page 12 THE CALGARY JOURNAL

Cleaning up some dirty myths

COMMUNITY FORUM

OCTOBER 2010

efore this summer, I couldnt even pronounce the word bitumen, never mind explain what it was. Now, after completing an internship with the Government of Canada Natural Resources Canada, not only can I explain what bitumen is the sticky, oily sand that comes out of the ground and is refined to produce, among other things, the fuel we put into our vehicles but other parts of the production process, including paraffinic froth treatment and the tailings ponds debate fascinate me. It makes me want to explore the debate a little more about why some people are so committed to turning a blind eye to the fact that, at the end of the day, Albertas economy and everything associated with Alberta comes down to the oil and gas industry. Geographically speaking, Canada is divided into two areas: the places where Canadians live and the places where they dont. With the exception of Calgary and Edmonton, major Canadian cities are found fairly close to the 49 parallel. There are other reasons for Calgary breaking this rule, but generally speaking, both Calgary and Edmonton exist because of natural resources. The Dingman discovery well near Turner Valley, Alta., roughly 70 km from Calgary, started production on May 14, 1914, and allowed the oil industry to boom in southern Alberta, benefiting the growth of Calgary. Thirty-three years later, Leduc No. 1 was drilled in the Leduc-Nisku-Devon area, 20 minutes south of Edmonton. Its easy to be disinterested in the geography and think that working in certain sectors, living in certain cities or avoiding certain products straight from Albertas dirty oilsands means that Albertas No. 1 industry doesnt touch me. But the truth is, it does. Devon, Alta., a town of just over 6,000 people, exists solely because the town of Leduc wouldnt let Imperial Oil annex any city land when Leduc No. 1 was discovered. So the company literally built a new town Devon for its oil field workers. The Canadian Association of Petroleum Producers launched a campaign in April 2010 called Alberta is Energy (www.albertaisenergy.ca). The point of the campaign, explained Chad Cummins, communications advisor for CAPP, is an attempt by the industry to show Albertans that there isnt anything in this province that is untouched by oil. It would be almost impossible to (completely) boycott Canadas oilsands, Cummins said. And why would you want to? I mean, were a safe, secure source of much needed fuel in the world and the demand just keeps growing. We can argue until were blue in the face about all the wonderful and great things that Calgary has to offer that dont seem to be linked to the oil industry. But chances are, below the surface, there is some link. On the Alberta is Energy website, there are eight profiles of various Albertans. Not all of them work directly

in the oil field, but they all touch the oil field in some way. For instance, Al Jogia runs Alberta Time Services in Calgarys Energy Plaza, and when oil field workers feel the crunch, so does Jogias business. Another profilee, Karyn Decore, runs Decore Hotels with her family in Jasper. As sure as mountains and their abundant wildlife attract tourists, the provinces healthy economy attracts investors and business opportunities, Decore told the websites writers. A healthy economy can help attract other sectors, said John Hankins, vice-president of investment and trade development for the Calgary Economic Development. Calgarys 10-year economic strategy, approved by city council in 2008, is to position Calgary as a global energy sector, with the focus being on energy and not just oil and gas. Its actually building on the strengths of the energy sector that we (already) have, Hankins said. He lists transportation and logistics, and creative industries, such as film and leading edge technologies as other sectors that Calgary leads. Big Oil also touches Calgarys charities. For instance, data from 2009 indicated that over the past five years, Husky Energy has donated over $23 million to charitable causes in their operating areas usually between $3 million and $6 million per year including the Alberta Childrens Hospital Foundation, the Calgary Zoo Endangered Species Program and the Calgary Society for Autism. Thanks to a very generous $1.5-million gift from Husky, we were able to create the Husky Energy Chair in Child and Maternal Health, Saifa Koonar, president and CEO of the Alberta Childrens Hospital Foundation, wrote in an email. This chair supports the director of the Alberta Childrens Hospital Research Institute for child and maternal health and helps unite experts from our hospital and the University of Calgary so they can turn research into action. Cenovus Energy didnt have similar numbers to release, but Reg Curren, spokesperson for Cenovus, said that the company, nearly a year old after its split from EnCana, has been designated a caring company by Imagine Canada, which means the company donates one per cent of their pre-tax profit to charitable groups. Charitable organizations including Inn from the Cold, the Calgary Health Trust and STARS Air Ambulance are some of the 195 groups that Cenovus supports. On the Alberta is Energy website, Ken McCagherty, CEO of West Energy Ltd., estimated that every time an oil well is drilled, more than 100 individuals from 80 companies are employed. If Greenpeace had their way and (the oil sector) shut down, so many people would lose jobs, Cummins said. Wed lose capital, wed lose government funding for infrastructure and social programs. Thatd be a game changer if the industry wasnt in this province. I had to drive across the city today. So I filled my car with gas. What about you?

Photo credit: Canadian Centre for Energy Information

Growth in Albertas energy sector is not just limited to oil and gas. Other industries, including alternative energy sources, will build on the strengths of the established industry, according to John Hankins, vice president of investment and trade development for Calgary Economic Development.

Photo credit: Canadian Centre for Energy Information

Though Calgary and Edmonton can attribute much of their growth to the oil industry in Alberta, the heart of the industry is found in northern Alberta and northwestern Saskatchewan.