The brand new federal vitality minister delivered a boisterous speech in assist of the nation’s vitality sector on Friday morning, whereas highlighting his previous involvement within the sector and the pressing must construct a wide range of new vitality initiatives.
Tim Hodgson spoke to a enterprise crowd, which gave him loud applause at a sold-out occasion in downtown Calgary as a part of his first look because the cupboard appointment by Prime Minister Mark Carney.
“Power is energy. Power is Canada’s energy. It provides us a chance to construct the strongest financial system within the G7, information the world in the precise path, and be robust after we present up at a negotiation desk,” mentioned Hodgson in his speech.
Born and raised in Winnipeg, Hodgson served as a reserve officer within the Canadian Armed Forces from 1979 to 1985. Hodgson is most-known as a former banker with Goldman Sachs who served as an adviser to Carney on the Financial institution of Canada.
Carney celebrates the Liberals’ election victory final month. The prime minister has voiced assist for constructing pipelines throughout this nation in an effort to ‘displace imports of international oil.’ (Justin Tang/The Canadian Press)
Hodgson’s resumé additionally consists of the function of board chair at Hydro One, Ontario’s public electrical energy supplier.
Nonetheless, for these within the oilpatch, his most related profession expertise was the three years he spent as a board member with MEG Power, one of many top-15 largest oil and fuel producers in Canada and one which operates an oilsands facility in Alberta.
“At Goldman, one in every of my first main offers can be one of many offers I’m nonetheless the proudest of at the moment:
The Alliance Pipeline.”
WATCH | Response in Alberta to the appointment of Tim Hodgson as federal vitality minister: 
Reshaping Alberta’s vitality relationship with the federal authorities
Mark Carney has named Ontario Liberal MP Tim Hodgson the brand new federal minister of vitality. The CBC’s Acton Clarkin has extra on how Hodgson may set a brand new course for Alberta’s relationship with Ottawa over pure assets.
Alliance is a pipeline that transports pure fuel from Alberta and British Columbia to the Chicago space.
“We helped get that challenge off the bottom,” Hodgson mentioned.
“That pipeline closed the pure fuel value differential, supported jobs, and introduced Alberta higher royalties and the federal authorities extra income. A greater value for Canadian vitality helped each Canadian — similar to extra not too long ago, with the constructing of the TMX growth.”
The federal authorities beneath former Prime Minister Justin Trudeau bought the Trans Mountain pipeline challenge and constructed the growth pipeline to move oil from Edmonton to an export terminal close to Vancouver.
“I wish to be very clear. Within the new financial system we’re constructing, Canada will now not be outlined by delay. We might be outlined by supply,” he mentioned.
Trudeau launched a number of insurance policies aimed toward decreasing the nation’s greenhouse fuel emissions, together with the proposed emissions cap on the oil and fuel sector, which represents a few quarter of the nation’s whole emissions.
He additionally decreased the quantity of subsidies to the sector, strengthened local weather targets, and launched funding aimed toward decreasing emissions and growing carbon seize initiatives.
Carney has pledged to create a brand new federal workplace to present remaining choices on initiatives, equivalent to giant export pipelines, inside two years in comparison with the present five-year timeline. (Kyle Bakx/CBC)
Hodgson repeated a phrase usually promoted by the oil and fuel sector about how the export of vitality from Canada creates an total profit for the world.
“Each barrel of responsibly produced Canadian oil and each kilowatt of unpolluted Canadian energy can displace much less clear, riskier vitality elsewhere on this planet,” he mentioned. “Our exports might help our allies break dependence on authoritarian regimes and assist the world scale back our emissions.”
Hodgson highlighted the necessity for numerous varieties of vitality together with nuclear energy, whereas additionally urgent for the Pathways challenge to proceed, which is a proposed carbon-capture facility within the oilsands area of northern Alberta.
“All of us, governments and trade, must get the Pathways challenge completed. This authorities won’t be a authorities of speak, however a authorities of motion. We want the identical from the province of Alberta and the Pathways Alliance,” he mentioned.
The Pathways group is a collaboration between oilsands giants, together with Suncor. The corporate’s CEO Wealthy Kruger launched Hodgson on the occasion, saying the federal government’s give attention to constructing is “music to Alberta’s ears.” He additionally praised Hodgson for his distinguished profession.
The brand new vitality minister didn’t make any bulletins or sign any adjustments in authorities coverage past what the Liberals had pledged through the marketing campaign.
A number of trade leaders say they wish to see motion from the federal authorities, however for now, are happy with the change in tone.
“I have not seen a federal cupboard minister discuss rig staff as a lot as …(Hodgson) did within the final 10 years,” mentioned Mark Scholz, head of the Canadian Affiliation of Power Contractors, after the occasion. “It was a really encouraging speech.”
A number of provincial leaders, together with Alberta Premier Danielle Smith, have referred to as for a political “reset” in how Ottawa engages with the West.
Smith was additionally “very involved” about the appointment of recent Atmosphere and Local weather Change Minister Julie Dabrusin.
“We’re being compelled to deal with one more ‘maintain it within the floor’ setting minister. This can be a step within the incorrect path,” Smith mentioned, following the latest federal election.
Trade sees Hodgson as ‘an excellent choose’
The Alberta authorities is way more open-minded about Hodgson’s appointment, whereas these within the trade praised him as “an excellent choose” and “in all probability the only option” for the job.
These within the trade hope Hodgson’s mixture of capital markets expertise and information of the oilpatch will assist appeal to funding and form coverage that can assist the sector blossom.
Through the election marketing campaign, Carney mentioned his authorities would make Canada the world’s “main vitality superpower” to kick-start the nation’s financial system, construct vitality corridors, and make sooner regulatory choices on main initiatives.
The nation is dealing with the potential of an financial recession from the intense risk of U.S. President Donald Trump’s tariffs.
Hodgson’s appointment may alleviate a few of the frustrations voiced by oilpatch leaders in regards to the re-election of the Liberals and the issues of continued insurance policies that focus on the sector.
During the last decade, oilpatch leaders have criticized the Liberal authorities for introducing laws that harms the sector such because the clear gasoline laws, the proposed emissions cap and adjustments to the federal evaluation of main initiatives.
On Friday, Alberta cupboard minister Rajan Sawhney mentioned lots of Hodgson’s messages “have been encouraging.”
Hodgson didn’t converse to reporters on the occasion. Whereas in Calgary, the minister is assembly with Indigenous leaders, trade executives and Alberta authorities ministers.
