Liquid gold pipelines!

Good Day Folks:

TransCanada's Keystone XL Pipeline project is currently receiving most of the attention because of expanding protests against its construction both here and in the United States. The numbers are potentially staggering: over 2,100 miles with connections to refineries in Illinois and Oklahoma before reaching the American Gulf Coast; $7 billion and 20,000 jobs; a maximum daily capacity of 590,000 barrels. All that remains in the way is the Obama Administration's final approval expected in December of this year.

But there are a couple other important plays currently underway receiving less publicity which will also have a significant impact on Canada: Calgary-based Enbridge Piplines Northern Gateway project from the oil sands to Kitimat, British Columbia; a 120,000 daily barrel expansion (second phase) of the company's piplines and associated equipment on both sides of our border to fully exploit the estimated 503 billion barrels of crude (Bakken Formation) beneath Saskatchewan, Manitoba, North Dakota and Montana.

The Cold Hard Facts

(1) It will be many more years before clean, green energy drastically reduces North American dependence on fossil fuels

(2) Americans are desperate for our crude oil refined or otherwise

(3) Both countries are desperate for the jobs associated with these products

(4) The American economy has been in the duldroms for some time - there is no reason to believe that is about to change in the foreseeable future

(5) Asian markets are booming and will likely continue

Therefore we support the Northern Gateway line because:

(i) jobs would be created in Canada

(ii) the Chinese are prepared to assist with its financing

(iii) during difficult economic times the United States tends to return to its protectionist roots which we've seen time and time and time again - one need not look far to find examples such as duties on our softwood lumber exports and several challenges of the Canadian Wheat Board before the World Trade Organization to name a couple

Ever noticed how it has never challenged our energy exports? Wonder why?

Of course, our position is contingent upon as many environmental safeguards being in place as possible.

Clare L. Pieuk

Postscript

During BP's Gulf oil spill an environmentalist was holding forth about the need to reduce consumption. When asked by a reporter what type of vehicle she drove turned out both she and her husband had SUVs. Some people just don't get it!

Who can forget a few years ago an increasingly frustrated former Prime Minister Jean Chretien negotiating with the United States over trade irritants quipping, "Hope they have a lot of trees to cut down this winter."
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Northern Gateway pipeline fully booked
CBC News
Wednesday, August 24, 2011
Calgary-based Enbridge wants to build a pipeline that would carry crude oil from Alberta to B.C.

Calgary-based oil pipeline operator Enbridge said Wednesday it has lined up enough shippers to fill its proposed Northern Gateway pipelines project that would ship oilsands crude to the west coast for transport to Asian markets.

Enbridge did not identify which Asian and Canadian companies have committed to use the $5.5-billion facility, but Chinese refining giant Sinopec has said it is on board with the project.

Companies have fully subscribed to long-term service on both a 525,000-barrel per day line carrying crude from Alberta to Kitimat, B.C., as well as a smaller line that would bring imported condensates inland.

Janet Holder, Enbridge's executive vice-president of Western access, called the shipper agreements "a major step forward" for the project, which she said would enable Canadian energy companies to fetch a better price for the crude they produce.

The project would diversify the market for Alberta oilsands producers beyond the current sole customer, the United States, where demand growth is expected to slow.

'Enbridge's pipeline isn't happening, period.'— Chief Larry Nooski, Nadleh Whut'en First Nation

But it is controversial with environmentalists, First Nations groups and others who say the threat of a spill poses a threat to the northern B.C. ecosystem.

"Enbridge's pipeline isn't happening, period. It doesn't matter who they get a deal with," Chief Larry Nooski of Nadleh Whut'en First Nation in northern B.C., said in a release.

"They plan to come through our territories and we've already said no, and we'll use every legal means we have to stop them. Their proposed pipeline is against our laws because we refuse to put our communities at the risk of oil spills.

"Northern Gateway will link two of Canada's most important competitive strengths: our tremendous petroleum reserves and our Pacific advantage — safe deepwater ports that are close to the growing markets of the Pacific Rim," said Holder.

"The project has the potential to move Canada into receiving premium prices in the global energy marketplace, rather than the landlocked, one customer price-taker it is today.

Northern Gateway is currently under review by the National Energy Board, and hearings are set to begin in the new year.