Notley, energy sector need shared connections

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Every government has formal and informal channels into business communities of key economic importance.

Industry gains perspective on the challenges and opportunities it may face while government has the opportunity to test potential policy shifts and receive feedback to help avoid unintended consequences.

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In the best of all worlds, representatives from business would not only be knowledgeable but also non-partisan.

The latter is difficult in Alberta since so many have been connected in some way to the governing party for the past four decades.

That all changed this week.

While some in the energy sector were reeling after Tuesday’s election over the loss of access to Edmonton, it’s one reason the Canadian Association of Petroleum Producers exists. As the umbrella advocate for the oilpatch, CAPP works with governments and political parties across the country and Alberta will be no different.

Its president and chief executive, Tim McMillan, is relatively new to his post — having taken over the role late last year — but it should be noted he comes with his own political pedigree, having served in the cabinet of Saskatchewan Premier Brad Wall.

McMillan has an in-depth understanding of the political process that will be very handy in the coming months as CAPP looks to establish a relationship with premier-designate Rachel Notley and her cabinet. McMillan, by virtue of his own government experience, could very well be the right guy at the right time for the oilpatch.

Notley reached out to McMillan by phone Wednesday. Beyond the formal industry connections, she should want to seek out individuals who can be mentors and educators.

It’s not enough to say that by virtue of growing up in Alberta, one has an understanding of the oilpatch. Former premier Alison Redford recognized that early as a rookie MLA and newly minted justice minister.

During a conversation with an acquaintance early in her tenure, Redford said she wanted to meet with someone who could better her understanding of the opportunities and challenges ahead. It was around the time of the infamous royalty review and Redford was determined to understand what the government needed to change, and why.

The chance conversation led to a meeting with Allan Markin, with whom she met on a regular basis throughout her tenure. This, in turn, led to other connections in the oilpatch. No one can accuse Redford of not understanding Alberta’s energy sector.

Notley needs to find those who can provide industry perspective and insight into capital markets, and there are people — with the best interests of the province in mind — who can fill those roles, in a non-partisan way, that would not leave either side beholden to the other.

A quick survey of Calgary office towers would turn up names such as Michael Tims, the former chairman of the investment firm Peters & Co. and now vice-chair of Matco Investments Ltd., and Peter Tertzakian, chief energy economist with ARC Financial who, in addition to his tireless research, writing and public speaking, assembled a small group of individuals with a mandate to look at what the energy sector should do in the short, medium and long term to stay competitive.

That’s only the beginning of a list that could include Lorraine Mitchelmore, Shell Canada’s country chair; Bob Skinner, from the University of Calgary’s School of Public Policy who advised Total SA and Statoil on their entries into Canada and ran the Oxford Energy Institute in England, Leo de Bever, the retired CEO of the Alberta Investment Management Corporation, or the University of Alberta’s Andrew Leach.

A raft of senior oilpatch executives and investment bankers who have retired from front-line duties also have plenty of experience and insight. Think of John Dielwart and Chris Seasons, now both at ARC Financial, Eric Newell, Dick Haskayne and Jim Gray from the energy sector and people like Ian Bruce, Art Korpach or Bill Sembo from the finance world.

In other words, there is no shortage of intellectual horsepower and institutional memory to be accessed.

For its part, the industry must find a way to partner with the new Alberta government, which will look different than it did under the old PC guard.

The endgame — for both sides — is to run up what is a steep learning curve and move ahead quickly with what’s best for Alberta while at the same time credibly representing the province nationally, continentally and internationally.

Every new government has to work hard to demonstrate capacity and build trust. Notley, with her young and largely inexperienced caucus, may have more challenges getting there.

Observers have said her version of NDP is borne of the pragmatic nature of the prairies and not a Bob Rae redux. Word has it she has reached out to people who worked with Roy Romanow in Saskatchewan and Gary Doer in Manitoba. Doer has been Canada’s ambassador in Washington since 2009 and is more than up to speed on the energy sector’s challenges regarding market access.

All of this is going to require a leap of faith — by both sides — that will start with Notley as the new sheriff in town.

Deborah Yedlin is a Calgary Herald columnist

dyedlin@calgaryherald.com