The North American Institute

Our True North

2009-07-01T18:54:00-06:00

The New York Times, July 1, 2009 - “Today, on Canada Day, 11 Canadians living in the United States share what they miss most about home. UNTIL 1982, Canada Day was known as Dominion Day. I always thought that had more of a ring to it. Beyond the zippy alliteration, it reminded us citizens that our domain of orderly domesticity was graced by the dominant power of our “Dominus.” And the rights granted therein to us by the glorious English crown through her colonial appointee, the right honourable governor general.There was another problem with Dominion Day. Dominion was the name of a national grocery store chain. It would be like calling the Fourth of July D’Agostino’s Day. Independence (now there’s a great name for a day!) came slowly to our country. In 1965, we dumped the old, staid British ensign for our own new flag. in lIt’s the one with the big red maple leaf in the middle. A simple, sweet leaf! We also have moose and beavers on our coins. And we call our dollars loonies because the coin has an image of a loon. Another old bird, the Queen of England, is on the other side of the coin. Read More.

Oil sands to take hit from U.S. bill

2009-06-30T13:29:00-06:00

Globe and Mail, June 30, 2009 - “Producers and their U.S. refiners face sharply higher costs - Alberta’s oil sands producers and their U.S. refiners face sharply higher costs to reduce greenhouse gas emissions under legislation approved by the U.S. House of Representatives and championed by U.S. President Barack Obama. The American Clean Energy and Security Act, if passed by the U.S. Senate, could also result in new tariffs on Canadian exporters of energy-intensive goods from cement to chemicals if Washington deems Ottawa’s climate-change regulations to be lacking. Under the cap-and-trade plan, U.S. refiners will have to buy permits for each tonne of carbon dioxide that they send into the air. While utilities will be provided free allocation of those permits to reduce the impact on power users, the oil industry will have to purchase virtually all of its permits. Such a system would heavily penalize oil companies that ship oil sands bitumen to the United States because refining the raw bitumen into petroleum products such as gasoline and heating oil is more energy-intensive and higher in emissions than is the processing of conventional oil. U.S. refiners processing the heavier oil sands crude will face higher permit costs, cutting into profit margins for producers and refiners. Both producers and refiners would likely share that cost. A resulting drop in demand would in turn drive down the price of bitumen. Many U.S. refiners have been moving to retool their refineries in recent years to accommodate the heavy crude from Alberta’s oil sands. But the proposed legislation could put all of that at risk.” Read More.

Proximity, reality, strategy, destiny

2009-06-27T20:24:01-06:00

Globe and Mail, June 27, 2009 - “The forces of history are challenging Canada’s relationship with the U.S. – it’s time to make some choices - South of the border, Barack Obama is bringing a strategic focus to American foreign policy. An emphasis on multilateralism, a determined effort to refurbish the image of the United States, the pursuit of dialogue with Iran, a reaching out to the Islamic world, reinvigorating negotiations in the Middle East, a renewal of nuclear disarmament with Russia, leadership on climate change – these are all part of the President’s new global agenda. One item that seems to be missing is any strategic focus in Washington on its northern neighbour. Aside from Mr. Obama’s campaign proposal to renegotiate NAFTA (since abandoned), the new initiatives coming out of Washington seem directed to the hardening of our common border, the unleashing of a flood of Buy American laws and the badmouthing of our oil sands. Unlike Ronald Reagan, who had a vision of a deep trilateral relationship in North America and free trade throughout the Western Hemisphere, Mr. Obama and his advisers, notwithstanding his choice of Ottawa for his first official visit, show little interest in the relationship with Canada. If there is no sign in the U.S. government of a strategic vision toward Canada, our own government has reciprocated by showing no sign of interest in a strategic review of our relations with the United States. But now the forces of history and economic change are challenging the dominant characteristic of our foreign policy for more than half a century: our privileged relationship with the United States.” Read More.

Oilsands operations change, evolve to silence detractors

2009-06-25T13:20:00-06:00

Calgary Herald, June 25, 2009 - “With myriad challenges facing the oilsands--economic, political, social, environmental or regulatory --it’s astonishing that any company, let alone investor, has the stomach for dealing with all the hurdles. On Wednesday, there was yet another missive lobbed, by U. S. environmental group ForestEthics, asking U. S. Secretary of State Hillary Clinton not to sign permits that would allow Enbridge’s Alberta Clipper 450,000-barrel-a-day pipeline to ship bitumen to refineries in the United States. The argument, as usual, is about the carbon footprint of the oilsands, though when looked at in terms of global emissions or relative to other sources of imported oil, or even California Thermal, the impact in either context doesn’t amount to a “hill of beans.”
But the oilsands producers are taking note of what’s happening around the world and how it is bound to affect their business. They’ve seen everything from the comments made Wednesday by U. S. President Barack Obama on the need to proceed with the clean energy legislation to investor protests at annual meetings of European companies involved in the oilsands.The reality is that these companies are setting aggressive environmental goals on their own. In Shell’s case, it is doing research and development that will put it beyond basic compliance of the new Energy Resources and Conservation Board Regulation 74 governing tailings ponds reclamation. After years of being a footnote in presentations and annual reports, the environment is garnering an increasingly larger share of the limelight.
Shell is hard at work --both in the Calgary Research Centre Lab and at its Muskeg River Mine-- looking for the solution to tailings ponds; the stuff that is part of the mining process that serves as a vehicle for the recycling of water but also contains higher concentrations of naturally occurring elements. But Shell’s not the only one. All the oilsands players are engaged in a race to find the answer to this issue, which will expedite the reclamation of the land associated with the mining process. Darrell Martindale, manager of environmental and regulatory compliance for Shell’s Albian operations and who previously worked in Indonesian copper mines, believes the solution to the tailings issue is not far off. Clearly, there seems to be a school of thought that if this issue is solved, it will take away some of the controversy over the oilsands. Still, it’s the collective size of an oilsands mining operation that remains arresting --and such an easy target. Read More.

Alberta’s oil sands show signs of life

2009-06-22T12:15:00-06:00

Globe and Mail, June 22, 2009 - “Run-up in oil prices contributing to guarded optimism, as trades begin to rebound - Unlimited overtime pay was just one of the many perks John Halbauer enjoyed as a welder during Alberta’s super-sized energy boom. That’s disappeared, along with 11 of the 25-year-old’s 13 co-workers who got laid-off in January. “I was worried. I didn’t know if I was going to have to move back home or what,” the Kimberley, B.C., native said.His employer, Harley’s Welding Inc., is located in Nisku, an industrial park south of Edmonton that caters to the province’s notoriously unpredictable oil and gas industry. Most companies were hit hard when the global economic crisis and plummeting energy prices side-swiped Alberta late last year.But in recent weeks, Mr. Halbauer and many others in the province have noticed that the economy is slowly improving, especially in the northern half of Alberta.“We are almost really busy. Work is rolling in,” Mr. Halbauer said. Indeed, a run-up in oil prices and recent news that two oil sands projects, including Imperial Oil Ltd.’s $8-billion Kearl mine outside Fort McMurray, are going ahead has buoyed many. But the optimism is guarded, and no one is predicting another unprecedented boom for Alberta, once the country’s hottest economy. Read More.

Canadian premiers and US governors attending the Western Governors’ Association Conference.

2009-06-15T22:13:01-06:00

AHN, June 15, 2009 - “Canadian premiers and United States governors attending the Western Governors’ Association yearly conference are pushing for a cross-border Western Energy Corridor. If the plan pushes through, it would be the largest in the globe to develop both non-renewable and green energy options. The corridor, planned by Saskatchewan Premier Brad Wall and Montana Governor Brian Schweitzer, could open new markets to Wall’s province and two other Canadian provinces. These are Alberta and Manitoba.

Schweitzer pointed out, quoted by the CanWest News Service, “The most important energy corridor on the planet is no longer the Persian Gulf. It runs from the oilsands, Fort Mc-Murray to Port Arthur, Texas.... A large part of energy independence is going to be dependent upon developing the oilsands.” Manitoba Premier Gary Doer said the western region of both nations is uniquely positioned to join efforts on energy issues. Doer said in a statement, “Manitoba supports necessary security measures that protect Canadians and Americans alike. At the same time, we will continue to work with our American neighbors to ensure that our integrated economies are open to each other. North America’s strength as a region lies in working with our top trading partner to increase trade and build of economies.” Read More.

ERCB rejects new hearing on Alberta oilsands mines

2009-06-13T14:49:00-06:00

Calgary Herald, June 12, 2009 - “Alberta’s energy regulator has turned down a request from environmentalists to order a new public hearing into Royal Dutch Shell’s Jackpine mine and Muskeg River mine expansion projects north of Fort McMurray.The groups said Shell failed to live up to voluntary pollution reduction agreements signed with them that earned their support in 2004 and 2006 for the bitumen expansion projects. The Oilsands Environmental Coalition (OSEC), which includes the Pembina Institute, asked the Energy Resources Conservation Board in April to order new hearings into the two projects, which were put on hold late last year as oil prices fell. “In the decision, the ERCB agrees that Shell has broken its commitment for greenhouse gas pollution, but the ERCB is refusing to do anything about it,” said Simon Dyer, Pembina’s oilsands program director. “We think the ERCB has an obligation to reopen the public hearing, and we are evaluating our legal options. This sets a very bad precedent for the ERCB, and is giving companies a licence to break commitments to Albertans with no consequences.” Read More.

Influenza Q & A

2009-06-12T12:35:01-06:00

Globe and Mail, June 12, 2009 - “The flu and Canada -The WHO declared that there is a pandemic. That implies things are much worse. What does the move to phase 6 mean to me as an individual? Is the risk greater today than yesterday? For a Canadian, the risk posed by pandemic influenza A/H1N1 (also known as swine flu) is exactly the same today as yesterday – and that risk is pretty minimal. The pandemic alert phases refer strictly to geographic spread of the flu. Influenza started spreading slowly in North America in March. Now it is making its way around the world. Australia is currently seeing the rapid spread of flu – and related panic – that we saw in Canada a month ago. Practically, the move to phase 6 means nothing to Canadians. We have been in pandemic mode for a number of weeks. As David Butler-Jones, Canada’s chief public health officer, has said repeatedly: The real worry for Canada is what will happen in the fall, when flu season returns to the northern hemisphere. The fear is that A/H1N1 could return with a vengeance then. How long will phase 6 last? In other words, when will the pandemic be over?” Read More.

Alberta Tories take aim at Ottawa brethren

2009-06-09T12:34:00-06:00

Globe and Mail, June 9, 2009 - “The Harper Conservatives are being taken to task by their provincial Alberta cousins, who say Ottawa is failing to inform them of key government policies, treats the unemployed unfairly and falls short in boosting the oil sands.The concerns are expressed in a list of talking points prepared last month for Alberta MLAs to raise with their federal Tory brethren in their home ridings. At one point, the talking points give kudos to Liberal Leader Michael Ignatieff for backing the oil sands in response to a recent article in Canadian Geographic magazine."Why is the federal Liberal Leader giving more ringing endorsements about the importance of the Alberta oil sands than our Prime Minister from Calgary,” asks the document, obtained by The Globe and Mail. It also says the federal government does not consult the province on environmental policy. Environment Minister Jim Prentice, who is from Calgary, said he saw the talking points two weeks ago but was not concerned. He said he met with Premier Ed Stelmach last Friday and the document had not affected relations between the two sides. “I would say it is inaccurate and it doesn’t affect our relationship at all.” He added that, as Environment Minister, he consults with provinces before conferences. “In terms of our working relationship, it’s great.” He also said he regularly meets with his counterpart, Alberta Environment Minister Rob Renner” Read More.

U.S., Canadian groups gear up to halt oil sands development

2009-06-05T12:36:01-06:00

The New York Times, June 5, 2009 - “The Sierra Club, Greenpeace and 28 other North American environmental groups are calling on the United States and Canada to boost investments in clean energy, halt industrial fishing in the Arctic and freeze expansion of the Alberta’s oil sands—a key source of U.S. petroleum imports and greenhouse gas emissions. The groups’ joint declaration, signed in Washington on Tuesday, comes as Democratic leaders in Congress attempt to pass legislation that would cap U.S. emissions of carbon dioxide and other heat-trapping gases at 83 percent below 2005 levels by 2050 while boosting renewable energy production. The eastern Canadian province of Ontario, meanwhile, is considering legislation that calls for 10,000 megawatts of new renewable energy and 6,000 MW of conservation by 2015, among other things. The environmental groups hope to use the North American action as a catalyst as U.N. countries broker a successor to the Kyoto Protocol, which expires in 2012. Canada and the United States will be among nations gathering in Copenhagen in December for the next round of U.N. climate negotiations.” Read More.

Are Crude Prices Favoring the Oil Sands?

2009-06-03T12:55:00-06:00

The New York Times, June 2, 2009 - “A research report from UBS Securities, released on Monday, predicted that Canadian oil sands development is poised to be “back in black” due to rising crude prices and a wave of mergers among some of Alberta’s top energy players.
Andrew Potter, an analyst based in Calgary, estimated that oil sands projects will now become economic in the $40-$60 a barrel range, down significantly from last fall’s peak of $80-$100.He also argued that the bitumen patch won’t soon return to the “hyperinflationary environment” of the 2006-2008 period because consolidations, like the $40 billion Suncor/Petro-Canada merger in March, mean fewer large energy players will be racing to build new projects concurrently. Mr. Potter said the sobered-down industry looks to be adopting a “more sustainable growth path” and calculated that production through 2015 could be 29 to 42 percent lower than UBS’s steep growth forecast from a year ago. Until the market collapse, the multibillion-dollar sprint to develop the oil sands had led to severe labor shortages and skyrocketing capital costs, climaxing with the Fort Hills reserve, which needed oil prices to reach $100 a barrel to produce a 10 percent return on investment. Since the fall, more than $200 billion in investment has been put on hold, according to estimates published in The Globe and Mail.” Read More.

Labour group worried about oilsands jobs seeping out of Alberta

2009-05-31T22:43:00-06:00

The Canadian Press, May 31, 2009 - “It used to be a foregone conclusion that the gigantic shovel-and-dumptruck operations in the oilsands would go hand-in-hand with an upgrader - a multibillion dollar facility to turn the sticky bitumen squeezed from the sand into lighter oil that refineries can handle more easily. But some companies - most recently Imperial Oil Ltd. (TSX:IMO) - have opted to go without building one of those expensive complexes. And the head of Alberta’s labour group warns the move away from the oilsands’ traditional business model means the province’s already grim employment picture won’t brighten when the economy bounces back. Among other options Imperial is looking at is sending production from its recently approved Kearl project to refineries in the United States, which can been retrofitted to handle heavier crude. The Alberta Federation of Labour has been urging intervention from the Alberta government to stamp out what is sees as a disturbing trend. “The same general economic conditions that convinced Imperial to go with an extraction-only project will likely convince other developers to do the same,” said AFL president Gil McGowan in an interview.” Read More.

ALBERTA IN TIE-UP WITH OPEC

2009-05-25T14:45:00-06:00

National Post, May 25, 2009 - “Province will get voice in energy discussions - For the first time, Alberta and the Organization of Petroleum Exporting Countries have established an official relationship. It’s a new strategy with big implications, including potential investment by OPEC members in Canada’s oil sands. The link was formalized by Ed Stelmach, Alberta’s Premier, during a visit to OPEC’s Vienna headquarters earlier this month and gives the province a seat at OPEC’s ‘dialogues’ on matters of mutual interest. Other jurisdictions, such as the United States and the EU, take part in the events. “I’ve always found it’s a good thing to know your competitors,” Mr. Stelmach said after meeting with OPEC’s Secretary-General, Libya’s Abdalla Salem El-Badri, about two weeks ago. “There are connections that can only be made in person, one-on-one.” While Alberta has had meetings with OPEC representatives in the past, such as between former Alberta premier Peter Lougheed and Saudi Arabia’s Sheik Yamani, the new link is the first political connection between Alberta and OPEC, said Paul Stanway, the Premier’s spokesman. “We are not able to be an official observer, but we are able to take part in this dialogue process they have with other major oil and gas producers,” he said, noting the observer status is bestowed only on nations such as Norway or Russia.” Read More.

Tar sands’ climate threat, security promise both exaggerated—report

2009-05-24T19:15:01-06:00

The New York Times, May 22, 2009 - “Further development of Alberta’s famous oil sands will be neither the climate disaster that activists fear nor the energy security panacea that proponents suggest it is, the Council on Foreign Relations concludes in a new report.
The reality of the oil sands in the international energy and climate picture suggests both the United States and Canada would be wise to develop climate policy in tandem, or at least link whatever independent cap-and-trade programs for greenhouse gases each government may develop, a researcher at the New York-based think tank says. “There is a compelling case, even absent the oil sands, for harmonizing U.S. and Canadian carbon pricing schemes,” writes Michael Levi, senior fellow for energy and environment at CFR. “The oil sands factor, in both its energy security and climate change dimensions, only makes that case stronger.” The simplest way to do this would be to allow cross-trading of emission allowances between two systems, leading to carbon prices that are roughly the same on both sides of the border, Levi says. A combined cap-and-trade system would be even better.” Read More.

Finding oilsands efficiencies is key

2009-05-22T14:52:00-06:00

Calgary Herald, May 22, 2009 - “There is much for Alberta’s comfort in a recent report on its oilsands from respected energy consultants IHS Cambridge Energy Research Associates. There are also important policy hints, however, to which the provincial government should pay attention if its goal of releasing the oilsands’ full potential is to be met. Several months in the making, CERA’s report describes oilsands reserves as second only to those of Saudi Arabia, and recognizes their future importance to the Canadian economy, and to continental energy security. But the oilsands are cursed, says CERA, by the perception its product is “dirty"--a reference to the elevated CO2 emissions accompanying extraction. It is therefore a matter of mutual concern to the Alberta seller and the U. S. buyer that the industry wins the public relation’s war on emissions. Happily, the degree to which oilsands-derived gasoline carries a CO2 penalty has been exaggerated, (for obvious political reasons.) On a well-to-wheels basis—the only measurement that really matters--tailpipe greenhouse gas emissions from oilsands gasoline are no more than five to 15 per cent greater than those from the average crude oil refined in the U. S. (CERA adds that the U. S. consumes crude oils with a wide range of GHG emissions,"some with emissions higher than those from the oilsands.")This point must gain general acceptance in the key U.S. market.” Read More.

The no longer quite so undefended Canada-U.S. border

2009-05-20T16:53:00-06:00

CBC News, May 20, 2009 - “In the weeks following the al-Qaeda attack on the World Trade Centre, sales of the tranquillizer Xanax shot up 22 per cent in New York and, in many respects, America’s collective anxiety level never seemed to go down. Today, the U.S. fear of another terrorist attack is transforming the U.S.-Canada border. In February, the U.S. Customs and Border Protection agency began patrolling the North Dakota-Manitoba border with the first of what is expected to be a fleet of unmanned aerial reconnaissance vehicles — drones that cost roughly $10 million apiece. And now, as of June 1, Canadians wanting to enter the United States at one of the 94 land crossings will no longer be simply waived through after a short chat with a U.S. border guard, or a quick glimpse at their birth certificates or driver’s licence. Canadians citizens will now have to show one of three documents: a Canadian passport; a credit card-sized piece of plastic, called a NEXUS card, for frequent travellers; or a so-called “enhanced” Canadian driver’s licence with a computer chip in it, in the process of being made available in four provinces. This move is the latest in a series since 2001 (including closer border inspections and the use of tracking technology to monitor the movement of goods and people over longer distances) designed to “thicken” the Canada-U.S. border, as the U.S. Department of Homeland Security puts it. The goal is to develop what is often called a virtual border involving much more electronic tracking and, ultimately, to keep the bad people out. For homeland security, the bad people include drug runners and queue-jumping immigrants. But the baddest of the bad are Islamist extremists and most U.S. politicians, it seems, agree with the FBI and CIA that the most likely place for these extremists to launch an attack on United States is via Canada.” Read More.

Canada details fund for carbon capture, clean energy

2009-05-20T12:57:00-06:00

Reuters, May 19, 2009 - “The Canadian government announced details on Tuesday of the C$1 billion ($860 million) clean energy fund it promised in February, with the lion’s share of the cash going to support the development of carbon capture and storage projects.
Natural Resources Minister Lisa Raitt said in a statement C$650 million has been earmarked to help pay for large-scale carbon capture and storage demonstration projects as the government looks to follow through on agreements made during U.S. President Barack Obama’s February visit to Canada. The remaining cash will be directed to paying for smaller-scale renewable and alternative energy projects and a C$150 million fund for researching clean energy technologies. The Conservative Party government is looking to keep up with U.S. initiatives to stem climate change and to offset criticism of Canada’s environmental record and of carbon-intensive oil production from the country’s oil sands.” Read More.

Ottawa must protect Alberta’s water from oilsands development, committee told

2009-05-14T16:45:01-06:00

Calgary Herald, May 14, 2009 - “Environmental groups called on Ottawa to play a larger role in protecting water sources in northern Alberta, while oilsands industry members told an all-party committee of travelling MPs on Wednesday of efforts to lessen impacts on the land, fish and water. As the House of Commons standing committee on environment and sustainable development heard from witnesses inside a conference room at a Calgary hotel Wednesday, a small group of protesters gathered outside. A large blue balloon held up a sign: “Water is life. Protect Inherent Treaty and Human Rights.” “We wanted to have a visual reminder,” said Eriel Deranger, a campaigner for the Rainforest Action Network and a member of Alberta’s Athabasca Chipewyan First Nation. Inside, the proceedings focused on technology and water testingOilsands companies and lobby groups spoke about their industry’s efforts to monitor the health of watersheds and fish populations, to use saline instead of fresh water and to reduce the impact of toxic-waste ponds known as tailings ponds.“Tailings ponds are carefully engineered structures,” said Don Thompson, president of the Oil Sands Developers Group. “This industry takes tailings ponds very seriously in terms (of) the design, operation and reclamation. The people who design and operate these ponds are fully aware of the need to protect ground and surface water. But a group of environmental organizations testified that for too long the federal government has left regulation of the oilsands to the industry and provincial government. Calgary-based Ecojustice lawyer Barry Robinson said Ottawa should use its finances and jurisdictional clout to change environmental practices in the oilsands. “We are asking the federal government to step up and address the water issues in the oilsands,” Robinson said.” Read More.

Caution tempers gains in oil price

2009-05-11T22:44:00-06:00

Financial Post, May 11, 2009 -” Investors seem more optimistic than insiders - Canadian oil and gas stocks had some of the best gains last week since the oil price downturn began last July, buoyed by investors so encouraged by broader economic news there was a rush to rebuild exposure to the sector. The group bounced 10.56%, led by intermediate producers. It was the second-biggest gain since oil peaked at US$147 a barrel. (The biggest weekly gain since stock prices came off the July peak was in the week of Nov. 21 to Nov. 28, when oil and gas on the Toronto Stock Exchange surged 22.09%). It was one of those rare moments when people outside the oil and gas industry were more optimistic about its prospects than people inside. Within, the mood, reflected in annual shareholders meetings’ presentations, remains somber. Meanwhile, budgets are staying tight, cost cutting continues and there is little talk of reviving cancelled projects. Psychology has something to do with it. If oilmen are reserving judgment on the market’s oil party, it’s because the downturn of the last nine months was so severe and so unexpected it shook their confidence in their ability to see the future.” Read More.

Canada’s EU trade talks catch U.S. attention

2009-05-08T12:35:00-06:00

Winnipeg Free Press, May 8, 2009 - “ When NATO was under negotiation in 1949, Canada wanted to create not just a military alliance, but a trans-Atlantic economic and political union too. The heft of the larger European countries, it reasoned, would restrain the growing clout of the United States. Rebuffed, Canada was drawn firmly into America’s orbit. Sixty years on it has come back with a scaled-down plan, starting talks on Wednesday with the EU aimed at a bilateral trade agreement. You can see why Canada would want to lessen its dependence on America, which bought 75.5 per cent of its exported goods last year and provided 63.4 per cent of its imported ones. Yanked into recession by America, Canada worries that trade will suffer from protectionism (in the form of new Buy American provisions and country-of-origin labelling requirements on farm products) and Washington’s moves to toughen up border security. It is less clear what motivates the EU, which traded a mere $103 billion with Canada last year.” Read More.