Who Can Albertans Trust to Tell the Truth About Oil Sands?

The Quest for Truth in the Oil Sands is the title of the Todd Hirsch op-ed in today’s Globe and Mail. It captures much of the angst Albertans are feeling as citizens and the owners of the oilsands. We know this from some of the values surveying we have been doing with Albertans in the last few years and more extensively in 2010.  This survey was commissioned by OSRIN, the Oil Sands Research and Information Network out of the University of Alberta.
The subtext of Todd’s piece asks if the oil sands are an “economic bonanza” or an “environmental apolalypse.” There is so much spin and self-serving selection of fact that everyone know that the whole truth is not being told. Who can we trust and believe about what is happening in our oil sands these days? In Alberta today 89% of us believe the oil sands are either extremely important or very important to our future prosperity. Any government or industry that risks betraying our trust on oil sands development will face serious consequences from the voter and the public.

Progress is being made on the environmental front and a more rational approach to the pace and purpose of development is happening now too. There is more of a long term integrated view that is becoming the normative oil sands development model. This is in stark contract to the “damn the consequences” lets make a quick buck attitude that was so common in black gold rush of the recent past.

That said the facts are that conservation, habitat, air, water and reclamation concerns dominate the minds and values of Albertan around oilsands development. There is a sense that not enough is being done in these areas of concern to convince Albertans that our government or our industry tenants “get it” about how we want this resource developed.

The politics and policy approaches to oil sands development are still mired in mendacity, mediocrity and even the mundane. We are giving the resources away as we trade reasonable royalty rates in exchange for short term jobs or to appease industry threats that investment will dry up. Our environmental laws are not as good as we tout and our enforcement has been lack lustre. That is true notwithstanding the recent successful Syndrude prosecution of 1600 migrating ducks who drowned in tailings ponds due to corporate negligence.

Corporate and government communications efforts are focused mostly on PR positioning and not about sincere efforts at communicating and solving the problems. There are efforts being made and progress is being achieved but we don’t seem to hear or even believe those stories and when we do we sense they are mostly self-serving. We get snippets of stories but it seems the culture of spin is so pervasive that we just can’t bring ourselves to trust any good news about the oil sands. It is truly sad that the level of skepticism and cynicism about the oil sands is so endemic in Alberta and beyond these days.

Even the recent effort by the Alberta government to score a media coup with the Premier’s Letter to the Editor in the Washington Post has some interesting twists and turns. I applaud the efforts of the Premier to get out there and start telling the Alberta oil sands story in a broader context. Unfortunately the Washington Post Editor did not see the newsworthy merit of the letter saying it was more about “Canada Day than anything new.” So the province bought the newpaper space to promote their message instead. Even a cursory read of the Premier’s letter shows how wrong that “Canada Day” perception was about the content and context of the Permier’s letter. Still such a newspaper ad looks like the kind of boiler-plate damage control apologizing advertising we always see from businesses that screw up. Earned media is more believable than purchasing advertising space as a way to get a messgage out any day. But you still gotta do what you gotta do to try and communicate I guess.

I really applaud the Premier’s points about the safe, secure, reliable energy supply from the Alberta oil sands to the States – and the fact we are the largest suplier of oil to the Americans. That is a critical fact that is not well understood or appreciated by the Americans...and their ignorance is largely our fault.

As for GHG and other environmental issues, they are critical concerns but they need some context, like the Premier’s “letter” provided. If the entire value chain costs of oil sands development is considered and compared to entire value chain of other oil sources like Saudi Arabia, Venezuela, Nigeria, Angola and Algeria then the dirty oil tag on Alberta’s oil sands is not justified. All fossil fuels are dirty to varying degrees but to focus only on certain aspects of the oil sands in isolation and to ignore the greater political, environmental, human and social costs of other jurisdictions is a lobbying tactic that needs to be challenged.

Alberta is one of the few oil energy providers that have a democracy, the rule of law and stable currency and government. In addition there is only casual corruption in our culture compared to the rampant corruption in other supplier nations. You don’t have to worry about staff being kidnapped for ransom and you should not ignore the costs in human life in the internal conflicts in many other energy provider jurisdictions. Those costs are nonexistant in Alberta. I suggest the oil sands are by comparison is actually “cleaner,” than the sources form these other jurisdictions, all things considered. I may be right in that contention but that is still not good enough and Albertans know that too.

Getting back to Todd’s point about who are we to believe in the Babel about oil sands, there is a need for the truth the whole truth and nothing but the truth to be discussed in the public realm. We have to stop the focus on issues management, message framing and media massaging that thrives on reporting conflict and not about construtively informing the public and helping us get a handle on the issues and the implications.

Our recently complete conjoint research survey tracked 8 crucial values Albertans have around the development of the oil sands as the owners of the resource. The insight we gained adds to the dilemma and disconsternation of the government and the industry as they continue to be tone deaf over what Albertans really want attended to in the development of their oil sands.

Safe secure reliable supply to the American market is a given. No “atta boys” for stating the obvious. Technology as a means to overcome environmantal and other abuses is not seen as the only a valid mitigation strategy we need to use to overcome harmful affects of oil sands development. It is acknowledged by Albertans that technological solutions are the responsible and reasonable thing to do but not the only asnwer to the concerns. No “atta boys” for doing the obvious here either.

The rationalization of the pace of development that does not cause boom and bust cycles is also now to be expected of intelligent investors and our industry tenants. We need to be sure only those who deserve their social licence to operate in Alberta are given the responsibilty and opportunity to exploit this public resource. The pull out threats from some elements in the energy industry (not all) and the rapid retreat by the provincial government in response to the reasonable and rational royalty regime is the epitome of fear and collusion against the public interest. That kind of intimidation by the tenants has to stop too.

None of the actions by government or industry on royalties has been seen to be in the greater public interest, either long term or short term. Misleading messaging and school-yard style bullying was the rule of the day around royalties. And all it did was show Albertans who really runs the province...and they do so all too often behind closed doors. Not approprite behaviour in any way.

So I think Todd has struck a nerve and hit a nail on the head at the same time with his op-ed. So who can we trust and believe in the noise around oil sands development? Albertans have to believe in someone and trust that someone is serving the public interest. We are mature and wise enough as people to know there are real issues and they are complicated. We know we can handle bad news. It seems that is pretty much all we get now about our oil sands development anyway. I would like to call for more carity and comprehensive information to the public instead of the over-simplified pap we get now in the oil sands messaging. We need and deserve that kind of comprehensive candour. It needs to come from the province and the companies that are in the business of developing our oil sands.

In the meantime governments, as our proxy holders of our oil sands interests, and the energy industry, as our tenants, had better start thinking about public perceptions of their worthiness to govern and to justify a social license to operate with our public assets.

Safe to say, Albertans are not amused. In fact, we are tired of being bemused and abused by the PR machines and machinations of government and industry around oil sands development. We need a reason to believe and trust government and industry aroudn oil sands issues. We must have some serious evidence of their integrity, honesty, accountability, transparency, environmental end economic stewardship around oil sands development. The stakes are too important for all concerned. Failure is not an option for oil sands development for Albertan. However, failure is an option for government and energy companies if public opinion and perceptions continue to distrust and disbelieve them.

Canada 2020 Symposium on Greening the Oilsands Via Science & Technology

In the face of growing oppostion and noise about the Alberta oilsands, there are some rays of hope for adult converstion about responsible and sustainable oilsands development shining through. For example, today in Ottawa there is a Canada 2020 Symposium happening on “Greening” the Oil Sands: Canadian Science and Clean Tech Leads the Way.


This event deals with issues around greening the oilsands.  The context will be introduced by James Rajotte, the MP for Edmonton-Leduc and Chair of the House of Commons Finance Committee, Rich George the President and CEO of Suncor and the Honourable Sandra Pupatello, Ontario’s Minister of Economic Development and Trade. Minister Pupatello is an eastener that get it about the opportunites and challenges of responsible and sustainable oilsands development. I recently heard her speak in Edmonton at the Canadian Manufacturers and Exporters Association Oilsands Buyer/Seller Forum on the same topic.

My business partner Satya Das and author of “Green Oil” is on a panel that is moderated by former CBC political broadcaster Don Newman. The topic is “The Big Picture – Public Opinion, Politics and Policy.” The context of the panel is the acknowledgement tht theoilsands are a cornerstone of Canada’s future economic prosperity. The fact is the oilsands are seen mostly through an economic lens in Alberta and Saskatchewan but through an environmentl lens in the rest of Canada. Single lens approaches are insufficient and a more balanced local and national perspecitve about oilsands development must be achieved.

After Satya’s opening panel the next panel’s topic will be “How can science contribute to reducing the environmental impact of oilsands development.” Here is where the R&D expertise of the University of Alberta comes into play to develop strategies to meet this need. The U of A has built a powerhouse of research capacity of internatioally recognized experts working in public-private research partnershps to tackle this challenge. This panel is moderated by Dr. Suzanne Fortier, the President of the Natural Sciences and Engineering Research Council (NSERC) and will contributions from Dr. David Lynch, the U of A Dean of Engineering and Dr. Murray Gray of the U of A Centre for Oilsands Innovation amongsts others.

The final panel has the advantages of the insights of my friend Bob Mitchell of Connco-Phillips and the Co-Chair of the Oilsands Leadership Initiative (OSLI). It is about “What Candian clean technologies are being deployed? Which are having the greatest impact?” Reducing the environmenal footprint of oilsands development through technologies it the core of this panel’s focus. What is working and how do we accelerate these technological innovations while reducing their implemenmtation costs is the challenge facing this panel.

This is a closed session but I am sure Satya, Bob and others will be commenting on the content and context of the symposium after today. I will do my best to bring you the sense and essense of the discussions and recommendations once I have spoken with them about the symposium.

Green Oil Author Satya Das on Al Gore and Oil Sands.

Satya Das has a Green Oil blog post on Al Gore comments on the oilsands from Toronto the other day. Definitely worth a read. http://greenoilbook.com/the-blog/1-green-oil-blog/24-we-can-meet-mr-gores-challenge

I see Leo de Bever the CEO of AIMCo is talking  in the Edmonton Journal today about the lack of producitvity and high costs in the Alberta energy sector. I wonder if the energy sector is still holding out for return of ridiculously high commodity prices to justify high costs. If our sector can't compete on costs, perhaps we need to get the Alberta energy look at sharpening their pencils.

We also need to sharpen our literacy skills too. Cambridge Strategies just co-sponsored a series of meetings with Literacy Alberta. New research shows that Alberta can't continue to compete with the same old approach. In some professions we have over skilled people under-utilized. What a waste of the education dollars we spent on them. Other sectors have under skilled people who have literacy challenges that hinder their ability to do the jobs. Think productivity, competitiveness and also safety.

Once I have been through Reboot Alberta (http://www.rebootalberta.wordpress.com/) this weekend I will be very active on this blog on the literacy needs of Albertans.

The work I was doing a while back to support community based agencies serving persons with developmental disabilities is heating up too. I expect a major expose to be coming out on how the provincial policy and funding systems is jeopardizing our collective social duty to these vulnerable citizens too. More on that soon as well.

Albertans Want to be Proud of Their Oilsands Development

Here is the link to RebootAlberta where I posted the text of the Commentary I wrote and taped for CBC Radio earlier last week.  It will be broadcast on CBC Radio One Edmonton AM program at 8:15 a.m.  Give it a listen if you have your radio ears on at that time and place.

Oilsands Project Protesters Are International

The Alberta oilsands are an international concern. The 500 dead ducks started the ball rolling, and the fact the truth was over 1600 dead ducks did not help. Now we see Greenpeace activists from a number of countries coming to demonstrate against the oilsands development.

That shows the level of international awareness and concern. It is a complex matter but one thing for sure, our Alberta government better have its act together by the time COP15 happens in Copenhagen in early December. The Alberta oilsands will be a target for sure.

Green Oil Book is Launched - AG Says Albertans Getting Screwed on Royalty Collection

The launch of Satya Das' Green Oil on Thursday was terrific. The books signing at Audrey's Books last night drew a good crowd. Interesting mix of people, politicians and journalists, not that the latter are not people too. We sold a bunch of books too. Go figure!

Last night we had Raj Sherman from the Alberta PC party, Edmonton Strathcona NDP MP Linda Duncan and Edmonton Centre Liberal Candidate Mary McDonald drop in for a glass of wine and a chat. Doug Roche, a true Canadian statesman, was in attendance too.

Traffic on the Green Oil website www.greenoilbook.com is starting and will grow over the coming weeks as we see Albertans start to take control of the oilsands agenda and express their concerns on the site.

I think the message in the book it resonating. Albertans need to get informed and engaged as owners in the oilsands to ensure it is developed on a responsible and sustainable basis and with a long term view. The conversation amongst Albertans has to start and get serious. The consequences of continuing to get the oilsands wrong are devastating as to many levels.

For one way we are getting it wrong according to the Auditor General is Albertans are out hundreds of millions of dollars in uncollected and unaccounted for royalty payments. The recent Royalty Review said the same thing but the government gave more industry even concessions instead of beefing up collection and accounting capacity on royalties. We are getting screwed according to the AG. Too bad he is leaving.

Put that sense of political and industry entitlement of big bonuses and "gold plated" gifts to departing government agency officials in health as we cut social services and hospital beds, Albertans better get more insistent on better governance of our assets and provincial natural resources too.

New RebootAlberta Blog Post.

I have a new blog post over at RebootAlberta of the transcript of a radio commentary I just taped for CBC Radio One on the shifitng attitudes amongst Albertans about the oilsands. Please visit and give me your feedback on the thoughts in the post.