MOUNTAIN VIEW COUNTY – The company decision to formally withdraw its regulatory application for the multi-billion-dollar Teck Frontier oilsands project in northern Alberta is bad news for the oil and gas industry across the province, says Sundre Petroleum Operator’s Group (SPOG) executive director Tracey McCrimmon.
On Feb. 23, Teck Resources Ltd., the Vancouver-based company involved in the project, announced it would not be proceeding with the project, which had been expected to create thousands of jobs and generate billions of dollars in tax and royalty revenue.
“It’s very disappointing,” said McCrimmon. “It’s just another sad story for the oil and gas industry. It would have created jobs across the province.
“With all the uncertainty going on, the company is saying they are not doing it in this climate. It’s another obstacle the oil and gas industry is continually facing. We are driving away every opportunity for capital every time we turn around the corner.”
SPOG is a collection of oil and gas companies with operations in the district. It also includes associate members such as Mountain View County.
Don Lindsay is the president and CEO of Teck.
“Global capital markets are changing rapidly and investors and customers are increasingly looking for justification to have a framework in place that reconciles resource development and climate changed, in order to produce the cleanest possible products,” said Lindsay.
“This does not exist here today and, unfortunately, the growing debate around this issues has placed Frontier and our company squarely at the nexus of much broader issues that need to be resolved. In that context, it is now evident that there is no constructive path forward for the project.
“The promise of Canada’s potential will not be realized until government can reach agreement around how climate policy considerations will be addressed in the context of future responsible energy sector development.”
Premier Jason Kenney called the cancellation of the project a “grave disappointment to Albertans” days before the federal government was to decide on the future of the undertaking.
Kenney placed blame for the cancellation on the Trudeau government.
“Weeks of federal indecision on the regulatory approval process and inaction in the face of illegal blockades have created more uncertainty for investors looking at Canada,” Kenney said Monday.
“Teck’s decision is disappointing, but in light of the events of the last few weeks it is not surprising. It is what happens when governments lack the courage to defend the interests of Canadians in the face of a militant minority.
“The timing of the decision is not a coincidence. This was an economically viable project, as the company confirmed this week, for which the company was advocating earlier this week, so something clearly changed very recently.”
Kenney said news of the application withdrawal “deepens our government’s resolve to use every tool available to fight for greater control and autonomy for Alberta within Canada.”
NDP official Opposition Leader Rachel Notley said Monday that the Kenney government shares blame for the application withdrawal.
“Let’s face facts, before the election Jason Kenney began a campaign of division, designed to demonize efforts to take real action on climate change,” Notley said. “The polarization and conflict on this issue has only been accelerated since he took on the role of premier.
“The heated rhetoric and constant conflict generated by Jason Kenney and the UCP is the primary reason for withdrawal of Teck’s application. The premier himself is the one to blame.”
Gil McGowan is the president of the Alberta Federation of Labour.
“It is clear that the Kenney government’s climate belligerence is doing more to drive away investment and kill jobs than anything that’s been done by environmentalists or Indigenous protestors.”
