Canadian Oil

Who would want to stifle the development of the Canadian Oil Sands or prevent it from reaching a market?

Enbridge wants to construct a 730 mile pipeline from Ft McMurray to Kitimat, B.C. on the Pacific coast. It has been dubbed the Northern Gateway pipeline. 4300 people or groups have signed up to comment on the project many of whom want to block the project. Transcanada wants to build the 1179 mile Keystone XL pipeline from Hardisty, Alberta to Cushing, Oklahoma. The Obama administration has delayed the project until 2013. These pipelines would bring jobs and economic expansion to many communities along the pipeline routes. The benefits are obvious.

Environmental groups wish to prevent the pipelines from being built in order to protect the environment and reduce CO2 emissions that they believe cause climate change. Interestingly, it is in the interests of certain governments to assist the environmental groups in their quest to stop the pipeline construction.

Canada's oil represents a new source of supply for the world's consumers. That means that Canada becomes a competitor for OPEC oil. OPEC countries, like Saudi Arabia, have a vested interest in stopping the oil sands projects. Ironically, while environmental groups are often complaining that big oil is funding the skeptical opposition to climate change mitigation efforts it could be those same groups accepting money from big oil (OPEC) who, for their own economic gain, want to assist them in their endeavors to kill the pipelines. Politics makes strange bedfellows.

One can understand the concern of the Canadian government as it goes through the process of public consultation on the merits and demerits of the proposed pipelines. Economic policy in Canada should be directed by Canadians and not by foreign interests trying to implement their own agenda.