RESOURCE WORKS – A typically nice sound-bite, but exactly what are these ‘responsible, sustainable, thoughtful ways?’
It’s no surprise to learn Teck’s decision to
back-burner its $20-billion Frontier oilsands mine was preceded by secret
thumbs-down signals from some federal cabinet ministers
As disclosed by The Globe and Mail, “Several Liberal
ministers worked behind the scenes earlier this year against Teck Resources
Ltd.’s proposed oil sands mine in Alberta, according to Liberal and government
sources.”
The newspaper added: “During a cabinet
meeting in February, Agriculture Minister Marie-Claude Bibeau directly called
on Prime Minister Justin Trudeau to listen to the majority of his MPs and
ministers who opposed Teck’s project, instead of the minority who supported it,
the sources said.”
Also named: Revenue Minister Diane
Lebouthillier, Seniors Minister Deb Schulte, and Heritage Minister Steven
Guilbeault.
This back-room politicking and campaigning
adds to the uncertainties and fears troubling natural-resource developers:
What will Ottawa do with new development
proposals?
If we propose a big national energy project, how will Ottawa deal
with it?
What does the new federal environmental assessment system mean in
practice?
The PM then added a remark that continues to cause confusion in the energy industry: “My thinking has always been that we need to get our resources to market, but we need to do that in responsible, sustainable, thoughtful ways.”
And what exactly did Ottawa have in mind when
it announced in 2018 that federal environmental assessments now would require
projects to account for “the intersection of sex and gender with other
identity factors.”
Such uncertainty, and fear, underline the
question major investors and developers are asking:
What exactly is Ottawa’s energy policy?
We’re as confused as are investors here and,
importantly, investors and potential investors based in other countries. Particularly
as news media this year listed shelved projects from coast to coast, involving
everything from a copper mine in BC to a natural gas project in New Brunswick.
As the Calgary Herald noted: “Since 2014, we
identified $213 billion worth of cancelled or stalled projects.”
A prime cancellation, of course, was the
death in 2017 of the proposed $15.7-billion Energy East pipeline that was to
have moved Alberta oilsands oil to Quebec and farther east to New
Brunswick. TransCanada (now renamed TC Energy) shelved the project because
of “changed circumstances.”
Diplomatically, TC did not explain
that. The federal Liberals insisted that it was purely a business decision
by TC, and pointed out that Ottawa had approved the Trans Mountain pipeline
expansion and Line 3 pipeline projects. “Nothing has changed in the
government’s decision-making process.”
But something had changed.
The National Energy Board (now replaced by
the Canada energy regulator) said its project review would now — and
retroactively, at that — consider indirect greenhouse gas emissions, not just
direct ones. And Trans Canada warned that this could affect the project.
The industry was taken aback, and the
Canadian Association of Petroleum Producers protested: “It’s frustrating
when you’re in the middle of a multi-year process and the project gets paused,
the rules change, and they change repeatedly.”
Then came the Trans Mountain expansion
project, which would “twin” the current pipeline from Alberta to an export
terminal on tidewater at Burnaby. Hit by political and activist opposition,
delays, court challenges, and $1 billion in sunk spending, Trans Mountain in
2018 suspended all but essential work, and asked the BC and federal governments
to provide “clarity” on whether the company could proceed.
In the end, the company bailed. And Ottawa
purchased the line for $4.5 billion in May 2018, saying it would seek a buyer.
More recently, billionaire Warren Buffet's
investment firm pulled a planned $4.5 billion out of the proposed Énergie
Saguenay LNG project in Quebec, that was going to process and export Alberta
natural gas. Énergie Saguenay said the reason (as protests and blockades
clobbered the Canadian economy) was "Canada’s current political context.”
Before all this, of course, was Enbridge’s
Northern Gateway pipeline project. That was buried in 2015 as the prime
minister declared that “The Great Bear Rainforest is no place for a
pipeline, for a crude pipeline.” (The planned pipeline terminal in Kitimat
was actually outside the Great Bear Rainforest, but the tanker route down
Douglas Channel tanker would have been within the designated forest area.)
The PM then added a remark that continues to
cause confusion in the energy industry: “My thinking has always been that we
need to get our resources to market, but we need to do that in responsible,
sustainable, thoughtful ways.”
A typically nice sound-bite, but exactly what
are these “responsible, sustainable, thoughtful ways”?
And where are we going, and how is Ottawa
proposing to get there, on the environment and greenhouse-gas emissions?
Where in short, is the documented and detailed
national energy policy that defines the requirements, rules, regulations and
expectations of the federal government?
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