Shifting Sands

Canada has plenty of oil, while China and the US are thirsty and desperate
A creek south of Fort McMurray is crisscrossed by cut lines made for oil and gas explorationA creek south of Fort McMurray is crisscrossed by cut lines made for oil and gas exploration

The Canadian Council of Chief Executives, a lobby group which includes some of Canada’s most powerful ceos, believes oil could be a key to expanding nafta in a number of areas in exchange for a secure supply of crude from the oil sands. It would effectively integrate the North American economy and eliminate tariff and subsidy disputes, like the softwood lumber issue. According to the joint investment analysts’ report, it is the Alberta reserves and the “special relationship” between Canada and the US that “should be driving [oil] prices; not Washington’s less than perfect relationship with monarchies and repressive regimes half a world away.”

In Siberia, Japan and China are furiously competing for direct access to Russian oil. France and Russia clashed with the US over oil in Iraq. In December, Venezuela President Hugo Chavez went to Beijing, and the two countries signed several bilateral energy agreements. Like Canada, Venezuela sells much of its exports to the US, though there is an enduring political antagonism between the two countries, exacerbated by what was viewed as American support for the attempted coup against Chavez’s government in 2002.

Everywhere, there are political alignments, military movement, and antagonisms, but in Canada oil remains purely a commodity as opposed to an instrument of foreign policy. As power struggles gain definition around the globe, our only political issues are domestic; once more, we are at war with ourselves. Any federal interference will revive the animosity in Alberta that was first sparked by the National Energy Program in 1980. Twenty-five years after the fact, Trudeau remains a potent satanic symbol out in God’s country.

When I was a rig worker in the 1970s, breaking up the university year with stints as a roughneck, oil meant money. The reckless, tipsy flow of capital and Calgary’s giddy growth began in 1973, when opec countries imposed an oil embargo on the US to protest America’s support of Israel, and raised prices for Western allies. Within four months, the price went from $3 (US) a barrel to $11.65 (US), and everyone got fat.

My fellow roughnecks were failed farmers, ex-cons, a man who had tired of the killing floor at the Burns plant, and a disturbed local whose hobby was sucker-punching British soldiers stationed at the Suffield base outside of Medicine Hat. On one rig, we sometimes drank rye whiskey on the way to work and began the dangerous night shift in a state of relaxation that gave way to prolonged bitterness. In the course of four summers, I recall a water tanker falling off the flatbed into a rape crop because we had forgotten to chain it down, working short-handed because the day roughneck had driven his 1963 Cadillac into a house after a breakfast of Tang crystals dissolved in vodka, riding in a driller’s pickup truck when he ran into a cow, shooting a rattlesnake, accidentally setting fire to a field of cheat grass, being shot at by a farmer, punched by a motorman, and listening to sad country music in a diner while eating generic Chinese/Canadian food, drinking terrible coffee out of mugs that were half an inch thick, and hoping the big-haired waitress would somehow take me away from all this. The first rig I saw had a sign that read, “This rig has worked 0 accident free days.” Next to it, a man was sitting on a forty-gallon drum, his hand wrapped in dirty gauze that was leaking blood.

Thirty years later, the Syncrude and Suncor plants have signs that advertise millions of accident-free man-hours. The industry is driven by skilled workers, engineers, and strict supervision, but in the evenings in Fort McMurray, there are still a few oil workers on Franklin Avenue who evoke the past, young men with weathered faces and heavy shoulders and a look that says the world can go fuck itself. They have money, youth, the existential loneliness that comes from living in camps with other men, and they seek out Teasers or Showgirls or the Boomtown Casino, looking for a good time that won’t show up in the drug and alcohol tests some companies require, for the remote solace of a stripper. Most of them are part of the city’s shadow population of 7,500, men who live in the camps on-site at Syncrude or Suncor or Shell/Albian Sands. Efforts are made to keep A Calgary company with a large lease in the oil sands turned to China when its American partner pulled out, citing the high cost of extraction. For the Chinese, cost is less of an issue. the shadow population on-site, away from temptation, away from bars that cash your paycheques, where you drink half of it and then get jacked up by a local wingnut for the other half. But despite the amenities and the steaks and big-screen televisions, the camps are dispiriting masculine compounds, while local shelters are filled with the unemployed, men who came north without any real skill, unaligned with any union, to find that this boom was more formal than the 1970s one, and that they weren’t needed.

Fort McMurray is surprisingly sedate, a middle-class bedroom community of 56,000 that is laid out at the confluence of the Athabasca and Clearwater Rivers, and extends up onto forested benchlands in the hills in a pleasant suburban sprawl. It is, people say almost by way of greeting, a good place to raise your children. It is wealthy (the median household income is over $90,000 and houses cost roughly what they do in Calgary), and young (the average age is thirty), a hotbed of volunteerism, and, like most boomtowns, diverse: about fifty ethnic groups as well as displaced Ontarians and, inevitably, a strong community of Newfoundlanders.

Almost half the population is directly employed by oil and thousands more have a secondary or tertiary connection. The infrastructure is overtaxed, the roads clogged, the hospital burdened, and on Thursday nights when the shifts change, there is a stately line of pickup trucks along highway 63 heading to Edmonton. There are two scenic golf courses, but the city is barely holding onto its market share of biker meth, prostitutes, and shackle-kitted Trans Ams. The local citizens are wary of the term boom, coming as it does with its inevitable twin: bust. At a cocktail party, with oil sliding from $55 to $40 (US) in six weeks, there was talk of the fragile equity in their homes, and a few people spoke of escape. In Calgary during the 1970s, oil infected the civic personality and acted as an aphrodisiac, but the mood in Fort McMurray today is more subdued. If it is a party, it is a company party. As conventional oil supplies wane, Fort McMurray may be the last boomtown, and perhaps it is fitting that in the twenty-first century it looks more like Oakville, Ontario, than Sodom.

The city grew in a series of godless oil booms followed by periods of Calvinist contrition. In 1906 a German, Alfred Von Hammerstein, arrived and spent the next four years drilling twenty-four unsuccessful oil wells, but he founded the Athabasca Oil and Asphalt Company and a town formed around his optimism. The first American interest came in 1917 through a Mellon Institute study that looked at the possibility of commercial development of the oil sands. By 1927, the International Bitumen Company was trying to mine the oil sands, but most of their projects either burned down or were abandoned. In 1946, Canada was importing 88 percent of its oil from the US and Latin America, but that changed the following year with the huge oil discovery in Leduc, Alberta.

After that, the oil sands developed quietly, in the shade of regular oil finds in southern Alberta. In 1953, the Great Canadian Oil Sands Ltd. was formed. Controlled by Sun Oil Co. of Philadelphia, it evolved into Suncor. Eleven years later, Syncrude began production and Fort McMurray boomed. Like other Alberta boomtowns in the seventies, it lurched into the future with a sense of drunken immortality. But in 1982, oil prices collapsed and the money and workers drifted south.
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6 comment(s)

JeremyDecember 18, 2007 14:04 EST

How old is this? Ralph Klein hasn't been our Premier for almost a year! Anyhow, we Canadians should just keep the oil for ourselves. The Americans do not need it, at least they won't need it once the illegally take over Iraq. If we sit on the oil and don't make any deals I think for once we will come out on top. Look how bad we lost out on the soft wood lumber deal with the US! What about the US banning beef imports? I guess what I am trying to say is that the US does not have out backs and we have no obligation to them regarding oil. Let them sweat! We'll get more money from them in the end!

Paul BoisvertDecember 18, 2007 20:33 EST

Paul: Wake up Jeremy! The article was published when? Typical Albertan attitude about a resource they no longer control. Do you know about the Free Trade Agreement? Maybe you've heard about NAFTA! Whatever.

Albertans teamed up with Quebec and gave us Mulroney and the Free Trade Agreement that gave the U.S. control over our oil industry. You now say we should just sit on it! It doesn't belong to us anymore. What planet have you been living on?

First they took Canada now they take Iraq.

Get with the program Jeremy.

AnonymousJanuary 01, 2008 10:53 EST

Well, the good news is: Oil=dope and the world is addicted. Oil will rise to $100 a barrel in 2008. Natural gas could hold steady at $7 or higher. The bad news is the Canadian governments will tax the hell out of all this oil money. The oil sands are feasible (so far) to extract but hurt the environment and costly in other ways. For every Yin there is a Yang.

JeremyJanuary 03, 2008 14:03 EST

Paul, does it give you pleasure to belittle others? Sorry, I didn't see the date posted at the top. I have the contrast turned up on my pc and I can still barely see this grey on black print. My response to your bs about the free trade agreement; you basically took what I said and made it your own. I think you need to get with the program.

ViamundJanuary 04, 2008 20:42 EST

It is sad that the media is so obsessed with the price increases of Oil. If we in Canada have our supplies there should be no reason for Canadian Consumers to pay such rates. OPEC is an organization that stinks of monopoly, price fixing and all the ugliness that goes with that breed and their greed. Time for Canada to explore another option and to create an alliance to lower the cost of oil and challenge OPEC. Venezuela springs to mind as an excellent ally for Canada to mutually aid each other and end the reign of OPEC and what it represents.

André J. BernierApril 26, 2008 16:46 EST

good Day,
We need the resources but now we have to find a way to reduce the pollution and gas emissions. I am working on that matter and close
fo a solution .
Best regards,
AJB

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