It might take awhile for the financial tap to turn on following federal approval of two major pipeline projects last week, but local oil and gas industry businesses say they are hopeful it will happen.
Prime Minister Justin Trudeau announced Nov. 29 the approval of the Trans Mountain Expansion, the twinning of a pipeline between the Alberta oilsands and Burnaby, and the upgrade a section of Enbridge’s Line 3, a pipeline that takes oil to the U.S.
The Northern Gateway pipeline, which would carry oil to northern B.C., was dismissed and the federal government placed a moratorium on crude and oil tankers along B.C.’s northern coast.
Trudeau said the decision will benefit the entire country economically.
“It is a major win for Canadian workers, for Canadian families and the Canadian economy, now and into the future,” he said.
Rick Hendrickson is the vice-president of Canadian Oilsands Construction Ltd., based in Okotoks.
He said only time will tell if these projects will actually move forward. If they do, he said Canadian Oilsands Construction and many others in Alberta will benefit. Hendrickson said it will likely take at least two years for either of the pipeline projects to get started.
“There are still a lot of approvals at the local level that need to go through and a lot of protests that can happen that can hinder these things,” he said. “I’m not optimistic at this point.”
If the approved pipeline projects do go ahead, Hendrickson said he expects his company will see more work, particularly pipeline maintenance as bigger companies give up those contracts to build the pipelines.
He said the Trans Mountain pipeline to the coast will most benefit the Canadian economy.
“Having all that oil going to the coast that can access global markets will increase oil prices,” he said.
Okotoks resident Brad Banister, who recently started New Tech Solids, a company that focuses on cleaning solids at drilling rigs, said the approving the pipeline was the right thing to do.
“(Trudeau) had to tie the country back together,” Banister said. “This will improve our economy here and move our product.”
He agrees the announcement will not mean immediate dividends for Alberta’s oil and gas sector, but said it gives hope.
“It takes some time to do this work,” Banister said. “As long as we are heading in the right direction I think it is a very positive story.”
Premier Rachel Notley was in B.C. early this week to meet with the media there to promote the pipeline and will meet with Premier Christy Clark in Ottawa later this week to discuss how the Provinces can work together.
Notley is applauding the pipeline approvals.
“Prime Minister Trudeau is showing some extraordinary leadership today,” Notley said following the announcement. “Our province has been brutally slammed by the collapse in commodity prices. It has been a long, dark night for the people of Alberta as a result. Today we are finally seeing some morning light.”
The two pipeline projects will be able to move a million more barrels of oil per day and will direct more oil to the west coast, where it can be sent overseas.
“We are getting a chance to break our landlock,” Notley said.
“We’re getting a chance to sell to China and other new markets at better prices. We’re getting a chance to reduce our dependence on one market and therefore to be more economically independent. And, we’re getting a chance to pick ourselves up and move forward again.”
