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 volume 13, issue #11 - Monday, June 16, 2008

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Canada is keeping the US gas tanks full

by Brent Patterson

12-05-08 In 2006, the Security and Prosperity Partnership called for a fivefold expansion of tar sands oil production. While right-wing pundits are claiming the SPP is dead, the new pipeline network announced by TransCanada in April to connect Alberta oil to southern US markets shows that plans for North American energy integration are going full steam ahead.
Harper seems determined to provide the US with as much oil as it wants -- at whatever the cost to our own energy security and the environment. But the federal Conservatives and the Alberta government are worried that the rising call to reconsider the existing trade model -- to ensure that the environment and workers' rights trump corporate interests — will affect the US appetite for Alberta oil.

Ron Stevens, Alberta's deputy minister and minister of International and Intergovernmental Relations, is heading for Washington to promote oil from the province's tar sands as "environmentally sustainable." The Alberta government isinvesting millions of taxpayer money in a US ad campaign bearing the same message.
At the news conference that wrapped up the recent North American Leaders' Summit, Prime Minister Stephen Harper stated, "Canada is the biggest and most stable supplier of energy to the United States in the world. That energy security is more important now than it was 20 years ago when NAFTA was negotiated, and will be even more important in the future."

This was a clear warning from Mr Harper to hopeful Democratic presidential candidates Barack Obama and Hillary Clinton, as well as the American people, that they should stop any consideration of the idea that NAFTA be renegotiated.
Mr Harper's strategy here seems to be informed by comments made by US Ambassador David Wilkins in November 2006. At that time, Mr Wilkins said, "Secretary Bodman told the Alberta oil executives that if they could produce 5 mm bpd they would have the United States' attention. I believe that the investors and producers in the oil sands and the government of Alberta and Canada have every intention of meeting that goal in the future. So stay tuned."

Canada is already the biggest supplier of crude oil to the United States. In 2007, Canada shipped an astonishing average of 1.848 mm barrels of oil a day to the United States. But the United States wants even more, and Mr Harper seems determined to provide it to them -- at whatever the cost to our own energy security and the environment -- and in spite of public opinion.
In terms of our own security of supply, Canada is increasingly importing oil for our own needs from countries that are not as "stable" or "secure" as Canada, as Mr Harper might put it. In fact, Statistics Canada reported in February that while Canada remains a net oil exporter, our imports have increased to 851,000 barrels of oil per day. About half of this amount comes from Algeria, Saudi Arabia and Iraq.

Additionally, a November 2007 National Energy Board report found Canada will become a net importer of natural gas by around 2028 if production and price trends continue, with the shortfall being met by liquefied natural gas from overseas.
The same day that Mr Harper made his comments in New Orleans -- which was also notably Earth Day -- Statistics Canada released a report saying Canada's greenhouse gas emissions from the production of exported energy jumped by 146 % since 1990. And in order to get this oil to the United States, we are now hearing that Kinder Morgan Canada is constructing a pipeline through Jasper National Park and Mount Robson National Park in order to ship some 40,000 barrels of oil a day from the tar sands to them.

Although Mr Harper likes to describe Canada as an "energy superpower," Canadians are feeling the pinch. The latest national price survey shows the average price for gasoline in Canada is now $ 1.23 a litre. This is approaching an all-time high for Canadians to be paying at the pump.
So it should be no surprise that Canadians reject the course that Mr Harper and Alberta Premier Ed Stelmach want to take us on. Recent polling conducted by the Environics Research Group for the Council of Canadians demonstrates that 89 % of Canadians agree Canada should establish an energy policy that provides reliable supplies of oil, gas and electricity at stable prices and protects the environment, even if this means placing restrictions on exports and foreign ownership of Canadian supplies.

Canadians and Americans are telling their leaders that they want a debate on NAFTA and our energy future.
Mr Harper should take these concerns seriously instead of continuing to cling to NAFTA and a vision of Canada that is seemingly limited to being America's gas tank.

Brent Patterson is the Director of Campaigns and Organizing for the Council of Canadians and is based in Ottawa. His action alerts regularly appear on the web site linked below. He may be reached by email at bpatterson@canadians.org or www.canadians.org.

Source: www.straightgoods.ca / The Windsor Star



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