Oil and Gas Sector-Politics and Image

The Toronto Sun is the city’s daily tabloid newspaper.

QMI Agency

Three years ago, taxpayers were forced to loan $13.7 billion to General Motors and Chrysler because no banks were crazy enough. Some of that taxpayers’ money has been repaid, but $5.5 billion will never be recovered.

Could you imagine if Alberta’s premier had campaigned against that bailout? Or even spoke out against it now? It’s not like the bailout worked, after all.

There are 2,000 fewer jobs at GM today and 800 fewer at Chrysler. As economist Mark Milke points out, the jobs that were “saved” — at least for now, until the next bailout — cost $90,000 each at Chrysler, and $474,000 each at GM. That’s not a typo. Taxpayers spent $474,000 to “save” each job at Government Motors.

What if Alberta’s premier had said: “If I had my preferences as to whether we prop up a failing, obsolete, over-unionized company in the East or lower taxes, I’ll tell you where I stand: With lower taxes.”

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The National Post is Canada’s second largest national paper. Terence Corcoran is the editor and columnist for the Financial Post section of the National Post.

By saying no to Alberta’s oil sands, McGuinty is starting a campaign for Ottawa to bail out Ontario

Ontario Premier Dalton McGuinty, his province in hock up to a looming $400-billion and his political future looking grim, has decided to do what demagogues often do best: take on an extraterritorial foe. If you can’t win at home, maybe you can pretend to destroy some mythical foe thousands of kilometres away. These days, what could be safer for a broke lefty premier who has squandered billions on dead-end green energy projects than to direct attention to Alberta’s oil sands and Alberta Premier Alison Redford.

What Mr. McGuinty is really after here, however, is not the humiliation of Alberta but the transfer of federal cash to Ontario. The oil sands comments are a pretext, another McGuinty McGuffin that is the front for other real motives.

For weeks now, Ms. Redford and key members of her Conservative Cabinet — Energy Minister Ted Morton and Finance Minister Ron Liepert — have been trying to enlist Ontario and other provinces in a campaign to boost the oil sands as part of a Canadian Energy Strategy.

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The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

CALGARY— Supporters of Alberta’s oil sands say Ontario needs to do more to publicly defend the resource, including standing up for the controversial Keystone XL pipeline, since its economy is the country’s second-largest beneficiary from the production of the gooey bitumen.

According to Alberta Premier Alison Redford, in Chicago for a few days talking up her province’s oil and gas industry, Quebec also needs to do its part to tell Alberta’s story. This is particularly important, she said, on the issue of the $7-billion pipeline that would link Canada to Texas, a project delayed by the White House.

And the rookie Premier, set to soon visit New York and Washington as well, isn’t alone. Pundits and industry are also calling on the have-not provinces to come to oil-rich Alberta’s aid.

“We in Alberta have a resource that matters to the rest of the country,” Ms. Redford recently told members of the Small Explorers and Producers Association of Canada in Calgary, “It’s not enough for Alberta to be talking about the importance of Keystone in the United States.

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The Toronto Star, has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

You know that old saying, “When the U.S. sneezes, Canada catches a cold.”

It still applies. The United States remains our biggest trading partner. What happens there affects everything from our tourism to our exports. But now, Canada is facing a bigger threat to its economic health.

It’s called Dutch Disease — and it’s complicated by Prime Minister Stephen Harper’s newly acquired China Syndrome. Stung by U.S. President Barack Obama’s rejection of the Keystone XL pipeline, Harper is looking to China’s government-owned oil companies.

Dutch Disease isn’t about tulips or wooden shoes or even sick elm trees. It’s about Canada’s steady conversion to a petro-state, fuelled by the rapid development of Alberta’s oilsands. It means that, more and more, Canada’s economy will be subject to the price of oil.

Coined by The Economist in 1977, “Dutch Disease” describes what happened to the Netherlands after natural gas fields were discovered off its shores. The little country became so economically entangled with its resource industry, its manufacturing sector tanked.

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The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Canada’s bitumen resources have a problem, and neither the companies that wish to exploit bitumen or the governments trying to help them seem to understand it.

Bitumen, from which oil is produced, takes more energy per barrel to get at than conventional oil pumped from the ground. Because it needs more energy, bitumen-derived oil produces more greenhouse gas emissions that cause global warming than conventional oil.

That gap – between bitumen-derived and conventional oil – is the problem the industry and governments don’t seem to get. And that gap will widen as more steam-driven in-situ production comes on line, since in-situ uses more energy than open-face mining of bitumen.

There’s not much the oil industry can do about opponents who don’t like any fossil fuels and seek their elimination. These opponents are going to do what they can in an open society to stick spokes in the industry’s wheels.

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http://www2.macleans.ca/

Will new technologies make North American energy self-sufficiency a reality?

The rural state of North Dakota is famous mainly for its rough weather. Its largest city, Fargo, is best known to outsiders as the title of a noir movie in which a body is fed through a wood chipper. With a population half the size of Winnipeg’s scattered across rugged plains, it once held the distinction of being the least-visited state in the U.S. But today, so many people are flocking to North Dakota that there is nowhere to put them.

In a nation beset by joblessness, workers are coming here in such numbers that an estimated 15,000 people are now living in trailers, cars, corporate “man camps” and other forms of makeshift housing. So scarce are places to sleep that in 2010 one firm housed some of its workers by trucking in a chunk of Vancouver’s recently used Olympic Village to the overwhelmed city of Williston.

The reason is an oil boom. Production in the state has surged from 100,000 barrels per day in 2007 to 500,000 barrels per day and growing—almost overnight making North Dakota the fourth-largest producer in the U.S., and on its way to becoming second only to Texas.

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The National Post is Canada’s second largest national paper.

This has been a good week for Alberta’s oil sands — if you measure success in tiny increments. The European Union couldn’t agree to label oil from the ‘sands as dirty, and one of the world’s leading climate scientists released a study showing that large-scale mining of Alberta’s vast bitumen deposits will have very little effect on climate.

The news from Europe is welcome if not quite a full-fledged victory. On Thursday, bureaucrats and experts from the EU’s 27 member countries failed to pass an amendment to the union’s Fuel Quality Directive that would have labelled oil sands oil as 22% more harmful to the climate than convention crude. The vote was 89 in favour of the amendment, 128 opposed with 128 abstaining. Since there was no majority for or against the motion, it neither passed nor failed.

But Thursday’s vote was never going to be the final word. It was, in essence, a survey of environment department bureaucrats and government scientists meant only to inform Europe’s energy and environment ministers. The ministers will hold their own vote — likely late this year — from which will emerge their recommendation to the European Parliament, whose members will cast the ultimate vote on whether or not oil sands oil should be considered “dirty” oil.

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The National Post is Canada’s second largest national paper.

EU fails to back ‘directive’ that ­penalizes the oil sands — but the threat isn’t gone

It wasn’t just the oil sands that dodged a bullet on Thursday, when Eurocrats failed to support a “Fuel Quality Directive” that would have penalized European companies using such oil. Although the move would have no direct impact, since Canada exports little or no oil sands oil directly to Europe, it would have darkened the cloud over Canadian/European free trade aspirations and created a dangerous precedent.

It would have further handed control of trade, and thus the Canadian economy, to a bureaucratic juggernaut effectively controlled by environmental radicals through political puppets. It would also have raised the possibility that restrictions might extend to U.S. exports to Europe of refined products containing oil from the oil sands.

Canada’s Natural Resources Minister, Joe Oliver, described the vote as a “resounding win,” but noted that Canada would continue to defend its interests against “unjustified and discriminatory measures.” Which is a pretty good definition of climate policies in general.

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The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Ottawa’s lobbying campaign pays off; blocked regulation preserves access to global markets

OTTAWA — GLOBAL ENERGY REPORTER – The Harper government picked up key support from France and the Netherlands in blocking a proposed European Union fuels directive that would target the oil sands as a particularly emissions-intensive source of crude.

A vote in Brussels on Thursday gave the Canadian government a win in its battle to preserve global markets for oil sands producers against an environmental lobbying effort, which wants refiners worldwide to pay financial penalties for using the carbon-intensive Alberta crude as well as other sources of “dirty” fuel.

Ottawa has been lobbying the Europeans for two years for fundamental changes to an EU proposal to label oil sands as being more carbon-intensive than other crude sources – a tag that would effectively ban oil sands crude, and threaten to snowball to other regions. Britain had clearly indicated it was in Canada’s camp, but on Thursday, France and the Netherlands helped derail the proposed regulation by abstaining on the vote, which needed a majority of total votes to pass.

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The National Post is Canada’s second largest national paper.

Jason Langrish is the executive director of the Canada Europe ­Roundtable for Business.

Its Fuel Quality Directive is impossible to implement

Today, the European Parliament votes on the Fuel Quality Directive (FQD), a piece of legislation that will in effect classify oil derived from the Alberta oil sands as “dirty,” possessing a higher carbon content than oil derived from other sources.

Canadian climate scientist Andrew Weaver recently published a paper that concluded that the reputation of the oil sands as polluting is overstated. So who are we to believe?

It really doesn’t matter. The reason why the FQD is a bad idea has to do with the questionable aims of the proposed legislation and the near impossibility of implementing it in a meaningful way.

If the EU wants to cut carbon dioxide emissions from upstream production, the FQD is not the right instrument. If oil sands products do not enter the EU they will find other markets, ensuring that there is no reduction in carbon dioxide emissions globally — any carbon dioxide cut the EU would claim from implementation would be false, as the FQD would simply shift the carbon dioxide elsewhere in the global system.

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The National Post is Canada’s second largest national paper.

After the mess in the U.S. over Keystone XL, Canada could really use a win on Thursday — or at least the benefit of the doubt — when the European Union votes on whether to label oil from the Alberta oil sands as “highly polluting.”

A vote in favour of the Fuel Quality Directive would signal that attitudes against the oil sands are hardening, even as far away as Europe. It would also stand out as another home run for the environmental movement and its strategy of picking on the Canadian sector to fight its climate-change and off-oil agenda.

A vote against the directive would set a favourable policy precedent for Canada as it courts new markets for oil sands crude. It would also show its intense lobbying and education efforts in Europe over the past few months are working.

The directive, driven by EU Commissioner for Climate Action Connie Hedegaard, sets a mandatory target for fuel suppliers to reduce the carbon footprint of fuels by 6% over the next decade. The oil sands would be ascribed a higher value greenhouse value (107) than average crude oil (87.5), if byproducts are ever sold there.

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The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

North America’s crude market is increasingly diverging from the international scene, as rising U.S. production and weak demand pose long-term challenges for Canadian-based oil companies.

The U.S. is forecast to lead the non-OPEC world in crude production this year, with Canada not far behind. But that surge in supply is splashing against constraints in pipeline and refining capacity, and against a “peak demand” scenario in which U.S. consumption is not expected to return to the 1985 high water mark any time soon.

That stands in sharp contrast to the international crude market. Globally, high-growth emerging markets like China are driving demand higher, while new production capacity is increasingly concentrated in the hands of a few Persian Gulf states. Geopolitical risks – like the standoff over Iran’s nuclear ambitions – add strain to a fundamentally tight market.

The result is a sharp disconnect between international oil prices and what U.S. and Canadian producers can get for their crude, a divergence that will widen if refiners and pipeline companies fail to keep up with rising production.

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www.oilprice.com

A funny thing is happening on the way to the clean energy future–reality is setting in. There is ‘incontrovertible evidence’ about the economic growth and job creating effects of America’s unconventional oil and gas production boom – more than 600,000 jobs directly attributable to shale gas development. Even President Obama is praising the job creating benefits of ‘America’s resource boom’. America is getting its energy mojo back and that is good news but not the entire story.

How Much Shale Gas is there in the United States? In July 2011 US EIA released a [Review of Emerging Resources: US Shale Gas and Shale Oil Plays produced by INTEK. This is an updated assessment of onshore lower 48 states technically recoverable shale gas and shale oil resources. The assessment found the lower 48 states have a total 750 trillion cubic feet of technically recoverable shale gas resources with the largest portions in the Northeast (63%), Gulf Coast (13%), and Southwest regions (10%) respectively.

The largest shale gas plays are the Marcellus (410.3 trillion cubic feet, 55 percent of the total), Haynesville (74.7 trillion cubic feet, 10 percent of the total), and Barnett (43.4 trillion cubic feet, 6 percent of the total).The INTEK assessment was incorporated into the Onshore Lower 48 Oil and Gas Supply Submodule (OLOGSS) within the Oil and Gas Supply Module (OGSM) of NEMS to project oil and natural gas production for the Annual Energy Outlook 2011 (AEO2011) to provide a starting point for future work.

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The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

CALGARY— “Dirty” is a tough label to bear. It’s simple, descriptive and evocative. It sticks.

At least it has for Canada’s oil sands sector, which has been tarred with the “dirty” brush for the products it wrests from beneath the forest of northeastern Alberta.

The industry has struggled mightily to burnish its image with TV commercials and glossy magazine ads. So it was with open arms that it greeted a new scientific report showing that burning billions of barrels of oil sands crude actually has a modest climate impact.

The report, co-authored by respected climate scientist Andrew Weaver and published in the journal Nature, shows that, when it comes to global warming, the oil sands are far from the world’s chief villain – and is being seized upon by Canada’s top industrial political leaders as proof that the oil sands aren’t as dirty as some have made them out to be.

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