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Providing coverage of Alaska and northern Canada's oil and gas industry
July 2012

Vol. 17, No. 31 Week of July 29, 2012

Canadian recipe for energy powerhouse

Canadian Senate rolls out blueprint to create world’s most productive energy nation, but sidesteps oil sands without explanation

Gary Park

For Petroleum News

Canada is in the “cat-bird seat” as an energy powerhouse, poised to become the most energy productive nation in the world with exemplary levels of environmental performance and prosperity in all regions.

But the road to this “bold vision is fraught with peril and our once comfortable perch has become precarious in light of the new world energy order.”

Those are the opening lines of a 68-page report by the Canadian Senate, which spent three years compiling a report entitled “Now or Never” on measures needed to secure Canada’s energy future.

The Senate Standing Committee on Energy, the Environment and Natural Resources issued the blueprint outlining 13 priorities, but, as with every report issued by Canada’s politically-appointed Senate, it carries little real weight.

Although the committee conducted hundreds of meetings, spoke to 250 stakeholders and solicited public advice, its findings offer little that is startlingly new, or likely to spur the federal government into action.

While the report dwelt on natural gas, hydroelectric power, renewable energy and nuclear power, it made no reference to the oil sands — the largest and most controversial source of Canada’s oil production.

And the committee’s media relations contact was not available to explain that omission.

But the report did endorse efforts to ship Western Canadian oil eastward to be refined in Ontario and Quebec and shrink the 500,000 barrels per day of imports from outside North America to fuel those refineries.

Committee chair Senator David Angus said it does not make sense for Canada’s eastern provinces to buy oil from countries such as Algeria and Venezuela when there is surplus supply in Western Canada.

“Why would we have all these ships coming in from Nigeria into the St. Lawrence Seaway with crude oil when we’ve got so much of it in other places of the country?” he asked.

Productivity and stewardship

While the committee, in its unanimous conclusions, said Canada’s environment must be vigorously protected and while outlining various options for curbing greenhouse gas emissions such as a carbon tax or carbon pricing, the Senators sidestepped taking a position on what measures the government should adopt to curb emissions.

Among its recommendations, the committee called for:

• Collaborative energy leadership at all levels of government and involving industry, environmental groups and aboriginal leaders to “chart a course for responsible development and marketing of our energy resources.”

• Efforts to “advance national-building through energy infrastructure” by modernizing and expanding electricity systems and oil and gas pipelines to connect regions and diversify export markets to further strengthen the national economy.”

• Expanded use of natural gas as a “reliable, versatile and efficient” fuel, including responsible shale gas production in Quebec, New Brunswick and other regions.

• Steps to foster substantial emerging renewable energy resources, including the use of water, wind, solar, geothermal, biomass and marine energy.

•Streamlined environmental reviews that do not sacrifice rigorous environmental oversight, while ensuring full aboriginal consultation.

• Development of northern and Arctic energy, in a region that occupies 40 percent of Canada’s land mass and holds 33 percent of its energy resources.






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