No reason not to seek oil off British Colombia, report says

by Jim Beatty and Jeremy Sandler

A technical report on offshore oil drilling has found there are no "fatal" flaws barring oil exploration on B.C.'s rugged west coast. The 200-page report is an updated report originally commissioned by the New Democratic Party government in 1998 but never released.
After an extensive review by Burnaby's Jacques Whitford Environment of potential environmental, social and economic impacts, the report concludes "there are no unique fatal flaw issues that would rule out exploration and development activities."
The Geological Survey of Canada estimates there are 9.8 bn barrels of oil and 25.9 tcf of gas in the Queen Charlotte Basin. Both the provincial and federal governments have for decades had moratoriums on offshore oil exploration in the region, which is prone to both earthquakes and major storms.
While the risks are higher than most, the report suggests that technological advances can minimize the risks. "Design technologies are available to provide security to facilities during major earthquake and storm events," it concludes. However, providing environmental safeguards may prove costly and could extinguish any hope of exploration in some areas, the report says. "The cost of facilities required to protect the environment may make the economic justification of exploration and development questionable" at certain locations.

Environmental and First Nations groups have previously raised objections to offshore drilling in B.C. and Arnie Narcisse, chairman of the Aboriginal Fisheries Commission, scoffed at the report's claim that there are no major obstacles to oil exploration in the region.
"It's just another example of gold rush Gordie and his gold rush mentality here," he said. "He's got this notion that he's got this patch of black gold out in Hecate Strait and he want to tap into it." Narcisse said native groups have long claimed they not only must be consulted before drilling begins, but that they must grant consent. "It would have to take quite a credible and objective review process to convince the First Nations of not only the need for, but the safety of, any proposed oil and gas exploration in the Hecate Strait," he said. "And basically to date, none of the science brings me any comfort."
Narcisse said several bands along the coast are concerned about the environmental impact of drilling, especially on the fishery that many bands depend on for food and income. "This being right in the major migratory route of the Fraser-bound stocks, any accident, any mishap, could very well lead to the potential extirpation or even extinction, [of fish stocks]," he said. "Look at what happened with the Exxon Valdez, they haven't recovered from that yet."

The report now goes to a three-person scientific panel appointed by the provincial government. The panel is expected to provide technical advice to Energy Minister Richard Neufeld by Jan. 15 on the process for lifting the oil drilling moratorium in the region. Meanwhile, the northern caucus of Liberal MLAs will be consulting with northern communities on the issue. Neither Neufeld nor Premier Gordon Campbell returned calls after the report was released.
The Liberal government is keen to begin exploration for oil and gas in the waters off B.C.'s coastline, announcing in July's throne speech that it wants to "explore the enormous opportunities of offshore oil and gas." In July, Campbell expressed disappointment about a report that recommended nine months of additional consultation. "There's an awful lot of people that have their hopes based on oil and gas offshore," he said.
Besides facing opposition from native and environmental groups, the B.C. government must also convince Ottawa to lift its moratorium on drilling in the region. To date, the federal government has shown little enthusiasm for developing offshore resources.