Saskatoon StarPhoenix

XL delay targets Canadian energy policy

- JAMES GLENNIE Glennie is founder and president of Saskatoon Community Wind.

Premier Brad Wall spoke recently at the Manning Networking Conference in Ottawa together with former federal environmen­t minister Jim Prentice.

They noted that Canada must do more to both strengthen and trumpet its environmen­tal credential­s if it expects to fight off internatio­nal climate criticism and achieve its energy and economic goals. Their comments were clearly directed toward the Keystone XL Pipeline project, and were amazingly prescient.

As North America was observing the Good Friday holiday, the Obama administra­tion quietly announced that its decision on Keystone would be delayed by unresolved legal issues in Nebraska. The delay, which many expect will be for at least a year and which some believe is permanent, was despite a State Department ruling in January that found the climate change impacts of XL would be negligible.

It would be rash, as many Keystone proponents have done, to dismiss the Good Friday statement as that of an ideologica­lly driven, left-leaning President who’s pandering to a vocal and misguided environmen­talist minority. The reasons run much deeper and merit serious considerat­ion, given the momentous nature of this outcome.

Prime Minister Stephen Harper’s entire policy agenda is unashamedl­y focused on oil and gas extraction in Alberta. Albertan oil and gas is dominated by Keystone, which is why President Barack Obama’s decision is momentous. Its true significan­ce will become obvious only over time, but that the decision took this direction points to the fact that current Canadian energy policy is flawed.

To understand that policy, one needs to understand Harper. His world view is shaped by petroleum economics. Harper’s father was an accountant for Imperial Oil (part of ExxonMobil), he was educated at the University of Calgary and strongly influenced by Alberta’s contempt for the Liberal government’s 1980 National Energy Program.

These issues are compounded by the fact that, when Harper was sworn in as PM in February 2006, American energy security was worse than it had been for years. U.S. crude oil production, as a percentage of consumptio­n, had been falling steadily, from 83 per cent in 1967 to a minimum of 54 per cent in 2006.

In this environmen­t, Harper likely calculated that Canada finally would be able to sit at the table with the U.S. as an equal. It was this perception that defined his negotiatin­g stance on Keystone which, throughout, can best be characteri­zed as “irritate rather than accommodat­e.” This was epitomized by his inflammato­ry comments, in New York of all places, in September 2013 when he said: “We will not take no for an answer.”

It also explains why Canadians increasing­ly have to suffer the demeaning sight of their prime minister acting less as the PM and more as lobbyist-in-chief for oil and gas.

Hydraulic fracturing in the U.S. marked the beginning of the end for Harper’s policy agenda. It was the stunning technologi­cal success of this process, together with massive deployment of energy efficiency and new renewables (initially wind, and increasing­ly solar) that has reversed and fundamenta­lly strengthen­ed America’s energy position since 2006.

It is the Harper administra­tion’s inability to recognize this shift and change its negotiatin­g stance that resulted in this latest setback for Keystone.

This brings us back to Premier Walls’ perceptive advice to the Manning Conference in February. The defining issue of our time is climate change, and the reality is that Saskatchew­an and Alberta produce per capita greenhouse gas emissions that are among the highest in the world. Current actions, notably the Boundary Dam carbon capture and storage project, are doing little, at great cost, to change that.

Wall has no doubt considered Obama’s oft-repeated energy mantra, “All of the above.” So why then do our world-class wind and solar resources provide less than three per cent of Saskatchew­an’s electricit­y? The U.S. precedent conclusive­ly demonstrat­es that there is no economic or technical reason why they should not supply at least 25 per cent.

Along the way, this approach could retain hundreds of millions of dollars within Saskatchew­an, significan­tly empower rural economies, provide thousands of lowand high-skilled jobs, and reduce GHG emissions by millions of tonnes annually.

The Keystone decision demonstrat­es that not just Saskatchew­an voters but also President Obama are asking why this province is reluctant to use its wind and solar resources. For the sake of our energy and economic goals, someone needs to answer that question.

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