![alberta](/sites/default/files/styles/hart_news_article_image_640/public/image/2020/02/trud.jpg?itok=siz4RnHv)
Alberta Premier Jason Kenney, left, and Prime Minister Justin Trudeau. (Source: Shutterstock)
WINNIPEG, Manitoba—Cancellation of a massive Canadian oil sands project leaves Prime Minister Justin Trudeau and a fierce critic, Alberta Premier Jason Kenney, with the challenge of overcoming their differences to square economic growth with environmental concerns.
They are the politicians with the most at stake in Teck Resources’ decision Feb. 23 to abandon its Frontier project, which would have created thousands of jobs in Alberta but spewed emissions that would hinder Trudeau’s green goals.
Instead of waiting for government to decide the project’s fate, Teck withdrew, saying investors require “a framework that reconciles resource development and climate change.”
Trudeau, Kenney and other premiers must now collaborate on a climate plan that accounts for oil developments, said Jack Mintz, president’s fellow at the University of Calgary’s School of Public Policy.
They “have to lay down arms and start working together,” Mintz said. “If Canada wants to stay together, it needs to reach some agreement on resource development.”
Carbon Neutrality Goal
Trudeau is aiming Canada toward carbon neutrality by 2050.
Teck’s decision was a “get-out-of-jail-free card” for Trudeau and problematic for Kenney, said Ian Urquhart, political science professor emeritus at the University of Alberta.
“(It) may push the premier to reconsider whether, to attract the investment he craves, his government needs to take seriously a climate-change policy that will reduce oil sands greenhouse gas emissions,” Urquhart said.
Kenney, 51, former head of a taxpayer watchdog organization, faces economic pressure to defend the oil industry and political incentive to fight Trudeau, in a right-of-center province where a separatist movement is swelling.
Trudeau, 48, is the son of former Prime Minister Pierre Trudeau, who was deeply unpopular in Alberta, Canada’s largest oil-producing province, for his energy policies.
Blaming Trudeau
Kenney’s game plan has to date involved support for the oil industry and casting Trudeau as a villain, Urquhart said.
Protesters in Canada in recent weeks have blocked rail lines in sympathy with indigenous activists looking to stop construction of a gas pipeline.
On Feb. 24, Kenney blamed Teck’s withdrawal on Trudeau for allowing regulatory uncertainty and “lawless” protests.
He criticized “urban, green-left zealots” for opposing oil projects, but also extended a peace offer. Alberta had offered an oil sands emissions cap in exchange for approval of major projects, before Teck’s withdrawal, he said.
“We have been ready, willing and able to find an agreement on environmental issues that would also pave the way forward for our industry,” Kenney said.
The oil industry is already frustrated at federal targets changing from year to year, said Tim McMillan, CEO of the Canadian Association of Petroleum Producers.
Complications For Kenney
Complicating matters for Kenney, Teck’s decision likely adds strength to Alberta’s separatist movement, Mintz said. “He has to deal with anger here. He needs the federal government to show they take him seriously.”
Trudeau is always willing to work collaboratively with his provincial counterparts on climate change and supporting Canadian jobs, said Ann-Clara Vaillancourt, a spokeswoman for the prime minister.
Capital to develop technology is also needed to cut emissions across the economy, said Reg Curren, spokesman for oil producer Cenovus Energy.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Third Week in a Row, Baker Hughes Says
2024-08-30 - The rig count is 8% below this time last year, according to Baker Hughes.
Helix Awarded Vessel Service, Charter Contracts Off Brazil
2024-08-28 - Helix Energy Solutions Group was awarded new three-year charter and service contracts, valued at an estimated $786 million, from Petrobras for Siem Helix 1 and Siem Helix 2.
Shell, Akselos Enter Enterprise Deal for Structural Performance Management
2024-08-28 - Shell Information Technology International will leverage Akselos’ structural performance management software to monitor the health and lifecycle of Shell’s critical assets in Qatar, Canada, the Gulf of Mexico and elsewhere.
From Exxon to APA, E&Ps Feel Need to Scratch Exploration Itch
2024-08-27 - Exxon Mobil is looking for its “next Permian,” which an executive said could be in Algeria.
E&P Highlights: Aug. 26, 2024
2024-08-26 - Here’s a roundup of the latest E&P headlines, with Ovintiv considering selling its Uinta assets and drilling operations beginning at the Anchois project offshore Morocco.