Energy Archives - Page 5 of 6

6Nov

By Bob Ascah3 Comments

Economic Data, Energy, Fiscal History, Government Finances

Presentation to Professors Emeritus

Yesterday I presented to a small but engaged group of retired University of Alberta emeritus professors. My talk was provocatively entitled "Alberta's Crumbling Economic and Fiscal Foundation." Key points emphasized in the presentation include: Volatility in price of oil over past 6o years and its impact on provincial finances Over past 40 years Non-renewable resource revenue represents a high of nearly 50 per cent of own source revenue (excludes federal transfers) to lows of just under 10 per cent recently. Based on Canadian Association of Petroleum Producers data since 1947, Alberta collected royalties equivalent to about 10 per cent of the total value of production over this 70-year span. In the early 1980s, Albertans were receiving about one-third of the rent from their resource owne...

10Oct

By Bob AscahNo Comments

Employment, Energy, Environment

Knowing a future?

An indirect effect of the “cashing-in” on virgin natural resources by the introduction of the new industrial technique with government support has been an indeterminate relationship between government expenditures and government revenue. Expenditures made on the assumption that revenue will return from various directions has been responsible for the incurable and dangerous optimism which characterizes government effort. On the whole, public enterprises to which government contributes have introduced an element of uncertainty in the financial position of the government and a degree of unwholesome inelasticity. Harold A.Innis, Problems of Staple Production in Canada. 1933, 64-65-emphasis added On Tuesday, 6 October Premier Kenney, Associate Minister of Natural Gas Dave Nally, and a phalan...

8Sep

By Bob AscahNo Comments

Agencies, Budget, Energy, Government Finances, Politics, Uncategorized

After waiting an extra 2 months 2019-20- some major surprises missed in February forecast

Updated 10 November 2020 In an earlier report on the crucial role played by the Alberta Petroleum Marketing Commission (APMC) in government finances, we highlighted the Commission's role in overseeing the North West Redwater Upgrader investment, commenced in the latter years of the Stelmach regime. We raised some doubts, given APMC's record with the North West Redwater Partnership (NWRP), about its competence in negotiating with TC Energy on the Keystone XL project. APMC is also the agency tasked with negotiating the Energy East commitment and the controversial oil-by rail contracts. With the two-month delay in the publication of the Government of Alberta's Annual Report and audited consolidated financial statements, the public finally has been apprised that Alberta's budget shortfal...

Hyndman Papers- -NEP “Casualty Reports” January 1981

27Jul

By Bob Ascah1 Comment

Employment, Energy

Hyndman Papers- -NEP “Casualty Reports” January 1981

The following paper comes out of Treasurer Lou Hyndman's files from January 1981 - about 80 days after the National Energy Program was announced. The document originates from the Canadian Association of Oil Drilling Contractors (C.A.O.D.C.). The document is a list of rigs idled and jobs lost and projected jobs lost in the oil patch. The language is fairly neutral but the term "casualty list" conveys a great deal of worry within the oil servicing industry. Also the time since the NEP is locked in people's memory as a term like Anno Domine (A.D.). This usage highlights a sense of an oilpatch entering into a totally different world. Bulletin C.A.O.D.C. Casualty Report NO.2 Issued 1981 January 05 (NEP +69) Since the publication of the National Energy Program on 1980 October 28 (NEP Day) t...

4Jul

By Bob AscahNo Comments

Budget, Credit Ratings, Energy, Investment, Opinion/Research, Politics, Uncategorized

Alberta’s Economic Recovery Plan

Analysis and Opinion Correction made 8 July 2020 re. $1.906 trillion, not billion Premier Jason Kenney has doubled down on his bet to rescue Alberta's beleaguered economy with more corporate tax cuts and higher infrastructure spending. Alberta' Economic Recovery Plan or ERP is a curious blend of spin, self-praise, capitalism at public expense, and a few interesting policy ideas. But overall the plan reads as an unimaginative, traditional blend of slogans, new organizations, and promises about jobs. According to the Premier, "jobs and the economy come first." Most importantly though, the Report confirms Alberta leaders are essentially hostage to international and domestic finance capital. The Premier even observed in his Press Conference that he had met that morning with Unit...

Calm before the Storm- Provincial Archives 1980

22Jun

By Bob AscahNo Comments

Employment, Energy, Intergovernmental

Calm before the Storm- Provincial Archives 1980

Updated 25 June 2020 One of the most curious recommendations in the Fair Deal Report is section III which encourages “telling Alberta’s story.” This call to action urges the sharing of "common messages". The authors suggest that “transparent” civic society groups like municipalities, unions, companies, advocacy groups, non-profits and "indeed, every citizen” have a "critical and essential voice" to tell Alberta’s story. However, this section includes the invocation to tell a story about Alberta’s “leading practices in the energy, agriculture, and forestry sectors and the full cost that Alberta’s failure would have on benefits currently shared by the country as a whole.” Critics would charge that the panel was pandering to enduring grievances accentuated by the volatile roller- coaster ...

“A National Energy Program”- Hyndman papers

17May

By Bob AscahNo Comments

Energy, Energy, Government Finances, Intergovernmental

“A National Energy Program”- Hyndman papers

The Provincial Archives of Alberta slumbers in obscurity, but the work of its archivists is essential to the conservation and preservation of Alberta's rich social and political history. Lou Hyndman served with Peter Lougheed's ministry from 1971 to 1985 when he returned to the private sector. Hyndman served in many key cabinet positions, including Education, Intergovernmental Affairs, and Treasury. He donated over 100 boxes of records from his time in the provincial government. In this extract, the Deputy Minister of Energy- Energy Resources, Dr. Barry Mellon advises his minister, the Honourable Merv Leitch about impending storm clouds circling over Alberta's energy sector. This revealing memorandum was written six months after Pierre Trudeau won a majority election on 18 Febru...

9May

By Bob Ascah1 Comment

Bankruptcies, Energy, Environment, Loan Losses

Follow the Money- if you can

Updated 13 May 2020 and 4 August 2020 In this post, I return to the receivership of Trident Exploration and the various "legal fictions" used including: Trident Limited Partnership, Trident Exploration (Alberta) Corp., Trident Exploration (Aurora) Limited Partnership I, Trident Exploration (2006) Limited Partnership I, and Fenergy Corp. Trident was a debtor to two provincial agencies: ATB Financial (ATB) and Alberta Investment Management Corporation (AIMCo). The Creditors Trident was placed into receivership in May of 2019 and attracted considerable attention because of the large number of unproductive wells and its vast reclamation obligations. The 177 page affidavit of Yvette Kennedy, Chief Administrative Officer of the Town of Stettler initiated the receivership process. AIMCo and A...

Federal Energy Program Finally Announced- Analysis/Opinion

20Apr

By Bob AscahNo Comments

Bankruptcies, Banks, Energy, Energy, Environment, Opinion/Research, Politics

Federal Energy Program Finally Announced- Analysis/Opinion

Belated Announcement On Friday, 17 April, the anxiously awaited federal program to support the oil and gas industry was announced by Natural Resources Minister Seamus O’Regan (pictured). Details were minimal despite weeks of waiting. As anticipated, much of the money was directed at orphan well clean up in Alberta, Saskatchewan and British Columbia. The amount- $1.75 billion was substantial and included $75 million for the offshore sector. In addition, $750 million was allocated to “create a new Emissions Reduction Fund to support workers and reduce emissions in Canada's oil and gas sector, with a focus on methane.” The announcement noted that the measure will maintain about 5,200 jobs in Alberta alone. In addition, loans would be provided through the Business Development Bank to qualifyin...

Keystone-XL, the Alberta Petroleum Marketing Commission and the Borrowers

9Apr

By Bob AscahNo Comments

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

Keystone-XL, the Alberta Petroleum Marketing Commission and the Borrowers

At the end of March, the Alberta cabinet passed Order in Council 104/2020 which authorized the “President of Treasury Board and Minister of Finance to make advances to or purchase securities of the Alberta Petroleum Marketing Commission.” In addition, the Minister was given the authority to raise: “up to $2 000 000 000, by the issue and sale from time to time of notes, bonds, debentures or interest-bearing or non-interest-bearing treasury bills issued by the Crown in right of Alberta or any other securities under which the Crown in right of Alberta is the debtor (collectively referred to hereafter as “Government securities”) for the purpose of making advances to or purchasing securities of the Alberta Petroleum Marketing Commission in respect of the development of a...