Monday, July 20, 2009

Oil Sands vs Tar Sands - the postives

I posted a series of 3 blogs on the Oil Sands at www.titulia.com back in February of March this year. I origanily wrote this for an international audience, so it might seem basic to some.

In my last article I set up the negatives about Oil Sands development. In this article I want to discuss the benefits of exploiting the oil sands and why should be investing the billions while its creating so many problems.

Our society runs on fossil fuels. And we're at a point where everyone wants more. Often times people think of fossil fuels as the means to run our cars, but they are also the components in our cars, computers and cameras. Plastics and other items made from petro-chemicals are everywhere. As a fuel source there have been strides made to find alternatives, but it will take a while for these other fuel sources to be brought up to wide spread use and none of the these alternatives have the versatility of petroleum. And since plastic is everywhere (besides those everyone has cut out of their wallets since the financial crisis) I don't see how we can repudiate fossil fuels anytime soon.

The reserves in the oil sands are huge. According to the Canadian Association of Petroleum Producers - http://www.capp.ca/canadaIndustry/oilSands/Pages/default.aspx - Canada has 179 billion barrels of oil in reserve, 173 of which is in the oil sands . Canada is second only to Saudi Arabia in provable reserves. Canada is already the largest supplier of petroleum to the United States. While most Canadians might snivle and whine about our government, it is measured by the World Bank as one of the most stable and least corrupt in world. The pipelines linking Canada and the USA are safe and well maintained. The shipping lanes in both the Atlantic and the Pacific are well patrolled and no one is hijacking oil tankers in these areas. The development is being undertaken while listening to the concerns of stakeholders. No one is being taken out 'round the shed and shot for their opposition to oil sands development. It is exactly this opposition to the oil sands that demonstrates that Canada has a fair and open democracy. This issue can be and is being discussed openly.

When you're talking billions in investment, this means billions put into jobs. And the jobs run the spectrum. From heavy equipment operators to engineers, from pipefitters to PhD's in chemistry, from administrative assistants to CEO's - its jobs jobs jobs. Until recently Alberta had an unemployment rate of 3.5% and the best labour market participation in Canada. Even now, our unemployment is at 5.8% - the third lowest in Canada (source: http://employment.alberta.ca/cps/rde/xchg/hre/hs.xsl/2599.html ). People flocked to Alberta to take advantage of this boom. The City of Fort McMurray had more Newfoundlanders at one point than any city in Newfoundland! (Newfoundland is the eastermost province in Canada) A journeyman welder in Nova Scotia could make $18 an hour 'back home' while making $40 (plus overtime) in Alberta. From permanent production jobs to temporary construction ones this created a lot of wealth for all Canadians.

An interesting counterpoint to some of the Aboriginal communities talking about the loss of their way of life. A positive program that did come out of the oil sands development was how the companies went into the schools of the Aborginal communities and recruited young people as apprentices in the trades after they finished high school. In the Alberta training system it means that in 4 years you'll be a journeyman(person) and have a ticket to practice your trade to practice your trade anywhere in Canada. Since the crash we haven't seen a giant jump in aborginal males under 30 being unemployed, at least not at rates different than the majority population. So this system of training these young men seems to have worked and has kept a lot employed in a culture that sees chronic unemployment.

With all the public scrutiny the oil sands have received, this means the companies and government are being watched closely. When the companies have violated the rules they have been punished because of it. The duck story I related to you in the last article has a happy ending - the company was charged for the death of the ducks. New policies are being put in place to ensure that the ducks don't take a swim in tailing ponds. The companies are being made to innovate. Instead of using fresh water for the processes they have found salt water aquifiers and used those instead. The water being released back into the water shed is tested to have no impurities. The government is pressuring the companies to invest in carbon reduction strartegies. There are plans to start charging for the carbon admitted under a revised carbon trading scheme. New technologies that don't use water to extract the bituman are being developed. There is a very innovative in-situ project that uses electricity to heat the bitumen rather than water.

Does this get government and the companies off the hook for the problems the development is causing? No. But it does demonstrate that with public pressure change can be made. Should development of a resource we all need be stopped because its 'dirty'? Not when there are other solutions.

Oil Sands vs Tar Sands - the negatives

I posted a series of 3 blogs on the Oil Sands at www.titulia.com back in February of March this year. I origanily wrote this for an international audience, so it might seem basic to some.

The oil sands are a large resource. They can help quench some of this thirst for some of the world for a few years (some say 20, others say a century, but that isn't the point of this article). But a lot of people say the cost is too high. There are grave environmental and social issues surrounding the oil sands. And a lot of people wonder if our thirst for fossil fuels is sustainable or are we just driving ourselves off a cliff by being so reliant on it.

The Environment
The environment is the problem that is getting the most press against oil sands development. Indeed, the problems appear staggering. Vast quantities of water are being used, the air is being pumped fill of greenhouse gasses, toxic waste is being bilged out across the landscape and large portions of boreal forest is being wiped out.

There are two methods to extract the bitumen from the ground. I don't really need to go into them here, but one method is strip mining and the other is in-situ drilling. In-situ drilling involves extracting the bitumen from the soil when it’s too far down to feasibly mine it. The most common method right now is to inject steam into a hole into ground that warms up the bitumen and causes it to flow through another hole. In the strip mining process, the bitumen is taken to a processing centre at the mine and refined using water so that it can flow through a pipeline. (I know I'm grossly simplifying both processes, but the process isn't the point of this article, check Wikipedia or other online resources for a more in depth look at the process if that interests you).

Both of these processes require large volumes of water. There is a fairly large watershed that surrounds the Athabasca Oil Sands, but many critics are saying that too much fresh water is being used. The water is also being pumped back into the water. Although the companies insist that the water has all oil sands impurities removed, there is evidence that this water is not as clean as it should be. The wildlife in this area is suffering and a community downstream of the oil sands development has very high cancer rates. In a time when much of world is suffering from water shortages it seems to be very short sighted to consume water for this industrial process when much of the world is starting to go thirsty. North Alberta (and Northern Canada) does have large fresh water reserves, but many are worried that these are being depleted because of this industrial development.

Most people are concerned about global warming. The citizens of all developed countries are demanding their governments do something about greenhouse gases. It would appear that the Government of Canada and Alberta are ignoring those concerns. Canada did ratify Kyoto in 2005 and agreed to cut its emissions by 5% below the levels it had in 1990 by 2012. In 2004 those levels had grown by 27% from 1990 levels! The energy exports of the oil sands play a role in this as does the extraction process. The machines used to mine the bitumen are the largest land vehicles in the world. They use an incredible amount of energy.

It doesn't help that they are also destroying large tracts of forest in order to mine the bitumen. Animals are losing habitat and the very things that can absorb the excess CO2 are being bulldozed. If you look at photos of an oil sands mine, you will see a very ugly strip mine. This was once very pristine and untouched wilderness, one of the last few places on the planet. Now the mines are an industrial wasteland.

Adding to this industrial wasteland is the toxic waste that comes from converting the bitumen into a product that can flow through a pipeline. This waste is being deposited into large tailing ponds. The tailing ponds have existed since they started mining the bitumen back in the late 60's. But they have recently gained much infamy when 500 migrating ducks landed in one two years ago. One duck managed to survive. Last year, a machine operator had his machine slide into a tailing pond. He didn't survive.

Social Issues
Such large operations do not come without its social costs. Before the oil sands, this area was home to a relatively high number of aboriginals who were still able to practice their traditional way of life. As the price of oil went up in the last few years, the development of the oil sands went at a feverish pitch. The City of Fort McMurray exploded overnight as people came searching for $40/hour jobs that a lot of people thought required little education. The infrastructure just wasn't ready for it.

The Aboriginals have been abused throughout Canadian history. From taking their land through unfair treaties to abhorrent living conditions on their reserves, the treatment of aboriginals is a black mark for Canada. There is a movement to correct these injustices, but it is taking a long time. Many of the aboriginal communities in the Fort McMurray region are very isolated. But they are feeling the pinch of the development. Water quality has deteriorated. The animals that they hunted to make a living off of are disappearing. The young people are leaving the reserves to try and cash in on the economic boom. Social networks are breaking down. Alcoholism and drug abuse are flourishing in these isolated communities. Some of the most vocal critics of the oil sands have been the aboriginal communities because they feel (yet again) that no one is listening to their concerns.

In 5 years (2001 - 2006) the population of the Fort McMurray grew from 41,000 to 51,000. This number does not count the large amount of temporary workers that were living at the construction camps between 2002 and 2007. A 25% spurt in population would be difficult for any community to handle. Fort McMurray went from being a sleepy little backwater mining/oil and gas town to being the economic hot spot in Canada. People came because they heard there were high paying jobs that required little education. There was certainly a demand for heavy equipment operators and other labourers, but there was also a need for skilled trades such as pipefitters and welders. People from across Canada flocked to Fort McMurray looking for these high paying jobs. It was the same as a gold rush. Everyone wanted to get their piece of the pie. Some were successful, others were not.

The town couldn't keep up. There was one main road in the town and the town is separated by a river. There is one bridge across this river. Tens of thousands of people needed to cross this river every day. There was a shortage of housing. People came to Fort McMurray expecting their accommodation to be paid for. This was true for some (particularly the skilled trades) but many did not get housing with their jobs and had to share a room for a $1000 month in sub-standard conditions. All forms of infrastructure creaked and cracked under the strain of a 25% population boom.

In any economic boom, you have your 'losers'. People were flocking to town expecting to strike it rich and of course not everyone can. I was working in Edmonton during the boom at a social agency. I had a call from a social worker in Fort McMurray asking if I could help a guy who saw it all go bad up there. The man was cabinet maker from Nova Scotia who had epilepsy. He tried his hand as a heavy equipment operator. But once he had a grand maul seizure behind a rather expensive piece of equipment he was blacklisted throughout town and his driver’s license was taken away. Someone who has no resources just can’t make a living as a dishwasher in Fort McMurray because of the high rents. He had to come back to Edmonton. He was able to succeed in Edmonton, since rents were lower and he could actually make a living as a dishwasher. In a town that is rich in money but short on any form of recreation, drugs and alcohol fills the gap for many people. This is another unfortunate reality of the boom.

Sustainable?
There are many people who question our need for fossil fuels and wonder if all this drilling and mining is sustainable for the planet. Many new technologies are in development that will decrease our reliance on fossil fuels. Unlike traditional drilling, oil sands require a very high capital cost. So a lot of money is being spent to develop this resource. The pace of development was incredible when oil prices climbed towards 150 USD/barrel. Prices are now at around 40. The development in the oil sands screeched to a halt. Current operations are still ongoing but new developments have all been shelved. Does it make sense to develop a resource that relies so heavily on commodity prices? Can this resource sustain an economy that is dependent on it? With all the problems outlined, should we continue to invest millions into something in which the negatives may outweigh the positives?

This was not an exhaustive list of problems. Indeed, much has been written about the problems the oil sands have created. I haven’t even touched on the role of government in this resource. This article sets up the discussion. My next article will discuss the positives of oil sands development. I hope you enjoyed reading this rather large article (I don’t think I’ve written something this long since University!) and stay tuned for the next one.

Oil Sands vs Tar Sands - Introduction

I posted a series of 3 blogs on the Oil Sands at www.titulia.com back in February of March this year. I origanily wrote this for an international audience, so it might seem basic to some.

Canada is a big country and Alberta is just one province . Some of you might not even know it exists. But lately Alberta has been receiving a lot of press. There has been a National Geographic article about it, several books, newspaper ads and other media campaigns as well a lot of lobbying in Ottawa and Washington and beyond. The oil sands are located in the North West corner of this province. The activity is centred around a town called Fort McMurray. This area isn't considered Northern Canada yet, but its still pretty isolated. Until recently. If you are unsure what the oil sands are, I recommend taking a look at the wikipedia article: http://en.wikipedia.org/wiki/Athabasca_Oil_Sands . This will give you a better idea of the scope of this article and why it is becoming contentious.

I was born in Alberta. I was raised here. My father earned a living from the petrochemical industry. I have traveled across the country and around the world. Alberta is still home. I work for the provincial government as a career counselor. I am not expert on this issue, but I have looked at both sides of the debates fairly extensively. As an Albertan, I have a stake in this issue. As this becomes an international issue I think it is important for Albertans to discuss this maturely on the world stage. There is a lot of attention turning onto Alberta and we need to be ready to answer some sticky questions.

The oil and gas industry has been key part of the Alberta economy since 1947. Natural gas still forms the bulk of our energy exports. But the oil sands have grabbed a lot of attention. It is one of the most extensive and accessible petroleum reserves world left in the world. It lies in a country with very stable political structures. Canada is only a country of 33 million people (with over a territory stretching over 9 million sq km) but it lies right beside a country with over 300 million. Regardless of the green movement, we are still going to need petroleum products for the medium term future. Perhaps we'll need less, but we're still going to need it. The oil and gas industry is a part of Alberta culture and it makes this province one of the richest in Canada.

There is right now a war of terminology going on between oil sands vs. tar sands. For those promoting the development of this resource, they call it oil sands, because that is basically was bitumen is - oil stuck in dirt. For those against the development, they like to call it tar sands - tar is a very ugly and noxious substance. It is dangerous, its not something you ever want to touch. But it is man made, it cannot occur naturally. So for the sake of this article, I am going to use the term oil sands to describe this resource. Perhaps this exposes my bias too prominently, but we all have bias. I'm just not going to make you drink it(neither my opinion or the bitumen).

I am going to write 2 more parts to this article. One will be the negative consequences of digging (and drilling) for the oil sands. There has been quite a bit written about the negatives, but I'll do my best to sum up the arguments. The second part will be the positives of oil sands development. Some might see this as Alberta government propaganda, but this my point of view, the Alberta government has taken no part in the commissioning of this article. Besides, I'm so far down the gov't totem pole that I have to walk to work. If needed, I'll end this series off with a conclusion.

I don't have a lot of references to give you. Most of my knowledge is gained by the daily media (The CBC, Edmonton Journal, Globe and Mail, National Post and sometimes CTV when I'm bored). Here is a website with a positive spin on the subject: http://www.oilsandsdiscovery.com/oil_sands_story/story.html . Here is a website from the nay side: http://www.tarsandswatch.org/ . Both were located through a Google search so I cannot endorse either website. But this allows the reader to gain perspective on both sides of the issue.

Tragedy in Sri Lanka

This blog was origanily published at www.titulia.com around the middle of May during the Sri Lankan crisis. I'm posting it here now. My apologies if the formatting seems a bit wierd, I copy and pasted it from another site.

I'm no expert on the Indian sub-continent, but I try to pay attention to events there as much as possible. Afterall, more than 1/6 of the world lives in that tiny corner of the world. This a region of many many contrasts. In alot of ways the sub continent is like Europe except you have one giant country in the middle with several others lying on the periphery. But that doesn't mean India neccesarily dominates the news - the world pays attention to Pakistan and Sri Lanka with a fair bit of interest thanks to their respective diasporas.

Of course, this wouldn't be a Trvthseeker blog without a Canadian context. The Toronto region has one of the largest concentration of Sri Lankan Tamils outside of Sri Lanka. Apparently there are 200,000 living in the Toronto region and beyond. This makes them a voice to be reckoned with. The Sri Lankan Civil War (or the Tamil War of Independence depending which side you are on) has lasted over 30 years. In 1978 peanut farmer Jimmy Carter was President. The Donkey Kong arcade game hadn't been invented yet. Tomahawk missiles were in their infancy. Walter Cronkite was still anchoring the CBS evening news.

Any war is a tragedy. Some counts place the casulties at 70,000. Many more have been displaced. There have been several attempts to restore peace but they have failed. It appears the Sri Lankan government is pushing to end the 'insurgency' once and for all. The Tamils certainly have their greivances. The world has not been allowed in to see if ethnic cleansing has occured. This is a true concern. With TV cameras off and a lot of people crammed into a very small parcel of land, it could be quite possible that civilians are being slaughtered for nothing more than their heritage. For that the world needs to smack Sri Lanka around a couple of times. Sri Lanka needs to allow observers into this area immediately or they should face sanctions. And for a country as poor as this small island, sanctions could hit them pretty hard.

But war is war. While the battle is certainly lopsided in Sri Lanka's favor (the Sri Lankans are flying aircraft, the Tigers have nothing bigger than a few rocket launchers), the Tigers have hit where they can hit. And there is plenty of evidence that they use terrorist tactics. An Indian Prime Minister died because of the stance he took on the war. Terrorist tactics cannot be condoned at any time. While promising not to use 'heavy weapons' but still deploying them is hypocricy at its worst, Sri Lankan civilians have lived in fear for the past 30 years. The Tigers are labeled by many countries as a terrorist organization. This still doesn't stop them from being active through out the Tamil overseas community. There is evidence that they extort money from those who wish to leave this conflict completely behind in their new homes. Last week Tamils in Toronto took their protests to a whole new level when they marched their protest onto a major freeway and shut it down for 5 hours. I understand that some ethnic groups feel a need to have their own home.

There is plenty of evidence where ethnic groups can live together, but unfortunately there is just as much where they cannot. Unfortunately the tactics of the Tigers do not legitimize their struggle to the outside world. This does not mean that there is never a reason to pursue armed struggle. But tactics need to stop somewhere and the massacre and extortion of civilians would fit in most people's 'bad' list. I hope this next chapter of the conflict leads to peace. But I don't expect the Tigers to lay down peacefully. Unfortunately you don't rid yourself of suicide bombers by taking away their territory. You rid yourself of suicide bombers by lessening the crusade. I don't think the Sri Lankan gov't will do that. In fact, they may just inspire more overseas resentment and the flowing of resources to keep the rebellion alive. The sad thing is the Sri Lankan government may just have kept alive the one thing they are trying to crush - the dream of a separate homeland for the Tamils. You can't crush dreams with a tank.

Oh yes, in other subcontinent news - Congress has a very strong showing in recent elections. Comes close to a majority, which is almost unheard of in Indian politics. I'm watching this one with great interest.

Happy (late) Canada Day

This blog was origanily posted on July 1st at www.titulia.com . I thought it's fun.

An ode to the maple leaf, maple syrup and ice wine.
A land of rocks and trees, and trees and rocks and water and ice.
A country of contrasts, from world class cities to unexplored territory, high mountains to flat prairies, touching 3 oceans.
A people always discovering their culture and bringing their culture to the world.
A land rich in natural resources and rich in the talents of its 33 million citizens.
So on July 1st I hereby proclaim with what very little authority I actually have that we are all Canadian for a day.
I invite you all to raise a bottle of beer, a glass of ice wine or a shot of screech and toast Canada! And if anyone questions your authenticity, remember the capital is Ottawa and Keanu Reeves and Pamela Anderson are Canadian. You see, its not a secret, its just the secret password.

Saturday, July 18, 2009

Some stories about Health Care

Health Care is becoming a huge debate in the United States. Will Obama succeed where Clinton failed? Only time will tell. What surprises me in this debate is how the critics in this debate will throw criticism of Canada in the debate with witty one liners and presumed conclusions that somehow Canadians receive inferior health care because of our centralized system. Now, I can't say too much about the American system - I've watched Sicko, heard some stories of Canadians living in the US and once vomitted in the trash can while waiting in the lobby of a Lake Tahoe clinic. But I have plenty of first hand experience going through the Canadian system. Is it perfect? Of course not. But through my experience I know that I certainly would rather stick with the Canadian system than to chance the American system.

The largest criticism of the Canadian system, both north and south of the border is wait times. And this is a weakness of the Canadian system - particularly if you show up at the emergency ward. My mother was ordered to the hospital by her doctor because of astronomically high blood sugars. They triaged her, took her blood sugar and then asked her to wait. They said if she feels any change in how she feels to let them but they warned it would be a long wait. She got a bed in about 9 hours. They took her blood sugar every 3-4 hours and fortunately it remained stable during the wait. So she had to wait while the doctor's took care of people with heart attacks and victims of trauma. Once she got a bed, she was very well taken care of - the Doctors came twice a day, the nurses took her blood sugar hourly and she had appointments with social workers and other support services to get her prepared for her life as a diabetic. The wait was a bit harrowing, but my mom's life wasn't in danger, so she had to wait so that those who life were in danger were attended to first.

My dad has the exact opposite story. He had a lump on his shoulder that at first we just thought was a cist. At a regular check up he brought it up to his regular doctor and the doctor sent him for some further tests. The Doctor never found anything in Red Deer, but they sent him to a specialist in Edmonton. The EdmontonDoctor did another biopsy and found a stage 2 cancer. Dad had surgery within a month of the diagnosis. He had a 10 hour surgery with 12 surgeons attending to him. He also had a long period of radiation. 5 years later he is still cancer free. There was some waiting between seeing specialists and my parents almost cancelled the one with the specialist in Edmonton, but thanks the Canadian medical system, my dad is still alive. My parents had to change their lifestyle a fair bit because Dad could not work full-time after the surgery but they did not lose their shirts over this ordeal.

The key to the Canadian medical system is making appointments. If its not an emergency it can sometime take some time to see a specialist - for example it took me 5 months to see a digestive specialist after a really bad case of the runs last year (more than 6 weeks of problems). But I got to see a specialist, and although his advice was quite straightforward - eat more fibre - I got 30 minutes with a guy who knows the digestive system from entry to exit. But for our regular doctor, if its a semi-emergency we can often get a next day appointment or if we're lucky a sameday appointment if we call early enough in the morning. My wife had severe cramping last year while we were in Red Deer. I called that morning and I had an appointment for 3pm that same day back in Edmonton for her.

That doesn't mean that the system is not without its problems. It has plenty. But I believe that the system for the most part works. Now I am biased against the American system. But a fairly large segment of the American system are not insured and even those who are insured often have trouble getting everything covered through their insurance. I'm sure there are plenty of Americans who are satisfied with their system, but I do see some injustice inherant in the system. The Canadian system on the other hand does ensure that everyone can access health care. And I believe most if not all Canadians are able to access the highest quality care available.

So, even though some critics in the United States of centralized medicine like to villianize the Canadian system, I think it has more to do with ideology and less to do with trying to maintain an efficient health care system. I do hope the Americans are able to continue this debate in a healthy manner, but lets not beat up little ol' Canada eh? We're just content to sit back and watch and stay healthy.

Sunday, July 12, 2009

Chasing the Gold Rush

We all want to accummalte some volume of wealth. Each of us have our goals and this is a personal decision. The thing that gets me is that so many people think that getting rich is somehow easy. Every day I get phone calls from people wanting to start a business, find work or get training and it surprises me how many people think that financial independence is something that is handed to them and not worked for.

Edmonton and indeed most of Canada owes its existance to people who set out onto the frontier in search of a new life and fortune. The history of North America is littered with gold rushes, some person who finds a treasure in the wilderness and then the masses flock seeking their own mass of gold nuggets. But anything in history goes much deeper than that. The original prospector probably looked for years in that area before he struck it rich. Most of the people who flocked to the site of gold strike left empty handed.

For Canadians, Alberta in the last 10 years was the new gold rush. And there was certainly money to be made. Alberta had an unemployment rate around 3-6% and the Atlantic provinces had a rate in the teens. Whole towns from down east flocked over here to work in the oilfield, oil sands and petro-chemical plants. At first a lot of the work was temporary, the workers could work for a few months, make some cash and go home. I remember this back in 1998 when my dad got me a summer job working at a plant turn around (shut down) at his old employer. I was one of the few guys who lived in Red Deer. I remember how awesome it felt to make $14/hr, a lot of money for a young University student. As our economy grew the demand for workers grew. Alberta became even more of a destination and the wages only went up.

There was certainly some demand for semi-skilled workers. But the real shortage was for skilled trades, something the province neglected to train people for from the last crash in the early 80's to the new development in later 90's. Alberta until last year was an awesome place for skilled tradesperson to make some money. But to be a skilled tradesperson takes 3-4 years of training through the apprenticeship system. A lot of people didn't bother, taking $20-25/hr now rather waiting 3-4 years to make $35-40/hr.

When the housing bust hit the United States in 2007, Alberta thought it would be immune to it. After all oil was reaching record heights and development in the oil sands was going full speed ahead. The oil sands were huge construction projects employing 2-3000 workers at a time. This employed people in all areas. By 2008 the construction projects at several sites were starting to wind down, but not to worry - the companies promised that more projects were just around the corner and ready to break ground. Then October happened. Oil dropped from $140 a barrel to $40. Those projects on the drawing board stayed there. And a lot of people were out of work. Some of the skilled trades moved into maintenance. Others skilled trades took a break. But the hardest hit were those who had little training. They were the first to get the boot and had the hardest time finding anything else. After all, why would a company hire a heavy equipment operator with 5 years experience when they had 5 guys applying for the position with 15+ years driving a heavy machine.

Before October I had many people from Ontario and the maritimes asking how to get a job in Fort McMurray (the site of the oil sands construction). Those that were calling me had no training in the trades. They thought they could just show up and, boom, get a 25-30/hr job without trying. Even during the boom, this seldom happened unless you knew someone. I had a hair dresser from Toronto insisting that his buddy got off the plane in Fort McMurray and was working before he got to his housing. He was asking me how his buddy did that. I told him to ask his buddy. Of course his buddy wasn't telling any secrets.

Whole families showed up from across Canada hoping to strike it rich here. Now, if they had the training, they may have been able to secure a position during the boom. But it was much harder if they didn't have a skilled trade. Fort McMurray was particularly a very hard place to settle because there was no housing unless you got a camp job - and most camp jobs were reserved for the skilled trades. But the rents across Alberta were skyrocketing until 2007 as well, and those who got jobs in the semi-skilled jobs found it difficult to make ends meet.

After October, I got few requests about jobs in Fort McMurray or much of anything from inter-provincial migrants. (Although I got a call the other day from someone asking if he could get a job in a manufacturing plant out here, but the news always travels slow for some people). Now people want training. The provincial and federal governments offer up to 2 years of training (plus the possibility of high school upgrading, if required on top of that) at a technical, private vocational or community college, if you can find a spot. This is not a new program, regardless what the Tories want to tell you. They opened up the requirements somewhat, but the program has been in place for as long as I know. But what are the two most popular requests I get for training? For men -Heavy equipment operator and truck driver. For women - administrative assitant or something in health care. Usually short courses, and something that doesn't require a whole lot of study. The thing is, there are a lot of truck drivers and administrative assistants unemployed. Heavy equipment operators don't even need any training - although there are schools that are willing to take your money. The demand for the skilled trades are greatly diminished (although I don't get a lot of calls from journey people, a lot are still working) and if you're looking to get apprenticed you're probably SOL. What a change from a year ago when the employers couldn't find anyone wanting to start as a first year apprentice.

A lot of people have been hurt because of this bust. But the thing is I think some people could have prevented the damage they caused themselves if they would have remembered this - making money is never easy.

I have a 4 year degree. My dad is a journeyman pipefitter. All the people in my life I would consider successful all follow these simple steps- if you want to make money it requires you to dig in, get trained, start at the bottom and work your way up in your career. But I see so many people who would rather skip the hard work and go straight for the money. They would rather gamble it all on striking gold rather than having some patience and make some money in the next 20 years rather than trying to make it all in 5.

I have no interest in making a million bucks. I am interested in making a comfortable living for my family and hopefully when I'm 50 or 60 I don't have to panic when my kids hit me up for some money to go to school. Yep, times are a little tough right now. But my wife and I are willing to make some sacrifices and I know that if I work hard, develop my skills and keep honest with my employers that I will move up. Is it easy, no. But will it be worth it? If I've learnt anything from my parents and their peers, I truly believe it will be.


Saturday, July 11, 2009

mmm labour stats

The latest labour force statistics (better known as the unemployment rate) for May came out yesterday. Check them here. Both Canada and Alberta saw very small increase in the unemployment rate in May, which is really no surprise. The stats for May confirm what I've been thinking about for 3 months now. The Alberta economy has finished its correction and the new status quo is taking hold.

Gone are the days where a kid can drop out of school and land a $25 job playing in the mud. Gone are the days that if your employer wasn't paying you enough you just went next door for an extra 2 bucks an hour. Gone are the days of quitting your job on Friday and having a new one Monday morning.

The new reality is that we need workers with skills and education. If you're not pulling your weight at the job, you may find yourself looking for a new one. Employers are not looking for workers who just have a pulse, they're looking for workers who will do the best they can for the business.

The downturn did hurt a lot of people. But it could have been a lot worse. People still have jobs and Alberta still has the largest labour participation rate in Canada. People are still buying Wal-mart, going out for dinner at The Keg and having fun at Rundle Park. Some people say the worst is still to come. Myself, I think what we just saw was a correction. We couldn't sustain the boom we saw from 2004 to 2008. But the world still needs fossil fuels. And Alberta still has them.

What puts Alberta in a tough position is that we're still getting a lot of inter-provincial migrants who think that just anyone can come and secure a good paying job here. But the thing is that there is a lot less demand for lower skilled positions now. If you want a job as a heavy equipment operator you need to get in line with 30 other guys applying for the same position. Don't have any experience working on the rigs? Well, there are lots of guys applying for those jobs who DO have the experience. There are still plenty of jobs in the service sector though, but they are expecting that you'll stick around for more than 2 weeks. If they don't think you will, don't expect a call back.

I foresee that Alberta could stay at this plateau for a number of years. If oil prices remain around $60 bucks a barrel, the companies will still be working, but working less. This isn't a bad thing. The break neck pace of the last 4 years was ridiculous. Instead, let the economy develop in a sustainable fashion. Instead of 4 2-3000 person construction projects happening at one time, lets have one. Once that project is done, move onto the next one. This allows Alberta to fulfill its labour obligations and still develop its economy. It also keeps the kids that should be in school, in school. It ensures that drunk people aren't driving 5 story heavy haulers. And it keeps the line up at Tim Hortons manageable.


Thursday, July 9, 2009

Blogging is fun

I used to be on a website that claimed it was a virtual republic - www.titulia.com . Things didn't really work out there because of personality conflicts so I decided to move on. But I did discover one thing. I enjoy writing. I used to do it way back when I was a high school student and in University but since then I've only done a bit here and there. But while I was on Titulia, I discovered I enjoyed writing again. So its time to start writing again. Sometimes I'll write about politics, sometimes about my 2 year old son. Sometimes it might even be about nonsense. But I'm going to try and post a blog at least once a week. And I hope to have fun and meet new people have engage new discussions while doing it.