Ministers...the Ball is in Your Court

By: David Coll

As we peons wrestle with the minutiae of the day-to-day routine (how do I get to the next screen in SAP? which meeting should I attend on Tuesday? where to go for lunch? salad, slaw or fries? gravy with those fries?), it’s comforting to know that the industry’s ‘big picture’ issues are seemingly in good hands.

At the CEO level, one of the hot topics in the Canadian energy sector of late has been discussion around the urgent need for a well-defined national energy strategy – not to be confused with a punitive National Energy Program.

It may come as a surprise to some, but energy execs are not alone in expressing this desire – according to the Canadian Council of Chief Executives (CCCE), a “growing chorus” of business organizations and research institutions, even  governments themselves, favor creation of a national strategy.

In 2010, federal and provincial energy ministers agreed on the need for greater “pan-Canadian collaboration” on energy policy.  As this is being written, the ministers were in the midst of their 2011 meeting in Kananaskis – here’s hoping that by the time you read this, we will already have a strong signal that the ministers plan to follow through with their 2010 commitment  with some defined action.

Prior to the ministers’ gathering, the CCEE released an important report, Kananaskis 2011: Building an Agenda for a Sound  Energy Future. If you work in the energy sector, of if the energy sector affects your livelihood, you should read it.

"We see [a national energy strategy] not as a single document but rather more of a vision, a broad framework and set of  criteria against which to test existing and future policy,” the report says.

“Indeed, the engagement of a wide range of players in this debate has shown that there is no lack of ideas on how to  strengthen Canada’s energy advantage. What is needed is focus, discipline and follow-through.”

The italics in the above sentence are mine. Too often “strategies” from government and business wind up merely as  wordsmithing exercises – you know the drill, too many cooks spoil the broth; all focus and best intentions are lost in a foul  oup of dense and ambiguous prose (much like the sentence you’ve just read!).

I guess I should practice what I preach and spell it out clearly – what’s needed is some plain dealin’, Plain English communication. Of course, that is not possible unless the ministers are able to obtain consensus on issues and meet the needs of competing energy players/stakeholders, whether these be traditional fossil fuel producers, to solar, biomass,  ydroelectric, etc.

That’s a tough challenge but it can be achieved with some real leadership. The CCEE, whose members represent 150 of  Canada’s top CEOs from all sectors, know that all too well. Thus, the Kananaskis report includes some tangible elements that any workable energy strategy must recognize. First, it must be market-based – this is absolutely critical.

“All forms of energy will be required to meeting growing demand, both in Canada and internationally, and the market should be primary determinant of which resources are developed and what kind of infrastructure is built to carry them,” the CCEE report
says. “But that is not so say that there is not place for some degree of government involvement where it may be the key ingredient to help unlock regional energy potential.”

Well put.

Toss in a call for regulatory harmonization (“one project, one assessment”), a policy framework that enhances diversity and  access to U.S. and Asian markets. Mix with measures to support energy conservation and efficiency and greater collaboration to develop and market leading-edge technology and you have a dynamite recipe for a bright energy future.

And so, dear energy ministers of the Great White North . . . the ball is in your court.