Politicians disappointed by pipeline ruling
Local politicians and oil and gas sector officials say the Trans Mountain Pipeline decision threatens our economy and is driving away foreign investment.
“It seems to me that a threat to our economic future comes into question,” said Bob Wanner NDP MLA for Medicine Hat. “The key point is we need to have control of our destiny as a nation and a province and we don’t have that.”
Canadians sleep at night and never even think of the vast amounts of energy flowing around North America like arteries in a human body moving refined products both ways across the border, said Gary Leach, president Explorers and Producers Association of Canada - from his Calgary office.
“If that energy ever stopped North America’s economy will grind to a halt in two or three days,” said Leach. “Those against the pipelines have no idea and perhaps no interest in contemplating the consequences.”
Canada’s regulatory process is impacting investment.
“Capital is fleeing Alberta in the billions of dollars annually from international investors. The last report showed $8.5 billion have left the Alberta oil patch,” said Drew Barnes UCP MLA Cypress-Medicine Hat.
Thursday the federal Court of Appeal overturned Ottawa’s approval of the pipeline planned to go from Edmonton to the B.C. coast. The panel of judges cited a lack of sufficient consultation with Indigenous groups and that the National Energy Board failed to address the impact on marine traffic.
Medicine Hat MP Glen Motz says this is a failure of the government and a failure on him.
“The ruling yesterday shows that he (Trudeau) can’t even carry out his own government’s consultation process. Now he’s left us on the hook for a pipeline that isn’t even allowed to be built. He’s jeopardizing jobs, investments, and at the same time our economy,” said Motz.
The pipeline decision, two years after approval and voiding its permits by moving the goal posts, is destabilizing and hammers home the risk for international investors, said Leach.
“These dollars create tens of thousands of highly paid and highly skilled jobs for Canadians. We have seen a vast retreat of investment capital... in the last couple years,” said Leach.
The judge that led the panel on this decision is the same one who rejected the Northern Gateway Pipeline, said Leach.
“Nobody knows when you’ve got your project over the goal line to the satisfaction of a judge who can apply all sorts of allegedly objective, frankly subjective, criteria to decide if you’ve measured up,” said Leach. “We have granted the courts tremendous latitude.”
Protesters of the pipeline are celebrating.
“This is a massive victory for Indigenous Nations, environmental groups and people across the country,” said Mike Hudema, pipelines campaigner at Greenpeace Canada in a press release.
“We all know there are some big American money interests behind these groups,” said Barnes.
Leach believes the federal government needs to press on with getting approval even though protesters will challenge again.
“They appear to have unlimited funding some of which is provided by the National Energy Board to fund objectors,” said Leach. "That's how generous we are in Canada to make sure everybody has their say.”
Leach says that considering the process to twin an existing pipeline, it’s hard to imagine how we would ever build a railway across the country or develop the St. Lawrence Seaway.
Leach says our biggest resource leaves the province in pipelines, trucks and trains. A record number of trains are transporting oil but it’s still trivial.
“We’re exporting three million barrels a day to the United States so 200,000 barrels (by train) is less than 10 per cent,” said Leach.
Leach says there aren’t enough locomotives even if we wanted to transport by rail to the East Coast. A million barrels a day goes to Ontario by pipeline that goes through the U.S.
“I think Canadians recognize that talk is cheap. Hearing from (Trudeau) and actually doing something is the disconnect..,” said Motz.
Wanner believes the provincial government “has delivered” including on its commitments to the federal government. Notley’s approach to pipelines, the environment and climate change was one that addressed all angles. The pipeline decision does not mean that her strategy was wrong, said Wanner.
“It is dependent on your partner, the federal government. It’s disappointing to see that a more decisive federal government is not fulfilling its part of that arrangement,” said Wanner.