Oil and gas “existential crisis” approaching the countryside of Alberta

Canada needs to start strengthening energy independence and work towards a national energy strategy to protect itself from volatile market changes such as the cancellation of the Keystone pipeline, Alberta’s provinces The president of an organization that represents the municipality says.

Alberta Rural Municipality (RMA) President Paul McLauflin said relying on the international energy market carries risks, but looking inward as a country of energy strategy is for all kinds of energy. On the other hand, it can be managed by the country.

McLauflin said the municipality wasn’t surprised to hear that the Keystone pipeline was canceled, but said it’s more important than ever for the Alberta region to pivot towards another energy strategy. Stated.

Last week’s cancellation of Keystone by US President Joe Biden affected many rural communities in the eastern part of the state, but McLauflin said the decline in the oil and gas sector was felt throughout the state and many rural jurisdictions He said he is pulling much of the tax base. From the industry.

“It’s touching an existential crisis. It’s definitely approaching it,” McLauchlin said.

“If our oil and gas industry sees a negative trajectory, it will definitely change the countryside of Alberta. It’s the core of the majority of the municipalities I represent. Oil and gas are what I am today. It is the core of our existence. ”

Mr. McLauflin, if not taking action, from New York to the Midwest, once dominated by manufacturing, is now synonymous with the region facing hollowing out of industry, the Rust Belt, or the 1980s. He said he was at risk of becoming northern Scotland.

“We don’t want to be one of these hollowed-out industrial centers, where we have a rusty gas plant, which casts our shadow on us before,” he said.

“I think we have no choice, so I think we need to force ourselves to innovate, right? Indifference is not your choice-it doesn’t work.”

Local governments are so close to the situation in the field that they can be leaders in developing national energy strategies. Municipalities can build consensus and submit plans to the federal government. According to McLauflin, energy planning will be possible to address the country’s climate change goals and lower its strategy to the local level, enabling small communities to thrive and harness the country’s resources and skills. ..

According to McLauflin, natural gas is a “amazing product” and, if properly treated in the right circumstances, can be a low-carbon fuel. The country also needs to supply various markets with blue hydrogen, a product made from natural gas in the process of steam methane reforming, resulting in carbon recovery and storage, or using renewable energy. Green hydrogen, the hydrogen fuel produced, reduces emissions Energy instead of fossil fuels.

Today, some jurisdictions in southern Alberta have had many successes using renewable energy products, with up to 20% of municipal tax assessments coming from renewable energy.

But McLauflin said the state must act swiftly to find a solution. Otherwise you will be left behind.

“We have to find a solution and we have to move this fast. This is not theoretical,” McLauchlin said.

“(We) need to start using future plans as a way to deal with the energy industry, rather than looking back.”

The news of the project’s cancellation was disappointing, but not catastrophic, said Doug Irving, mayor of Hardisty, where the Keystone pipeline begins.

The pipeline is owned by TC Energy and begins at the Hardisty Terminal, the state’s main storage and pipeline export hub.

“With all these pipeline operations, we seem to be experiencing a lot of ups and downs,” Irving said.

“We’re all excited and the job is canceled, but they’ve canceled it outside of what we can do. The town of Hardisty actually asks about permits or who approves things. Say nothing to. ”

About 600 workers came to the town as a result of this project. With a permanent population of 540, the town is a huge boom for the Hardisti hospitality industry.

“It’s a big financial turmoil, it’s for sure,” Irving said.

“It’s a big blow to us.”

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The Alberta government expected the pipeline to bring 2,000 construction jobs to the state in two years and generate $ 30 billion in revenue after completion. The government invested $ 1.5 billion in the project in March 2020 and began extension work after it was approved by the United States.

Irving wants the project to be reviewed and reviewed and someone else to issue a permit for the project.

“Maybe you can revoke a permit. I don’t think it will happen soon. But that’s a kind of Hardisty view. It’s out of our control and we can do it as much as we can. You have to avoid it and expect the best of the future. “

Oil and gas “existential crisis” approaching the countryside of Alberta

Source link Oil and gas “existential crisis” approaching the countryside of Alberta

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