Alberta Premier Says Feds’ Just Transition Plan a ‘Big Threat’ to Oil and Gas Industry

Alberta Premier Says Feds’ Just Transition Plan a ‘Big Threat’ to Oil and Gas Industry
Alberta Premier Danielle Smith speaks at a press conference after the speech from the throne, in Edmonton on Nov. 29, 2022. (Jason Franson/The Canadian Press)
Marnie Cathcart
1/10/2023
Updated:
1/10/2023

Alberta Premier Danielle Smith said Tuesday that the federal government’s so-called just transition plan is a “big threat” to the province’s oil and natural gas industry.

At a news conference, she said the language that Prime Minister Justin Trudeau and his Liberal government are using when they talk about just transition “is language that they used when they phased out the coal industry.”

“It’s a social justice term,” said Smith. “To use that terminology, they are virtue signalling to an extreme base that is openly advocating to shut down oil and natural gas.”

Prime Minister Justin Trudeau and Sophie Trudeau board a government plane in Ottawa on Jan. 9, 2023. (Adrian Wyld/The Canadian Press)
Prime Minister Justin Trudeau and Sophie Trudeau board a government plane in Ottawa on Jan. 9, 2023. (Adrian Wyld/The Canadian Press)

“When I hear the words ‘just transition,’ it signals eliminating jobs,” said Smith. “For Alberta, that’s a non-starter.”

“This is not an industry in decline, but it is one of the industries that is strategic to world energy security, and Alberta is one of the most responsible producers of energy in the world and has been for decades. We will continue to advocate on behalf of the hundreds of thousands of workers whose livelihoods depend on this industry,” she continued.

“We expect the federal government to stand up for our world-leading oil and natural gas workers instead of trying to eliminate their jobs.”

Smith said that the prime minister talked about the need to phase out the oilsands as an “inevitability” and the Alberta government thinks the world “is going to need more natural gas.”

According to the premier, if the federal government pursues emissions caps and targets that are too aggressive, in too short of a timeframe, and unachievable, “it is a defacto production cap,” which would be a violation of the province’s constitutional right to develop its own natural resources.

She said that the province will ensure it has a “robust plan to reduce emissions in a way that works for Alberta” and if necessary, have Ottawa take the province to court.

“We are not phasing this industry out,” she said, adding that the province can export liquid natural gas, which would reduce global emissions, use carbon technology to capture CO2 embedded into products or buried underground, and develop a hydrogen industry and a small modular nuclear industry.

Update on Progress

At the news conference, Smith also said she would be offering more opportunities for reporters to ask questions directly on issues besides planned government announcements, noting that former popular Premier Ralph Klein used to do this frequently.

Smith highlighted some of the work that had been undertaken since she was selected in fall 2022, specifically tax relief on gas and diesel of 3.6 cents per litre, which she said brings Alberta’s gas prices to 23 cents below the national average.

The government is also preparing to open a portal for applications for $100 monthly affordability relief to Albertans with children, seniors receiving age and income support, and those receiving government financial support for a six-month period. Smith said the applications will open Jan. 18 and deposits will begin Jan. 31.

Smith highlighted $5 million in grants provided to food banks across the province and announced matching donations had been received to add an additional $5 million to help the province’s food crisis.

In December, Smith said more than 41,000 new full-time jobs were created in the province, with a total of 100,000 job openings in Alberta.

The premier also mentioned that the province had received the first shipment of children’s pain and fever medication, 250,000 bottles that would be used in hospitals by Alberta Health Services by the weekend.

An additional 4.75 million bottles intended for retail sale have been delayed from the anticipated arrival by Christmas, as part of the conditions Health Canada placed on approval requires the manufacturer to bottle the medication with a childproof cap.

Smith said it has been “a process” to meet the regulatory conditions and specifications required by the federal government, but that the medicine was expected soon.