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Keystone XL benefits both Canada, U.S. says Paradis
News Articles | The Calgary Herald | Shaun Polczer | November 10, 2010
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CALGARY-Federal natural resources minister Christian Paradis said it’s in the best interests of both Canada and the United States for American officials to give the green light to Calgary-based TransCanada Corp.‘s $8-billion Keystone XL pipeline to the Gulf of Mexico.
Although he admitted the pipeline is “delayed” due to objections in the U.S., he said there’s not much the Canadian government can do to speed the process except to lobby on the company’s behalf.
The biggest hurdle is negative sentiment towards Canadian oil and oilsands generated by attack ads against Alberta and slip ups such as the deaths of migratory birds in Syncrude Canada’s tailings ponds, an unfortunate and “politically unacceptable” incident that has overshadowed the economic and energy security benefits of the line, he added.
“It is ultimately in the hands of the U.S. and there is little the government of Canada can do,” he said. “The pipeline is important for both the nations and we are meeting officials in Washington and also those who have objections to the pipeline to clear misconceptions about dirty oil.”
Regulatory approvals for the 2,700-kilometre pipeline to Texas were delayed after requests by the Environmental Protection Agency for more investigation into the environmental impacts of the project and objections by congressmen and senators concerned Keystone would increase U.S. dependence on fossil fuels at the expense of clean energy initiatives.
But Paradis admitted a new tone out of Washington in the wake of last week’s mid-term elections that saw Republicans regain control of the House of Representatives.
On Tuesday, Rep. Fred Upton from Michigan who is considered a leading moderate Republican, sent a letter of support for Keystone to U.S. Secretary of State Hillary Clinton urging her to approve a project he said would generate $20 billion in spending and create 118,000 jobs while increasing energy security.
“This pipeline will supply approximately 50 per cent of the oil that the United States currently imports from Venezuela and the Middle East,” he wrote. “Canada is our ally and neighbour so shifting our imports from hostile regimes to a friendly one is a no-brainer.”
But other groups in the U.S. questioned whether those benefits would be realized. The National Wildlife Federation on Wednesday said the 118,000 jobs figure was “wildly exaggerated” and accused TransCanada of “exploiting Americans’ economic anxiety to sell a dangerous pipeline” to win public support for the project.
Brenda Kenny, the president of Canadian Energy Pipeline Association, agreed pipelines have become proxies for groups opposed to oilsands. She said it’s important for the countries to have a “fact-based discussion” to maintain the largest energy trading relationship in the world.
“We do not serve the public interest if we allow these decisions to become politicized,” she said. “Anytime these large projects become political you lose ground. One would hope common sense will prevail.”
Greg Stringham, the Canadian Association of Petroleum Producers’ vice-president, said he’s confident Keystone will get the green light. Stringham has lobbied extensively on behalf of the association in Washington and admits there are a wide range of views on the topic of the pipeline and increasing the country’s reliance on fossil fuels in general.
He said the U.S. elections were notionally positive but not a sea change in favour of Canadian oil. “I think it does give it a nudge, but don’t think it pushes it over the edge,” he said. “We’re confident it will be approved but we knew it wouldn’t happen until after the election cycle.”
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