An op-ed, short for “opposite the editorial page”, is a written prose piece, which expresses the opinion of an author usually not affiliated with the publication’s editorial board.
Deidra Garyk touring the outdoor exhibits at the Lloydminster Heavy Oil Show. Photo by Brian Zinchuk
Editor’s note: Energy advocate Deidra Garyk reflects on her experiences at the Lloydminster Heavy Oil Show:
I had the honour of moderating the sold-out luncheon panel at the 2024 Lloydminster Heavy Oil Show (LHOS) in September, featuring Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe. I’ve been reflecting on how to best share this experience, and I settled on a summary of the panel discussion and an ode to the hardworking individuals in the oilpatch that live in communities like Lloydminster, representative of resource-based towns across the nation.
The LHOS is a testament to the dedication of the volunteers who organize this top-tier event biannually. Gatherings like this are important for bringing people together and reminding us that there is a human connection that binds the industry, whether you work in downtown Calgary or in the field.
I could feel the entrepreneurial spirit that is embodied by the show. The people in the room are the risk-takers, the visionaries, and the problem solvers who drive innovation. I was energized to keep speaking up in support of the people who work tirelessly in the patch, and I hope everyone reading this will join me.
I also had the pleasure of appearing on Lloydminster’s very own PatchWork Podcast with hosts Tracy K and Kurt Price – what a fantastic conversation! You can listen to it here.
I want to express my gratitude to Lloydminster Mayor Gerald Aalbers for inviting me to lead the panel, as well as to the LHOS volunteer team for their exceptional hospitality. The people of Lloydminster hold a special place in my heart.
Deidra Garyk touring the outdoor exhibits at the Lloydminster Heavy Oil Show. Photo by Brian Zinchuk
As part of the experience, I toured with the premiers, witnessing their interactions with exhibitors and their genuine interest in understanding the regulatory barriers hindering business operations, searching for suggestions for how to make improvements. As an Albertan, it was disheartening to repeatedly hear that Saskatchewan is seen as more business-friendly.
Premier Smith, however, seemed intent on learning more so that she can address the issues, beginning with a cultural shift at the Alberta Energy Regulator (AER). It is crucial for rule-makers to take these concerns seriously, as the exhibitors are essential to maintaining our modern way of life.
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Summary of the Panel Discussion
Both premiers conveyed optimism about the global energy outlook, reminding the audience that OPEC leaders focus on reducing emissions, not production, as oil producers play a crucial role in addressing energy poverty. Premier Smith highlighted that for everyone to have the standard of living that we do in Canada would require 300 million barrels of oil per day, triple our current usage.
Premier Scott Moe, left, and Deidra Garyk.
Premier Moe said unrest stems from a lack of energy or food security, criticizing Europe for prioritizing emissions while continuing to rely on Russian gas during the Ukraine conflict, instead of producing their own.
In campaign mode ahead of the October 28 Saskatchewan election, Moe was forthright about his views on energy and Ottawa. Nationally, he is looking for a change in the federal government. Premier Smith said that if the Bloc Québécois props up the government, then she too wants a change as the separatist party opposes oil and gas development and are “actively working against our industry.”
On the proposed federal emissions cap, Smith noted it acts as a production cap, as energy analyst firms have told her it will require production to be reduced by 1.2 million barrels per day by 2030 if it is applied as proposed. This would significantly impact government revenue for essential services, like schools and hospitals.
She countered the need for the emissions cap by highlighting the contemporary solutions like carbon capture that companies such as the Pathways Alliance are putting into practice. Moe praised the efforts of the people in the room for their innovation and environmental practices; further noting that many in the audience work for companies striving to reduce emissions.
The panel featured light-hearted banter as the premiers joked about merging their provinces into “Saskberta” or “Albertaskan”, while Smith referred to their relationship as one of “co-opratition”, a spirit of competition and co-operation.
They emphasized the need for heavy oil, much of which is used to create other products. Moe called for stronger collaboration between industry and government to establish effective regulations, asking the audience to ensure that there is a positive relationship between the two parties. Believing that is where success lies, he cited Saskatchewan’s multilateral drilling incentive program as a initiative born out of a suggestion from someone in the room.
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Pipelines
I asked about the impact of the startup of the Trans Mountain Pipeline (TMX) on provincial revenues, focussing on heavy oil production. Alberta received $12 billion from heavy oil and $5 billion from land leases. Smith said she had hoped that once TMX came on, the differential would narrow to $16 USD per barrel of oil, down from the high of $30 USD, but it has further narrowed to around $13-14 per barrel. For every dollar it narrows, the Alberta treasury benefits by $600 million dollars. As a result, the Alberta government watches that number very closely, and she’s happy with the trend because it helps create price stability.
Moe felt the stabilization of the differential was reasonable, and he is bullish on the industry due to the global demand for heavy oil. He remains optimistic about increasing Saskatchewan’s oil production by 2030, contingent upon federal decisions, while recognizing the need for more egress options out of Western Canada. Smith mentioned her ongoing discussions with companies to optimize egress through line looping or other optimization projects, expressing a desire to be bold and aspirational about pipelines and oil and gas, in general.
My favourite question came about because of Premier Smith’s speech at the Canadian Energy Executive Association conference in Banff at the end of August. There, she mentioned the possibility of resurrecting the Keystone XL pipeline, depending on who gets elected in the US in November. Considering the challenges associated with it, I asked who she anticipated will pay for the project due to the risk a private company would take on by funding it.
Smith expressed confidence that a Republican win could facilitate the pipeline’s approval, emphasizing the importance of energy security. She also revealed that oilpatch legend and former TC Energy CEO Hal Kvisle has taken over the asset because he’s bullish on the ability to complete the project. Alternatively, she believes the discussion is likely to be focused on natural gas if a Democrat wins the White House because it is a destination fuel, not just a transition fuel, as natural gas infrastructure can be used in the future for other fuels.
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Smith also highlighted the strong trade relationship between Alberta and the US with $184 billion worth of annual trade, which has grown over the years. The US Ambassador to Canada, David Cohen, understands oil and gas and recognizes the reliability of Canada as a trading partner.
I asked each premier to offer the audience three key takeaways that they could use to talk to family and friends about energy. Premier Moe encouraged the audience to share that Canadian oil and gas is the most sustainable and ethical on earth, countries should buy more of it, energy security is crucial, and Canadians should take pride in how it is produced. He also reiterated the need to talk about energy security and food security because people need both.
Smith echoed these sentiments, stressing reliability and affordability while also tying energy security to trade security with the US. Talking further about energy reliability, she said there’s room for a responsible amount of wind and solar on the grid, while ensuring that there is reliable energy when the wind doesn’t blow or the turbines have to be shut down below minus 30 to avoid failure or when the sun doesn’t shine. She pointed to the Texas grid failure that resulted in the death of 300 people as a stark reminder that it is not an academic exercise as there are real-world consequences to the decisions made about energy.
With respect to affordability, Premier Smith pointed to the reprieve on the fuel tax in Alberta and Manitoba and on the carbon tax on natural gas in Saskatchewan corresponding with the lowest inflation rates in the country. She contends that there is a connection between the carbon tax and the amount we pay for goods because of the trickle down effect of the costs throughout the supply chain. That is why Smith and Moe are advocating against the residential carbon tax, saying it is “bad policy, doesn’t work, and is punitive.”
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Since I prefer to end on an optimistic note, I asked each to provide one insight that makes them optimistic when they think about the energy future. Moe recognizes that there is an insatiable thirst for energy that our provinces can quench and is bullish on the opportunities he sees. He “couldn’t be more excited” about the investment opportunities in Saskatchewan, while Smith highlighted the industry’s innovative spirit showcased at the show.
She wants more projects done within the province because the Supreme Court win against Bill C-69, The Impact Assessment Act, confirms that the provinces have jurisdiction over intra-provincial matters. Companies with big data centres are moving to places with reliable energy because they cannot operate on carbon credits alone; they need reliable power since they can only be down for 14 seconds maximum. Some US states forbid data centres from using diesel generators as backup, causing these companies to look elsewhere. Premier Smith invited them to come to Alberta, saying she wants it to be the destination by clearing away regulatory barriers.
I thank both premiers for their courageous advocacy of responsible energy development and extend my gratitude to Brian Zinchuk of Pipeline Online for recording the panel.
I again thank the people of Lloydminster for welcoming me into their community and would like to give special acknowledgment to the volunteer team that puts on the Lloydminster Heavy Oil Show.
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