Regulation Transformed:Regulation Transformed:Consultation, Conflict and Consultation, Conflict and Regulation in Alberta’s Oil Regulation in Alberta’s Oil

and Gas Industryand Gas Industry

Oil $55 (U.S.) barrelOil $55 (U.S.) barrelNatural Gas $8 (U.S.) Natural Gas $8 (U.S.)

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Alberta Oil Patch: Basic FactsAlberta Oil Patch: Basic Facts

$62.5 billion (Cdn) value in 2003$62.5 billion (Cdn) value in 2003 73 % of Canadian total73 % of Canadian totalOil: 65% of Canadian totalOil: 65% of Canadian totalNatural Gas: 76% of Canadian totalNatural Gas: 76% of Canadian total

Oil SandsOil Sands

Reserves of 174 billion barrelsReserves of 174 billion barrelsResources equal 315 billion barrelsResources equal 315 billion barrelsProduction of 1,000,000 barrels/dayProduction of 1,000,000 barrels/day

Four Levels of RegulationFour Levels of Regulation

Local/municipalLocal/municipalProvincialProvincialNationalNational Inter-provincial/InternationalInter-provincial/International

Local RegulationLocal Regulation

Municipalities fall under Municipal Municipalities fall under Municipal ActAct

Mainly land use policyMainly land use policy Intervener role with EUBIntervener role with EUB

Provincial RegulationProvincial Regulation

13 Departments involved13 Departments involvedDozens of pieces of legislationDozens of pieces of legislationPrimarily Alberta Energy and Alberta Primarily Alberta Energy and Alberta

EnvironmentEnvironmentEnergy and Utilities Board – broad Energy and Utilities Board – broad

regulatory powersregulatory powers

National RegulationNational Regulation

Environment CanadaEnvironment CanadaNatural Resources CanadaNatural Resources CanadaNational Energy Board – broad National Energy Board – broad

regulatory powers over regulatory powers over interprovincial and international interprovincial and international tradetrade

Interprovincial and International Interprovincial and International RegulationRegulation

ASC/OSC: new reserve reporting ASC/OSC: new reserve reporting requirementsrequirements

Kyoto ProtocolKyoto ProtocolNAFTANAFTABush NEP of May 2001Bush NEP of May 2001

Regulatory IssuesRegulatory Issues

A move from economic to social A move from economic to social regulation (Culture Wars in the regulation (Culture Wars in the Oilpatch)Oilpatch)

A division between large and small A division between large and small producersproducers impact of OSC/ASC reporting requirementsimpact of OSC/ASC reporting requirementsKyoto – large firms compliantKyoto – large firms compliantWabiskaw-McMurray natural gas shut-insWabiskaw-McMurray natural gas shut-ins

The FutureThe Future

Continued federal-provincial conflictContinued federal-provincial conflictSecurity concernsSecurity concernsContinued conflict between large and Continued conflict between large and

small producerssmall producers