Varcoe: Alberta’s high 10 enterprise tales of 2023

Article content material

All through 2023, Alberta turned a magnet of kinds, attracting 1000’s of individuals from Ontario and British Columbia — and internationally — to the province.

It sparked a inhabitants increase and the largest development fee in Alberta since 1980, as a procession of shifting vans headed to the province.

Article content material

Alberta added 195,000 folks in the course of the 12 months ending in September. Its inhabitants now tops 4.7 million.

Article content material

The development has reverberated all through the province.

Extra folks arrived and crammed labour openings in the course of the 12 months. Even with increased rates of interest, the rising inhabitants helped gasoline rising housing costs and a spike in rents.

It powered an uptick in retail gross sales and propelled Alberta’s financial system to guide the nation in development, whilst different components of Canada stalled.

“It clearly exhibits why Alberta is rising,” says Charles St-Arnaud, chief economist with Alberta Central.

“It has so many ramifications on totally different components of the financial system.”

These components illustrate why the province’s inhabitants surge turned the Calgary Herald’s high enterprise story in Alberta in 2023.

With a brand new 12 months set to start in a number of days, right here’s a glance again on the 10 largest enterprise tales in Alberta in 2023, from blockbuster company offers and a shocking pause on the province approving new renewable tasks, to the escalating power confrontations between Alberta and Ottawa.

A preferred place

Alberta’s inhabitants development normally mirrors the up-and-down fortunes of the province’s power sector. But, whilst oil and pure fuel costs dipped barely in 2023 from the earlier 12 months’s highs, folks flocked to the province in massive numbers.

Article content material

Whereas the inhabitants solely rose by 1.8 per cent in 2021-22, the expansion topped 4 per cent within the 2023 census 12 months.

For the July-to-September interval, Alberta’s inhabitants climbed by 61,000.

A lot of the expansion got here from newcomers to Canada settling within the province — a part of a nationwide development — whereas the quantity of individuals relocating from different provinces was additionally extraordinary. Specialists say it speaks to the job alternatives and comparatively reasonably priced housing obtainable in Alberta, as Ontario and British Columbia residents resolve to pack up and transfer to this province.

“A development that we’ve seen during the last 12 months is huge migration, each internationally and domestically to Alberta,” stated David J. Finch, a professor and senior fellow with the Institute for Neighborhood Prosperity at Mount Royal College.

“Alberta is a really interesting market and also you see robust labour development, a constructive life-style and comparatively reasonably priced housing.”

But, the surge additionally highlighted some strain factors, notably on housing.

The Calgary Actual Property Board reported the town’s benchmark housing value elevated nearly 11 per cent between November 2023 and the identical interval final 12 months, averaging $572,000.

Article content material

Article content material

Rents in Alberta soared by 16 per cent in December from the identical interval in 2022, the best enhance within the nation, in keeping with Leases.ca.

Extra folks arriving additionally meant extra financial exercise. RBC says Alberta’s financial system grew by 2.2 per cent this 12 months, the best fee within the nation.

Even with a cavalcade of individuals relocating to the province, the unemployment fee barely budged, whereas almost 100,000 jobs had been created.

“Contemplating that we’ve elevated our inhabitants by 4.1 per cent and but our unemployment fee has barely elevated — that’s fairly implausible,” St-Arnaud says.

“The priority is: Are the general public providers maintaining with rising inhabitants?”

Vitality flashpoints

Fights between Ottawa and Alberta over power coverage date again many years, however the Chilly Struggle become an lively battle zone in 2023.

Early within the 12 months, Premier Danielle Smith lashed Ottawa over its so-called “Simply Transition” invoice, which was renamed the Canadian Sustainable Jobs Act.

A much bigger scrap ensued over the federal Clear Electrical energy Laws, which intention to shift provincial energy grids to net-zero emissions by 2035.

Article content material

Smith warned the transfer would result in blackouts and value spikes. Her authorities, which favours a 2050 goal, ran a nationwide promoting marketing campaign attacking the federal initiative. It later tabled a movement beneath Alberta’s Sovereignty Act opposing the nationwide electrical energy guidelines.

In October, a authorized battle over the federal Influence Evaluation Act went the province’s approach. The Supreme Court docket of Canada discovered massive components of the laws — beforehand often called Invoice-69 — had been unconstitutional.

In December, the conflict escalated.

Whereas on the COP28 local weather convention, the premier blasted federal Surroundings Minister Steven Guilbeault for his new framework to cap emissions from Canada’s oil and fuel sector.

Smith argued electrical energy and useful resource growth fall beneath provincial jurisdiction. Guilbeault stated the insurance policies had been obligatory to deal with local weather change.

These feuds had been intently watched in enterprise and political circles.

“It’s very aggressive environmental coverage and it’s being aimed instantly at Alberta,” says Martin Pelletier, senior portfolio supervisor at Wellington-Altus Non-public Counsel in Calgary.

Article content material

“If you’ve bought two outspoken people, it’ll get escalated, and we’ve seen that.”

An area deal in Calgary

After the collapse of the earlier Calgary area deal in December 2021, it appeared prefer it would possibly take a really very long time to hammer out an settlement for a brand new occasions centre.

But, on the eve of a provincial election name in April, the UCP authorities joined the Metropolis of Calgary and Calgary Sports activities and Leisure Corp. (CSEC), together with the Calgary Stampede, to announce an settlement in precept on a brand new $1.2-billion area.

The worth tag — and a considerable amount of public funding for the brand new facility, to be constructed simply north of the growing old Saddledome — rankled some within the metropolis.

Metropolis corridor can pay $537 million of the tab, with CSEC contributing $356 million. The province will put $330 million towards infrastructure and land prices.

The venture is greater than the earlier $550-million area plan reached in 2019. The brand new growth has a bigger footprint, and supplies room for a group rink. There are plans for retail developments alongside Stampede Path.

The ability can also be seen as a key constructing block for the town’s rising leisure district.

Article content material

“We’re a metropolis that’s able to spend money on ourselves,” says Calgary Chamber of Commerce CEO Deborah Yedlin. “If we work collectively, we will get stuff executed.”

A divisive debate over CPP

After the re-election of the UCP authorities in Could, Smith resurrected a contentious concept that has been bandied about for years: Alberta withdrawing from the Canada Pension Plan (CPP) and changing it with a provincial fund.

In September, a long-awaited report for the federal government was launched, asserting Alberta is entitled to 53 per cent of the bottom belongings of the CPP, or $334 billion.

The report by consultancy LifeWorks stated the determine was primarily based on its “cheap interpretation of the CPP Act,” but it surely was criticized by consultants as unrealistic.

An ensuing marketing campaign by the province over analyzing a possible pension pullout triggered an acrimonious debate that quickly unfold past Alberta.

The concept of Alberta leaving the CPP with greater than half of its belongings drew concern from different provinces, together with leaders of the Enterprise Council of Canada and the Canadian Federation of Impartial Enterprise.

Article content material

“It’s a must to watch out what you want for. It might unravel the entire thing,” Enterprise Council of Canada CEO Goldy Hyder stated in September.

Former provincial finance minister Jim Dinning was given the duty of gathering public suggestions from inside Alberta, holding 5 phone city halls.

The UCP authorities handed its Alberta Pension Safety Act in December, which might require a referendum on a provincial plan earlier than the province might transfer to withdraw belongings from the CPP.

As debate swirled, the federal finance minister advised the Workplace of the Chief Actuary of Canada to present an estimate of the worth of a possible asset switch to Alberta.

The general public engagement panel periods had been placed on maintain in early December, pending the arrival of the federal determine.

Pausing renewables

Alberta has turn out to be a renewable power powerhouse inside Canada, attracting greater than $4 billion in funding since 2019.

However the UCP authorities stunned renewable proponents in August by asserting a six-month moratorium on approving new tasks.

Critics noticed it as an ideological transfer.

Article content material

The Smith authorities stated the province wanted to evaluation and set up insurance policies to take care of the surge of proposed tasks and to think about issues from some landowners.

The freeze continues till the tip of February.

“It’s like taking a jackhammer to take care of a nail,” Greengate Energy CEO Dan Balaban stated on the time.

M&A mania

Mergers and acquisitions took off within the Canadian power sector in 2023, as corporations armed with robust steadiness sheets went on a purchasing spree.

Within the largest deal of the 12 months, power infrastructure large Enbridge purchased three American pure fuel utilities from Richmond-based Dominion Vitality for $19 billion. Enbridge additionally unveiled a $4-billion purchased deal fairness providing to assist pay for the acquisition.

In mid-December, Pembina Pipeline introduced it might purchase Enbridge’s pursuits within the Alliance fuel pipeline and the Aux Sable joint ventures for $3.1 billion.

Within the upstream sector, Canadian petroleum producer Crescent Level Vitality acquired Hammerhead Vitality in November for $2.6 billion, eight months after shopping for belongings from Spartan Delta Corp. for $1.7 billion.

Article content material

And ConocoPhillips spent $4.4 billion to accumulate half of the Surmont oilsands belongings from TotalEnergies.

Dow provides inexperienced gentle to mega-project

In December, U.S. petrochemical large Dow Inc. introduced an $8.9-billion funding in Alberta to construct the world’s first net-zero built-in ethylene cracker and derivatives advanced in Fort Saskatchewan.

It marks the largest private-sector funding in Alberta in a decade.

The event will create as much as 7,000 jobs in the course of the peak of building, and 400 to 500 full-time positions as soon as it’s working.

Imperial and AER within the highlight

In March, Imperial Oil made headlines that put the corporate — and the Alberta Vitality Regulator — beneath the general public highlight.

The built-in oil producer found industrial wastewater — containing arsenic, hydrocarbons and dissolved iron — had seeped from its exterior tailings space on the Kearl oilsands mining website in Could 2022.

Close by Indigenous communities weren’t correctly knowledgeable about it till February 2023.

Individually, about 5.3 million litres of wastewater overflowed from a course of water drainage pond at Kearl in late January, which led the AER to concern an environmental safety order and communities within the area to be taught of the preliminary seepage. Imperial stated its monitoring exhibits the seepage has not reached any waterways.

Article content material

The incidents led to hearings earlier than a parliamentary committee and pointed questions concerning the lack of communication by the AER and Imperial to Indigenous communities.

Pipeline progress

Pipeline progress is lastly coming for western Canadian petroleum producers.

In March, the worth tag for the Trans Mountain enlargement surged to $30.9 billion — up 472 per cent from estimates made a decade earlier. Development is nearing the end line and the pipeline is predicted to start out up by the tip of March.

Officers with the federally owned Trans Mountain Corp. utilized for a pipeline variance with the nationwide power regulator in mid-December. They stated potential dangers, resulting from building issues, might delay it being accomplished by about two years in a worst-case state of affairs if its request wasn’t accredited.

In the meantime, the $14.5-billion Coastal GasLink pipeline was mechanically accomplished by TC Vitality in November.

New boss at Suncor

Suncor Vitality appointed a brand new CEO — former Imperial Oil boss Wealthy Kruger — in February and he vowed to make the corporate extra aggressive.

In the summertime, Suncor introduced it would reduce 1,500 positions. Kruger later discovered himself within the centre of a political debate in Ottawa over remarks made throughout a name with analysts in August. The CEO stated Suncor had beforehand put “a little bit of a disproportionate emphasis on the longer-term power transition.”

After being referred to as to a parliamentary committee in October, Kruger clarified his feedback, saying Suncor’s dedication to decarbonization hadn’t modified.

Chris Varcoe is a Calgary Herald columnist.

cvarcoe@postmedia.com

Article content material