Canadian oil will find new paths to markets and continue to create jobs and wealth for Canadians, despite U.S. President Barack Obama’s political decision to deny the Keystone XL permit, according to the Canadian Association of Petroleum Producers.
Canada continues to pursue all forms of energy transportation to markets in all directions. This increased market access will create jobs, economic benefits and government revenues by taking advantage of growth opportunities in Eastern Canada, the U.S. Gulf Coast, Washington state, California and emerging global markets.
“While President Obama stated that the Keystone XL decision is not in the US national interest, Canada’s oil and natural gas industry is clearly in the Canadian national interest,” said Tim McMillan, CAPP president and chief executive officer.
“The Keystone XL pipeline deserved to be approved on the facts of its environmental, economic and energy security merits,” said McMillan. “Comprehensive US reviews found Keystone XL will cause no substantive change in global GHG emissions or other undue environmental impacts.”
Canada is a stable, democratic country that develops its abundant natural resources responsibly with a strong focus on safety and the environment.
Alberta set greenhouse gas emission regulations in 2007 and recently increased its carbon price. Among the top suppliers of oil imports to the United States (Canada, Mexico, Nigeria, Saudi Arabia and Iraq, Venezuela), only Canada has GHG rules in place.
“Canada has demonstrated leadership in GHG policy and technologies relating to the oil and natural gas industry,” said McMillan. President Obama failed to recognize Alberta’s leadership on climate policy.
“Alberta’s oil and natural gas producers have paid a levy on carbon for longer than Keystone XL has been under regulatory review.”
In the oil sands, companies have found ways to reduce per-barrel GHG emissions by 30 per cent since 1990 and continue to seek more reductions through technology development. Companies are investing more than $1 billion into developing new technologies to improve environmental performance through Canada’s Oil Sands Innovation Alliance.
“Canada has what the world needs — a reliable supply of energy that is produced safely and responsibly,” said McMillan. “Canadians will find a way to meet the demands of these global markets.”
Premier Brad Wall also found the Keystone XL decision to be disappointing.
“It is very disappointing, not only for our energy sector but also for the signal it sends about Canada-US relations. Given the facts of the project as canvassed by the US State Department, this decision is more about US domestic politics than it is about good environmental policy.”
“The fact is pipelines are safer — far safer than other means of transporting oil, like rail,” said Wall.
There are currently more than 66,000 miles of oil pipeline in the US with more than 12,000 miles — the equivalent of 10 Keystone XLs - built since 2010. “Oil will move with or without pipelines. Consider the facts,” said Wall.
In 2008, there were 9,500 rail carloads of oil shipped in the US. By 2014, that number had jumped to 493,000 ± more than 50 times as many.
“The US State Department even agrees that greenhouse gas emissions from rail are much higher than emissions from pipeline,” said Wall.
“Yet on Keystone XL, the US administration chose to put political interests ahead of the economic and environmental benefits that would provide and ahead of its relationship with its most important trading partner, Canada.”
“This decision makes approval of Energy East even more crucial and it will be one of Saskatchewan’s top priorities as we begin our work with the new federal government.”
