It’s time for a Trudeau to do right by the energy patch.

It’s time for a Trudeau to appeal to the energy patch, not alienate it

“THE FEDERAL GOVERNMENT IS THE ONLY ENTITY CAPABLE OF CREATING AND IMPLEMENTING A PAN-CANADIAN STRATEGY”

Aday after Royal Dutch Shell PLC took the extreme step of cancelling its Carmon Creek oil sands project in Northern Alberta in mid-construction, taking a $2-billion impairment charge and citing a lack of pipeline capacity to carry its product to market, Peace River mayor Tom Tarpey issued a statement to express his grief. “My first thought was concern for those who have literally poured their hearts and souls into making this project a reality,” he said on October 28, urging higher levels of government to make pipelines a priority to support northern communities.

Carmon Creek, a large in-situ oil sands plant that would have used the latest environmental technology and involved 1,000 construction jobs, is just one of many pipeline projects scuttled by vulnerable regulatory processes, disproportionate special interest group pressure and a lack of political leadership. Others include:

The $16.2-billion Mackenzie Valley naturalgas pipeline that received regulatory approval in 2009, but became redundant after its review dragged on for 47 months instead of 10 amid Aboriginal opposition. The cost to proponents: more than $700 million.

The Northern Gateway oil pipeline, which is being held back because of Aboriginal and community opposition after receiving approval in 2014. Enbridge Inc. and its shippers spent $500 million trying to win a permit.

The Northern portion of the Keystone XL pipeline, which in November was vetoed by the U.S. after seven years of review. Proponent TransCanada Corp. is laying off people after spending as much as $3 billion to win a permit for Keystone XL, only to get entangled and then killed by White House politics.

TransCanada is also facing an uphill battle to win approval for its Energy East project, even though most of it involves converting an underutilized gas pipeline into an oil pipeline.

Kinder Morgan’s TransMountain pipeline expansion, which has faced protests, Aboriginal opposition and court challenges.

Prime Minister Justin Trudeau plans to tackle the mess by leading a large Canadian delegation to Paris to sign a global treaty to reduce greenhouse gas emissions, hoping pipeline approvals will be easier once Canada adopts a more aggressive climate change policy. “Getting our resources to market is a priority for Canadians and we know that economic success depends on us keeping our word on the environment,” he said at the Calgary Petroleum Club last February.

Perhaps. But he’ll need to bring disparate interests together to support both goals, something his predecessor, Stephen Harper, was unable to do. The leadership vacuum forced private enterprise — project proponents — to step in, at a massive cost to shareholders, with little success. Provinces also tried to come up with an energy strategy this summer that was big on caving to all interests and short on solutions to resolve differences.

Michal Moore, a professor of energy economics at the University of Calgary, argues in a new paper, An Energy Strategy for Canada, that the feds have to return to energy policy or the country’s economy will be debilitated and its well-being threatened. “The federal government is the only entity capable of creating and implementing a pan-Canadian strategy, although that in turn rests on cooperation from the provinces,” he argues. Among his ideas: create a national rights of way and infrastructure corridor; provide funds for common infrastructure planning rather than rely on the private sector; create an independent energy information agency; create a carbon and GHG credits exchange; and depoliticize regulatory boards.

The federal government has been out of the energy leadership business since the failed National Energy Program implemented by Trudeau’s father devastated the West. Whether through a formal strategy or by acting as a unifying force, it’s time for the younger Trudeau to fix that hang-up and demonstrate a strong Canadian energy sector benefits all.