Energy Leadership Begins in the Mirror

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Presentation to Canadian Crude Oil Conference Lake Louise, Alberta, 9 September MMX Satya Brata Das Cambridge Strategies Inc. Energy Leadership Begins in the Mirror

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Satya Das of Cambridge Strategies Inc. presented to the Canadian Crude Oil Conference in September 2010 on Albertan values surrounding oilsands development and the future of the oilsands.

Transcript of Energy Leadership Begins in the Mirror

Page 1: Energy Leadership Begins in the Mirror

Presentation to Canadian Crude Oil Conference

Lake Louise, Alberta, 9 September MMXSatya Brata Das

Cambridge Strategies Inc.

Energy Leadership Begins in the Mirror

Page 2: Energy Leadership Begins in the Mirror

Public demand for sustainable development

Oil sands painted as the dirtiest oil on the planet

Thirst for fossil fuels stronger than ever

If change is coming….

What will it look like?

Who will control the agenda and the direction?

How can different stakeholders be satisfied?

Managing change

Page 3: Energy Leadership Begins in the Mirror

Canada: The democratic world’s energy superpower

Page 4: Energy Leadership Begins in the Mirror

The American battleground

Page 5: Energy Leadership Begins in the Mirror

The Big Truth

Fossil fuels and alternative/emerging energy

are complimentary.

Page 6: Energy Leadership Begins in the Mirror

Canada is the only energy superpower with an obligation of

environmental stewardship.

Environment and Economy =One Issue

Page 7: Energy Leadership Begins in the Mirror

We have $15 trillion worth of oilsands wealth.

Let’s fund the transition to sustainableenergy, starting with greener hydrocarbonproduction.

Oil Sands Wealth Funds the Future

Page 8: Energy Leadership Begins in the Mirror

We Can Lead the World

Greener oil sands; cleaner coal; alternative energy; bio-energy and bio-economy.

The oil sands can make Canada the world’s first clean-energy superpower.

Page 9: Energy Leadership Begins in the Mirror

So Let’s Deal With the Elephant in the Room

Page 10: Energy Leadership Begins in the Mirror

Natural Resources Severance Tax (NRST):

Applied to the gross value of any natural resource and

Measured by the market price of the resource at the first “point of sale” upon severance.

Facing up to a carbon tax

Page 11: Energy Leadership Begins in the Mirror

A predictable and strong stream of revenue will:

Pay for a clean-energy economy Accelerate the development of low-

carbon industries and Greatly increase investment in

renewables and alternatives.

NRST will create jobs and drive growth

Page 12: Energy Leadership Begins in the Mirror

It’s all about social license.

Why Must the Oil Sands Go Green?

Page 13: Energy Leadership Begins in the Mirror

Our approach to measuring public policy preferences

Preference measurement and analysis is a research approach that can be used to understand how people make choices

Understand perceptions and how choices are made (trade-off)

Measure preferences through a simple user friendly survey

Learn how perceptions compare and what is most important to people

Identify what is most important to people and what the public policy preference drivers are

Design, deliver, and/or communicate new or existing programs addressing the needs of the stakeholders

Ideally, blend preferences with costs to optimize policies and seek to create win-win solutions

- Conjoint Survey on Albertans Values for Oil Sands Development

Page 14: Energy Leadership Begins in the Mirror

65% 89% 76%

Percentage of respondents who are

engaged, demonstrating three

behaviors: Tell, Remain, Strive

Believe the oil sands are important to

Alberta’s prosperity

Do not believe the quality of life in

Alberta will decline in the next two years

Citizenship Engagement

Importance of the oil sands

Quality of life will not decline

Albertans are engaged and generally optimistic…

- Conjoint Survey on Albertans Values for Oil Sands Development

Page 15: Energy Leadership Begins in the Mirror

31% 17% 12%

Percentage of respondents

believe Alberta is managing the oil sands responsibly

Satisfaction with Alberta-based Members of Parliament

Satisfaction with the Stelmach government

Managing the oil sands

Satisfaction with Alberta based

MPs

Satisfaction with Stelmach

government

… Yet there are some problems below the surface

- Conjoint Survey on Albertans Values for Oil Sands Development

Page 16: Energy Leadership Begins in the Mirror

What matters most to Albertans

2

6

10

12

14

18

19

20

Development

Land use

Reclamation-pace

Water

Greenhouse

Ecological monitoring

Habitat

Reclamation-type

This chart illustrates the potential a given feature has to drive overall preferences.

- Conjoint Survey on Albertans Values for Oil Sands Development

Page 17: Energy Leadership Begins in the Mirror

42%

8%

1%

1%

1%

47%

In your opinion, how important are the oil sands to Alberta’s prosperity?

Somewhat important

Very important

Extremely important

Very unimportant

Extremely unimportant

•In the 2007 study, 87% of respondents believed the oils sands were Extremely or Very Important to Alberta’s future

Somewhat unimportant

9 out of 10 view the oil sands as important to Alberta’s prosperity

- Conjoint Survey on Albertans Values for Oil Sands Development

Page 18: Energy Leadership Begins in the Mirror

30%

9%

2%

1%

1%

57%

The companies operating in the oil sands should be held liable for all environmental damages caused by their operations

Slightly agree

Agree

Completely agree

Disagree

Completely disagree

Slightly disagree

Note: Data collection completed prior to the BP oil spill in the Gulf of Mexico

9 in 10 Albertans feel companies liable for environmental damages…

- Conjoint Survey on Albertans Values for Oil Sands Development

Page 19: Energy Leadership Begins in the Mirror

34%

16%

8%

5%

2%

35%

The companies operating in the oil sands should solely be responsible for reclamation

Slightly agree

Agree

Completely agree

Disagree

Completely disagree

Slightly disagree

…Yet fewer feel companies are solely responsible for reclamation

- Conjoint Survey on Albertans Values for Oil Sands Development

Page 20: Energy Leadership Begins in the Mirror

45%

16%

3%

2%

1%

33%

If the government set rules, regulations, and defined best practices, the companies operating in the oil sands should lead all reclamation

Slightly agree

Agree

Completely agree

Disagree

Completely disagree

Slightly disagree

4 of 5 Albertans believe companies should lead reclamation efforts adhering to

government rules and standards

- Conjoint Survey on Albertans Values for Oil Sands Development

Page 21: Energy Leadership Begins in the Mirror

45%

16%

3%

2%

1%

33%

If the government set rules, regulations, and defined best practices, the companies operating in the oil sands should lead all reclamation

Slightly agree

Agree

Completely agree

Disagree

Completely disagree

Slightly disagree

4 of 5 Albertans believe companies should lead reclamation efforts adhering to government rules

and standards

- Conjoint Survey on Albertans Values for Oil Sands Development

Page 22: Energy Leadership Begins in the Mirror

43%

9%

2%

1%

1%

44%

Reclamation must support and sustain a wide diversity of plants and animals

Slightly agree

Agree

Completely agree

Disagree

Completely disagree

Slightly disagree

87% of Albertans believe reclamation must support and sustain a wide diversity of plants and

animals

- Conjoint Survey on Albertans Values for Oil Sands Development

Page 23: Energy Leadership Begins in the Mirror

9%

4%

19%

45%

23%

Who do you trust the most to responsibly manage Alberta’s growth?

Brian Mason (NDP Party)

David Swann (Liberal Party)

Ed Stelmach (PC Party)

None of the above

Danielle Smith (Wildrose Alliance)

Strong level of distrust among established politicians to responsibly manage Alberta’s

growth

- Conjoint Survey on Albertans Value for Oil Sands Development

Page 24: Energy Leadership Begins in the Mirror

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