Page 4 - NorthAmOil Week 42 2022

NorthAmOil COMMENTARY NorthAmOil

Leadership change in Alberta could

cause headaches for Ottawa

New Alberta Premier Danielle Smith looks likely to clash more with Ottawa on energy

production and climate change than her predecessor

ALBERTA A change of leadership in Alberta could create Alberta’s oil
new headaches for Canadian Prime Minister The future of Alberta’s oil sands has looked
WHAT: Justin Trudeau as he tries to guide the country increasingly uncertain in recent years, both on
Alberta’s new premier towards its decarbonisation targets. New Alberta environmental and economic grounds. The oil
looks set to clash more Premier Danielle Smith was sworn in on Octo- price downturns that began in the mid-2010s
with Ottawa on energy ber 11 after winning the United Conservative played a significant part in drawing investors
production. Party (UCP) leadership race. Her predecessor, away from the region but environmental con-
Jason Kenney, stepped down after receiving cerns have also contributed.
WHY: 51.4% support in a leadership review. Some international majors that are active in
Danielle Smith’s Smith campaigned on a platform of putting the oil sands have sought to demonstrate publicly
campaign focused on Alberta first and “fighting back” against Ottawa, that they will focus more on cleaner energy. Most
prioritising Alberta’s after what she described as “nothing but hostility recently this has included France’s TotalEnergies,
energy resources without for the last seven years” from the federal govern- which said in late September that it intended to
asking the federal ment under Trudeau. spin off its oil sands operations as those assets do
government’s permission. “Today marks a new beginning in the Alberta not fit with its lower-emissions strategy. While
story,” Smith told UCP members after winning this does not represent a full exit, it is reflective
WHAT NEXT: the leadership race earlier this month. “No of broader attitudes towards investing in the oil
This stance puts her longer will Alberta ask permission from Ottawa sands among international majors.
on a potential collision to be prosperous and free,” she continued. “We As a result of this ongoing trend, oil sands
course with Ottawa as will not have our resources landlocked or our operations have become increasingly concen-
the country pursues its energy phased out of existence by a virtue-sig- trated in the hands of a small number of Cana-
decarbonisation agenda. nalling prime minister.” dian producers – primarily Canadian Natural
Comments such as these set the stage for Resources Ltd (CNRL), Suncor Energy, Impe-
confrontations between Smith and Trudeau on rial Oil and Cenovus Energy. Even those com-
issues such as oil production and climate change. panies, however, have shied away from major
This comes as Ottawa comes under pressure over new oil sands investments in recent years amid
its decarbonisation targets amid questions over increasingly stringent regulatory requirements
how oil sands production fits with long-term for major projects and uncertainties over federal
net-zero emissions goals. Smith, it seems, will and provincial decarbonisation policies.
push back against those goals. These operators have benefited from the rise

New Alberta Premier
Danielle Smith

P4 www. NEWSBASE .com Week 42 20•October•2022