Imperial Oil Becomes First Major Alberta Energy Company to Oppose Separatism

Imperial Oil chief executive John Whelan has stated his opposition to Alberta separatism, making this the first major energy company in the province to take a public position on the movement, Financial Post reported, citing Bloomberg.

“As a national company, we believe a united Canada is the strongest position we can take to face the challenges and opportunities ahead,” Whelan told a Calgary conference, adding that “Canada and Alberta work best when people, products, energy and investment can move freely and reliably across the country.”

On October 19, Alberta will vote on whether to authorize the provincial government to pursue a binding independence referendum, which would be in the form of a procedural question, not a direct vote to separate.

A government-commissioned study from the University of Calgary School of Public Policy models two different potential outcomes. In the first, a smooth transition costs Alberta’s GDP an estimated 2.2% in the short term, but leaves it 3.4% higher over the long term compared to staying in Canada. The second scenario spells out a difficult transition that costs 10.1% in the short term and 16.2% over the long term. The province’s own cost estimate for the first five years runs $50 billion to $170 billion, with $40 billion to $55 billion of that in start-up costs alone.

Other Alberta energy executives have not jumped on board. Cenovus Energy chief executive Jon McKenzie said earlier this year that separatist sentiment is rooted in genuine grievances and would subside if addressed. ATCO chief executive Nancy Southern called the separatist discussion “very unhelpful”.

Whelan also lent his support to Premier Danielle Smith’s production goals, saying Imperial “has the potential to double our gross operated upstream production while also advancing additional downstream biofuel production” under a supportive fiscal and regulatory framework. Imperial, a unit of Exxon Mobil, operates the Kearl oil sands mine, the Cold Lake in-situ site, and refineries in Alberta and Ontario.

Alberta’s separatist movement gained momentum after a meeting between separatist organizers and Donald Trump, and the province has pushed ahead with the referendum despite a court challenge to its legality. Recent polling shows most Albertans oppose separation.

source: oilprice.com