Speeches

Canadian Association of Petroleum Producers (CAPP) Oil and Gas Investment Symposium

Calgary
June 19, 2007

Check Against Delivery

Thank you, Gord, for your kind words of introduction… and good afternoon to you all.

It's a great pleasure to be here for the Canadian Association of Petroleum Producers' 19th annual Investment Symposium.

To those of you from out of province, welcome to Alberta — home of the strongest economy in North America.

Alberta is enjoying economic growth and prosperity that's the envy of jurisdictions across Canada… and for that matter, around the world.

And it's no secret that Alberta's tremendous economic success is due… in large part…to our oil and gas sector.

In Canada, Alberta leads in almost every economic indicator….

From economic growth and jobs, to education of the workforce and standard of living.

Last year, our province welcomed 100,000 new Albertans… 57,000 of them coming from elsewhere in Canada.

The confidence expressed by those coming here is well placed.

In 2006, one in every four new jobs in Canada was created in Alberta… with about one-tenth of Canada's population.

Unemployment was the lowest in any Canadian province in the last 30 years.

Being the premier of such a prosperous province is truly a blessing…

And I'm reminded of that fact regularly by other premiers facing challenges almost forgotten in Alberta.

But of course we have our own challenges.

The most fundamental is to set a course that will maintain a strong economy, a high standard of living and a healthy environment for our children and grandchildren.

Alberta's Energy Advantage is well known.

An immense wealth of natural resources and an attractive fiscal climate have drawn investment from around the world.

So, how do we maintain that advantage into the future?

When I meet with industry… whether it's CAPP or individual companies… it's quite clear to me that we share the same goals…

Though we may occasionally have slightly different views on how best to reach them.

So let me be clear.

My government is committed to maintaining competitive fiscal and regulatory regimes. We understand the importance of stability and certainty.

When I was running for the leadership of my party — not that long ago — I spent a lot of time listening to Albertans… to make sure I understood all of their concerns and their hopes for the future.

One concern consistently raised was whether Albertans were receiving a fair share from the development of their natural resources.

It was usually framed in the form of a question, but the concern was real.

The easy thing would have been to say "all is well, trust us".

That would have provided industry with a passing moment of stability… but it would not have been honest or realistic because the public's concerns would not have been addressed.

My judgment told me that public faith and trust in the fairness of the fiscal regime had to be re-established.

So, we set up an independent panel of experts to conduct a review and to provide all interested parties with the opportunity to have their say.

What's the likely outcome? No changes? Some changes?

I am not going to speculate — as that would undermine the process.

What I can tell you is that our final decision will ensure Albertans continue to receive a fair share from the development of their resources…

We will preserve an internationally competitive oil and gas system, which is critical to our continued prosperity…

And we will recognize the changes in the industry — such as the shift to unconventional resources, increasing cost pressures and the impact of a much stronger Canadian dollar.

We know that our long-term prosperity depends on developing and diversifying the energy industry — including encouraging more upgrading and value-added activity here in the province.

We will continue to play a very active part in making that happen.

Our government is taking the same active and innovative approach to the issue of climate change policy.

Albertans are concerned about climate change and that concern is shared by government and industry.

I met with industry shortly after taking office — and the message was clear.

Industry was facing a great deal of uncertainty as to what would be expected of it — and that was frustrating the investment and innovation required to move us forward.

Industry was not shrinking away from its responsibilities. But it wanted a realistic policy framework.

And that's what we've provided… a clear and realistic plan that provides industry with the direction and certainty required to accelerate its efforts to address this challenge.

We are the first province in Canada to introduce legislation to reduce greenhouse gas emission intensity from large industry.

We are also working with the federal government to ensure harmonization of policy to provide further certainty and clarity to industry. We don't need multiple regulators.

We know the oil and gas sector is looking for cost certainty — and a way to advance technology development — and our Alberta-lead plan will deliver exactly that.

Yesterday, you learned of some of the other initiatives we have underway.

By taking action… rather than simply talking… Alberta is positioned to show leadership on the climate change file and carve out a further competitive advantage in attracting oil and gas investment dollars.

Addressing the pressures of growth is the most significant challenge for my government.

Increased activity… across all sectors… and a rapidly growing population has put public services and infrastructure under great pressure.

The response of some has been to demand that we "touch the brake". That approach has been rejected by my government.

It's my belief that when government attempts to manipulate the free market — bad things happen.

But we must address the issues of growth.

Because Albertans demand it, and also because the massive investments being made by industry must be matched by sensible investment in public infrastructure and services.

Let me give a few examples.

The recent provincial Budget… my first as Premier… was focused on the priority of managing growth pressures.

Our Plan for Alberta included an $18 billion investment in public infrastructure over three years — the largest capital program in the province's history.

That reflects the huge demand for new and better roads, hospitals, schools, and other infrastructure — to accommodate growth.

Here in Calgary, $2.7 billion is being invested in capital projects — on top of the $5.5 billion provided this year for core services.

This aggressive action is required now to address current pressures and plan for further growth.

A thriving economy and growing population has also resulted in record levels of activity on Alberta's land.

We've done a good job balancing competing demands on the land, but we need to check and update our processes in light of current realities.

That's why we're developing a Land-use Framework… drawing on the ideas and perspectives of Albertans.

This framework will help to ensure continued confidence on the part of Albertans that economic, social and environmental goals can — and will — be balanced. Finding that balance is key to providing long-term stability for industry and investors.

Strong economic growth… across Western Canada and in many sectors… has also accelerated the skills shortages we face.

The tight labour situation has resulted in escalating costs and uncertainty for industry… will you be able to find the people you need, when you need them, with the right skills for the job?

We're tackling this challenge on several fronts — from investments in post-secondary education and skills training, to initiatives to reach out to under-represented groups in our workforce, such as Aboriginal peoples.

Let me highlight two recent initiatives.

Last month, we announced an expansion to the Provincial Nominee Program. This program speeds up the permanent residency process for a foreign worker who has a guaranteed offer for a permanent, full time job.

The program allows the province to nominate a person to the federal government for faster processing. With a provincial nomination, the process can take between 6 and 12 months compared to three to five years without a nomination.

In 2002, the program processed about 100 nominations. This year, we expect 2,500 nominations — and more in the years to come.

I hope you are also familiar with the landmark Trade, Investment and Labour Mobility Agreement — TILMA — between Alberta and British Columbia.

The two provinces are taking the lead in tearing down internal barriers to the free movement of people, goods, services and investment.

I hope other provinces will follow… to the benefit of Alberta and all of the Canada.

So we live in exciting times.

And I truly believe that Albertans will rise to the challenges before us…

We will maintain a strong economy, high standard of living and a healthy environment for this generation and those that follow.

But, we will only do this if we maintain the confidence and trust of Albertans — and our business partners — that such a future is possible.

We know where we're going — and how to get there.

The priorities and actions of my government have been designed to ensure we stay on track — and make the most of the unique opportunities with which we have been blessed.

I hope the message I have delivered today strengthens your confidence that Alberta is a great place to invest… now and far into the future.

Thank you.