Energy Archives - AB Pol Econ

19Jan

By Bob AscahNo Comments

Credit Ratings, Economic Data, Energy, Financial Institutions, Intergovernmental, Opinion/Research

Danielle Smith’s Pretext

Updated 20 January 2025. This is an opinion/prediction piece Economic and political winds favourable for Smith Danielle Smith has enjoyed a highly favourable economic backdrop in her first 27 months of her premiership. Oil prices have ranged from a monthly average price of $U.S. 69.95 in November 2024 to a monthly high average price of $85.64 in April 2024 (Cushing, OK WTI Spot Price FOB). This favourable oil price environment has assisted Smith greatly on the fiscal side. In preparing for the May 2023 election, the province’s books were in surplus by a whopping $11.6-billion and the fiscal 2024-25 fiscal year surplus is estimated to be $4.6-billion. The surplus could go much higher with the weakness in the CAD. From October 2022 to December 2024, Alberta’s labour force grew from 2,5...

Pinocchios Aplenty: Fact Checking Alberta’s Coal Industry Modernization Initiative

10Jan

By Bob AscahNo Comments

Energy, Environment, Investment, Opinion/Research, Politics

Pinocchios Aplenty: Fact Checking Alberta’s Coal Industry Modernization Initiative

Contributor Dr. Ian Urquhart is Professor Emeritus of Political Science from the University of Alberta. In memory of Kris Unger. Kris was passionate about preserving Alberta’s landscapes, most especially perhaps the Eastern Slopes and the Rockies. I hope his spirit approves of the following Introduction Disingenuous. That’s how The Globe and Mail’s Emma Graney characterized Energy Minister Brian Jean at the news conference announcing the government’s vague Coal Industry Modernization Initiative. Deceptive and brazen also would be fitting adjectives. In their 30-minute news conference Mr. Jean and Environment Minister Rebecca Schulz failed miserably to communicate accurate information to the public about many vital aspects of exploiting coal in Alberta. One of the few une...

1Jul

By Bob AscahNo Comments

Energy, Environment, Opinion/Research, Politics

The Pronouncements of Rebecca Schulz

In this 4,000 word essay I recount and analyze the dozen or so news releases put out by Environment and Protected Areas Minister Rebecca Schulz since last June. On 9 June 2023, after the 29 May election Rebecca Schulz was appointed the minister of Environment and Parks. Under the order of precedence for cabinet, Schulz was in the middle of the pecking order at ninth after the Premier. However since her appointment Schulz has overshadowed Smith energy and minerals minister, Brian Jean and has become indispensable in supporting Premier Smith assault against the federal government and, in particular, Environment and Climate Change minister Stephen Guilbeault. In an particularly unsavoury remark in a friendly conversation with Tucker Carlson, Ms. Smith urged Carlson to put Stephen Guilbe...

NDP Leadership campaign- policies compared

31May

By Bob AscahNo Comments

Education, Energy, Environment, Health, Opinion/Research, Politics

NDP Leadership campaign- policies compared

Introduction Every voter in Alberta’s NDP leadership race has their own set of public policy interests. Some of these voters have few if any interest in politics and have few policy issues except those involving their pocketbooks. Pocketbook issues include being able to eat, own a cell phone, have a place to call home, access a family doctor and affordable transportation. Whether this is the typical NDP voter is another question, but at the end of the day if the successor to Rachel Notley is to defeat Danielle Smith’s UCP they will need to understand these pocketbook issues. NDP leadership policies can be found at these websites: · https://voteforjodi.ca/jodis-leadership/# · https://teamganley.ca/policies · https://www.sarahhoffman.ca/priorities ...

21Apr

By Bob AscahNo Comments

Energy, Environment, Financial Institutions, Intergovernmental, Opinion/Research, Politics

Smith and the Free Alberta Strategy- An assessment

Overview and Context Premier Danielle Smith has been in office for 19 months and provides an opportunity to evaluate how Smith is proceeding in implementing the Free Alberta Strategy (FAS). I found that many boxes have been checked by the premier but her biggest test is ahead- how to prevent the federal from weakening Alberta's largest industry in its bid to lower CO2 and other emissions. Smith is closely associated with one of the FAS authors, Rob Anderson. Rob Anderson is now the Executive Director of the Office of the Premier which places him at the apex of policy-making in Alberta. His acquaintance with Smith goes back to at least 2010 when, as a former Progressive Conservative (Airdrie -Chestermere), he crossed over to join the Wildrose Alliance party becoming deputy leader. In...

A Sales Tax for Alberta- Presentation to the Probus Club of Central Edmonton

14Apr

By Bob AscahNo Comments

Budget, Credit Ratings, Energy, Fiscal History, Government Finances, Opinion/Research, Politics

A Sales Tax for Alberta- Presentation to the Probus Club of Central Edmonton

My presentation to Probus members on 20 February 2024 reiterated the main themes in A Sales Tax for Alberta- Why and How published by Athabasca University Press in 2022. The presentation is found below. Much of the discussion acknowledged the why for a retail sales tax but most of the questions and comments focused on the how, The major difficulty is political culture which is very hostile to taxes than in the rest of the country. Several members who had worked within the Alberta public sector argued that waste in governments should discourage taxpayers from further "feeding the beast." It is a Catch 22- to make the political culture less fearful of paying taxes, government needs to become more efficient. To become more efficient typically means to hire private sector managemen...

26Feb

By Bob AscahNo Comments

Budget, Capital Spending, Credit Ratings, Energy, Environment, Fiscal History, Government Finances, Opinion/Research

Kaplan-Ten major reasons why Alberta’s new fiscal framework won’t bring a long-term sustainability focus to fiscal planning.

In this critical and timely essay- a few days before the province's 2024 Budget is tabled, fiscal planning expert Lennie Kaplan provides an in-depth analysis of problems embedded in the Smith government's Sustainable Fiscal Planning and Reporting Act (SFPRA). Kaplan argues the SFPRA must be fully re-opened to meet Premier Smith’s commitment to long-term fiscal planning. This analysis reveals there is a great deal of flexibility in the government's framework in spite of the impression that the government has little fiscal flexibility to spend. In her televised address on February 21, 2024, Premier Smith promised to bring a long-term fiscal sustainability focus to Alberta fiscal planning, including building up the assets of the Alberta Heritage Savings Trust Fund (AHSTF) and paying d...

Auditor General ‘qualifies’ his unqualified opinion

5Feb

By Bob AscahNo Comments

Agencies, Credit Ratings, Energy, Environment, Government Finances, Opinion/Research

Auditor General ‘qualifies’ his unqualified opinion

In December 2023 Alberta’s Auditor General, Doug Wylie produced a report on his opinion on the Government of Alberta’s Consolidated Financial Statements, The report identifies in the matters which, in the professional judgment of the Auditor General and his staff (OAG), were the most significant matters raised during their audit work. These matters were the Accounting for environmental liabilities Implementation of the new public sector accounting standards related to asset retirement obligations, financial instruments, and foreign currency. (OAG, December 2023, p. 15). This post focusses on environmental liabilities. Background Alberta’s financial statements are released by the end of June each year by the Finance Minister and the OAG’s audit objective is “to provi...

23Jan

By Bob AscahNo Comments

Energy, Environment, Politics

Alberta needs an Alberta Climate Change Accountability Act contributor Lennie Kaplan argues

I have known our new contributor Lennie Kaplan since a meeting with then Treasurer Jim Dinning, Alberta Liberal party finance critic Mike Percy and other Treasury officials about 1994. Lennie was then Percy's legislative assistant and I was part of a briefing crew on amendments to the Financial Administration Act. Dinning, in a somewhat unorthodox procedure, shared legislative briefings with the like-minded opposition critic before tabling in the Assembly. Lennie and my paths crossed episodically over the years. I was therefore very pleased when he contacted me about writing some pieces based on his budgetary experience as a practitioner and a researcher. I might not always agree with Mr. Kaplan but I deeply believe, like Lennie, that accountability, transparency, and better f...

Northwest Upgrader- more surprises ahead for Alberta taxpayers?

18Dec

By Bob AscahNo Comments

Agencies, Credit Ratings, Energy, Government Finances, Politics

Northwest Upgrader- more surprises ahead for Alberta taxpayers?

Soon after the Legislative Assembly was recessed on 6 December, Alberta’ Executive Council (provincial cabinet) passed Order in Council 219/2023 to authorize the Alberta Petroleum Marketing Commission (APMC) to borrow money to finance the operations of the North West Redwater (Sturgeon) refinery. The maximum amount to be borrowed "shall not exceed $2.9-billion"- hardly a relief for Alberta taxpayers. The O.C. also authorizes the President of Treasury Board and Minister of Finance to “make advances to or purchase securities of the Alberta Petroleum Marketing Commission” not to exceed the same $2.9-billion limit. It will be the Crown in Right of Alberta who will be raising this money by issuing securities and the Crown will become the debtor. Under section 7, the terms and conditions ...