Oil and Gas Sector-Politics and Image

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— Half-a-decade before TransCanada Corp.’s  Keystone XL ran into a wall of political and environmental resistance, a key stretch of the route linking Canada’s oil sands to refineries in the southern U.S. emerged as a tricky, though seemingly surmountable, problem.

The route crossed a landscape of prairie and farmland, far from mountains, tundra, permafrost and other features that make it tough to dig trenches and lay pipe. But there was one obstacle.

Engineers working for another proposed pipeline project called Altex closely examined a route similar to Keystone XL’s and identified a trouble spot. Glen Perry, a pipeline entrepreneur who steered Altex, remembers the warning he received from an engineer in 2006.

“I said, ‘What are the route issues here?’ He said, ‘There’s really only one.’ I said, ‘What’s that?’ He said, ‘You have to go through the boiling sands of Nebraska.’”

Boiling sands are areas where sandy soil is so thin that groundwater can bubble up through it to the surface.

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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.

MURMANSK, RUSSIA—An Arctic winter storm is a vision of terror for seamen: hurricane force winds battering heaving decks encased in thick ice, an ordeal that can drag on for days cloaked in darkness.

So far north, rescue teams are usually a very distant hope. The sinking of a Russian oil rig Sunday in a howling gale off the coast of Sakhalin, on Russia’s Far East coast, left 53 crew members confirmed dead or lost at sea, and added a new chapter to the harrowing lore of Arctic navigation.

Yet as the Arctic climate warms, and vast polar ice sheets melt, international shipping companies are eagerly eyeing two routes across the top of the world — one along Russia’s northern coast, the other through waters claimed by Canada.

Russia has a decades-long lead in controlling its Arctic coast. If Canada doesn’t catch up in claiming territory, the country may not have the power to decide who navigates the Northwest Passage through a sweeping archipelago of more than 19,000 Canadian islands.

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

It’s official: Ottawa has gone bananas.

In recent days, a war of words has erupted over a campaign by a website called EthicalOil.org that urges consumers to stop buying fruit from Chiquita Brands International Inc., following an announcement by Chiquita that it would like its business partners to reduce their use of high-greenhouse-gas fuel sources, including Canada’s oil sands.

Conservative Ministers Jason Kenney and Rona Ambrose tweeted their support for the banana ban, while NDP leadership candidate and MP Megan Leslie accused the government of ignoring climate change. (Meanwhile, most Canadians breathed a sigh of relief that Chiquita doesn’t sell cranberries, and got on with their Christmas shopping.)

The Chiquita saga is only the latest protest to hit the world of petropolitics over the past year. 2011 saw actresses getting arrested, pipelines encircling the White House, ranchers teaming up with environmentalists, and Saudi Arabia taking legal action against television ads.

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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.

The public relations battle over Canada’s oilsands has reached new heights with the Harper government setting its sights on an unlikely foe: Chiquita bananas.

Several high-profile government MPs, including Immigration Minister Jason Kenney and Public Works Minister Rona Ambrose, have urged Canadians not to buy bananas distributed by Chiquita Brands International after the Ohio-based company said it would avoid using fuel for its trucks derived from Alberta’s oilsands.

And now the pro-oilsands group EhticalOil.org is taking the fight to the airwaves with the launch of a new radio ad this week urging consumers to stop buying bananas or premade salads from Chiquita, a company the group calls a “foreign bully.”

“The Chiquita banana company says it’s boycotting oil from Canada’s oilsands. Apparently they like oil from OPEC dictatorships better,” an announcer’s voice says over orchestra music.

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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.

Government “outsourcing” of environmental monitoring in the oilsands has created a fractured system lacking scientific credibility and transparency that caters to oil industry interests, top scientists and environmental groups say.

As environmental groups’ criticism for development in the oilsands finds renewed vigour — with Kyoto abandoned and Total’s Joslyn North strip mine approved in the span of less than a week — the disjointed array of monitoring groups tasked with protecting vulnerable ecosystems simply can’t keep up.

And while the Alberta government promises plans for a new comprehensive monitoring system as early as next month, many are worried it will never match the pace of development.

The provincial government passed most of the responsibility for monitoring land, biodiversity, air and water quality in the oilsands to third-party groups as development boomed in the late ‘90s. Now, production is forecasted to more than double by 2025 — nearly 4.1 million barrels of bitumen per day.

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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.

MURMANSK, RUSSIA—For as long as humans have spread out to conquer the planet, despoiling as they progress, the Arctic’s punishing environment has been its best defence.

Like fortress ramparts, heavy snow, metres-thick ice and battering winds made it very hard for miners, oil drillers and industrialists to take much ground, let alone make a grab for the riches of a frozen sea. Those walls are crumbling fast.

The rush is on to drill offshore in the fragile Arctic, and Russia is at the front of the pack with ambitious, and risky, plans to exploit some of the world’s biggest untapped oil and natural gas reserves.

Around 1,200 kilometres northwest of here, squeezed from all sides by the powerful ice of the Pechora Sea, Russia’s first ice-resistant stationary oil rig in the Arctic shelf is set to begin drilling for crude.

Fifteen years in the building, the Prirazlomnaya drilling platform is 126 square metres, weighs 117,000 tons without ballast, and sits on a gigantic box of heavy steel designed to withstand the intense pressure of constantly shifting Arctic ice.

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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.

The Obama administration’s ongoing delay approving the Keystone XL pipeline is a “tragedy” that is costing the North American economy thousands of jobs and up to $100 billion a year in economic benefit, TransCanada Corp.’s chief executive said Thursday.

“That’s the kind of economic stimulus that gets generated. I don’t think we can afford to continue to delay things like that,” TransCanada president and CEO Russ Girling said in an interview.

But even as he noted Keystone XL has undergone “the most rigorous review of a pipeline ever built anywhere in North America,” Girling told Postmedia News he wants no part of the current fight in Congress over speeding up a decision on his company’s $7 billion oilsands project.

Despite its initial disappointment with a State Department last month that delayed a ruling on a permit for Keystone XL until early 2013, Girling said TransCanada is comfortable working within the new timeline.

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

Jonathan Kay is Managing Editor for Comment at the National Post and a fellow at the Foundation for the Defense of Democracies.

At a dinner event hosted at the Canadian embassy in Washington last week, former U.S. national security advisor Robert “Bud” McFarlane was asked to explain why America has no “energy policy.”

In response, he paraphrased an answer that Gary Hart once had given to that very question: “Oh, you’re wrong about that. We do have an energy policy. We limit ourselves to one fuel. We buy it from a cartel. And every five years, we go to war to maintain that privilege. That’s the policy.”

The fuel, of course, is oil. The cartel is OPEC. And the last war, in Iraq, has cost the United States close to a trillion dollars. That’s a hard number to swallow in a country where the national debt has become a source of shame and political paralysis. It isn’t just peaceniks who are fretting about “war for oil” these days. It’s also hawks like McFarlane and former CIA director James Woolsey, who appeared alongside McFarlane at Thursday night’s panel.

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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.

The handling of the Keystone XL pipeline process by the Obama administration serves as a loud wake-up call for Canada. While America remains our most important market, Prime Minister Stephen Harper has said that Canada should not be a “captive supplier” of energy for the United States. In light of global demand growth, it’s also in Canada’s national interest for Ottawa to act decisively to enable our oil and gas industry to diversify its customer base.

The fast-growing markets in Asia, particularly China and India, are obvious targets, but they need the assurance that Canadian oil won’t be landlocked in Alberta. Federal and provincial governments must understand that the Chinese and Indians are not sitting idly by enjoying the spectacle of the interminable and uncertain Canadian regulatory process. They’re actively seeking long-term supplies from other producers around the globe.

Obviously, the best way to ship Canadian oil to Asia would be through West Coast ports. That’s the rationale both for the proposed Northern Gateway pipeline to Kitimat and for expanding the existing Trans Mountain pipeline system to B.C.’s Lower Mainland.

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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.

A day after native groups rallied in a show of force against the Northern Gateway project, a hereditary chief announced that the Gitxsan people had signed on as a partner in the $5.5-billion proposal – allowing Enbridge to make good on its contention that native opposition to the company’s plans is far from unanimous.

But even as Enbridge welcomed the support of the Gitxsan nation and praised the vision of its leaders, dozens of native groups remained staunchly opposed, insisting that the pipeline-and-tanker project poses an unacceptable risk of oil spills and other problems.

“Enbridge has always had a strategy of offering money to lots of First Nations. Lots of First Nations have refused this money,” Chief Jackie Thomas of Saik’uz First Nation, said in a statement, adding that Enbridge is using a “divide and conquer” tactic in an attempt to win over its critics.

The Saik’uz, along with dozens of other bands, have signed a declaration opposing the project, which would ship crude oil from Alberta to the B.C. coast and condensate from Kitimat to Alberta.

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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

A group of First Nations in British Columbia says it will do “whatever means necessary” to stop exports of crude oil from Alberta’s oilsands through their territories — including the controversial Enbridge Northern Gateway oil pipeline.

The $5.5-billion project, which is currently being assessed by a review panel in Ottawa, now faces yet another public relations setback in its quest to open up a new supply route to Asia.

Some 130 aboriginal groups claimed Thursday the company would be contravening international laws such as the non-binding United Nations Declaration on the Rights of Aboriginal Peoples if it the pipeline goes ahead without their approval.

“We will do whatever means necessary, and we do have the support,” said Geraldine Thomas-Flurer, who represents the Yinka Dene Alliance of five First Nations.

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