STUCK IN THE MIDDLE WITH YOU: OUR ALBERTA OIL SANDS

Written by CHRIS COZEA
Economy»
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athabascsandsJust heard this one: “If Canada were like China, the Northern Gateway pipeline would be built in six months.” Which also sounds like this one: “If Alberta were part of the United States the Keystone XL Pipeline would be built by now.”


This kind of talk occurs more often than necessary, especially over lunch in Alberta cafeterias. During dinner, in fancier restaurants, such scenarios are not discussed as straightforwardly, although they are inevitable elements of the current ethos in Canada’s fossil energy sector, where all kinds of plausible and impossible scenarios are discussed ad nauseam.


In one of these recurring discussions, Alberta’s oil sands are at the center of an imaginary T intersection. Besides the Northern Gateway and Keystone pipelines, which are envisioned for exporting its bitumen, the third leg of the T is rather illusory in terms of economic practicality and refers to sending the bitumen through existing pipelines all the way to Canada’s East Coast to be refined in Irving facilities or similarly retrofitted facilities in Central and Eastern Canada.

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THE UNREMITTING ELUSIVENESS OF ALBERTA’S ECONOMIC DIVERSIFICATION

Written by CHRIS COZEA
Economy»
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enoughwhisperingShould Albertans still feel good about the fact the only federal department headquartered in Western Canada is the Western Economic Diversification Canada with the head office in Edmonton? Or does it really matter?
Perhaps a better question could be:
"Has Alberta truly become more diversified economically?"
The answer should be categorically YES; yet the answer is not categorically NO.

So is the glass half empty or half full? The glass is half empty according to a PEMBINA Institute research that covers the performance of the entire Canadian economy from 1971 until 2003. We’ll have to look at how they’ve reached this conclusion, which of course is not encouraging, but at least brings a dose of realism in the ongoing discussion about Alberta’s quest for economic diversification. We will also try to assess how Alberta has fared in the last seven years – a period which has ended with a severe recession.

How did it all start? Why diversify economically?

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