Energy agency calls for review of British Columbia offshore ban

Gary Park

The International Energy Agency has given a fleeting nod of support to proponents of opening up British Columbia’s offshore to oil and gas exploration.

The Paris-based agency, in its annual review of Canada’s energy policies, said Jan. 31 that to “further tap” the potential of domestic resources, an end to the 32-year British Columbia moratorium should be examined.

But it cautioned that “relevant measures” should also be taken to protect the environment — one of the major obstacles in the path of removing the ban.

Agency Executive Director Claude Mandril also said production from the Alberta oil sands “offers significant potential, while its environmental impact needs to be minimized through technology development.”

However, he was less enthusiastic about the U.S. Department of Energy’s decision in 2003 to give full recognition to the oil sands by including 315 billion barrels in world oil reserves.

Mandril said there is a risk of either not enough natural gas to support the extraction and processing of bitumen from the oil sands, or that the resource is “too expensive” in carbon dioxide emissions.

The report said the biggest single economic and political challenge facing Canada’s energy sector is figuring out a way to meet greenhouse gas emission targets under the Kyoto Protocol, which is due to take effect Feb. 16.

“The burden of emissions reductions may eventually shift in part from polluters to the federal government, with implications for every Canadian citizen,” the agency said.

Canada’s Natural Resources Minister John Efford said the government plans to help industry reduce the emissions by investing in new technology, arguing Canadian companies would not be better off if they moved to the United States or other countries that are not signatories to Kyoto.

He said Canada is determined to both protect the environment and grow its economy.