Canada's pipeline gridlock is harming its global reputation as an attractive place to invest in oil and gas projects, says a leading industry group.
Tim McMillan, CEO of the Canadian Association of Petroleum Producers, said Donald Trump's election in the United States adds pressure to Canada to clear regulatory hurdles blocking new projects.
"We may see some or a lot of that capital that would normally come to Canada going other places and to the U.S., who is targeting it," McMillan told The Canadian Press in an editorial board meeting.
"We should be looking at how we position ourselves to have the regulatory framework that we desire and the outcomes we want, but to do it in the most efficient way we possibly can."
The incoming U.S. president has declared he will centre resources in his economy and lift barriers to development. Many in Alberta's oilpatch have expressed concern that Trump will make it harder for Canada to compete for global investment.
Canada has seen many major pipeline projects stalled for the better part of the last decade, with Northern Gateway scuttled by the courts, Keystone XL rejected by U.S. President Barack Obama and protesters gearing up to battle the expansion of the Trans Mountain pipeline if it's approved by the federal government in the coming weeks.
The petroleum association represents the companies that produce about 85 per cent of Canada's natural gas and crude oil. Representatives from Canada's Oil Sands Innovation Alliance and the Canadian Energy Pipeline Association also participated in the meeting with The Canadian Press.
McMillan noted that there was potential for Trump to reverse Obama's decision on Keystone XL. But otherwise, the U.S. election should be viewed as a "call to action" for Canada, he said.
He said Canada's reputation has slipped in recent years to one where companies aren't as confident as they once were that projects will be built in a timely way. The National Energy Board process has taken longer than expected on major projects, and court challenges must be dealt with efficiently as well, he said.
"Canadians have an expectation that we have a world-class regulator that bases decisions on science, on engineering, on geology, and also on community engagement," he said.
"If that's our outcome that we want, that doesn't mean we shouldn't have an efficient system."
He added that Canada is not only competing with the U.S. but with Nigeria, Venezuela, Saudi Arabia and Iraq.
Former prime minister Stephen Harper's government tried to streamline the National Energy Board process in 2012, with controversial results. It created strict timelines that applied to the review of Kinder Morgan Canada's proposed Trans Mountain expansion, prompting protests and court challenges.
Prime Minister Justin Trudeau's government is now broadly reviewing the energy board's structure, role and mandate.
Natural Resources Canada said in a statement that the government recognizes the importance of infrastructure development to access new and growing markets, particularly in Asia-Pacific.
"We are taking concrete measures to improve our regulatory processes, better consult indigenous groups, and regain the confidence of Canadians to enable sustainable natural resources development," it said.
The department said Canada's relationship with the U.S. is one of its most important and it will continue to work with its continental partners to build a "North American energy and resource relationship" that will benefit all countries for years.
Trudeau's cabinet is set to make a decision on the $6.8-billion Trans Mountain expansion before Dec. 19. Kinder Morgan Canada president Ian Anderson has said the company first started to conceive of the project in 2005 and, if approved, the earliest it will be complete is the end of 2019.
McMillan said he was "quite confident" the federal government would approve Trans Mountain because it has gone through the rigorous process set out by the energy board, which recommended approval with 157 conditions.
A recent rally in Vancouver against the pipeline expansion drew thousands of people and environmental groups have held workshops on how to protest the project. Companies are prepared for opposition, said Patrick Smyth, vice-president of safety and engineering for the Canadian Energy Pipeline Association.
Smyth said companies under energy board oversight have security management programs that identify hazards and ensure there is mitigation in place.
"Whatever happens as a result of decision taken by government, our member companies are going to be able to respond to it accordingly," he said.
Comments
Why would the National Observer regurgitate copy from the Canadian Press on CAPP, the most repugnant and controversial lobby organization in Canada?
It is indigestible to read McMillan state their outcome is a world-class regulator that bases decisions on science, engineering, geology and community engagement, when he has been directly responsible for lobbying otherwise. Efficiency for CAPP members means eliminating any and all encumbrance to energy exploitation, which includes landowners and community rights, public health and public interest mandates, environmental protections, which include proper cumulative assessments, testing, monitoring and reporting, GHG emissions reductions, regulatory oversight and enforcement, and liability, while insisting on subsides, tax reductions and preferential treatment for industry and exclusions from carbon taxes and other environmental initiatives.
I have been present in a Synergy Alberta audience where McMillan’s speech seemed to mislead attendees on the frequency of induced seismicity and regulatory response in the Fox Creek region.
https://www.youtube.com/watch?v=hL6DLhj6qJ4&index=1&list=PLl3h-zwlm2Ny7…
When Chris Montgomery with CAPP lobbied our municipal council for mill rate reductions earlier this year (part of a province wide campaign), outside of council, he readily provided answers to media questions and graciously provided his business card, but rudely and ridiculously refused to answer my questions or provide me with his card. Community engagement for CAPP is only inclusive of those in collusion and on script.
CAPP is continually disingenuous in their public relations campaigns, most notably, the recent Raise Your Hand campaign, in which fracced gas was referred to as clean and CAPP implied public health is rigorously protected from impacts by oil and gas operations, replying to my queries with; “Industry has supported previous health studies and is supportive of ongoing health monitoring and regional studies.” Yet the organization refused to provide any details or proof of such health monitoring or regional studies. Not to mention the Alberta Energy Regulator has no mandate for public health and Medical Officers of Health in the province have confirmed no such ongoing studies or monitoring have taken place.
CAPP peddles their influence and industry propaganda in our curriculum, our museums, with our regulators, our governments, schools and science centres and in hundreds of synergy and NGO’s organizations across the country.
Perhaps the industry should consider their reputation is being damaged by representation from repellant and unethical lobbyists.
McMillan’s lobbying records:
https://lobbycanada.gc.ca/app/secure/ocl/lrs/do/clntSmmry?clientOrgCorp…
http://ipolitics.ca/2016/11/16/capp-bolsters-lobbying-efforts-with-blue…
“CAPP has relied on McMillan to do all of its lobbying of politicians and public servants over the past year, according to the lobbying registry.
McMillan has met with several ministers and top civil servants, but never with Environment Minister Catherine McKenna, anyone from the Prime Minister’s Office or Carr.
CAPP said there isn’t any evidence the Liberals are refusing to engage with the oil sector.
“We do not see any indication of federal (or provincial) government agency or department refusing to engage with CAPP as a representative of the oil and natural gas industry,” wrote Klassen.
In contrast, McMillan or CAPP officials were able to meet with then Natural Resources Minister Greg Rickford six times over the course of 2014 when the Conservatives in power.
Bluesky is closely associated with the think-tank Canada 2020, given that both organizations share the same founders.
Canada 2020 President Tom Pitfield is a childhood friend of Prime Minister Justin Trudeau and the husband of Liberal party President Anna Gainey.”
http://www.canadalandshow.com/oil-sands-lobby-group-sponsored-and-edite…
http://tomduck.ca/posts/2015-10-03_oil-industry-behind-omnibus-bill.html
http://business.financialpost.com/news/energy/oil-and-gas-lobbying-domi…
http://rabble.ca/blogs/bloggers/djclimenhaga/2014/02/revelation-capp-pa…
http://www.cbc.ca/news/canada/edmonton/dismissal-of-illegal-lobbying-co…
http://platformlondon.org/2013/12/02/canadian-museum-accepts-oil-sponso…
http://commonsensecanadian.ca/REPORTED_ELSEWHERE-detail/bc-govt-bowed-o…
“For example, CAPP was associated with the scandal involving Bruce Carson, former advisor to the prime minister who was prosecuted for influence peddling and improper lobbying (source: http://thetyee.ca/News/2015/10/05/Canada-Biggest-Unheard-Political-Scan…).
https://www.ceres.org/investor-network/resolutions/suncor-issue-annual-…
https://www.foeeurope.org/sites/default/files/publications/foee_canada_…
BANG! Diana Daunheimer nailed it.
Canada's pipeline companies and their respective abysmal and captured regulators, are harming Canada's global reputation as an attractive place to live, have responsible environmental policies, be accountable to all Canadians, practise sustainable resource development, and act against climate change, (say Millions of Canadians).
Petroleum Industry reputation preventably hurt by self-inflicted injuries. DNR.
Oh darn, we are told by the tar oil industry that Canada's reputation is damaged because its citizens insist on being democratically involved in deciding whether to allow more pipelines and tankers on their lands. Citizen involvement is so inconvenient for the industry--they don't want it.
Mr. McMillan said in his statement, Canada is competing with the likes of Nigeria, Iraq, and Saudi Arabia. McMillan is suggesting that our reputation is shrinking verses those brilliant paragons of awesome citizen involvement and, therefore, we need to be more like them and leave pipeline decisions up to autocrats. That's horrible. McMillan shows where his anti-democratic group stands with this kind of comparison.
David
CAPP, having been in hot water countless times over the years for spreading lies about climate change, malfeasance with regulators, etc, should have been abolished long ago. Probably would have, if not for their Daddy Warbucks style of greasing palms. They are a very large part of the problem and their dire warnings are intended to manipulate events to further enrich themselves, regardless of future consequences to the planet. With so many worthy stories unreported, it is sad that they are given any and that is bad for the entire planet. Please stop helping them with the free advertising, I am sick of their lies.