Alberta’s industrial heartland changes focus to adapt with times
Posted Jan 28, 2011 12:36 pm.
This article is more than 5 years old.
Times have changed for a region that was once described as “upgrader alley.”
Alberta Industrial Heartland Association Executive Director Neil Shelly tells 660News the recent downtown in the economy has forced them to change their focus on the future.
“The recession caused everyone to pause and sort of re-think their plans,” says Shelly.
Another factor is the province seeing an increase in pipeline capacity, with American producers sending their product to the U.S. to be produced at a cheaper rate.
Just four years ago, the association saw 8 upgraders come into the area, with an investment of 50 to 60 Billion dollars.
Compare that to now, where only two upgraders have been placed in the same vicinity.
He says they are also not optimistic about a long term rebound when it comes to the price of natural gas.
According to Shelly, that’s because shale gas in the U.S. has become much bigger than anyone thought.
With the Americans being the biggest consumer of Alberta natural gas, we suddenly have a lot of product without a market for it.
It’s why Shelly says, they’ve been forced to change their focus.
“Right now one of the things we’re doing is we’re undertaking a study with the government of Alberta,” he says. “What are the advantages in Alberta, in regards to petro-chemical development.”
He’s not predicting when we might be able to see a rebound in the sector.
“Anyone who tries to make a prediction four years into the future is a fool, because too many things are going to change,” says Shelly.
Alberta’s industrial heartland is made up of the counties of Lamont, Strathcona, Sturgeon, and the Cities of Edmonton and Fort Saskatchewan.
