Alberta's oil sands are a leech on Canadians side and no one is willing to scrape it off

A plea to oil sand's workers

Canadian taxpayers in 2022 gave 15 billion dollars to the oil and gas industry in Canada, which is primarily in Alberta. If you think 15 billion dollars worth of subsidies, tax breaks, and other government handouts is a lot then you will be shocked to realize that this estimate is likely on the low end when considering externality costs such as clean up costs, air pollutants costs, and the effects on local communities through the deterioration of the environment and infrastructure. With these costs included, estimates can get up to 80 billion dollars. Its also important to note that Canada’s accounting of the money given to the oil industry is anything but transparent. 

Nonetheless I think everybody can agree 18 billion (at the lowest) is a lot of money for an industry that is about to go tits up in the coming decades. In fact Canada provides more public financing for fossil fuels than any other G20 nation (20 nations who make up 90% of global GDP). As the world continues to move away from fossil fuels it is baffling why Canada continues to throw good money after bad. 

This masochistic behavior by Canada is confusing, until you remember Alberta exists.

(A muskeg area in the boreal forest with seismic lines crossing through it, Photograph by Louis Helbig)

(Muskeg River Mine in Fort McKay, photographed by Louis Helbig)

As many likely know, Canada’s love affair with the black earth liquid is rooted in the oil sands of the prairie provinces. The oil sands consist of exactly what the name would suggest, a whole lot of oil, and a whole lot of sand. To be more exact the oil sands is a sludgy mix of sand, clay, water, and black bitumen. All of which is located in the boreal forest of Alberta (and Saskatchewan but mostly Alberta, sorry Saskatchewan, always the little sibling). This sludgy mix is so sticky and viscous that extracting oil from it is very carbon intensive. So much so that extracting and processing oil from the oil sands releases three times the amount of emissions as regular fracking and costs much more.  

When companies begin the extraction of oil from these oil sands it can quickly turn a landscape from one of beauty and rich ecological value to something reminiscent of the hood of a rusted out Cadillac that has sat in a dilapidated garage for a half century. The only difference between the Cadillac and the oil sands is the government didn't pay for the Cadillac to look like that. 

What I see as a rusted out Cadillac many in Alberta would see as prosperity for themselves and their community. And honestly they aren’t wrong, depending on the year of course.

As any car driver would know the price of oil can be quite variable at times. Since Alberta’s economy is heavily reliant on the price of oil, their economy goes from hot to cold as quickly as Jordan Peterson can start crying in an interview. Despite this clear volatility, Alberta and its citizens are fully committed to that sweet, sweet, oil baby!

Now with the clear affinity for the sweet black earth sludge you would think Albertans have lived a life of luxury and prosperity since the oil sands became established. But that is just not the case, unless you're an oil company that is. 

Since 2014, the peak of the oil boom in Alberta, there have been over 40,000 jobs lost, a drop of 34%. During this time, these same oil companies who cut jobs have begun to have record profits due to the insanely high price of oil. The same high gas price that has been shrinking the power of Albertans paychecks. Now one would think these tough, hardworking Albertans would make sure they get the money they deserve from these companies, plus it should be easy since oil loves Alberta and Alberta loves oil. The salary range for oil sand workers in 2023 is approximately 45,000-80,000 a year (based on spotty data collected form job ad sites), when in 2014 it ranged from 90,000-120,000, so clearly Albertans have won this trade, oh wait.

Huh, well ignore my previous comment because I must have just assumed incorrectly. Now I don’t think it's fair for me to blame Albertan oil sand workers for not getting their fair share of profits from big oil, especially since a majority of them are not unionized (only 20% in oil and gas extraction). Of course neither big oil themselves or the Albertan government is making it any easier for oil sand workers to unionize. Union busting is extremely popular in Alberta’s oil industry, and the go to union busting move in Alberta for construction related activity is “double breasting”.

 “Double breasting” is a legal loophole that allows for unionized companies to simply move work to an offset branch that is unionized, taking production away from the unionized branch, effectively destroying the ability for unions to fight for higher wages since they are fighting for work against non-unionized labor from within the company. A much better and in depth description of this is available in the article linked.

Now if you were to ask many Albertans why they have not received the massive and endless benefits that they and big oil deserve, they would say that it is simply because elitist Canadians in B.C and Onoilio along with the woke left in the US simply want them to suffer. The evidence for this, well I am not if there is any. Proponents of the rusted Cadillac industry, oh I mean oil sands industry would say that the US and other foreign entities are trying to shut down the Alberta oil sands. This of course being said despite the fact that 70% of oil sands production is owned by foreign companies. This same lack of logical thinking can be seen in the reasons for how Trudeau is “anti-oil”. Now Trudeau presents himself as someone who wants to move away from oil into a carbon neutral future for Canada, but his actions represent anything but this. 

Trudeau famously approved the highly controversial Trans-Mountain pipeline that has cost at least 31 billion dollars thus far and has yet to be finished. A cost that has ballooned so much that it is no longer even profitable according to government watchdogs. This same pipeline has destroyed endangered animal habitat as well as negatively affected many Indigenous communities and impeded on their rights. In fact the entire oil industry in Alberta has stomped on Indigenous peoples rights for decades, for more and better writing on this subject here are some articles linked here that go into detail on this subject.

If the pipeline is not evidence enough for Trudeau’s not so secret affinity for the black oil then look no further than the billions and billions of dollars worth of subsidies he gives out to big oil on a yearly basis.

The argument that all Albertans who despise Trudeau and the “woke left” will fall back on, is the “severe damage” the carbon tax has on the oil sands industry. Of course Alberta has had the carbon tax for longer than Canada has had it nationally (Alberta’s carbon tax was implemented in 2014, Canada’s was implemented in 2019). The same carbon tax that produces money that is then turned into subsidies for oil sands companies to use on carbon capture/sequestration technology, which is completely useless and just acts as a money pit. At the end of the day what I am writing will not convince Albertans that Trudeau and the rest of Canada are not against them. But I would like to make it clear that big oil certainly does not give a fuck about them either. 

I have already discussed the cutting of jobs, lowering of pay and union busting, but it is also worthwhile to state that some of the biggest oil sand companies have spent billions on stock buybacks. A practice that does nothing but enrich shareholders whilst degrading the business itself. So, rather than investing in the workers who provide the extremely hard labor that makes these bastards their money in the first place, they would rather just fatten their pockets some more. 

Who would have thought oil companies could be so exploitative? I sure hope that their exploitation does not extend beyond jobs and wages!

For those who struggle to see it, that was sarcasm. The exploitation by big oil in Alberta goes far beyond what has already been mentioned. As hundreds of oil wells and mines begin closing down one may ask, who the fuck is going to clean this up? Some people may say just leave it, ignoring the obvious environmental issues surrounding that approach. I really don’t think those living around these oil sands want to see the rusted Cadillac landscape for the rest of their lives.

In order to fix this broken landscape one must pay for it to be fixed, obviously. Common sense says the one who destroyed the landscape should fix it. The Albertan government agrees with this opinion, theoretically that is. Currently the government requires these companies to put money into a fund that will be used to clean up the sites after they have been retired. The first issue with this method is that the Albertan government has grossly underestimated the costs of cleanup, with the government claiming it will cost 33 billion dollars and the Alberta Energy Regulator estimating a 133 billion dollar cost. A corporation entirely funded by the oil industry is stating that the estimates by the government are grossly underestimated, I mean if that isn’t a red flag then I don’t know what is.

This gross under estimate of the true costs of cleanup is only the tip of the iceberg when it comes to the Alberta government's inability to hold the oil sand companies responsible. The actual money being put into these funds is not actually money. Rather it is assets that have price estimations on them, price estimations that shockingly, are overestimated. One assets provided by the oil companies already sold for 5.5 billons dollars, when it was originally estimated at 35.5 billion dollars. The issues surrounding these funds and the potential cleanup of these devastated lands goes far beyond what is mentioned here, and the Alberta government is well aware of these issues and has done little to address them.

So to provide a better answer for who will clean up the oil sands? You will, that’s who, just like how billions of dollars worth of your tax dollars already go to the oil industry. As these oil industries continue to exploit workers, the land, and citizens of Alberta they also continue to single handedly be the leading source of greenhouse gas emissions (GHG) in Canada. 

Now I know GHG and climate change are big no-no phrases for many black oil lovers out there, but to you I must ask one thing, why do you not believe in something that oil companies themselves believe in?

Oil companies were aware of the machinations behind climate change since the 1950’s and were 100% certain of it as soon as the 1980’s, for fuck sake they were researching solutions to it in the 90’s before anyone really gave a fuck about it. Now don’t give them too much credit because they were just researching solutions so they could best understand how it would affect their bottom line. But, let me ask you again my good Albertan oil sands friend, why would you not believe climate change is real when the oil companies you work for already do? 

As these oil companies continue to scrape your beautiful province down to its bedrock and give you pittance in return, do you not wonder, is there another option?

I understand that the oil industry has provided work and prosperity to some, but for many of you it is simply another job where every year you have less time and less money in your pockets. Not to mention that no matter what is done, oil will eventually be phased out, it is just the reality of the situation. But there is a pathway to a better future where everyone can still not only be employed, but have more money and power whilst not contributing to the world's downfall.

A transition to clean energy that is equitable for those already employed in the oil sands is possible. Many experts, including Noam Chomsky, state that a transition to a net zero society is dependent on using the workers employed by big oil to build our renewable energy that provides a better life for them and those in Alberta and Canada alike.

Oil industry workers are SKILLED workers, and skilled workers are necessary for the transition to clean energy. But rather than invest in clean energy that would provide more jobs and more economic benefits than the oil industry currently does with less cleanup costs, the oil industries and the Albertan/Canadian government are just pouring money into carbon sequestration technology that does nothing, but act as a money pit for taxpayer dollars.

Now I know that change is scary, especially when it involves the elimination of the sector in which your entire quality of life is based. But it does not take long to realize that the benefits from this way of life are beginning to dwindle. Especially when you consider that the land around you is actively being turned into a wasteland that is poisoning every living thing that touches it. Oh and a large portion of your tax dollars are being poured into this industry with none of it coming back to benefit you.

Next time you go to defend the oil sands in Alberta, just remember that the companies that are “oh so great for Albertans” are spending a majority of their record high profits on stock buybacks to benefit their shareholders while you see your buying power shrink every single day.