Advocates for the energy industry say they are cautiously optimistic about the direction energy development is going in the country.
On Jan. 30, Energy Minister Pete Guthrie issued a statement on Alberta’s energy sector citing an expectation by analysts that Alberta will see “more energy production, more innovation, and more jobs this year.”
Tristan Goodman, president for The Explorers and Producers Association of Canada, a group representing smaller oil and gas entrepreneurs with a membership of approximately 350 companies, said he doesn't disagree.
“It's quite a positive update. And I think that is accurately reflecting sort of where we're going related to energy development, not just in Alberta, but actually more broadly in Canada,” he said.
Goodman said last year was a positive recovery year for the industry after the COVID-19 pandemic changed the global economy and negatively impacted commodity prices.
“This year really continues to build on that (positive recovery). But it's a sensible build, in the sense that companies are still being reasonable and making sure that growth is sustainable as they look forward,” he said.
Goodman said a sensible build is important because companies need to be responsible with the deployment of capital and ensure “the development matches the market capacity, both from a transport perspective but also from a global demand perspective.”
According to the update on the energy industry, rig counts were up 48 per cent last year compared to 2021. Alberta’s crude oil and equivalent production was up four per cent in 2022.
Guthrie, in the update said, the total revenue value of energy exports in Alberta increased around 67 per cent, to about $148 billion from January to November 2022 compared to 2021.
“As we transition to a lower-carbon future, the demand for Alberta petroleum and natural gas will remain strong through 2050,” said Guthrie in a press statement.
Goodman said he generally has two concerns with regards to the industry. The first concern is the offtake or market capacity.
“Which is effectively a pipe transport issue, so pipeline issue, do we have enough capacity, but also an LNG issue. Recognizing that natural gas…is entering sort of a critical stage. We need to develop more natural gas, even as we move through changes in energy use,” he said.
Goodman said the other issue is that we need to remain competitive with other jurisdictions.
“That's critical because you don't have to develop the resource in Alberta. You could develop it in Saskatchewan or British Columbia, or you go to the United States, or even go further afield from that. If it gets too costly or too expensive, in Canada or in Alberta, then some of that investment could leave to other jurisdictions and that's obviously not what you're looking for,” he said.
To address the issue of competitiveness, Goodman said better jobs is what it comes down to.
“I think the Alberta government needs to continue to show leadership on (competitiveness) and build on the good work,” he said.
Goodman is happy with the work the government has done on reducing red tape including recognizing investment concerns on clean technology
“There's a lot of conversations around how we can continue to make sure investment in carbon capture utilization storage is occurring in Alberta instead of the United States. That's extremely positive for everybody. It's also positive from a GHG (greenhouse gas) reduction standpoint,” he said.
In the energy update, Guthrie said there are currently 25 carbon storage hub proposals and 10 million tonnes of CO2 emissions have been captured.
The update also noted that Alberta’s renewable energy sector is the fastest growing in Canada.
Jacob Komar, CEO of Revolve Engineering Inc., and co-chair of the Energy Transition Climate Resilience Committee in Edmonton said there is definitely a renewable energy boom in the province, but he is not so positive about the governments involvement in the renewable energy sector.
“There's tons of solar and tons of wind going up, which is awesome. For them to take credit for that, it's a little bit on the pale, but…” he said
Komar said he wishes the government would “actually put any money behind” technologies such as geothermal because it’s a promising technology.
When it comes to geothermal exchange, Komar said there is a lack of capacity in companies knowing how to install ground source heat pumps and geothermal systems.
“We have a lot of drillers, obviously in the province. A lot of them are set up to do oil drilling or water well drilling,” he said.
But, these drillers lack the designation requirements to install geothermal or geoexchange systems, said Komar.
“We have so many experienced drillers we could be leading the world in this technology. Yet, (the government) puts almost no money into it at all,” he said.
Komar is frustrated with the current government.
“The renewable industries in Alberta, probably since 2008, has probably propped up so many jobs and helped so much with the transition just so many people being laid off from the oil industry. They found a new home and could have been a lot worse if it wasn't for the renewable energy sector,” he said.
