Premier Kenney says cash is flowing back into Alberta but investor skepticism remains
Published Wednesday, September 18, 2019 8:11AM MDT
Last Updated Wednesday, September 18, 2019 4:33PM MDT
Premier Jason Kenney is in the United States this week, touting Alberta’s energy sector to investors as a reliable oil supply in the world.
Speaking from New York City on Wednesday, Kenney said we’re beginning to see the flow of capital back into Alberta and while the response from firms has been overwhelmingly positive there is still skepticism from investors.
“They understand our companies are making money, they are running good profits and have good cash flow by and large. They understand they ae good companies that are undervalued but what I’m hearing is they are not prepared to come to the table with significantly more capital until there is a pathway out for our energy.”
Political analyst Duane Bratt says there is a lot working in Kenney’s favour while he’s south of the border but it’ll take some time to see the payoff.
“I think some of the uncertainty in the Middle East is helping, the corporate tax cut is helping and quite frankly a switch of government is helping Alberta’s case,” he said.
“But I haven’t seen figures on how much additional investment that is and what impact that has on GDP or employment rates in the province.”
The premier will continue his trip to the U.S. and is slated to travel to Ohio to tour a refinery in Toledo.
Kenney’s trip coincided with more legal developments around the Trans Mountain pipeline expansion project.
B.C.’s highest court is ordering the provincial government to reconsider the certificate allowing the project to proceed.
The B.C. Court of Appeal says approval of the environmental assessment certificate was based on the original review of the project by the National Energy Board which was quashed by the Federal court of Appeal.
Alberta Energy Minister Sonya Savage has weighed in online, writing there is nothing in the ruling that should delay the current construction schedule and sees no reason why B.C shouldn’t quickly reissue the approval. The recent developments come as the premier pumps Alberta as having the most environmentally sound and stable oil supply in the world.
Industry analysts say the recent drone strikes on Saudi Arabia’s major processing facility, which caused oil prices to soar this week, adds weight to his pitch.
Kenney says the attacks should remind the U.S. to invest more in Canada and see major projects go ahead, like Enbridge’s Line 3 and Keystone XL, which face continued delays.
(With files from The Canadian Press)