I believe the Building and Construction Trades Department chose the perfect topic for this conference in light of the current global economic situation.

• During these uncertain times, there is nothing more important for workers and families than jobs.

• Knowing that you can go to work…make an honest day’s pay and come home proud and with money to provide for your family…that is what Albertans and Canadians want.

• That said, we have all seen the statistics, and it is evident this goal…this desire…is being challenged.

• Challenged not by the hard work and commitment of workers, but by forces far beyond their control.

• We can leave it to others to decipher the exact sequence of events that brought this economic slowdown upon us.

• In Alberta, we are more interested in how we get back on track … how we put more shovels in the ground…get more welding torches lit…and get more people back to work.

• I can tell you that in Alberta…and under the leadership of Premier Stelmach…jobs and the economy are job one for our government.

• Over the course of my speech today, I will talk about the importance of Alberta’s energy sector for job creation as well as how Alberta is investing in infrastructure to help lead to faster economic recovery.

• But before that, I feel it is imperative to discuss the new triple E.

  • Energy, the economy, and the environment.

• Alberta, Canada and the United States can no longer look at these independently…they are inextricably linked.

• Our economies need energy to recover.

• Investing in energy will produce jobs, power our homes, schools and factories, and most importantly, our economies.

• But now, more than ever, energy production must strike the right balance with environmental responsibility.

• If we lean too far one way, we potentially jeopardize a clean, safe planet for our children to enjoy.

• If we lean too far the other, we may see thousands more workers laid off, an energy shortfall and a worsening global recession.

• Challenging times indeed.

• 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…there is too much at stake to not give provinces ample opportunity to provide input.

• Ontario’s manufacturing sector has an interest in ensuring that Canada’s new climate change policy strikes the right balance between the environment and the economy.

• In fact, Alberta and Ontario industries are linked in this regard, so much so that the Ontario Ministry of Economic Development and Trade website boldly states:

  • "Alberta Oil Sands - Enormous opportunities await Ontario manufacturers."

• Provinces have a lot of on-the-ground expertise to offer climate change discussions.

• In Alberta’s case, we bring a long history of energy and environmental expertise.

• In fact, Alberta was the first jurisdiction in North America, and remains the sole jurisdiction, including our federal government, with comprehensive legislated greenhouse gas emission limits for our large emitting industries.

• We have had a carbon accounting framework in place since 2003.

• Since then industry has had to report their greenhouse gas emissions by law.

• We have also committed a globally unprecedented 2 billion dollars for carbon capture and storage.

• I am not saying we have all the answers…

• Indeed, Alberta is also open to exploring a variety of policy options during these discussions so long as we remain focused on creating that essential balance: secure energy supplies, environmental improvement and economic growth.

• And with the help of the provinces, Canada can emerge with a policy that properly achieves this balance.

• 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.

• Alberta has a vested interest in helping Canada meet its energy, economic, and environmental challenges.

• And Canada has a vested interest in a strong Alberta.

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

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

• The US is the largest market for our energy.

• In fact, more Alberta oil flows to the US than from Saudi Arabia, Nigeria or Venezuela.

• And 50 per cent of our natural gas exports head south of the border.

• As I noted earlier, this conference is framed around Energy Jobs.

• If there is one thing Alberta knows…it is energy.

• From powering cars, trucks, homes and businesses, Alberta is North America’s largest energy producer.

• And our oil sands are helping to position Canada as an energy superpower.

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

• …these are our guides for developing Alberta’s resources in an environmentally responsible way.

• Alberta’s long-term vision for the oil sands includes:

  • 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.

• Both strategies recognize the need to produce energy resources in a cleaner way, increase renewable production and as a result create more green jobs.

• We cannot however overlook the significant role oil will play in powering our economies for many years to come.

• According to the International Energy Agency’s 2008 outlook, world-wide energy demand is expected to grow by 45 percent between 2006 and 2030.

• The agency projects that fossil fuels will account for 80 per cent of the world's primary energy mix in 2030.

• And that oil will remain the dominant fuel.

• As I mentioned, Alberta has committed 2 billion dollars to carbon capture and storage to help kick start the transition to cleaner fuels.

• CCS 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 region 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.

• Companies are also moving forward with new mining techniques that are leaving a smaller footprint on the environment.

• They are also on the verge of completing extensive land reclamation projects in the oil sands.

• As you can see, Alberta is demonstrating that this strategic resource can be developed in an environmentally responsible way.

• And in doing so, the oil sands are helping our country’s economy…from coast to coast.

• And it is not just the Alberta government that believes the oil sands play an important role for almost everyone here today.

• Later this month, CERI, the Canadian Energy Research Institute will be releasing an updated economic analysis of Alberta’s energy sector.

• I had an opportunity to see some of the report as it pertains to the economic impact of the oil sands.

• If there were any lingering questions about the strategic importance of the resource…this report will answer them.

• Even taking into account the current global recession, CERI estimates that oil sands capital investment will exceed 218 billion dollars over the next 10-12 years.

  • This is a conservative estimate based on the new economic realities we are seeing today.

• If oil prices continue to rise, more investment will follow.

• CERI also estimates the real GDP effect of oil sands construction investment on Alberta will exceed $125 billion over the next 25 years.

• In fact, Canada’s overall GDP will benefit to the tune of almost $165 billion….just on construction alone.

• The sustained GDP results from oil sands operation over the next 25 years will exceed 1one trillion dollars across the country.

• Every province in Canada will also benefit from tax revenue generated from the oil sands.

• Over the next 25 years, it is estimated that the oil sands will create more than 206 billion dollars in tax revenue.

• Nearly 60 per cent, 126 billion will go to the federal government.

• The provinces will receive the remaining 40 per cent or 80 billion.

• Provinces will be able to use this money to build schools, roads, hospitals and highways all across Canada.

• The dollar amounts are large, but what I find more exciting is the job creation that stems from oil sands development.

• On average, over the next 25 years, accounting for direct, indirect and induced impacts, CERI expects the oil sands to require more than 310,000 annual work positions across the country.

• These are not just jobs in Alberta.

• In fact, more than 25 per cent of the jobs will be created outside of Alberta…

• And when you look at construction jobs specifically, almost 40 per cent of the jobs will be created outside of Alberta.

• The skills of electricians, welders and boilermakers as well as geo-science professionals and engineers will be in demand for generations to come.

• Creating jobs, especially green jobs, is something all governments can support, including Alberta.

• And Alberta supports wind and biofuel production for example.

• We are also going to see many green jobs created through our 2 billion dollar investment in carbon capture and storage.

• These funds will support three to five projects that are expected to reduce CO2 emissions by 5 million tonnes annually by 2015.

• That's the equivalent of taking one million cars off the road for a year.

• This developing technology will transform how CO2 from coal and oil reserves is managed and processed.

• That will require an extremely skilled and innovative workforce, adept at learning as technology continually improves.

• Alberta wants to share the knowledge garnered from these projects with the world so other countries can quickly adopt proven models.

• Projects selected for funding in Alberta will be announced this summer and while we don’t know exactly how many jobs will be created, they will be significant.

• Construction and/or expansion of the facilities will start this year and could last for the next three or four years, depending on the project.

• Once again…creating jobs.

• And across Canada provinces are seeing the positive impacts of the oil sands.

• For example, there are hundreds of millions of dollars in contracts with companies throughout Canada – including firms that specialize in machinery and metal fabrication, particularly in Ontario.

• One of the success stories I like to share involves the City of Miramichi (Mir-a-ma-shee), New Brunswick.

• When four mills shut down – almost a thousand people were put out of work. The closures were a major blow to the local economy.

• But in recent years, Alberta industry and the city of Miramichi (Mir-a-ma-shee) have formed a partnership that has helped that economy rebound.

• Today some 50 per cent of workers laid off from the mills are now working in oil sands industry related jobs in Miramichi (Mir-a-ma-shee).

• Some workers even commute to work in Alberta – they come here for six weeks and go home for two.

• The oil sands industry has not only given them solid jobs…but they’re learning new skills, and gaining experience that will help them for years to come.

• I know we have some of our friends from the US in the audience and I must also highlight that the oil sands are creating jobs south of the border as well.

• Steel from Oregon is used to build oil sands infrastructure in Alberta.

• The 400 ton giant trucks used to mine the oil sands are built in Illinois – and the tires on those giant trucks are made in South Carolina…

• And the list goes on.

• Alberta’s energy is not just producing jobs in the oil and gas sector.

• Albertans are the rightful owners of our natural resources and as such the royalty revenue generated is used to support government priorities.

• Capital projects being at the top of the list.

• Many economists say infrastructure spending is essential for economic stimulus and job growth.

• Alberta just released its budget, which includes 7.2 billion dollars for capital projects.

• It is estimated this investment will support an estimated 80,000 jobs.

• Yet, investing in infrastructure has long been part of Alberta’s economic strategy.

• We have invested nearly $20 billion in capital projects during the past three years.

• The projects completed last year alone – from building new fire halls, adding waterlines, paving highways, building interchanges and renovating and expanding health care facilities to opening schools, adding post-secondary classroom spaces, and creating additional affordable housing units – all have had an impact on the economy.

• And the dollars will continue to flow.

• The province’s new three-year capital plan commits a record 23.2 billion dollars for infrastructure investment.

• Once again…this creates jobs.

• I have shared with you today a number of ways Alberta’s energy resources will play an important role in bringing our nation, and our continent, out of our current economic situation.

• If there is one message I hope you will take back to your colleagues across the country and throughout North America…

• …and to your elected representatives…it is this:

• Skilled workers are building a cleaner energy future…and they are doing it in the Alberta oil sands.

• If your members ask, you can tell them that oil sands operations continue to reduce air pollution and water consumption for each barrel of oil produced.

• And we continue to increase land reclamation and soil remediation.

• If we do this right, the greener the oil sands, the more jobs that will be created.

• Indeed, we will need scientists and engineers to develop the technology of the future.

• We will need factories building the parts that will come together in Northern Alberta.

• And we will need skilled trades people to ensure that innovation becomes physical reality.

• This is Alberta’s vision when we say that in our province we have the freedom to create, and the spirit to achieve.

• This is the future I hope your members can proudly build over the coming decades.

• Thank you.