Lull in oilsands only a blip: Enbridge VP

Alberta industry destined to become even bigger in step with world's energy needs, Art Meyer says

By Dave Cooper, The Edmonton JournalFebruary 5, 2009

Art Meyer, Enbridge's senior vice-president responsible for oilsands projects, was named Wednesday the 2009 Allard Chair in Business, an honorary teaching post at the MacEwan school of business.

Photograph by: Rick MacWilliam, The Journal, The Edmonton Journal

With energy demand set to surge when the world's economies recover, the pause in oilsands projects must be seen as a chance for Alberta to better prepare for what is coming, a top Enbridge official said Wednesday.

Speaking to Edmonton Chamber of Commerce members, Art Meyer, senior vice-president for oilsands projects at the pipeline and gas company, said world energy demand by 2030 is forecast to increase by 45 per cent, with 80 per cent of that coming from fossil fuels.

Even taking into account the current economic crisis, the International Energy Agency expects oil consumption to jump to 106 million barrels a day, from about 85 million barrels, over the period.

With oil fields typically declining by nine per cent a year, it is forecast the world will also have to find another 45 million barrels a day to replace reserves.

"That totals 65 million barrels a day, or six times the production of Saudi Arabia," Meyer said. As well, 80 per cent of the reserves will be held by national oil companies, which may or may not make adequate investments to bring on production.

The oilsands will be even bigger in the future, he said.

"On the horizon, and not too far out on the horizon, we do see that demand coming back, and we need to use this time to prepare for it. I think business and government are working in that direction, but it is early going; the financial crisis only hit a short time ago," he said.

"But companies are coming forward and looking at investments in the oilsands as part of that position," he said, adding that some companies will defer a project for a time while others will proceed, depending on cash available.

"But ultimately, a deferral is only that, and we will see many of those projects going ahead."

Environmental concerns have been a major factor for the oilsands, but Meyer said a recent poll by the Canadian Association of Petroleum Producers found that a significant majority of residents in Toronto and Edmonton believe the oilsands can be developed in an environmentally acceptable manner.

"The view out there is that it can be done, so now it is up to industry to prove that. But things may take some time, because these are large initiatives," he said.

"Albertans have the technology and ability to produce the oilsands in an environmentally acceptable manner. We must ensure we meet the public's expectations," he said.

Meyer was named the 2009 Allard Chair in Business, an honorary teaching position with the MacEwan school of business. He was the 23rd recipient of the position established in 1984 by physician, businessman and philanthropist Dr. Charles Allard.

He said spending time on campus will be "a great opportunity to talk to students about business and their own careers, and the importance of teamwork in the business environment."

dcooper@thejournal.canwest.com