Pipelines could fuel GDP

Canada’s gross domestic product could benefit from an extra US$131 billion over 14 years if Western Canadian oil producers gain tanker access to Asia-Pacific markets, say University of Calgary researchers.

The university’s School of Public Policy estimates that increased pipeline access to United States and Asian markets could boost the country’s GDP by that amount in the 2016-30 period, generating C$27 billion in federal, provincial and municipal taxes in the process and creating 649,000 person-years of employment.

The study forecast that Canadian heavy crude could fetch an extra US$6.65 per barrel in California by 2016 and US$10.30 per barrel in Asia “translating into massive increases in profits, jobs and government revenue.”

Alberta Premier Alison Redford, while respecting British Columbia Premier Christy Clark’s reluctance to endorse the proposed export pipelines by Enbridge and Kinder Morgan, said her neighbor should consider the signal British Columbia will send to global investors if the two companies abandon their plans for export pipelines.

She said British Columbia support for Enbridge’s Northern Gateway pipeline is an important component of the Alberta government’s national energy strategy aimed at sending a signal to the world that Canada will allow its resource economy to “thrive” while still properly managing the environment.

Redford disputed any notion that British Columbia can aggressively pursue exports of liquefied natural gas and development of its mineral resources, while opting out of Northern Gateway because of concerns over pipeline or tanker accidents.

She said picking and choosing is “not the way you grow an economy.”

Redford said that if there are opportunities to explain the pipeline proposals “in a positive way,” she or one of her cabinet ministers would be prepared to visit British Columbia.

Clark has acknowledged the importance of the oil sands sector to Canada, but has insisted the decision on pipelines should be left to regulators.

At the same time, she is crusading for the completion of three LNG export projects on the British Columbia coast by 2020.

—Gary Park