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.
Wednesday, November 25, 2009
Friday, November 20, 2009
"When Was the Last Time You De-Learned?"
Thinking about leadership and how different the challenges of the 21st century are from the 20th. Here is a piece I ran across from the Harvard Business Review that made me think even more. We have a vacuum in wise political leadership for sure in so many ways and at so many levels.
We also have a vacuum in business leadership too as elites become more distant and disconnected from the daily reality of ordinary people.
We need a renewed sense of citizenship and leaders with skills to deal with a more integrated consciousness so our institutions, society and culture can begin to cope with the complexity and growing urgency of the human and ecological condition.
Our institutions are anemic and we are dragged into diversions like the circuses of celebrity culture and the stylized rituals of reality show silliness. This is what our culture is offering us as a substitute and distraction so we can avoid facing up to the serious challenges of being human.
I am haunted by Chris Hedges words in his enormously provocative book "Empire of Illusion" when he says: "A culture that does not grasp the vital interplay between morality and power, which mistakes management techniques for wisdom, which fails to understand the measure of a civilization is its compassion, not its speed or ability to consume, condemns itself to death."
How much will we have to de-learn about the modernist and traditionalist mindset of our conventional culture before we can begin to grasp these progressive imperative for survival not merely sustainability?
Jared Diamond in his book “Collapse” list many contributing factors to social decay but what resonated with me was the dislocation between the short term interests of elites and the longer term concerns and needs of a society. Albertans are seeing a general rise in casual corruption, mismanagement and political inertia in the business and political elites in the province. Be it resource royalties or reclamation resistance by the energy sector or the indifference and ineptness of government to have the political will to enact and enforce laws for the greater good with a long-view politically.
Hedges notes these conditions, that are prevalent in Alberta today, “…almost always result in widespread cynicism, disengagement, apathy and finally rage. Those who suffer the consequences of this mismanagement lose any loyalty to the nation (province?) and increasingly nurse fantasies of violent revenge.”
One has to wonder just how far the average American is from this latter stage when you read headlines in the Globe and Mail Report on Business today “U.S. Housing Crises Hits New Levels.” Almost 1 of every 7 home owners in the States faces foreclosure, including many with good credit ratings.
This is happening while the Wall Street elites are back on the bonus track, gorging themselves using borrowed taxpayer money to pay the bonuses. Labour is still shedding jobs on Main Street. Politicians act like they are immune for a few years, until the next election. And companies like Goldman Sachs are on “image-repair missions.” They cancelled their Christmas Party this year to show their sincerity.
Such futile superficial gestures will do nothing to stop the criticism of Wall Street or to mitigate against the image of pure greed that still seems to be the primary motivation for the elites of the US financial sector.
According to Hedges this “…collapse is more than an economic and political collapse. It is a crisis of faith.” I wonder how this reality will play out in Canada and in Alberta in particular.
We also have a vacuum in business leadership too as elites become more distant and disconnected from the daily reality of ordinary people.
We need a renewed sense of citizenship and leaders with skills to deal with a more integrated consciousness so our institutions, society and culture can begin to cope with the complexity and growing urgency of the human and ecological condition.
Our institutions are anemic and we are dragged into diversions like the circuses of celebrity culture and the stylized rituals of reality show silliness. This is what our culture is offering us as a substitute and distraction so we can avoid facing up to the serious challenges of being human.
I am haunted by Chris Hedges words in his enormously provocative book "Empire of Illusion" when he says: "A culture that does not grasp the vital interplay between morality and power, which mistakes management techniques for wisdom, which fails to understand the measure of a civilization is its compassion, not its speed or ability to consume, condemns itself to death."
How much will we have to de-learn about the modernist and traditionalist mindset of our conventional culture before we can begin to grasp these progressive imperative for survival not merely sustainability?
Jared Diamond in his book “Collapse” list many contributing factors to social decay but what resonated with me was the dislocation between the short term interests of elites and the longer term concerns and needs of a society. Albertans are seeing a general rise in casual corruption, mismanagement and political inertia in the business and political elites in the province. Be it resource royalties or reclamation resistance by the energy sector or the indifference and ineptness of government to have the political will to enact and enforce laws for the greater good with a long-view politically.
Hedges notes these conditions, that are prevalent in Alberta today, “…almost always result in widespread cynicism, disengagement, apathy and finally rage. Those who suffer the consequences of this mismanagement lose any loyalty to the nation (province?) and increasingly nurse fantasies of violent revenge.”
One has to wonder just how far the average American is from this latter stage when you read headlines in the Globe and Mail Report on Business today “U.S. Housing Crises Hits New Levels.” Almost 1 of every 7 home owners in the States faces foreclosure, including many with good credit ratings.
This is happening while the Wall Street elites are back on the bonus track, gorging themselves using borrowed taxpayer money to pay the bonuses. Labour is still shedding jobs on Main Street. Politicians act like they are immune for a few years, until the next election. And companies like Goldman Sachs are on “image-repair missions.” They cancelled their Christmas Party this year to show their sincerity.
Such futile superficial gestures will do nothing to stop the criticism of Wall Street or to mitigate against the image of pure greed that still seems to be the primary motivation for the elites of the US financial sector.
According to Hedges this “…collapse is more than an economic and political collapse. It is a crisis of faith.” I wonder how this reality will play out in Canada and in Alberta in particular.
Wednesday, November 18, 2009
Reboot Alberta is Building Momentum-Will it Press for Change?
The "sister site" to this Blog at http://www.rebootalberta.wordpress.com/ is getting attention and attracting readers. Reboot Alberta is part of a movement amongst progressive Albertans who are concerned about the direction and destination of Alberta.
There are some interesting and thought-provoking blog posts at Reboot Alberta that I recommend you read and reflect upon. There is a growing sense amongst progressive thought leaders that Alberta is not living up to its potential economically, its responsibilities environmentally and it duty socially.
Don Schurman's Reboot Alberta post today talks about accepting personal responsibility for change and you can't press for change if you only "empower someone else to change it for you." He calls for a more informed and active sense of citizenship to come from individual Albertans.
Michael Brechtel's Reboot Alberta post sees change coming but believes in Alberta "The Glass is Definitely Half Full." He also points out that many Albertans "... disengaged from their citizenship." He takes the view that "...the current political climate is the chance we've been waiting for." He calls upon Albertans to re-engage and actually create "a culture of engagement" in the politics of the times.
Dave King's Reboot Alberta post poses the question of "What's the Way Forward for Alberta's Politics." Dave is darker in his POV. He believes Albertans are "living on exhausted and toxic political soil." He calls for a rejection of "the politics of fear, confrontation and intimidation."
Alberta, like the rest of the world, is coping with turbulent economic times. But our future promises that we will continue to grow. The question is will Albertans emerge from this recession with the capacity and goal to adapt to the new economic, environmental and societal realities and responsibilities? Or will we simply fall back into the same-old unsustainable and irresponsible behaviours that brought us to these debacles?
Some Albertans what to change course. They see the danger in the current trajectory of the province. Where to go, what to do and how to redefine and redesign progress for a more responsible, equitable and sustainable future are big questions. They will be part the discussions happening at Reboot Alberta as 88 thought-leaders from across the province gather together in Red Deer for Reboot Alberta.
I am optimistic that at by the end of November there will be the energy and desire by a small group of individuals with a collective intention to work together and get a fresh start in this province. That is my hope for Reboot Alberta.
You too can become a part of this movement to effect and influence progressive change in our province. The world is run by those who show up. So re-engage, join the discussion and invest some of yourself and your talents into the Reboot Alberta process. If you want to know more just email me ken@cambridgestrategies.com and we will get you in the loop.
There are some interesting and thought-provoking blog posts at Reboot Alberta that I recommend you read and reflect upon. There is a growing sense amongst progressive thought leaders that Alberta is not living up to its potential economically, its responsibilities environmentally and it duty socially.
Don Schurman's Reboot Alberta post today talks about accepting personal responsibility for change and you can't press for change if you only "empower someone else to change it for you." He calls for a more informed and active sense of citizenship to come from individual Albertans.
Michael Brechtel's Reboot Alberta post sees change coming but believes in Alberta "The Glass is Definitely Half Full." He also points out that many Albertans "... disengaged from their citizenship." He takes the view that "...the current political climate is the chance we've been waiting for." He calls upon Albertans to re-engage and actually create "a culture of engagement" in the politics of the times.
Dave King's Reboot Alberta post poses the question of "What's the Way Forward for Alberta's Politics." Dave is darker in his POV. He believes Albertans are "living on exhausted and toxic political soil." He calls for a rejection of "the politics of fear, confrontation and intimidation."
Alberta, like the rest of the world, is coping with turbulent economic times. But our future promises that we will continue to grow. The question is will Albertans emerge from this recession with the capacity and goal to adapt to the new economic, environmental and societal realities and responsibilities? Or will we simply fall back into the same-old unsustainable and irresponsible behaviours that brought us to these debacles?
Some Albertans what to change course. They see the danger in the current trajectory of the province. Where to go, what to do and how to redefine and redesign progress for a more responsible, equitable and sustainable future are big questions. They will be part the discussions happening at Reboot Alberta as 88 thought-leaders from across the province gather together in Red Deer for Reboot Alberta.
I am optimistic that at by the end of November there will be the energy and desire by a small group of individuals with a collective intention to work together and get a fresh start in this province. That is my hope for Reboot Alberta.
You too can become a part of this movement to effect and influence progressive change in our province. The world is run by those who show up. So re-engage, join the discussion and invest some of yourself and your talents into the Reboot Alberta process. If you want to know more just email me ken@cambridgestrategies.com and we will get you in the loop.
Tuesday, November 17, 2009
Local Governments Getting Together to Influence Alberta Government
The recent Working Protocol Agreement between the Alberta Urban Municipalities Association and the Alberta Association of Municipal Districts and Counties is a very important step in the right direction for better governance in Alberta. Congratulations are in order all around.
The local government, the so-called "third order" of governance, is the most vulnerable because of its limited revenue generating capacity and growing demands in its areas or responsibility. Paradoxically it is the order of government closest to the everyday lives of citizens but has the least governance authority of any order of government.
The senior orders of government most often overlook the municipal level unless they want to download costs and responsibilities in tough times. Not always true as seen in the federal stimulus funding finally going directly to local government and the Paul Martin direct payment of Gas Tax revenues to local government. The big boys at the province often like to put local politician in their place by pointing out that they are merely "creatures of provincial law." I always like to remind the provincial politicians that they too are creatures of statute from the federal level and refer them to The Alberta Act that created the province.
There seems to be constant battles over boundaries and services and cost sharing between municipalities and surrounding rural areas. Sometimes those can be negotiated but often a province has to dictate resolutions. The threat of a provincially imposed regional planning "solution" in the greater Edmonton areas was enough to bring the parties to the table. They worked out a mutually acceptable deal. Not perfect but better than submitting to an imposed deal by the province.
That said, here is an excerpt from the News Release that outlines the essence of the deal between the parties:
"The AUMA/AAMDC Working Protocol provides opportunities for joint political advocacy and calls for organizations to strengthen and enhance their individual business services to members. Both organizations’ boards have agreed to meet regularly to monitor the development of the Working Protocol. The protocol outlines that there will be times when the AUMA and AAMDC must take different positions on an issue. However, they have agreed that these times will not affect other positive joint efforts."
Might I suggest that one of the first projects these groups tackle together is pressing the CRTC, Alberta and Canada to require Telus to provide Albertans access to the copper wire land-based phone lines. Once that is done virtually every Albertan can have direct access to the SuperNet fibre optic system. That access is critical to rural and small town Alberta being sustainable and viable. It means time and distance are defeated and the best-of-breed SuperNet online communications network is just a click away for Albertans all over the province - at a fraction of wireless and fibre optic costs.
Reality, maturity and wisdom are all evident in this initiative. Albertans will be better served in the long run because of this collaborative approach amongst local governments. Well done! Full disclosure: I am not currently working with either association but I have been advising a private business who is trying to convince the CRTC to require Telus to provide access to local copper wire for citizen's access to SuperNet, especially in small town and rural Alberta.
The local government, the so-called "third order" of governance, is the most vulnerable because of its limited revenue generating capacity and growing demands in its areas or responsibility. Paradoxically it is the order of government closest to the everyday lives of citizens but has the least governance authority of any order of government.
The senior orders of government most often overlook the municipal level unless they want to download costs and responsibilities in tough times. Not always true as seen in the federal stimulus funding finally going directly to local government and the Paul Martin direct payment of Gas Tax revenues to local government. The big boys at the province often like to put local politician in their place by pointing out that they are merely "creatures of provincial law." I always like to remind the provincial politicians that they too are creatures of statute from the federal level and refer them to The Alberta Act that created the province.
There seems to be constant battles over boundaries and services and cost sharing between municipalities and surrounding rural areas. Sometimes those can be negotiated but often a province has to dictate resolutions. The threat of a provincially imposed regional planning "solution" in the greater Edmonton areas was enough to bring the parties to the table. They worked out a mutually acceptable deal. Not perfect but better than submitting to an imposed deal by the province.
That said, here is an excerpt from the News Release that outlines the essence of the deal between the parties:
"The AUMA/AAMDC Working Protocol provides opportunities for joint political advocacy and calls for organizations to strengthen and enhance their individual business services to members. Both organizations’ boards have agreed to meet regularly to monitor the development of the Working Protocol. The protocol outlines that there will be times when the AUMA and AAMDC must take different positions on an issue. However, they have agreed that these times will not affect other positive joint efforts."
Might I suggest that one of the first projects these groups tackle together is pressing the CRTC, Alberta and Canada to require Telus to provide Albertans access to the copper wire land-based phone lines. Once that is done virtually every Albertan can have direct access to the SuperNet fibre optic system. That access is critical to rural and small town Alberta being sustainable and viable. It means time and distance are defeated and the best-of-breed SuperNet online communications network is just a click away for Albertans all over the province - at a fraction of wireless and fibre optic costs.
Reality, maturity and wisdom are all evident in this initiative. Albertans will be better served in the long run because of this collaborative approach amongst local governments. Well done! Full disclosure: I am not currently working with either association but I have been advising a private business who is trying to convince the CRTC to require Telus to provide access to local copper wire for citizen's access to SuperNet, especially in small town and rural Alberta.
Monday, November 16, 2009
Oilsands Investments Return 1 Year After Industry Threatens to "Leave Alberta"
Interesting to see all the big oilsands players announcing that they are reinvesting billions of capital once again into oilsands projects. A year ago they were all pulling out of Alberta as the played political gamesmanship over the new royalty rates. Albertans should not forget that pure political posturing of the industry that was nothing less than bullying and bluster by some of the corporate elites in the energy sector.
They sure spooked our Premier. He folded about four times on royalties since January 2009. As a result we now collect even less money than we would have if we left the old royalty regime intact. The tenants are acting like owners and dictating the terms. Instead we need Albertans taking the responsibility to ensure our oilsands are giving future generations the benefit of the resource and that we are not "giving it away."
Speaking of "giving it away" I just returned from a great time in Austin Texas on a project. It reminded me something that Murray Smith the first Alberta Envoy, said to a meeting in Austin in 2006. I have a copy of the transcript of his remarks. Here is the most remarkable part of what he said to an American energy audience: "The model that has worked so well for us is that the royalty structure for oil sands is 'give it away' at a 1 percent royalty structure and share the risk of these great ventures and great investments. As soon as they reach payout, the royalty take goes to 25 percent of net."
That was a necessary model in the early stages of oilsands development in the late 1990's when extraction and upgrading costs and capital costs were higher than the commodity price of the product. That is not longer the case so why are we perpetuating this old model of "giving it away" when Alberta is the best place to assure secure and a safe supply of hydrocarbons?
When we charge royalties on net returns, how do we know we are not getting screwed on cost allocations within companies? When we allow royalties to be deferred until all capital costs are recovered how do we have any control on the project costs? Does this indemnity to recover costs from foregone royalty make the companies who are building the project really care that much about controlling costs?
At the record oil prices of last year controlling cost didn't seem to matter too much. Once the recession was acknowledged in September 2008 the future projects were shelved instantaneously. Well that was then and this is now and the projects are all coming back. Go figure!
BTW - Here is the link to Vue Weekly interview with Green Oil author Satya Das. Green Oil emphasizes the point that Albertans own the oilsands and have the obligation to ensure the stewardship of energy industry players who our government licenses to exploit this non-renewable resource on our behalf.
They sure spooked our Premier. He folded about four times on royalties since January 2009. As a result we now collect even less money than we would have if we left the old royalty regime intact. The tenants are acting like owners and dictating the terms. Instead we need Albertans taking the responsibility to ensure our oilsands are giving future generations the benefit of the resource and that we are not "giving it away."
Speaking of "giving it away" I just returned from a great time in Austin Texas on a project. It reminded me something that Murray Smith the first Alberta Envoy, said to a meeting in Austin in 2006. I have a copy of the transcript of his remarks. Here is the most remarkable part of what he said to an American energy audience: "The model that has worked so well for us is that the royalty structure for oil sands is 'give it away' at a 1 percent royalty structure and share the risk of these great ventures and great investments. As soon as they reach payout, the royalty take goes to 25 percent of net."
That was a necessary model in the early stages of oilsands development in the late 1990's when extraction and upgrading costs and capital costs were higher than the commodity price of the product. That is not longer the case so why are we perpetuating this old model of "giving it away" when Alberta is the best place to assure secure and a safe supply of hydrocarbons?
When we charge royalties on net returns, how do we know we are not getting screwed on cost allocations within companies? When we allow royalties to be deferred until all capital costs are recovered how do we have any control on the project costs? Does this indemnity to recover costs from foregone royalty make the companies who are building the project really care that much about controlling costs?
At the record oil prices of last year controlling cost didn't seem to matter too much. Once the recession was acknowledged in September 2008 the future projects were shelved instantaneously. Well that was then and this is now and the projects are all coming back. Go figure!
BTW - Here is the link to Vue Weekly interview with Green Oil author Satya Das. Green Oil emphasizes the point that Albertans own the oilsands and have the obligation to ensure the stewardship of energy industry players who our government licenses to exploit this non-renewable resource on our behalf.
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