Hooray for Oil!

Recently, I had a fairly decent discussion with one of my colleagues about the Alberta Oilsands, and how they impact the environment. We both agreed that the environmental impact is significant. However, we did not agree on the basis on how to fix the problem. He believed that the individual could have a significant impact and the efforts of individuals could change the minds of society and move Alberta from Oil-dependence.

I agree that the individuals have an important part to play in raising awareness, however, I do not believe that individuals can persuade our economy to diversify beyond being oil-based. In Alberta, whether or not people are directly aware of it, the majority of the economy is based on either providing services and material for the oilfield (as a primary beneficiary) or on the capital generated from the oilfield (secondary and tertiary beneficiaries). Now, the majority of the people working in the oilfield are skilled workers/tradespeople that are building/maintaining the infrastructure (rigs/mines/plants/etc). These are the primary beneficiaries of the oilfield. The salaries that these skilled laborers make is staggering, enough that during the boom of the oilfield in the late 90's/early 2000's there was a significant shortage of labor in Alberta. Usually, people just think as these workers as the only people that benefit economically from the oilfield. What happens when these workers spend this "oil money"? The local retailers benefit. These are the secondary (and sometimes tertiary) beneficiaries of the oilfield. Alberta has one of the most large and brisk retail economies, dealing in a lot of luxury items, fast cars, and lifted (as my wife calls them) "small penis" trucks. In addition, the Provincial Government vastly benefits from the oilfield and the royalties it produces. Long story short, almost everyone in some way, shape, or form benefits from the oilfield.

For quite some time, there have been a lot of organizations and companies doing various things to draw attention to the oilfield and some of the problems associated with it. For example, you had Lush hold protests in front of its stores. You had a bunch of companies such as Gap, Timberland, Levi's, Walgreens, Bed Bath and Beyond, etc. "boycott" Alberta Oil by apparently using oil from other sources in its supply chain. I'm not totally sold that these companies are actually accomplishing anything but pulling a press stunt. These are mostly companies that sell higher end merchandise, ironically to people that are benefiting from the oilfield. Even if their supply chains where made to be completely devoid of Alberta Oil, simple economics would kick in. How you ask? Well, consider this situation. A higher demand for other-than Alberta Oil occurs, the price for that oil increases. Other consumers look at the situation, and are confronted with the choice between expensive non-Alberta Oil, or cheaper Alberta Oil. I can guarantee, with 100% certainty, that someone will buy that Alberta Oil, regardless of whether or not these retail companies do.

So then, how then do you encourage change? How do you encourage the common person to demand change? You saw it fairly recently in the US with Obama's Election. I still believe that Obama won that election convincingly based on one major reason: enough people were affected negatively by the "just" war in Iraq. You effect the everyday life of people enough, they will make a choice for change. Pearl Harbor and 9/11 are more examples of stimulus for wide-sweeping changes in public opinion. Pearl Harbor was an unfortunate, but necessary event to change the perception of entering WWII. Same goes with 9/11 and dealing with terrorism.

I'm not saying that violence is the answer, I'm simply suggesting that the public has to be directly affected, or inconvenienced if you will,  in order to stimulate change. Its nice that we have all these companies/individuals raising awareness. But, without stimulus for change, awareness is useless. So, here's my solution (not necessarily in this order), that may allow Alberta to get off its "oil habit":

1. There has to be a second reasonable and desirable choice for oilfield workers to go. Government must take a leading role in developing industry other than Oil. I don't care whether it is manufacturing, tech, R&D, or what have you, there has to be a diversification of industry. The majority of workers in the oilfield are not specialized to the oilfield. Its simply the highest paying jobs out there currently. Diversify the industry, subsidize that industry to make people want to move from the oilfield. Perhaps something like a lower tax rate for non-oilfield related work.

2. There has to be a stimulus to change public opinion, above and beyond the current awareness-based campaigns. If people are comfortable in their daily lives, no appreciable change will occur. How did we encourage people to recycle drink containers? A deposit. How can we make people take a serious stance on the environmental damage caused by the oilsands? Make the oil companies financially responsible for the environmental damage. The oil companies will not even blink, and just simply pass on the costs to the public. I guarantee you, the second that a litre of gas goes up by $3 overnight for Alberta-Oilsands oil only, you'll have your change in public opinion.

So yeah, long story short, without inconveniencing the public, no change will occur.