City Notebook: Pretty forgettable decade for natural gas in SE Alberta

By COLLIN GALLANT on July 23, 2022.

cgallant@medicinehatnews.com@CollinGallant

After a century of good fortune, it’s been a pretty forgettable decade for the natural gas sector in southeast Alberta.

Low prices, laid off workers, a dwindling city business and bank account.

But it’s been a happy new year for those who made it out the other side and are now reaping the whirlwind of higher prices during global energy market turmoil.

This week the News spoke with Pinecliff Energy head Phil Hodge, whose company announced it paid off all its long-term debt over the winter, thanks to higher prices and having been forced to run a tighter ship through tough times.

The City of Medicine Hat once bragged it was the only oil company on earth without any debt… and it may have even been true.

It’s finances show a $23-million boost to its operating results, giving in an expected $3 million profit this year. That would be the first black ink coming out of the petroleum division in a decade.

How long it could last, is anybody’s guess.

Here’s a thought… there’s been no shortage of substantial gas operators going out of business over the last five, six years, and public concern over growing number of wells passing on to the Alberta Orphan Well Association.

When that agency comes calling, its the well’s joint owners and those with a working interest that are first considered for abandonment and clean-up costs. Assets sold off in court proceedings go for pennies on the dollar to pay creditors.

Among a number of notable bankruptcies from the last few years were Sanling Energy, Houston, Canadian Oil and Gas International, Trident, and seemingly on and on, which all left working partners in the lurch.

Imagine struggling to keep your head above water, then hearing you have to wear a saddle as well.

Now, with a doubling of oil prices and tripling of the natural gas rates, one can only imagine what its done for the bottom lines of those that made it out the other side.

Stampede

Speaking of happy days being here again, the Medicine Hat Stampede arrives this week, touting a back-to-regular-business schedule. You know the basic rundown, parade is set for Thursday, rodeos, shows, exhibitions, midway and fireworks to follow. Have a good and safe one.

As well, seen on social media this week: “Hey, Hatters love to eat,” referring to more numerous pancake breakfasts planned for the coming stampede celebration. We hear that breathing is also very popular.

A look ahead

Alberta’s next premier will be in town on Tuesday night, but who is it?

The United Conservative Party leadership debate takes place Tuesday afternoon (online and at the HALO hanger at the airport), with the ultimate winner of the internal party contest becoming leader of the province.

100 years ago

Natural gas was put to a better use – manufacturing – in Medicine Hat, that as a luxury good for home heating in Calgary, Mayor Huckvale said on June 20, 1922, before a provincial panel studying a scheme to pipe the fuel from the Redcliff field to the major centre.

Questions about depleting the fields, acquired in right by the city from the federal cabinet in 1915, had raged all winter, resulting in the province launching study of a pan-Alberta strategy.

The second day of the hearing heard that geological scientists had no doubt that the Medicine Hat and Redcliff fields were one in the same, but the Calgary papers made much of the fact the proceedings were suspended by a gas leak at the First Street courthouse.

The matter was scheduled to be decided by a special session of the legislature.

British Army officials favoured the use of new “wireless” radio communication between infantry units in the field rather than cable telephones.

The wheat board was introduced in the Saskatchewan legislature.

Local sprinter Ray McEachern set records in the 100 and 220-yard dash at the Alberta Athletics championship meet staged at athletic grounds in Medicine Hat.

He also took the 440-yard race by five-feet.

The price of kerosene and natural gas to run pumps had hampered irrigation development, according to delegates to the national conference of irrigators held in Maple Creek.

Collin Gallant covers city politics and a variety of topics for the News. Reach him at 403-528-5664 or via email at cgallant@medicinehatnews.com.