Edmonton – The Alberta Federation of Labour applauds the Obama administration’s decision to delay the Keystone XL pipeline, saying it will give the Redford government an opportunity to pursue value-added opportunities here at home, rather than shipping unprocessed bitumen south for upgrading.
“There’s been a parade of Alberta government ministers travelling to the States to sell unprocessed bitumen. Now perhaps those same ministers can stay in Alberta and consider our needs and our future ahead of those of our neighbours south of the border,” says Gil McGowan, president of the Alberta Federation of Labour (AFL), which represents 145,000 workers.
“Upgrading more bitumen in Alberta will help our province in many ways. Increasing value-added industries will provide quality, long-term jobs for Albertans and Canadians. While good relationships with our neighbours are important, the government of Alberta must promote the long-term health of our province first. Increasing value-added energy industries in Alberta will increase revenues from royalties and taxes,” he says.
“As bitumen is upgraded and moved up the value chain, more funds will flow into the Treasury through higher royalties on finished products. This is money that can be used to pay for important public services like health care and education,” says McGowan.
McGowan took particular exception to the Wildrose Party’s reaction to the delay of the Keystone XL pipeline.
“The Wildrose Party was playing fast and loose with the facts in their media release today. They should avoid fear mongering. The truth is that this pipeline is bad news for quality jobs and bad news for royalties,” says McGowan.
“Danielle Smith is trying to convince us that we’ll lose billions in royalties if the Keystone XL pipeline isn’t approved, but the opposite is true. If we export unprocessed bitumen, we ruin a great competitive advantage,” says McGowan
“The National Energy Board notes that, ‘wide differentials provide refiners with an economic incentive to build heavy oil conversion capacity.’ If we get rid of the prices differential between our bitumen and global crude, we destroy future opportunities to boost our value-added industries,” he says.
“In this context, Albertans should see the Obama administration’s decision as an opportunity, not a disappointment. It is an opportunity for us to move up the value chain and create a more prosperous and stable economic future for Albertans.”
Gil McGowan, President, Alberta Federation of Labour @ 780-218-9888 (cell)