Energy Archives - AB Pol Econ

The Premier’s Renewables Moratorium Fails Her Constituents in Medicine Hat

3Sep

By Bob AscahNo Comments

Employment, Energy, Environment, Intergovernmental, Politics

The Premier’s Renewables Moratorium Fails Her Constituents in Medicine Hat

Updated with related information 4 September 2023. This post is contributed by Dr. Ian Urquhart who is Emeritus Professor of Political Science at the University of Alberta. He is the author of Costly Fix: Power, Politics, and Nature in the Tar Sands published by University of Toronto Press in 2019. Representing a local constituency – this duty distinguishes the responsibilities of a Canadian premier from their closest American counterparts, state governors. Premier Smith showed little concern for those responsibilities when she slapped an industry-wide seven month moratorium on approving new renewable energy projects. The billions of investment dollars put at risk by the moratorium includes hundreds of millions of dollars in solar for her constituency of Brooks-Medicine Hat. DP Ener...

2Aug

By Bob AscahNo Comments

ATB, Budget, Credit Ratings, Energy, Environment, Fiscal History, Government Finances, Loan Losses, Politics

The Big Two mandates….

Over the past three weeks, Premier Smith has been busy issuing “mandate letters” to her cabinet colleagues. These mandate letters are ministers’ marching orders and are an excellent guide of future legislative and regulatory initiatives by the newly minted Smith government. Given the importance of five ministries which represent the most important conduits of public spending (Health and Education) and strategic public policy and intergovernmental relations (Energy and Minerals, Environment and Protected Areas, and Treasury Board and Finance), this post, and a succeeding post, looks at the central elements of Smith’s agenda. This post looks examines what I call the Big Two Mandates- Energy and Treasury Board and Finance. Energy and Minerals Smith’s letter to Jean, begins, excluding th...

Alberta’s continuing devotion to resource revenue and the legacy of ignored policy advice

25Jul

By Bob AscahNo Comments

Budget, Energy, Fiscal History, Government Finances, Opinion/Research

Alberta’s continuing devotion to resource revenue and the legacy of ignored policy advice

Updated on 2 August 2023 Despite a record surplus reported for last year, the Alberta government only achieves surpluses by counting the royalties from the sale of non-renewable resources (non-renewable resource revenue- NRRR) like ordinary revenue. But does this practice- commenced in the 1940s- faithfully represent the fiscal position of the government? If the Government of Alberta adopted the private sector's approach to the sale of physical assets, Alberta's fiscal history would be decidedly different. Private sector accounting would establish the oil, gas, and bitumen resources as an asset on the provincial balance sheet. The accounting entry would represent the value of all the resources in the ground that would be produced in the current fiscal year and into the future. The value o...

Danielle Smith’s cabinet policy committees

9Jul

By Bob AscahNo Comments

Energy, Intergovernmental, Opinion/Research, Politics

Danielle Smith’s cabinet policy committees

Updated 10July 2023 On Thursday 6 July, Premier Danielle Smith announced the formation of her cabinet policy committees. These five committees, in addition to the statutory Treasury Board committee chaired by the Treasury Board President and Finance Minister Nate Horner, reflect the government’s key policy priorities for the next four years. The names of the committees are Alberta First Building Communities Economic Diversification Public Safety and Wellness and Legislative Review Committee. All committees are chaired by non-cabinet members and have a balanced number of backbench MLAs and cabinet ministers. In this brief I examine the significance and role of the committees as well as taking a more in depth look at the published backgrounds of the backbench chairs. “I want to thank the...

30Jun

By Bob AscahNo Comments

Budget, Credit Ratings, Economic Data, Energy, Fiscal History, Politics

Ideas, Thoughts, Experiments Episode 4- Conversation with Robert Bhatia

This conversation occurred one week before the provincial election and canvassed three main topics- fiscal and economic policies, and politics. Click here to see the conversation. Robert Bhatia is a retired, long-term Alberta public servant rising to the position of deputy minister. He served as deputy minister in four ministries including Alberta Revenue and Alberta Finance. During his tenure he served on the boards of provincial agencies including the Alberta Investment Management Corporation and the Credit Union Deposit Guarantee Corporation. Since his retirement, he has joined the Local Authorities Pension Plan Board, was chair of the Alberta Balancing Pool and was named as a public member to the Credit Union Central Alberta board of directors where he is now Vice-Chair. He had si...

6Jun

By Bob AscahNo Comments

Capital Spending, Economic Data, Education, Energy, Government Finances, Investment

Ideas, Thoughts, Experiments- Alberta 2023 Conversation with thought leaders Episode 3- Lindsay Tedds

To watch the conversation go to Youtube This conversation was recorded at 1 p.m. on Thursday 18 May, before the leaders' debate with Professor Lindsay Tedds Associate Professor of Economics at the University of Calgary. Her research interests are eclectic and range from tax policy and public policy design and implementation involving a trans-disciplinary approach to harnesses the strengths of economics, law, public administration, and intersectionality. Our talk ranged widely from income inequality, building an inclusive workplace, the importance of policy stability for investment, societal values, contradictions between the UCP's socialistic spending promises and its free markets' position, education policy, municipal property taxes, environmental liabilities, the challenge of f...

31May

By Bob AscahNo Comments

Budget, Energy, Fiscal History, Politics

Ideas, Thoughts, Experiments- Alberta 2023 Conversation with thought leaders Episode 2- Lori Williams

To watch the conversation click here. In the second of a series of conversations with well known Albertans, Bob Ascah speaks to Professor Lori Williams of Mount Royal University. This conversation was recorded on Thursday 18, before the leadership debate. The discussion delved into the 2023 election which, at just past the mid-point remained too close to call. Ms. Williams identified health care and affordability as the key policy issues in this election. Other topics covered included how safe are the 41 "rural seats" for the UCP? Williams noted that during the 2019 election, Jason Kenney's controversial history as a student at a San Francisco Jesuit seminary this was generally ignored in the campaign. So why did Smith's leadership opponents not dig out these co...

29May

By Bob AscahNo Comments

Energy, Fiscal History, Government Finances

Alberta’s Crack Cocaine: Challenges for the next Premier- Opinion

On the eve of Alberta's closest election and arguably since 1935, it's most crucial, I am reminded of an analogy I heard first around 2013. The term was used in a public forum on the recent Alberta budget. Grant Robertson, a career Alberta public servant and recently retired former deputy minister in Treasury Board compared Alberta's non-renewable resource revenue dependence with the use of crack cocaine. His comment produced a titter in the audience. When I heard this phrase come up again recently in my conversation with Todd Hirsch on 8 May, one week into the provincial election, I took notice. Mr. Hirsch, the well known ATB Financial former economist was likewise using this phrase in the same way used by Mr. Robertson about a decade ago. The ups and downs of Alberta's roller coaste...

Oil and Gas royalties, unpaid municipal taxes, and unaddressed reclamation

17Apr

By Bob AscahNo Comments

Agencies, Budget, Energy, Environment, Opinion/Research

Oil and Gas royalties, unpaid municipal taxes, and unaddressed reclamation

In June 2022, Alberta’s then Energy Minister Sonya Savage, a former executive with the Canadian Energy Pipelines Association, warned the federal government not to consider a tax on windfall profits of the energy industry. When asked about the oil industry’s record cash flows and remediation liabilities, Savage stated: “The current spike in oil prices isn’t enough reason to require the industry to spend more on cleaning up the tens of thousands of abandoned oil and gas wells in the province.” In reflecting on this statement, it suggests that expanded spending by Alberta’ producers on remediation expenses might imply royalty payments to Alberta might fall. In short, the province may have a short-term financial interest in not losing revenue when reclamation spending increases. This con...

3Apr

By Bob AscahNo Comments

Credit Ratings, Energy, Government Finances, Politics

Auditor General and orphaned wells

On 23 March the Auditor General issued his spring reports into four areas including the Liability Management program for oil and gas wells administered by the Alberta Energy Regulator. AER has a system to mitigate the risks for the closure of oil and gas infrastructure; however, parts of the system have not operated effectively…criteria were not fully met in the following areas: risk management practices goals, performance measurement and public accountability assessing information from OWA timely closure of inactive sites collecting sufficient financial security and minimizing risk of inappropriate licence transfers suspension, abandonment, remediation and reclamation regulatory processes Three main problems with the current liability management system are: lack of p...