January 08, 2016

Alberta NDP blames layoffs on world oil prices -- while next door, Saskatchewan scores $142M oil and gas investment

Ezra LevantRebel Commander

You can’t blame layoffs on Alberta’s NDP, their apologists would say. It’s not their fault that world oil prices are so low.

Except how do you explain this:

Today Lex Management announced they had raised $142 million to invest in oil and gas — in Saskatchewan. Right across the border.

Same world oil prices. Same problems with pipelines.

The only difference, well, as premier Brad Wall pointed out in a tweet, they’re not having another oil royalty review like Notley is.

The world still buys 96 million barrels of oil, every single day. There are still trillions of dollars being made. Hundreds of billions being invested.

Just not in Rachel Notley’s Alberta.


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commented 2016-02-05 17:35:14 -0500
Also, to put things in perspective, $142 million is the cost of 75 homes in Vancouver.
commented 2016-02-05 17:33:46 -0500
Oil jobs have been shaved in Saskatchewan too. This is the most dishonest article I’ve read all week.
commented 2016-01-21 17:22:36 -0500
Overall, things are down in SK too. You’re cherrypicking.
commented 2016-01-13 17:44:09 -0500
The NDP is and continues to be Alberta’s greatest obstacle,
indecision and badly timed, idiotic moves are killing us, read on
Husky Energy

Exclusive: Key Alberta Operator May Shut-In Cold Heavy Oil Production In Days, Source Says

One of Canada’s largest integrated energy companies may be on the verge of taking drastic measures in the heart of the country’s oil patch. A source familiar with the matter told Oilpro on the condition of anonymity that Husky Energy may shut down its Alberta cold heavy oil production (CHOPS) within days. The source said that the move will be made “in response to the unresponsive government of Alberta to the oil and gas industry” and low oil prices.

Husky spokesperson Kim Guttormson offered no comment beyond the company’s previous disclosures in response to our request for comment on the potential shut-ins. The majority of Husky’s heavy oil assets are located in the Lloydminster region of Alberta and Saskatchewan, where the company holds approximately two million acres. Husky’s heavy oil production is approximately 120,000 bpd, including approximately 45,000 bbls/day of production from its thermal projects. Cold heavy oil production with sand (CHOPS) and horizontal well technology are among the primary recovery methods used for Husky’s heavy oil operations. Husky said 94 horizontal heavy oil wells (gross) and 153 cold heavy oil production with sand (“CHOPS”) wells (gross) were drilled by the company in 2014.

As the Canadian oil patch suffers the impact of 12-year low oil prices, provincial governments are attempting to maintain economic growth despite the fact that the engine for this growth is the oil industry.

Husky is currently constructing 3 new steam-assisted gravity drainage (SAGD) facilities in Saskatchewan, the source said, “basically across the provincial border from Alberta due to the political regime in Alberta. Alberta is no longer interested in oil and gas development.” The projects are the Rush Lake project and the Edam East and Edam West SAGD projects, located nearby.

The government of Saskatchewan recognizes “the need for economics that provided a steady business climate, level tax base for business and jobs and wealth for the residents to pay taxes for the services we all require.” This bodes well for Saskatchewan, even as Alberta, according to the source, is unresponsive to the oil and gas industry and the low prices that are hurting it.

Husky has a central role in the Canadian heavy oil market. A centerpiece of the company’s operations in the region is its 25,000 bpd Asphalt refinery in Lloydminster, Alberta, which refines and markets a wide range of quality asphalt and paving products in Western Canada, Ontario, Quebec and the US.

The refinery processes heavy crude oil into other specialty products including a distillate stream used by the 88,000-barrel Lloydminster Upgrader and a condensate stream blended with heavy oil production. Locomotive distillate is sent to the Upgrader and processed into low-sulphur diesel. Heavy oil from deposits in northeastern Alberta and western Saskatchewan and bitumen from Husky’s Tucker oil sands project provide feedstock for the Upgrader.

Hence, Husky’s asphalt processing and marketing activities play a central role in adding value to its heavy crude oil production.
commented 2016-01-11 20:01:19 -0500
So left wing trolls , oil is down , the dollar is 69 cents, when will Ontario boom , since your excuse was both of those things, you have it your way now, lets see the awesome growth LMAO!
commented 2016-01-11 19:59:49 -0500
Derek that awkward moment when people think losing 3 billion is not substantial you mean. And Sask is not suffering like Alberta is , i was busy as hell when oil was lower for a few years at the start of the 2000’s, please tell me why if oyu think the price of oil is the reason we are hurting.
commented 2016-01-11 18:52:49 -0500
That awkward moment when people think $142M is a substantial oil investment.
commented 2016-01-11 11:58:34 -0500
@robert CAUGHELL . . . . absolute Nonsense Robert.
Where were YOU when the Ontario Lieberals flushed the Economic Engine of Canada, Ontario Manufacturing?
Canada still selling oil today at a discount to the USA cause we have no access to the east or west coast ports.
Nothing likely to change with Boy Blunder in charge . . . the most clueless PM in Canadian History !
commented 2016-01-11 06:58:55 -0500
Robert Caughill….All of eggs in one basket….check your facts……mining and energy combined account for only 8% of our GDP…hardly all of our eggs…..here’s a little resource economics 101 for you….if you raise the cost of doing business , you know things like taxes and high energy costs , the producers tend to go elsewhere. The real crunch in this is that for every direct job in the mining and energy sector there are 4 to 5 indirects. Please save your Harper BS factoids for those that don’t have a clue. Now go and see if my statements are correct. Perhaps along the way you might become a little better informed and able to provide an original opinion rather than parrot some BS comment seen elsewhere.
commented 2016-01-11 01:10:09 -0500
If any of you Albertans are looking for work, try coming to Winnipeg. We have plenty of Dollarama and Giant Tiger stores that are always looking for staff.
commented 2016-01-10 21:59:18 -0500
Manitoba is an absolute shit hole thanks to the NDP and the losers who vote them in. I still can’t believe AB voted the way they did. My sympathey to those of you who didn’t vote in The new dumbass party in AB . There is no incentive to work hard , create jobs what so ever with socialist governments in power. And yes Brad Wall for PM.
commented 2016-01-10 21:59:18 -0500
Manitoba is an absolute shit hole thanks to the NDP and the losers who vote them in. I still can’t believe AB voted the way they did. My sympathey to those of you who didn’t vote in The new dumbass party in AB . There is no incentive to work hard , create jobs what so ever with socialist governments in power. And yes Brad Wall for PM.
commented 2016-01-10 16:20:29 -0500
Sam Young : I live in Brandon Manitoba.

You speak the truth.
commented 2016-01-10 16:10:59 -0500
You make a good point Sam Young. Being able to adapt is a valuable trait, quite necessary to the survival of anything. Having said that, there are some things which no one, province or country should have to adapt to. There are some obvious examples I’m sure most of us here, could come up with. Sask. is somewhat diversified, and the key to their success isn’t that point, the key is, they are not hampered at every blessed turn by mean spirited regulation. That is our problem in the Alberta and B.C. But Notely right now is making Christie Clark look pretty darn good, and she’s not. Notely wants to shut everything down in Alberta, not just oil, because Notely wants to bring Alberta to its knees. She wants Alberta completely whipped like the Manitoba you describe. Whipped to the point that the province’s spirit will be so broken, that the people won’t be able to fight back. Docile, and resigned to the fate of failure and control. Control is her goal, and its for the global goal, and it/she is foreign funded and directed, you can be sure.

Adaption in this context, would be a futile exercise. The NDP in Alberta have to be countered. Where are they weakest? In their inexperienced team, that is where they are the most vulnerable. Start at the bottom where they are the most vulnerable. Keeping each other motivated by gathering, having meetings and planning can go a long way to keeping the spirit alive. Stay pissed off!
commented 2016-01-10 15:46:40 -0500
Business driven out of Alberta. May the 68% of Alberta voters be pleased with their stab in the back to Alberta prosperity. A vote for the socialists is a vote for poverty. Why do you think people from Sakatchewan have been motivated to move here over the last 40 years?
commented 2016-01-10 04:07:05 -0500
Have any of you ever been to Manitoba? This place is a shit hole. Go to google maps, and look up the street view of Main Street near Higgins avenue.

The only reason Manitoba is not doing any worse, is because it is hard to dig any deeper.

Manitoba is filled with apathetic and resigned people that revel in being in an ass backwards dump. The only reason Manitoba still has people living in it, is because the people here are too lazy to make anything of themselves, and don’t bother to move away.

This is what happens when your province is filled with ineptitude, despair, and a complete lack of willingness to improve. We got this way because the building of the panama canal killed our city’s economy. But because there was no will to adapt, we ended up the way we are today.

If you Albertans are smart, then you should do your damned best not to end up like Manitoba. Give a shit, and don’t let a one time blow to your economy ruin you for the next hundred years. God knows that putting the NDP in power for four terms in a row isn’t helping.
commented 2016-01-10 03:49:49 -0500
And I guess the comical side to all this is that Saskatchewan does have higher taxes and a somewhat less advantageous royalty structure.

But why did Alberta lose out?

It’s obvious that Notley snubbed this and likely other investments. Kill an industry by driving out the investment. Simple as that.

Wall has a lot to thank Notley for, no doubt.
commented 2016-01-09 23:34:07 -0500
“Do you realize that Saskatchewan under Brad Wall is the ONLY non communist province in the entire country right now? He must prevail. "

That’s Christy’s honour, mostly. I doubt Mr Keep SaskTel Communist quite fits that.
commented 2016-01-09 23:29:07 -0500
Unemployment at peak (July 2014 in both provinces)
Sask, 3.2%
Alta, 4.7%

Present (Dec ’15)
Sask, 5.5% (2.3%)
Alta, 7.0% (

In the same timeframe, Manitoba, by far the most systematically ingrained socialist government in Canada, unemployment only increased 0.6%, from 5.3 to 5.9%. Ontario, another province with a famously left wing government, DROPPED from 7.5% to 6.7%. Quebec, Nova Scotia, New Brunswick … all gained jobs, all did better than Saskatchewan and its 142 million dollar oil investment.

Note that the net direction of interprovincial migration in 2015 was FROM Saskatchewan TO Alberta. Sask’s net-lost thousands of people to other provinces over the last two years.

The problem is entirely oil based. As much fun as the partisanship is, it does not reflect reality.

Note that Lex Management is a Saskatchewan based company and seems to focus mostly locally. They seem to be interested in juniors and natural gas, not oilsands megaprojects, so why would they invest in Alberta? Nobody actually said they didn’t because of the NDP. Operating outside your own province adds considerably to your complexity so most companies tend to have a home bias. Separate Ezra’s conclusion, from the company’s.
commented 2016-01-09 20:04:45 -0500
Brad Wall has stated, in an interview with Brian, that he does not want to be the prime minister.
commented 2016-01-09 20:02:34 -0500
Robert, first you say Mr. Harper put all the eggs in one basket, but he worked with what was left after Ontario destroyed their own manufacturing sector, and Quebec doesn’t develop their resources and continues to suck of the teat. Then you show your hypocrisy saying no one will come near Alberta, but they are investing in Sask with, you guessed it, the energy egg basket.
commented 2016-01-09 18:58:28 -0500
Investment won’t come anywhere near Alberta. Unless it’s the subsidized alternative energy scams. Where money is stolen from the taxpayers by way of thieving carbon taxes, which are then handed over to the subsidy scammers.
commented 2016-01-09 17:36:49 -0500
Another lefty myth debunked!
commented 2016-01-09 16:46:16 -0500
Pull up this website: stopthesethings.Com – very revealing about the massive co2 and carbon footprints these grotesque, useless, expensive and insane birdkilling windmills are. We got to get rid of nutley.
commented 2016-01-09 15:11:24 -0500
And just who was it who put all of our eggs in the energy sector basket? Former PM Harper. it is time for EL and the Rebel to stop apologizing for Harper and his economic screw ups and start blaming him. If this had been done by Paul Martin EL et all would be screaming their heads off. But since it was done by former leader Stevie, only silence, Hypocrites!!
commented 2016-01-09 10:53:41 -0500
Brad Wall is a bright light in a world of darkness. Amazing the left don’t get it!
commented 2016-01-09 10:53:38 -0500
Brad Wall is a bright light in a world of darkness. Amazing the left don’t get it!
commented 2016-01-09 08:38:23 -0500
ALBERTA should demand that NOTELY resign! She creeped her BODY to Manitoba on Friday and if I knew she was coming, I would have made a big sign telling her to RESIGN AS PREMIER OF ALBERTA! She is a disgrace!! There are two terrible Premiers in Canada and NOTELY AND WYNNE are their names!!! They should hang their heads!
commented 2016-01-09 07:53:15 -0500
Elton Braun Sask has huge heavy oil reserves as well,