When Premier Alison Redford talks about "a bitumen bubble," she's referring to the record amount of Alberta bitumen for sale, and the low price it's fetching in the U.S. these days.

That is partly because of competition from new supplies of higher quality crude oil from the U.S.

The price of bitumen dropped another $20 a barrel this month, so Redford's treasury will be short $6 billion by the end of next fiscal year.

Is this price gap between conventional oil and bitumen normal?

The fact is there has always been a gap between the North American price of conventional oil (West Texas International) and a barrel of sticky, thick bitumen, known as Western Canadian Select. (The world price, known as the Brent price, is another benchmark set by North Sea oil).

WTI is hovering around $95 a barrel, Brent slightly higher around $110, while bitumen, usually about $20-a-barrel less, dropped to $50 last month.

Bitumen fetches a lower price partly because it needs more upgrading before it can be turned into gasoline, says Michael Moore, energy expert in the University of Calgary's School of Public Policy. That costs money, so refineries won't pay as much for bitumen.

Usually the gap has hovers around 20-25 per cent, and in the last few months it went higher. But the gap has been higher in the past.

The lack of pipeline capacity makes it more difficult to get bitumen to market and using rail is expensive, says Moore. But there are other challenges, he adds.

The new supplies of lighter, easier-to-use oil from North Dakota are more attractive to refiners.

Then, not all U.S. refineries can handle bitumen, says Moore. Alberta bitumen has to get to specially adapted refineries on the U.S. Gulf coast.

But there's competition at those special refineries too - from heavy oil from Venezuela and Mexico which can get there cheaper, says Moore.

"So the refiners call the shots and they establish the discount. Our oil always had to go a long way and takes more processing."

So will more pipelines help?

Yes, the Keystone pipeline to the U.S. Gulf coast will be a big help, says Moore - "though we will still be trading in competition with other heavy oil like ours from Mexico. Right now, there's a lot of competition."

Gil McGowan of the Alberta Federation of Labour says there's no doubt Alberta is facing a glut in the oil market and that puts downward pressure on the price of bitumen.

The low price is a sign the market doesn't want to buy more Alberta bitumen, he says. The better solution is to upgrade the bitumen into synthetic crude in Alberta, "so we can sell a product the market wants."

"For Redford to suggest the only solution is to build more pipelines is not only simplistic, it is misleading. There are many other options," McGowan said.

Synthetic crude (upgraded bitumen), produced by a handful of oilsands companies, can be used in any refinery to make jet fuel or gasoline and it has occasionally fetched higher than the WTI price of oil, he noted.

U of C economist Ron Kneebone said the government has created its own problems by continuing to rely on volatile oil and gas revenues - despite frequent warnings from economists and its own advisers.

Calgary Herald, Wednesday, Jan. 30, 2013
Byline: Sheila Pratt, Edmonton Journal

EDMONTON - The Idle No More movement marked a global day of action Monday with a rally in Churchill Square that saw leaders from a variety of organizations declare solidarity with the movement.

More than 200 people gathered in Churchill Square to hear representatives from nine organizations, including labour and environmental groups, share short messages of support for Idle No More and sign a declaration of solidarity. The speeches were followed by a tea dance with the Dene Tha' Drummers.

"There are exciting moments in history where people stand together, they band together and begin to resist. I believe that we're witnessing that today when we announce Common Causes, a national movement to bring together people of differing passions," said Nancy Furlong with the Alberta Federation of Labour.

On Monday, groups across Canada launched Common Causes, an assembly of social movements dedicated to defending democracy, social justice, the environment and human rights. Common Causes held rallies and marches in co-ordination with Idle No More's global day of action, which came as Canada's MPs returned to the House of Commons.

In Alberta, other Idle No More events included a march in St. Paul and a protest in Little Buffalo.

Garrett Tomlinson, communications co-ordinator with Lubicon Lake Nation, said about 50 people took part in a roadside protest on Highway 986, which began at 1 p.m. and was expected to last until dark.

In Edmonton, Morningstar Mercredi co-hosted the Churchill Square event with Public Interest Alberta's Bill Moore-Kilgannon.

"We will not stand by idly, we will not be silenced, we will unify and that is what you're witnessing today," Mercredi said.

Lori Sigurdson, on behalf of the Alberta College of Social Workers, declared solidarity with Idle No More and made reference to the controversial omnibus Bill C-45.

"We see first-hand the suffering of the aboriginal people and this bill that has gone through will only continue that," she said.

Representatives from the Canadian Labour Congress, the Council of Canadians, Greenpeace, Friends of Medicare, the Sierra Club's prairie chapter and the Memoria Viva Society also signed the declaration.

Kayla Scanie, a member of Cold Lake First Nations, called Monday's rally "awesome." She hopes to see even more people support Idle No More at future events.

Nancy Dodsworth, with the Canadian Union of Postal Workers, attended the event and said she has waited a long time for a movement such as Idle No More.

"Our environment has been destroyed for so long, so to have everyone come together and start to be really active is phenomenal. People are waking up and I'm grateful for that," she said.

Edmonton Journal, Monday, Jan 28 2013
Byline:  Cailynn Klingbeil

Albertan labour organizations and environmental groups declared their support for the Idle No More movement during a rally in Edmonton Monday.

In front of over 100 Idle No More demonstrators in Churchill Square, representatives from the Canadian Labour Congress, The Alberta Federation of Labour, Greenpeace Canada, The Alberta College of Social Workers, The Edmonton District Labour Council, and more, signed a declaration of solidarity with the movement.

The combined movement is being called Common Causes and aims to "defend democracy" by challenging Prime Minister Stephen Harper and the Conservative government's environmental legislation in omnibus Bill C-45.

"What you saw today is a number of key labour groups who are deeply concerned about their own members and their own ability to speak out on issues that matter to the average working person," said Common Causes spokesman Bill Moore-Kilgannon.

"But you also saw social workers, environmental groups, and recent immigrants coming here to say that all these things affect us as citizens and that's the debate we need to have in this country."

The Idle No More movement says Bill C-45 will further open access to resource exploitation on treaty lands, weaken local control over water, land and air, and erode aboriginal rights to protect their own culture and language.

Nancy Furlong, secretary treasurer of the Alberta Federation of Labour that acts on behalf of over 150,000 Albertans, said Bill C-45 is an attack on Canada's indigenous peoples as well as an attack on unions.

"(Harper) is destroying unions with bills specifically designed to silence the voices of the working people," said Furlong. "He does not share our values and he does not stand for fairness and we won't be idle any longer."

Greenpeace Canada said they were supporting the Idle No More movement to combat "Harper's atrocious omnibus bills."

"They are not only an attack on indigenous rights but on environmental laws and they are also an attack on the democratic rights of all Canadians," said Melina Laboucan-Massino with Greenpeace.

While agreeing there needs to be more public education about the movement, Moore-Kilgannon denied that the partnership between Common Causes and Idle No More will broaden the issues while simultaneously confusing the average Canadian.

"I don't see it diluting the issues at all, I see it strengthening them," he said. "The things that Idle No More is talking about: water, democracy, human rights, our relationship to each other... These are things that matter to everybody."

Moore-Kilgannon said Common Causes organizations will be involved with Idle No More in "various ways" but refused to say if they will join First Nations in blockading Alberta highways.

The rally was planned as a part of a national day of action in 25 Canadian cities to coincide with the resumption of parliament.

Edmonton Sun, Monday, Jan. 28, 2013
Byline: Matthew Dykstra

A Canadian subsidiary of Sinopec, a Chinese state-owned oil corporation, was ordered to pay $1.5-million fine Thursday, approximately six years after a collapsing tank roof killed two Chinese workers at an oilsands construction site.

According to the province, the penalty is the largest workplace safety fine in Alberta's history.

The April 2007 incident occured at Canadian Natural Resources Ltd.'s Horizon project, approximately 70 kilometres north of Fort McMurray. The workers – Ge Genbao, 28, and Lui Hongliang, 33 – were killed when the roof of a metal storage tank collapsed. Five other workers were also injured.

In late September, representatives from Sinopec Shanghai Engineering Company Canada Ltd. appeared in a St. Albert courtroom and pleaded guilty to two charges related to the deaths of the workers, plus an additional third charge for failing to ensure the safety of two seriously injured workers.

According to an agreed statement of facts filed in court, work on the storage tanks had begun to fall behind schedule at the time of the incident. SSEC Canada and CNRL began to construct the tanks walls and roofs simultaneously.

About three weeks after the new construction approach began, a cable supporting a roof snapped after strong winds and kinks weakened the wire.

The case originally involved a total of 53 charges against three different companies. During the lengthy court battle, charges against Sinopec were dropped and 29 charges against CNRL were stayed.

Despite the large fine, the Alberta Federation of Labour is calling the punishment smaller than a "rounding error in the annual budget of a monstrous global corporation like Sinopec," and that the fee will not serve as a lesson to the multi-billion dollar oilsands companies operating in northern Alberta.

"Alberta missed its chance to send a message that Chinese companies working in the oilsands need to play by Canadian rules," said AFL president Gil McGowan. "Sinopec didn't just import workers from the third-world, they also imported third-world health and safety standards."

Ft. McMurray Today, Sunday, Jan. 27, 2013
Byline: Vincent McDermott

Edmontonians packed Allendale Community Hall Sunday evening for a discussion of Idle No More, as communities and organizations worldwide planned for a show of solidarity with the movement on Monday.

"The goal here is to educate," said Richard Merry, chair of the Council of Canadians' Edmonton chapter. The group organized Sunday's event, titled Building Edmonton Solidarity with Idle No More.

The discussion was a chance for people of all backgrounds to learn more about the movement and how to participate.

"We hope to stimulate people to support the grievances of First Nations people much more directly, not just to watch it," Merry said.

More than 100 people gathered in the hall to hear Tanya Kappo, a member of the Sturgeon Lake Cree Nation who launched the Alberta version of Idle No More, speak about the movement.

Darian Selander, 24, attended the discussion with her brother, William Selander, 15, and friend Ellen Parsons, 24.

"It's a cause I want to know more about," said Selander, who has not been to any other Idle No More events.

"I've heard a lot of negative stuff about Idle No More, so I wanted to hear more about it from people who support it and are involved with it," Parsons said.

Mervin Grandbois, a member of the Cold Lake First Nation, was pleased to see so many people show an interest in learning about the movement.

"We need events like this to show that this is not only an aboriginal thing, it involves all people," Grandbois said.

The Edmonton event came as an assembly of 47 groups across Canada, including the Council of Canadians, prepared to launch a national effort Monday in support of Idle No More, timed to coincide with Parliament resuming in Ottawa.

United under the banner of Common Causes, the assembly's mandate includes defending democracy, social justice, the environment and human rights.

"We see the First Nations' struggles as a struggle of all Canadian people," Merry said.

Public Interest Alberta is one of the organizations joining Common Causes.

Executive director Bill Moore-Kilgannon helped put together an event at Churchill Square Monday that will feature speakers and a tea dance with the Dene Tha' Drummers.

"We are all deeply concerned about how we, as citizens, can make sure those voices that are concerned about the environment, health care, foreign policy, and human rights are being heard. Common Causes joining up and supporting Idle No More is really what (Monday) is all about," Moore-Kilgannon said.

While flash mobs and rallies have been used to protest Bill C-45 and C-38, Moore-Kilgannon said teach-ins are now helping people, many of whom are not First Nations, delve deeper into the issues the Idle No More movement addresses.

A teach-in session on Sunday afternoon connected the labour movement with Idle No More, attracting close to 100 people. Morningstar Mercredi, who has been active with Idle No More, was the main organizer of the event.

"We are all idle no more because of the bills, because of (Prime Minister Stephen) Harper's mandate, because of his inability to consult," said Mercredi.

Mercredi isn't surprised Idle No More is expanding to labour groups and other organizations.

"The bills will affect and have direct impact on every person, every single women, child, elder, man, everyone," she said.

Amanda Freistadt, a representative with the Canadian Labour Congress, attended the teach-in Sunday and plans to be at Churchill Square Monday.

"If we make connections with each other and we share commonalities and we build relationships with each other, we have the ability to influence progressive change in a way that we wouldn't if we didn't get together," Freistadt said.

Gil McGowan, president of the Alberta Federation of Labour, was also in attendance.

"We in the labour movement share the First Nation communities' concerns about this breakneck approach to development, because we don't think that it's in the long-term best interest of Canadians who own the resource, whether they're aboriginal or non-aboriginal," McGowan said.

"It's not just about First Nations, it's about all of us and all of our relations to each other and to our environment," Moore-Kilgannon said.

Edmonton Journal, Sunday, Jan. 27, 2013
Byline: Carilynn Klingbeil

CALGARY - Public sector unions are bracing to fight impending provincial cutbacks driven by a multi-billion dollar cash crunch.

And a prominent economist said Premier Alison Redford's TV address to Albertans Thursday fails to come to grips with a looming budget shortfall larger than the province is letting on.

Even before Redford's speech, the Alberta Federation of Labour was readying a public relations offensive to offer alternatives to slashing spending on crucial programs, said president Gil McGowan.

"The public sector unions have been meeting the past couple of weeks to discuss the implications of the budget and, like a lot of Albertans, we're prepared for the worst," McGowan said Friday.

Alberta's fiscal chickens are coming home to roost after years of tax-slashing for wealthier Albertans and a resource revenue giveaway to a wildly profitable energy industry, he said.

"Our provincial GDP is literally 75% higher than the rest of the country, yet we can no longer afford even to have run-of-the-mill services," said McGowan. "I call it the great Alberta disconnect."

After meeting with Finance Minister Doug Horner last Tuesday, McGowan said it's clear areas like education and health care won't be spared drastic action in the budget expected in March.

"Everything we've heard is suggesting the budget won't be as bad as what we saw in the (Ralph) Klein years, but worse than anything we've seen since," he said.

University of Calgary economist Dr. Jack Mintz said Redford's TV address muddied the fiscal waters, and unmentioned obligations like financing requirements could see a shortfall of $8-$10 billion.

"This government has considerable credibility problems as far as their budget plan," he said.

Even with budget cuts averaging 5% over all departments - or a $2-billion slim-down - an ocean of red ink will remain because the discount on Alberta bitumen will also persist for years, added Mintz.

"If they don't make major cuts this years, the sustainability fund will be depleted and they'll be borrowing because they don't want to take it from the heritage fund," he said.

Educators watched Redford with considerable interest, hoping the province's commitment made to them last year in a three-year funding pact will hold in March, said Calgary public school board vice-chairman Lynn Ferguson.

"We are certainly aware of the economic challenges facing the province," said Ferguson.

"I would hope since education is a consistent priority for Albertans, that value would be reflected even in a difficult budget year."

Sun News, Friday, Jan. 25, 2013
Byline: Bill Kaufmann

CALGARY - Public sector unions are bracing to fight impending provincial cutbacks driven by a multi-billion dollar cash crunch.

And a prominent economist said Premier Alison Redford's TV address to Albertans Thursday fails to come to grips with a looming budget shortfall larger than the province is letting on.

Even before Redford's speech, the Alberta Federation of Labour was readying a public relations offensive to offer alternatives to slashing spending on crucial programs, said president Gil McGowan.

"The public sector unions have been meeting the past couple of weeks to discuss the implications of the budget and, like a lot of Albertans, we're prepared for the worst," McGowan said Friday.

Alberta's fiscal chickens are coming home to roost after years of tax-slashing for wealthier Albertans and a resource revenue giveaway to a wildly profitable energy industry, he said.

"Our provincial GDP is literally 75% higher than the rest of the country, yet we can no longer afford even to have run-of-the-mill services," said McGowan. "I call it the great Alberta disconnect."

After meeting with Finance Minister Doug Horner last Tuesday, McGowan said it's clear areas like education and health care won't be spared drastic action in the budget expected in March.

"Everything we've heard is suggesting the budget won't be as bad as what we saw in the (Ralph) Klein years, but worse than anything we've seen since," he said.

University of Calgary economist Dr. Jack Mintz said Redford's TV address muddied the fiscal waters, and unmentioned obligations like financing requirements could see a shortfall of $8-$10 billion.

"This government has considerable credibility problems as far as their budget plan," he said.

Even with budget cuts averaging 5% over all departments - or a $2-billion slim-down - an ocean of red ink will remain because the discount on Alberta bitumen will also persist for years, added Mintz.

"If they don't make major cuts this years, the sustainability fund will be depleted and they'll be borrowing because they don't want to take it from the heritage fund," he said.

Educators watched Redford with considerable interest, hoping the province's commitment made to them last year in a three-year funding pact will hold in March, said Calgary public school board vice-chairman Lynn Ferguson.

"We are certainly aware of the economic challenges facing the province," said Ferguson.

"I would hope since education is a consistent priority for Albertans, that value would be reflected even in a difficult budget year."

SunNews, Friday, Jan. 25, 2013
Byline: Bill Kaufman, QMI Agency

Public sector unions are girding to fight impending provincial cutbacks driven by a multi-billion dollar cash crunch.

And a prominent economist says Premier Alison Redford's TV address to Albertans Thursday fails to come to grips with a looming budget shortfall larger than the province is letting on.

Even before Redford's speech, the Alberta Federation of Labour was readying a public relations offensive to offer alternatives to slashing spending on crucial programs, said AFL President Gil McGowan.

"The public sector unions have been meeting the past couple of weeks to discuss the implications of the budget and like a lot of Albertans, we're prepared for the worst," McGowan said Friday.

Alberta's fiscal chickens are coming home to roost after years of tax-slashing for wealthier Albertans and a resource revenue giveaway to a wildly profitable energy industry, he said.

"Our provincial GDP is literally 75 percent higher than the rest of the country yet we can no longer afford even to have run-of-the-mill services," said McGowan.

"I call it the great Alberta disconnect."

After meeting with Finance Minister Doug Horner last Tuesday, McGowan said it's clear areas like education and health care won't be spared drastic action in the budget expected in March.

"Everything we've heard is suggesting the budget won't be as bad as what we saw in the Klein years but worse than anything we've seen since," he said.

University of Calgary economist Dr. Jack Mintz said Redford's TV address muddied the fiscal waters, adding unmentioned obligations like financing requirements could see a shortfall of up $8-$10 billion.

"This government has considerable credibility problems as far as their budget plan," he said.

Even with budget cuts averaging 5% over all departments — or a $2 billion slim-down — an ocean of red ink will remain because the discount on Alberta bitumen will also persist for years, added Mintz.

"If they don't make major cuts this years, the sustainability fund will be depleted and they'll be borrowing because they don't want to take it from the heritage fund," he said.

Educators watched Redford with considerable interest, hoping the province's commitment made to them last year in a three-year funding pact will hold in March, said Calgary public school board vice-chairman Lynn Ferguson.

"We are certainly aware of the economic challenges facing the province," said Ferguson.

"I would hope since education is a consistent priority for Albertans, that value would be reflected even in a difficult budget year."

She noted there's a possibility the province could delay funding building projects, noting her district has 16 projects including modernizations and new schools, one of them a northeast high school.

"I would like them to know in a growing community like Calgary, new schools are always needed," she said adding 24 Calgary communities have no public schools.

Ferguson also voiced some concern about the fate of its full-day kindergarten program.

Redford said an unforeseen discount on the province's bitumen is largely to blame for the fiscal gap.

But the AFL's McGowan echoed right-wing critics like the Wildrose Party in arguing that situation has long existed.

"That differential between world oil and bitumen prices has existed for years," he said.

The Calgary Sun, Friday, Jan. 25, 2013
Byline: Bill Kaufman

ST. ALBERT, Alta. – A firm linked to a Chinese state-owned company was ordered Thursday to pay $1.5 million in penalties in the deaths of two foreign workers at an Alberta oilsands project.

SSEC Canada Ltd. pleaded guilty last September to three workplace safety charges in the deaths of the Chinese temporary foreign workers.

The men died in 2007 at Canadian Natural Resources' (TSX:CNQ) Horizon project near Fort McMurray when an oil storage tank they were building collapsed.

Alberta Justice spokeswoman Michelle Davio said the penalty is the largest ever imposed by a judge in the province on workplace safety charges.

"The penalty is made up of a $200,000 fine and $1.3 million payment to the Alberta Law Foundation that will be used to support outreach and education programs for temporary foreign workers and for workers who are new to Alberta," she said.

SSEC Canada is the Canadian subsidiary of Sinopec Shanghai Engineering Company Ltd.

The case involved a total of 53 charges involving three different companies, including Calgary-based Canadian Natural Resources and Sinopec.

Charges against Sinopec were withdrawn. All 29 charges against CNRL were stayed, meaning the government can reactivate them at any time over one year.

According to an agreed statement of facts filed in court, problems at the Horizon project began in 2006 when 132 Mandarin-speaking Chinese workers recruited by SSEC Canada were late in getting to the worksite.

Work on the large metal storage tanks fell behind schedule.

SSEC Canada proposed revised construction in which the tanks' walls and roofs would be built at the same time.

CNRL agreed to the revisions, but said the work should be done under its own construction management team which would supervise quality control and safety.

SSEC Canada began work using the new method before CNRL's team arrived on site, even though the procedures hadn't been certified by a professional engineer.

On April 24, 2007, about three weeks after SSEC Canada began using the new approach, a roof collapsed when the wire cables holding it up snapped after being kinked and torqued in high winds.

The two workers were crushed by falling steel. Five other Chinese workers were injured.

Gil McGowan, president of the Alberta Federation of Labour, called the penalty "less than a drop in the bucket."

"This was an opportunity for the Alberta government to send a clear message to companies like Sinopec that if they want to do business in Canada, then they have to observe and follow our rules when it comes to workplace rights and health and safety," McGowan said.

The case was delayed for years by uncertainty over which company was responsible and whether they would be responsible as an employer, contractor or prime contractor.

Sinopec Shanghai Engineering Co. went to the Alberta Court of Appeal in a losing effort to argue that it hadn't been properly served with legal documents, since it had no presence in Canada.

The Supreme Court of Canada refused to hear a challenge.

ST. ALBERT, Alta. - A firm linked to a Chinese state-owned company was ordered Thursday to pay $1.5 million in penalties in the deaths of two foreign workers at an Alberta oilsands project.

SSEC Canada Ltd. pleaded guilty last September to three workplace safety charges in the deaths of the Chinese temporary foreign workers.

The men died in 2007 at Canadian Natural Resources' (TSX:CNQ) Horizon project near Fort McMurray when an oil storage tank they were building collapsed.

Alberta Justice spokeswoman Michelle Davio said the penalty is the largest ever imposed by a judge in the province on workplace safety charges.

"The penalty is made up of a $200,000 fine and $1.3 million payment to the Alberta Law Foundation that will be used to support outreach and education programs for temporary foreign workers and for workers who are new to Alberta," she said.

SSEC Canada is the Canadian subsidiary of Sinopec Shanghai Engineering Company Ltd.

The case involved a total of 53 charges involving three different companies, including Calgary-based Canadian Natural Resources and Sinopec.

Charges against Sinopec were withdrawn. All 29 charges against CNRL were stayed, meaning the government can reactivate them at any time over one year.

According to an agreed statement of facts filed in court, problems at the Horizon project began in 2006 when 132 Mandarin-speaking Chinese workers recruited by SSEC Canada were late in getting to the worksite.

Work on the large metal storage tanks fell behind schedule.

SSEC Canada proposed revised construction in which the tanks' walls and roofs would be built at the same time.

CNRL agreed to the revisions, but said the work should be done under its own construction management team which would supervise quality control and safety.

SSEC Canada began work using the new method before CNRL's team arrived on site, even though the procedures hadn't been certified by a professional engineer.

On April 24, 2007, about three weeks after SSEC Canada began using the new approach, a roof collapsed when the wire cables holding it up snapped after being kinked and torqued in high winds.

The two workers were crushed by falling steel. Five other Chinese workers were injured.

Gil McGowan, president of the Alberta Federation of Labour, called the penalty "less than a drop in the bucket."

"This was an opportunity for the Alberta government to send a clear message to companies like Sinopec that if they want to do business in Canada, then they have to observe and follow our rules when it comes to workplace rights and health and safety," McGowan said.

The case was delayed for years by uncertainty over which company was responsible and whether they would be responsible as an employer, contractor or prime contractor.

Sinopec Shanghai Engineering Co. went to the Alberta Court of Appeal in a losing effort to argue that it hadn't been properly served with legal documents, since it had no presence in Canada.

The Supreme Court of Canada refused to hear a challenge.

The Canadian Press, Thursday, Jan. 24, 2013