EDMONTON- Alberta’s Industrial Heartland Association (AIHA) is calling on the province to do more to encourage upgrading and refining of Alberta’s oil.
AIHA says refining could be the answer to Alberta’s current financial problems.
“The Industrial Heartland is a conduit. It’s a solution. We want to be there to help,” explained Linda Osinchuk, Chair of Alberta’s Industrial Heartland Association and Mayor of Strathcona County.
Alberta oil sells for just over $50 per barrel, which is about $40 a barrel less than West Texas Intermediate (WTI). There’s a North American glut and Alberta doesn’t have enough ways to export oil. In order to sell it, Alberta needs to sell it cheap.
But, AIHA suggests the province shouldn’t be looking to sell its oil but, to refine it first.
“Investment and taking a bit of a risk is not a bad thing to do,” said Osinchuk.
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The association does not oppose exporting Alberta’s oil, it supports new proposed pipelines but, members say they want more attention paid to refining.
“The dollars and cents that are being left at the table when you don’t process, when you don’t do it here in our own back yard is a huge differential,” added Osinchuk.
AIHA is calling on the province to update its provincial energy strategy and expand the Bitumen Royalty-In-Kind program (BRIK). Through BRIK, the province takes bitumen instead of money as a royalty and then upgrades the bitumen itself.
“I think what this is starting to show is that one, BRIK was a very good idea and two, by diversifying and getting into value added products, you do generate that alternative source of revenue,” explained Neil Shelly, Executive Director of AIHA.
Alberta energy believes the association’s ideas are valuable.
“Minister Hughes has already been out there talking about the fact that the BRIK program is an opportunity. It’s something that we can be looking it. It’s something should be looking at,” said Alberta Energy spokesperson Mike Deising.
Deising says all options need to be looked at, and soon.
“The discount we’re receiving for our oil is a serious problem and we need to be looking at all options to bring the value of Alberta Oil up.”
AIHA plans to formally launch a campaign called “Alberta Plus” in March.
With files from Fletcher Kent, Global News.
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