Publisher David Black ups ante for [Kitimat] refinery to process Northern Gateway oil – by Claudia Cattaneo (National Post – September 27, 2012)

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Rather than falling off the rails because of its challenging economics, a proposal to build an oil sands refinery in Kitimat, B.C. by newspaper baron David Black has gained so much support it seems to be getting British Columbians to warm up to the dreaded Northern Gateway pipeline.

The main reason? Jobs. British Columbians seem to be willing to downplay environmental concerns, aboriginal priorities and even Alberta envy if it means thousands of new B.C. paycheques and tax revenue.

A poll of 1,400 British Columbians conducted for Mr. Black, the Victoria-based newspaper publisher who proposed the $13-billion project last month, found that 72% are in favour or somewhat supportive of refining Alberta’s oil in Kitimat using local labour rather than shipping bitumen to Asia.

“In B.C., that’s a landslide,” Mr. Black said Wednesday, when he made public the poll results. “This was a vote on the pipeline and the refinery — obviously there is no refinery without a pipeline. The average person is in favour of the two.”

The entrepreneur, who publishes 150 newspapers in Canada and the United States, said British Columbians were largely opposed to the Northern Gateway project until he proposed a 550,000 barrel-per-day refinery to process all of its output, creating 6,000 construction jobs over five years, and 3,000 permanent refinery positions.

Mr. Black argues the refinery would reduce the threat of offshore pollution from an oil spill because refined fuels float and evaporate, while bitumen lingers for years.

The poll confirms what B.C. Premier Christy Clark has been arguing — that B.C. needs to see greater benefits from oil sands pipelines to compensate for the environmental risks. It will no doubt be on the agenda if Ms. Clark meets with Alberta Premier Alison Redford in Calgary next week as the B.C. premier has requested.

But the refinery idea offers more than a handout from Alberta.

It would be the first big B.C.-grown initiative to take advantage of oil and gas opportunities emerging in the province and British Columbians are giving it the thumbs up.

The poll found that 78% of respondents were aware of the refinery proposal; that 72% are in favour because of the jobs it would create and the reduced risk to the environment. The 28% who are opposed are worried about the environment and don’t like Northern Gateway.

For the rest of this column, please go to the National Post website: http://business.financialpost.com/2012/09/26/publisher-david-black-ups-ante-for-refinery-to-process-northern-gateway-oil/