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Monday, November 4, 2019

Is it to late for Alberta

In the mid 1960's Alberta made it abundantly clear that oil was theirs... not Canada's

Canada agreed that Provinces were to control their own natural resources and Alberta blossomed. They set their own royalties, established the Heritage Fund and life was wonderful. Pipelines were run across Canada to Ontario and Quebec. It wasn't economically feasible to build one to Atlantic Canada at the time so they were ignored.

Then in 1973 came the OPEC Oil Embargo against the US and suddenly America was in trouble their own wells were not capable of supplying domestic demand. An agreement was finally reached with OPEC and oil from the Middle East began to flow again. America had learned a lesson, never to rely on outside sources and the search for a friendly alternative and oil independence began.

Alberta benefitted and pipelines were built, wells drilled and America increased its domestic search for oil. By 2017 America had almost reached oil independence.

Alberta failed to heed the writing that was on the wall and for the next 30 or 40 years relied solely on the US and Canadian markets, then came the age of environmental pushback smog pollution, Global Warming and finally climate change was becoming alarming and the Nations of the world responded. Europe didn't want sands oil and there was a move away from coal and oil fired generation, the auto industry started producing more efficient vehicles and countries started looking at and installing passive systems to produce energy.

Finally Alberta began looking elsewhere for markets, the conservative government of Stephen Harper signed the FIPA agreement with China and pipelines were the order of the day. By 2014 the oil industry hit a recession due to a glut of oil and again Alberta searched for yet another alternative and that was Atlantic Canada but they would have to build a pipeline through Quebec and the people there said no. A negotiation took place to reversed the flow of line 9B & line 9 and to replace line 3 increasing the amount of oil flowing to end users.

Even with Harper eliminating environmental regulations he still failed to get a pipeline built to tidewater as opposition to the potential of environmental disasters held them up in court.

Throughout all these years Alberta government after government has failed to heed the message and to diversify its economy as the demand for oil dwindles. They have used and abused the Heritage Fund in many different ways and when their supporters falsely claim Canada benefits from it they fail to correct them. The truth is Canada invests year after year in Alberta, and yes Canada benefits in the form of taxes, and no the transfer payments don't come from the Heritage Fund nor did the liberals write up the present transfer formula, Harper and Kenney did.

Canada is not responsible for the Province of Alberta's mismanagement of your finances, conservative governments one after the other are.

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