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Liepert consults secret advisers
News Articles | Calgary Herald | Renata D'Aliesio | November 12, 2010
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CALGARY – Energy Minister Ron Liepert has assembled an energy kitchen cabinet of sorts, an exclusive group of roughly 25 top executives from oilpatch and investment firms to keep him abreast of challenges facing Alberta’s largest industry.
They met behind closed doors for the first time on Oct. 29 in Calgary, as Conservative members converged on the city for the party’s annual convention. Liepert said he hopes to meet with the group about five times a year. He wouldn’t reveal who’s part of his advisory panel, saying only that they’re industry leaders.
The group’s unknown makeup is prompting calls for disclosure from the NDP and an energy economist. Liepert, however, said the panel is meant to be informal.
“It’s just another means of me listening to what’s going on out there, getting some advice on what government should or should not be doing,” the energy minister said. “This group could be helpful if things start to, or are seen to, be going off track.”
Several issues were hashed out during the first gathering, including bitumen upgrading and developing cleaner energy. A consistent theme emerged: Alberta’s natural gas sector needs help.
Liepert said some small producers are concerned about their livelihood in the face of weak commodity prices and a glut of supply south of the border. His energy kitchen cabinet brainstormed on what could be done to assist them.
He wouldn’t disclose what ideas the Alberta government is contemplating, but said a discussion will be had with Tory caucus and cabinet.
“We’re not getting into any royalty changes or those sorts of things, but what is it that we can do to open more markets?” he said.
“There are some things that were thrown out on the table. I think we have to take a look at it.”
University of Alberta economics professor Andre Plourde, a member of the government’s 2007 panel examining oil and gas royalties, said it’s not surprising the energy sector is pushing for more government action after substantial royalty breaks were delivered earlier this year to producers.
“It’s a flaw in the design of the policy in the first place. It was entirely predictable,” Plourde said.
“The government has sought to encourage a lot of activity in the short term, and a lot that activity is going to be on very, very marginally profitable fields.”
Plourde said the government should reveal who’s on Liepert’s advisory panel, and ensure regular Albertans — owners of the province’s oil and gas bounty — are consulted.
NDP Leader Brian Mason agreed the group’s makeup must be disclosed.
“I have no objection to the minister setting up an advisory committee, but I’m surprised that he’s keeping its composition a secret,” Mason said.
“It doesn’t have a balanced range of views there, including perhaps the environmental community, landowners . . . and consumer organizations representing people who have to pay the bills for electricity.”
Liepert said the advisory panel wasn’t formed to address a specific issue, but he plans to seek its input on developing cleaner energy.
In September, provincial energy ministers and their federal counterpart pledged to work on a national clean energy strategy. The ministers hope to find common ground on what such a plan might look like when they meet again in Alberta next summer.
Liepert’s energy advisory panel doesn’t appear to include industry lobby groups, such as the Canadian Association of Petroleum Producers. The energy minister said he regularly consults with these industry organizations through other forums.
Greg Stringham, a vice-president with the Canadian Association of Petroleum Producers, said the oilpatch welcomes greater dialogue with the government. He noted Liepert, appointed energy minister in January, has been active in meeting with industry leaders in Alberta and elsewhere.
“The relationship right now is quite strong, and they’re making a great deal of effort to understand and be engaged with the industry on its issues,” Stringham said of the Alberta government.
“We’ve got a number of challenges, but we’ve got a number of opportunities.”
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