HicksBiz Blog

Category: Oil + Gas

Oil + Gas

Hicks on Biz: Alberta is already a world leader in reducing CO2 emissions BY GRAHAM HICKS, POSTMEDIA NETWORK FIRST POSTED: SATURDAY, MARCH 26, 2016

Okay, so we are expected to suck it up and take one for climate change. Soon, Alberta’s middle class families will be turning over hundreds more dollars a year in a carbon tax – i.e. much higher taxes on gasoline powering our vehicles and natural gas heating our homes, and who knows what else. This will raise billions of dollars, which will all be re-invested, Premier Rachel Notley promises, into ways and means of becoming a “carbon-free” province. Here’s my problem: Notley’s criticism of past Conservative governments for “not doing anything” about climate change is totally and absolutely wrong. Alberta – our research institutes, universities, energy companies and our unique Climate Change & Emissions Management Corporation (CCEMC) – was a global leader in reducing GHG (greenhouse gas emissions) well before Ms. Notley came to power, and continues to be a world leader. Let me count the ways. Up in the oilsands, most of the major ... Read the rest of entry »

Hicks on Biz: 5 ways to move our oil BY GRAHAM HICKS, POSTMEDIA NETWORK FIRST POSTED: FRIDAY, MARCH 11, 2016

Let's be realistic. Alberta's oil will not get to "tidewater" on either of Canada's coasts, not for 10 or 20 years. Those who believe fossil fuels are part of the climate change problem are winning the political battles in Ottawa, Quebec and British Columbia. New or expanded pipeline proposals that need regulatory approvals will not get built. Environmental reviews, appeals, appeals of appeals - are now so time-consuming and so expensive as to make new pipeline construction near-impossible. The only way increased production of oil - mostly heavy or diluted bitumen oil from the oilsands - can be moved is through existing pre-approved pipelines and rail lines. There's one realistic exception: New pipeline and new rail might be possible through friendly neighbouring jurisdictions. Canada currently exports 3.7 million barrels of oil per day (bpd). The currently transport system is keeping up, barely. Growth will still happen, slower than was predicted because of low oil prices, at an added 100,0 ... Read the rest of entry »

Hicks on Biz: Understanding carbon credits BY GRAHAM HICKS, POSTMEDIA NETWORK FIRST POSTED: THURSDAY, FEBRUARY 04, 2016

Finally, through a company created to save the planet AND make money, I actually understand what “carbon credits” are all about. Airdrie-based Carbon Credit Solutions (CCS) Inc. partners up with folks (mostly farmers) who can create Alberta government-approved carbon credits. It assists in “making” these carbon credits, then buys and sells them, hopefully for a profit. Making a profit can’t be that difficult, not when the monetary value of these Alberta carbon credits should jump by 50% in a year’s time. That’s when the Notley government says it will raise the levy, basically a tax on excess carbon emission, from $20 to $30 a tonne on companies pushing too much CO2 up their smokestacks. (A tonne of CO2 is roughly the amount of CO2 an average coal-burning power plant sends up its smokestack every hour.) Companies either pay the levy, or they can purchase carbon credits from companies like CCS to offset excess CO2 emissions. The market value of a carbon cred ... Read the rest of entry »


Under Premier Rachel Notley’s Climate Leadership Plan, by government decree, all coal-burning power plants in Alberta are to be shut down by 2030, with the goal of replacing 50% to 75% of that power with renewable energy. Meanwhile, the provincial demand for electricity will grow from 14,500 megawatts (MW) today, to 17,500 MW by 2030. This is the triumph of ideology over evidence-based science. This illogical, ill-conceived government decree will result in wasting billions of dollars with no net environmental gain. Today in Alberta, there are 18 major coal-burning power generation units. Four are close to the end of their useful lives and will close within two years. Of the 14 still operating, six will still have plenty of juice left come 2030. The case for coal: coal is the cheapest, most reliable source of electricity in Alberta, crucial in keeping Alberta’s industry competitive. In 2015, it provided 43% of the province’s power. Environmentally, thanks to technological in ... Read the rest of entry »

Hicks on Biz: Suncor’s $4.4 billion 'hostile' takeover bid for Canadian Oil Sands is a good thing BY GRAHAM HICKS, EDMONTON SUN FIRST POSTED: FRIDAY, OCTOBER 09, 2015

Suncor’s $4.4 billion “hostile” takeover bid for Canadian Oil Sands Ltd. isn’t about the Canadian Oil Sands. It’s about a far more intriguing subject – control of Syncrude. Along with CNRL and Shell, Suncor and Syncrude are the Big Four of Alberta’s oil sands production companies. Syncrude is actually owned by a consortium of oil companies. Imperial Oil/ExxonMobil (Imperial Oil is owned by ExxonMobil) is a 25% shareholder. Suncor owns 12%. Syncrude’s single biggest shareholder, at 37%, is Canadian Oil Sands Ltd.  The Syncrude shares are Canadian Oil Sands Ltd’s only asset. It’s an investment company, 100% invested in its Syncrude ownership position. Let’s go back in time:  When oil sands production finally became profitable – in the mid ‘90s – the Syncrude ownership group left its management team, led by Eric Newell and then Jim Carter, alone. Newell and Carter were ahead of their time in recognizing the n ... Read the rest of entry »

Hicks on Biz: Don’t re-invent the wheel BY GRAHAM HICKS, EDMONTON SUN FIRST POSTED: FRIDAY, AUGUST 28, 2015

FIRST POSTED: FRIDAY, AUGUST 28, 2015 11:36 AM MDT Dr. Andrew Leach (left), panel chair and Shannon Phillips, Minister of Environment and Parks, speak about the creation of an advisory panel to study the province's climate change policy at the media room at the Alberta Legislature in Edmonton, Alta., on Thursday June 25, 2015. Ian Kucerak/Edmonton Sun Article Change text size for the story Print this story Report an error Related Stories Hicks on Biz: You can’t blame Edmonton City Council for everything Hicks on Biz: CEOs simply paid too much Hicks on Biz: Alberta recession will strike early 2016 Hicks' Weekly Dish: Gini's offers fine dining experience Links Follow us on Twitter! Like us on Facebook! It's always more exciting and more newsworthy for an incoming government to re-invent the wheel, or, even better, contend the wheel didn't even exist.   The New Democrats have come to power ... Read the rest of entry »

Hicks on Biz: This spill is a disaster BY GRAHAM HICKS, EDMONTON SUN FIRST POSTED: SATURDAY, JULY 25, 2015

FIRST POSTED: SATURDAY, JULY 25, 2015 09:55 AM MDT | UPDATED: SATURDAY, JULY 25, 2015 10:00 AM MDT Crews work to clean an oil spill near Nexen's Long Lake facility by Fort McMurray. The spill was discovered by a contractor after the safety system designed to detect ruptures failed. Garrett Barry/Fort McMurray Today/Postmedia Network Article Change text size for the story Print this story Report an error More Coverage Alberta Energy Regulator (AER) suspends 95 Nexen Energy pipelines at its Long Lake oilsands operations Related Stories Hicks Weekly Dish: Taste of Edmonton simply 'awful' Gunter: Thomas Mulcair is no friend of the west Hicks' Weekly Dish: Padmanadi a vegetarian's delight Energy minister hails Nexen announcement Hicks on Biz: Edmonton business quickly moving out of North America Paradis tight-lipped on Nexen deal Nexen pipeline failure spells big trouble Hicks' Weekly Di ... Read the rest of entry »

Hicks on Biz: Edmonton's economy not too hot, not too cool BY GRAHAM HICKS, EDMONTON SUN FIRST POSTED: FRIDAY, JUNE 19, 2015

This is extraordinary. A year ago, the global price of oil plummeted – from $100 (US) a barrel to $50 to $60, where it seems to have come to rest. Ours is an energy-based economy. Every other time oil and/or natural gas prices fell, in 1983, 1998 and 2009, Metropolitan Edmonton suffered. Unemployment rates jumped, jobs dried up, housing prices fell, folks left town. But it’s been a year now, and we’ve scarce felt this oil price meltdown! Unemployment is up a bit, but just as many folks – 745,000 of us – are working as was the case during the last boom. New houses are being built and purchased at a near record clip. Companies may not be hiring in droves, there’s not much in the way of lay-offs. We’ve dodged some serious bullets. But how much longer? Don’t kid yourselves. Edmonton remains a government and public sector town. Combined, education (42,000 jobs), health care/social services (82,500 jobs) and public administration (39,000 jobs) mak ... Read the rest of entry »

Hicks on Biz: Odds still on long-term Alberta prosperity BY GRAHAM HICKS, EDMONTON SUN FIRST POSTED: FRIDAY, MARCH 13, 2015

Spread out those Tarot cards, old gypsy queen, and tell us whither goest oil and gas. Are we doomed to $50 or lower oil prices forever? Will excess greenhouse gases caused by the burning of coal, oil and natural gas raise the world’s temperatures until all is parched desert and the oceans are metres higher due to polar ice melt? To save the planet, as per American President Barack Obama’s line of thought, must the world end its reliance on fossil fuels - within our children’s lifetime? If demand for oil and gas dwindles, will Alberta turn into a have-not province? Will 100,000 young people a year leave for greener pastures in (choke) Ontario and Quebec? The gypsy queen, like everybody else, does not know the future. But logic and clear thinking suggest Obama is likely wrong, that the odds are excellent for long-term prosperity in this province, based on environmentally sound oil and gas production, based on sound, long-term, provincial government planning and policy. Her ... Read the rest of entry »

HICKS ON BIZ: Hey, media, stop picking on Big Oil BY GRAHAM HICKS, EDMONTON SUN POSTED: FRIDAY, JULY 18, 2014

It’s a hoary old cliché, but so true.

In journalism, there’s no such thing as objectivity.

Bias hangs out on every corner.

It’s so darned obvious in the mountains of verbiage expended on .02% of Canada’s boreal forest surrounding Fort McMurray, the oilsands.

Note the bias: I throw in the fact the oilsands take up less than one-fifth of one percent of the boreal forest. The underlying message: The oilsands are NOT destroying Canada’s wilderness.

That one little fact, slipped in, pretty well tells you where this commentator is coming from.

The reality is this city, hence yours and my livelihoods, is highly dependent on oilsands generated wealth. So I support oilsands development – as long as the environmental rules are followed, and the rules get tougher to the point of miniscule or zero tolerance when technology permits.

Most commentators will not admit to a bias. But it’s so easy to tell.

Those adamantly opposed to oilsands development call the oilsands the “tar sands.”

Gee, what was your first clue? Read the rest of entry »
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