Redford seeks Ontario’s help to overcome ‘bitumen bubble’ plaguing oilsands

 EDMONTON – Premier Alison Redford has urged Ontario leaders to work with Alberta to diversify markets for Alberta oil to pop the so-called “bitumen bubble” preventing oilsands producers from getting full price for their products.

In a speech Wednesday to the Canadian Club at Toronto’s Fairmont Royal York Hotel, Redford said Canada will lose $27 billion in revenue as a result of the discount on Alberta oil, and highlighted the $63 billion in goods and services that flow into Ontario from Alberta’s oilsands sector.

She said solving the problem will require Canadians to trust one another.

“We are all proud Canadians confronting the same dilemmas and challenges: demographic shifts, market access and a choice about the kind of country we want to live in and leave behind for our children,” Redford said.

“This is our heritage and our future at stake. We should trust each other enough to share in the solutions.”

The speech revisited many of the themes Albertans heard last week in Redford’s address to the province: She promised to hold the line on spending while continuing to invest in programs and services for Albertans.

“It’s not good enough to take an axe to spending across the board,” the premier said. “That would hit vulnerable Albertans hard, and involve paying more down the road.

“And it’s not good enough to take the easy way out and raise taxes.”

She also highlighted the goals of the Canadian Energy Strategy, which she has promoted across the country since she became premier in October 2011.

“We are looking to develop access to the global marketplace for Canadian energy producers, while finding new ways to support innovation to reduce the footprint of energy production,” Redford said. “We’re making progress – together.”

Redford also announced that Alberta entrepreneur Barry Heck will head the Alberta Economic Development Authority, effective immediately. He replaces outgoing chair Bob Brawn.

More to come …