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Canada’s oil and gas industry is its own worst enemy

Imperial Oil president and CEO Brad Corson's company is responsible for a major spill — and his industry's most recent self-inflicted reputational wound. THE CANADIAN PRESS/Todd Korol

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For as long as I’ve lived in Alberta and covered the oil and gas industry — more than a decade now — I’ve been hearing about its supposedly high ethical standard. This is the heart of Ezra Levant’s “ethical oil” argument that has become an incredibly popular mantra among people working in the oil and gas industry and those outside it who just don’t want to confront the reality of Alberta’s role in climate change.

As I’ve pointed out repeatedly, this is an inherently — and inescapably — flawed argument. It compares Canada to countries like Iran, Russia and Saudi Arabia, a far lower standard than most Canadians hold themselves to. It ignores the existence of Norway, a major oil producer with far lower greenhouse gas emissions and far higher taxes on production. And it pretends the oil and gas industry is in some way responsible for Canada’s progressive attitude towards LGBTQ rights, its treatment of women and minorities, and its comparatively robust regulatory environment.

In reality, the oil and gas industry has lobbied aggressively against the things it wants credit for, from carbon pricing to environmental regulations. Despite talking up Canada’s progressive attitude towards same-sex marriage, its leaders were conspicuously silent when then-premier Ralph Klein threatened to use the notwithstanding clause on the federal government’s legalization of it. And the number of women and minorities in senior leadership positions in that industry remains lower than other major industries in Canada.

But the biggest problem is that the industry constantly undermines its argument with its own behaviour. The latest example of this, and one of the worst I’ve seen in a long time, is the leak coming from an Imperial Oil tailings pond — one that’s leached millions of litres of toxic water into the ground. This is water that has things like arsenic and dissolved metals in it, and it’s been leaking since last May. But the public only just learned about it, and worse, so did communities directly downstream of the leak, like the Athabasca Chipewyan First Nation. The Alberta government also failed to notify its peers in the Northwest Territories, which is further downstream and would stand to be affected by any release of toxic chemicals.

Imperial insists the spill poses no threat to water or wildlife, even as it admits it doesn’t know exactly how much toxic sludge was actually released from the site. But Allan Adam, the chief of the Athabasca Chipewyan First Nation, isn’t buying Imperial’s assurances. “I just got back from an elders meeting and I told everyone to get rid of whatever you harvested. Throw it out. Don’t even feed it to your dogs,” he told The Guardian.

Alberta's oil and gas industry likes to blame environmentalists and the federal government for its inability to build more pipelines. But as the latest oilsands spill and resulting campaign of silence show, its biggest enemy is itself. @maxfawcett

This isn’t just a black eye for Imperial Oil. It’s also a reflection on the regulatory system as a whole, one that seems almost completely captured by the industry it’s supposed to regulate. “I told the company and I told the regulator that a simple phone call would have cost you less than five bucks. A simple phone call,” Adam said. “Look at what it’s going to cost you now.”

It’s more proof — as if more was even needed — of why the United Conservative Party government’s efforts to chase down the industry’s supposed enemies in the environmental community are so futile. The tens of millions of public dollars it spent on the War Room only resulted in a bunch of bad press and an embarrassing fight with a cartoon Bigfoot movie, while the public inquiry into anti-Alberta energy campaigns served up a big fat nothing burger.

But even if those operations had been run more competently, they still wouldn’t undo the damage the industry they seem hellbent on protecting does to itself on a regular basis. All the bulletproof armour in the world can’t protect you when you’re constantly shooting yourself in the foot.

The Kearl spill, after all, isn’t the only round the industry has fired off lately.

In addition to its growing inventory of leaky tailings ponds and thousands of unreclaimed and orphaned wells it hasn’t cleaned up, it’s also shorting rural communities on their property taxes. As the Rural Municipalities of Alberta noted in a recent statement, that bill actually grew over the last 12 months — the most profitable year in the industry’s history — to $268 million. That’s a 6.1 per cent increase over 2021, and a 231.5 per cent increase since 2018. And while some of these outstanding taxes are from companies that went bankrupt in the past, nearly half are owed by those still operating. “If property tax payments are ignored,” RMA president Paul McLauchlin said, “what other environmental or regulatory responsibilities will the province look the other way on next?”

It’s long past time for the Alberta government to remember that its job here is to properly regulate, not defend, this multibillion-dollar industry. Even the best marketing campaign in the world can’t help sell a product that consistently advertises its own flaws and failures, and a hundred Greta Thunbergs couldn’t do the sort of damage to the Alberta oil and gas industry’s reputation that it keeps doing to itself. Former premier Jim Prentice got in all sorts of trouble for encouraging Albertans to “look in the mirror,” but that’s exactly what the leaders of its biggest industry ought to do the next time they want to complain about their reputation.

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