Mr. Taylor: Well, thank you, Mr. Speaker. I don’t know how I’m going to follow that, but I’ll try.

Today we learned of another move by oil sands companies to limit the amount of bitumen being upgraded here in the province of Alberta. We need this value-added industry. We need the jobs and the taxes that it brings, and we need the industrial by-products that it makes. To the Minister of Energy: does the minister accept that this cutback and others like it are a serious blow to maintaining a substantial upgrading industry in the province of Alberta?

Mr. Liepert: Well, as I’ve stated in the House before, Mr. Speaker, these are business decisions, and they’re made on the basis of whether or not they’re economically profitable. Ideally, obviously, Alberta would like to have more upgrader capacity in Alberta, but when the margin is very narrow, you’re not likely to encourage private-sector investment in that business.

The Speaker: The hon. member.

Mr. Taylor: Thank you, Mr. Speaker. The government keeps talking about bitumen royalties in kind, but these kinds of shifts indicate that that’s not going to keep a very large proportion of bitumen here in Alberta, so I’d like to know from the minister what’s next. What else does the minister have to use because the bitumen royalty in kind program seems clearly not to be enough?

Mr. Liepert: Well, I don’t agree with the member, Mr. Speaker. The bitumen royalty in kind is a very important program that’s been introduced by our government. We believe over time that that will be a very wise decision. As production ramps up, there are opportunities for increased bitumen for the people of Alberta. As you know, we have a proposal out there right now for an upgrader to upgrade the Alberta portion of the BRIK program, and I think that’s going to be, if we look back 10 years from now, a very important decision.

The Speaker: The hon. member.

Mr. Taylor: Thank you, Mr. Speaker. While we wait for the government to act, long-term decisions are getting finalized by industry. I understand the proposal is out there. We need some time, but time matters. So how long do Albertans have to wait before the minister starts to push other means of adding value here in the province?

Mr. Liepert: Well, again, I don’t agree with the preamble, Mr. Speaker. The impression was left that somehow Alberta is not coming forward with initiatives. The BRIK initiative is a clear indication of what we’re prepared to do to ensure that Albertans going forward have the opportunity to benefit from upgraded bitumen in this province, and we’ll continue to do that.

Alberta Hansard, February 25, 2010

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