'Energy is Canada's power': New federal energy minister touts past Alberta oilpatch ties
The new federal energy minister delivered a boisterous speech in support of the country's energy sector on Friday morning, while highlighting his past involvement in the sector and the urgent need to build a variety of new energy projects.
Tim Hodgson spoke to a business crowd, which gave him loud applause at a sold-out event in downtown Calgary as part of his first appearance since the cabinet appointment by Prime Minister Mark Carney.
"Energy is power. Energy is Canada's power. It gives us an opportunity to build the strongest economy in the G7, guide the world in the right direction, and be strong when we show up at a negotiation table," said Hodgson in his speech.
Born and raised in Winnipeg, Hodgson served as a reserve officer in the Canadian Armed Forces from 1979 to 1985. Hodgson is most-known as a former banker with Goldman Sachs who served as an adviser to Carney at the Bank of Canada.
Hodgson's resumé also includes the role of board chair at Hydro One, Ontario's public electricity provider.
Still, for those in the oilpatch, his most relevant career experience was the three years he spent as a board member with MEG Energy, one of the top-15 largest oil and gas producers in Canada and one that operates an oilsands facility in Alberta.
"At Goldman, one of my first major deals is also one of the deals I am still the proudest of today: The Alliance Pipeline."
Alliance is a pipeline that transports natural gas from Alberta and British Columbia to the Chicago area.
"We helped get that project off the ground," Hodgson said.
"That pipeline closed the natural gas price differential, supported jobs, and brought Alberta better royalties and the federal government more revenue. A better price for Canadian energy helped every Canadian — just like more recently, with the building of the TMX expansion."
The federal government under former Prime Minister Justin Trudeau purchased the Trans Mountain pipeline project and built the expansion pipeline to transport oil from Edmonton to an export terminal near Vancouver.
"I want to be very clear. In the new economy we are building, Canada will no longer be defined by delay. We will be defined by delivery," he said.
Trudeau introduced several policies aimed at reducing the country's greenhouse gas emissions, including the proposed emissions cap on the oil and gas sector, which represents about a quarter of the country's total emissions.
He also reduced the amount of subsidies to the sector, strengthened climate targets, and introduced funding aimed at reducing emissions and developing carbon capture projects.
Hodgson repeated a phrase often promoted by the oil and gas sector about how the export of energy from Canada creates an overall benefit for the world.
"Every barrel of responsibly produced Canadian oil and every kilowatt of clean Canadian power can displace less clean, riskier energy elsewhere in the world," he said. "Our exports can help our allies break dependence on authoritarian regimes and help the world reduce our emissions."
Hodgson highlighted the need for various types of energy including nuclear power, while also pressing for the Pathways project to proceed, which is a proposed carbon-capture facility in the oilsands region of northern Alberta.
"All of us, governments and industry, need to get the Pathways project done. This government will not be a government of talk, but a government of action. We need the same from the province of Alberta and the Pathways Alliance," he said.
The Pathways organization is a collaboration between oilsands giants, including Suncor. The company's CEO Rich Kruger introduced Hodgson at the event, saying the government's focus on building is "music to Alberta's ears." He also praised Hodgson for his distinguished career.
The new energy minister did not make any announcements or signal any changes in government policy beyond what the Liberals had pledged during the campaign.
Several industry leaders say they want to see action from the federal government, but for now, are pleased with the change in tone.
"I haven't seen a federal cabinet minister talk about rig workers as much as ...[Hodgson] did in the last 10 years," said Mark Scholz, head of the Canadian Association of Energy Contractors, after the event. "It was a very encouraging speech."
Several provincial leaders, including Alberta Premier Danielle Smith, have called for a political "reset" in how Ottawa engages with the West.
Smith was also "very concerned" about the appointment of new Environment and Climate Change Minister Julie Dabrusin.
"We are being forced to contend with yet another 'keep it in the ground' environment minister. This is a step in the wrong direction," Smith said, following the recent federal election.
Industry sees Hodgson as 'a great pick'The Alberta government is much more open-minded about Hodgson's appointment, while those in the industry praised him as "a great pick" and "probably the best choice" for the job.
Those in the industry hope Hodgson's combination of capital markets experience and knowledge of the oilpatch will help attract investment and shape policy that will help the sector blossom.
cbc.ca
