Through its construction stage, the Fort Hills mine project is expected to create 10,000 jobs. The mine is expected to permanently employ 1,100 people, and the upgrader 500. The estimated annual benefits of the project to the Canadian economy over the projected 40-year lifespan vary between $3 billion and $5 billion, not including royalties and taxes. The Fort Hills mine project is just one of a number of existing and planned projects in Alberta’s Wood Buffalo region.
However, along with this prosperity comes a rapid pace of growth that puts a strain on the local infrastructure and that is felt most by the surrounding community. We have a responsibility to share the long-term legacy that oil sands development offers with those most affected by the activity.
Working with the First Nations and Aboriginal Communities
The Fort Hills mine project and other developments in the area may impact the lifestyle of the Mikisew Cree First Nations, Athabasca Chipewyan First Nations and Fort McKay First Nations, but the developments have the potential to change the game for these communities for generations to come. The challenge for us is to help these communities participate in the benefits in terms that are meaningful to them. The Fort Hills mine project approval includes 180 regulatory conditions, and we have also made commitments to develop the Athabasca region’s socio-economic prosperity. These are not just contractual commitments; they are the basis for collaborating with communities and building a relationship based on strong values and mutual interests.
These commitments focus on several key areas. One of those is increasing educational opportunities by introducing more training activities, offering summer student employment programs and assisting with transitioning from high school to post-secondary education. We also support a wide range of grassroots community initiatives that respect and strengthen a vibrant traditional culture through this period of rapid change. In fact, in 2008, Petro-Canada opened an office right in the Fort Chipewyan community.
A key aspect of our commitments is to build the necessary capacity in the surrounding Aboriginal communities to enable them to participate in bidding on local contracts on a competitive basis. In building the capacity to compete for business, trust and a sound relationship are essential. We have dedicated employees who work with our procurement group and our engineering project contractors to identify services for each of the project stages that can be tendered to the local communities. In addition, we work with existing and startup enterprises to assist them to better understand the bidding and budgeting process and respond competitively.
Taking the lead at Sturgeon County
In January 2006, we announced the proposed site for the Fort Hills upgrader in Sturgeon Country, outside of Edmonton, Alberta. Stakeholder consultation has been a key part of the plan for the approval of the project, construction and the ongoing operation of the facility. In addition to meeting with city and municipal bodies, the public consultation program of open houses, community newsletters and direct engagement with community groups, environmental advocacy organizations and industry representatives has focused on establishing effective lines of communication and providing useful and relevant information.
Petro-Canada is an active member of a number of regional industry and economic development committees, as well as community advisory councils. By taking the initiative to organize and participate in these groups, we have established an effective line of communication with key stakeholders and a means to proactively understand and address issues and concerns. Petro-Canada, along with a wide range of other stakeholders, also participated in sessions with Alberta Environment to provide information for the development in 2007 of the Water Management Framework for the Industrial Heartland and Capital Region and was an industry participant in the development of the Elemental Sulphur Management Framework for the Industrial Heartland last year.
To address the need for skilled labour in the region, we have also started to work with the local communities as a partner in supporting programs that will generate employment benefits for people in the area. For example, Petro-Canada invested $2 million in the Northern Alberta Institute of Technology (NAIT)/Petro-Canada Centre for Millwright Technology and $1.5 million for Edmonton’s Women Building Futures Training Centre and Housing Facility. The Women Building Futures program, a registered charity, has helped hundreds of women prepare for construction-related jobs and apprenticeships, thereby enabling them to realize a brighter future. Petro-Canada’s investment in NAIT has resulted in the building of a new millwright trades centre and an increase in the number of spaces available to students who are interested in becoming millwrights.
Continuous Improvement
Petro-Canada is committed to the principle of continuous improvement. We re-assess the execution of our projects and look for areas where we can improve and optimize our plans.