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Oil and Gas Sector-Politics and Image

[Canada] We must be a ‘first mover’ on pipelines and terminals – by Gordon Gibson (Globe and Mail – September 28, 2011)

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.

“We have enormous resource extraction possibilities that
could pay for health care and pensions for decades.
Alas, standing in the way is one very large problem,
namely our sclerotic project approval process for the
necessary pipelines and ocean terminals.” (Gordon Gibson)

Recently an article in Report on Business fingered the Canadian propensity to study resource projects to death, while our competitors around the world get on with them. Result, the Australians, Americans and even the Gulf States capture markets that could have been ours, and we are left virtuously sucking our thumbs.

The article cited a Shell executive who spoke of prospects for the vast shale plays in northeastern British Columbia. We need an expanded customer base to properly develop that resource. Soon the Americans aren’t going to need our natural gas any more, as their own shale production ramps up. Our market increasingly will be in Asia.

It is not just sales, but dollars that are in play. A thousand cubic feet of gas goes for around $4 in North America against $14 in Asia. But to get that premium, we have to build export facilities – pipelines and terminals.

The same argument applies to oil, though in a different way. The Americans would take all the oil we can foreseeably produce – but on their terms. Their own terms means lower-than-world prices, and an ability to backload carbon pricing onto us rather than the U.S. consumer.

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Extremists’ oil protest puzzling – by Ezra Levant (Toronto Sun – September 27, 2011)

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

On Monday, about 250 environmental extremists from across Canada and foreign countries travelled to Ottawa to protest oil. Plus a couple of dozen “journalists” from the CBC, there to cheer them on.

Greenpeace, the $350-million per year multinational corporation headquartered in Amsterdam, was one of the organizers. So was a group called U.K. Tarsands Network.

So, foreigners. Foreigners telling us what to do here in Canada — and boasting about trespassing in secure areas of Parliament Hill. Try that in Saudi Arabia. Or Iran. Try that in the United States, post-9/11.

These foreign meddlers pick on Canada precisely because we are the gentlest country in the world. And it would be too tough to try to protest in Iran or Saudi Arabia. The Saudi embassy is just a few blocks away from Parliament Hill, right on Sussex Dr. Saudi Arabia is the biggest oil producer in the world. They have the biggest oil reserves in the world. If this protest really was about oil, why didn’t they go there?

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Ottawa’s ‘ethical’ oil-sands campaign heats up – by Campbell Clark and Nathan Vanderklippe (Globe and Mail – September 27, 2011)

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 and Lincoln, Neb.— A global battle over the reputation of Alberta’s oil sands is coming to a head. Ottawa is deploying heavy diplomatic guns, on both sides of the Atlantic, to the debate over whether it will be treated as an ethical source for a world that needs oil, or a polluting pariah.

Stephen Harper’s chummy relationship with British Prime Minister David Cameron has begun to yield a friendlier view toward the oil sands, a potential influence in the fight over European standards that could label Alberta oil dirty.

In North America, meanwhile, public protests and diplomatic lobbying are intensifying over the Keystone XL pipeline, which would carry oil sands bitumen deeper into the United States.

Canada’s ambassador to the U.S., Gary Doer, travelled Monday to meet the governor of Nebraska, where pipeline opponents are geared up for public meetings on Tuesday. In Ottawa, hundreds of activists converged on Parliament Hill for protests organized by environmentalists, unions and native leaders – before dozens climbed a barrier fence and were removed by police for trespassing.

While tactics shift, the debate has crystallized:

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Thoughts on BP’s Oily Environmental Problem – by Marilyn Scales

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

I’ve been in the United States these last three weeks, and have been bombarded with news of British Petroleum’s uncontrolled oil spill in the Gulf of Mexico. For readers who don’t already know, BP’s drill rig, Deepwater Horizon, exploded and sank six weeks ago. All of the company’s efforts so far have failed to stem the spread of crude oil from 1,500 metres under the sea onto the coast of Louisiana. Large parts of the fishery on which so many coastal residents depend are closed. A recent report said cleanup workers are falling ill, and workers at rigs near the site of the doomed BP rig, are being sent home because of the noxious smell.

The wall-to-wall news coverage of BP’s woes on American TV has made the tailings ponds of Alberta’s oil sands producers fade into the background. The anti-tar-sands activists have been quieter than usual, perhaps stunned into silence by the spill in the Gulf. The spill is estimated to have released at least 475,000 barrels and perhaps over 1 million barrels of crude oil.

Worse, hurricane season is underway, and expectations are that it could be a very active season. No one knows how far the crude oil could be spread by high-velocity winds.

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Can Coal-to-Hydrocarbons Replace Oil? – by Marilyn Scales

Marilyn Scales - Canadian Mining JournalMarilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication.

Like our readers, we at Canadain Mining Journal have watched the price of crude oil skyrocket and heard the voices of the “greens” calling for a more environmentally friendly energy source.

We don’t usually comment on the oil industry except the massive mining operations of the Alberta oil sands. The oil sands have been roundly criticized as one of the least environmentally friendly fuel sources. Their mining and processing could be made cleaner with a liberal injection of money, but the oil sands still produce conventional hydrocarbons in the end.

Ethanol has been suggested as a replacement for hydrocarbons. But the use of corn, rice and wheat in the manufacture of ethanol has played a major part in the rise of food staple prices, placing an unbearable burden on the world’s most disadvantaged people.

Coal, of course, is the second most popular energy source, behind hydrocarbons. It has a reputation of being dangerous to mine and dirty to burn.

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