Canada West Foundation hosted its Board of Directors’ dinner last week at Hotel Arts. The theme - “Western Canada’s Energy Future” - was the topic of discussion for a post-meal panel including Tom Huffaker, vice-president of policy and environment for CAPP and former US Consul-General, Murray Edwards, vice chairman of Canadian Natural Resources Ltd, and Gordon Kerr, president and CEO of EnerPlus Resources Fund. The program was moderated by fiery business columnist Deborah Yedlin of The Calgary Herald. A three course meal was served, including roasted butternut squash soup and a duo of Alberta beef tenderloin and braised short rib.
Yedlin’s opening remarks focused on the increasing demand for low carbon energy, its corresponding market trends, and the need to combat a prevailing “ineffective public policy” in the oil and gas sector, particular in times of economic downturn. The participants, some smiling glumly at the mention of climate change debate and proposed cap-and-trade systems, took questions from the moderator and the audience. All echoed the need for more robust policy and predictable royalty frameworks - the current regime being one subject to frequent review and adjustment.
The first question was on the current feasibility of carbon capture and storage projects in the oil sands. Despite the onslaught of federal and province funding for such technology in recent months, the majority of projects selected to receive it have decline the support. Huffaker noted the fine balance needed between market and governance mechanisms to propel big change. Edwards explained the “long term progress” made in the oil sands developments - “This is a marathon, not a sprint,” he said - and spoke at length about proprietary technologies at work in his own development, which capture the carbon emitted when sand and bitumen are separated and push it back into the ground, “closing the loop” and shrinking the toxic tailings.
“That would have been a good story in the face of all those dead ducks,” quipped Yedlin.
Conversation flowed easily and ranged from the economic and environmental to the political and the financial. AIMCO, the institution by which the provincial government invests its public money, was a “classic example of a good idea with poor execution,” said Kerr. The people - and executives - of Alberta needed a clearer understanding of how, why and when those investments were being made, he explained.
Other guests included Alderman Joe Connolly, Adam Legge of Calgary Economic Development, Judy Hoag of Global Public Affairs, Art Korpach of CIBC, and Dr. David Swann, leader of the Alberta Liberal Caucus.
A few weeks earlier, the Gaining Ground Summit featured more discussions on the future of energy. Peter Tertzakian, an energy analyst and chief economist with Arc Financial, talked about the inevitable shift in consumer behaviour and the rapid technological changes taking place already to increase energy efficiency.
Published in National Post June 6, 2009
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