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Providing coverage of Alaska and northern Canada's oil and gas industry
January 2017

Vol. 22, No. 1 Week of January 01, 2017

Trudeau teams with Obama on Arctic

The Canadian government, in teaming up with the Obama administration in putting a choke-hold on future Arctic oil and gas exploration, has delivered a crushing blow to the already-fragile hopes of petroleum development in Canada’s North.

It designated all Arctic Canadian waters as indefinitely off-limits to future licensing for at least the next five years when any applications will face climate- and marine science-based life-cycle assessments.

Prime Minister Justin Trudeau did not specify any restrictions on existing leases held by Canadian divisions of such multi-nationals as BP, Repsol, Shell, ExxonMobil and Chevron.

He also left available for development the offshore regions in Newfoundland and Labrador, which are the core of Canada’s current frontier production.

Northwest Territories Premier Bob McLeod issued a sharp rebuke to Trudeau, saying he was not involved in the decision despite the prime minister’s pledge to collaborate with affected governments on all significant decisions.

McLeod said he spoke with Trudeau on Dec. 19 voicing concern about the economic impact such a moratorium would have.

“We thought we would have a collaborative relationship when it came to these types of decisions and we are very concerned,” he said.

McLeod said northern residents should be included in such decisions and not pay the price for “what will play in Toronto, Ottawa and Vancouver.”

He said that if the oil and gas sector is reined in, the NWT will expect federal support for other industries.

“This is a hard place to live in,” McLeod said. “We need good jobs for people to support themselves and their families.”

Some provincial governments accused Trudeau of betrayal and showing a lack of respect to people living in more remote areas.

Saskatchewan Environment Minister Scott Moe said “it’s not a good day for federal-provincial relations.”

- GARY PARK






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