17th November 2012

PQ makes oily mess with its pipeline rhetoric – by Sophie Cousineau (Globe and Mail – November 17, 2012)

posted in Canadian/International Media Resource Articles, Oil and Gas Sector-Politics and Image, Quebec Mining |

Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Just when you think the Parti Québécois has finally put the lid on the outbursts and non-scripted remarks that characterized the party’s first days in power, here comes Daniel Breton.

On Wednesday, Mr. Breton, Quebec’s Environment Minister, said the province could block Enbridge Inc.’s project to transport oil from Alberta to Quebec on environmental grounds. Never would Mr. Breton accept the reversal of the flow of the pipeline between Sarnia and Montreal if it were imposed by Ottawa against Quebec’s will. “What I see is Alberta wanting to transport its oil on our territory without our consent. Are we masters of our own territory or not?” he said, even if is unclear whether the province has authority over the project, which the National Energy Board will review.

After a call from Pauline Marois’ office, Mr. Breton tamed his words. Even his colleague Martine Ouellet, the Natural Resources Minister who has made incendiary remarks of her own, tempered the discourse of this former activist, who is so green he glows in the dark. “There are economic advantages with respect to costs and it also represents an alternate source of supply,” she noted.

There are also political advantages in saving jobs.

Montreal-East, a PQ stronghold, has lost five of its six oil refineries – and the dismantling of Shell’s refinery, where 800 people worked, is still painfully vivid. There are only two refineries left in the province: Suncor’s in Montreal and Ultramar’s in St-Romuald, near Quebec City. And even Ultramar’s modern facility, which employs some 535 workers, is threatened if it can’t substitute the expensive crude it imports from Europe or Africa with cheaper Alberta oil. “We have done everything in our power to stay competitive, so if we can’t access this oil, mid to long term, we will be vulnerable to a closure,” says Michel Martin, Ultramar’s public affairs director.

These competing interests perfectly exemplify the battle that is raging in many locales in Canada and in the United States. On the one side, a confined energy industry that needs to reach its clients, be they in North America or in China. The transportation glut is such that, should there be no additional outlets, Canada’s western oil production will be constrained as of 2014 or 2015, believes the Canadian Association of Petroleum Producers. This is a dire prospect for Alberta and for Canada, which are already feeling the pinch of lower prices.

On the other side stands a well-organized green movement that is fiercely opposed to new pipelines, especially if they carry heavy crude from Alberta’s oil sands. Caught in a middle is a divided population, which remembers the Kalamazoo spill, when 20,000 barrels of oil were dumped close to this Michigan River before Enbridge could close its valves, making the 2010 accident the worst on-shore spill in U.S. history.

For the rest of this article, please go to the Globe and Mail website: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/pq-makes-oily-mess-with-its-pipeline-rhetoric/article5398351/

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