Report says B.C. would get less pipeline revenue

VANCOUVER — Based on straight math, British Columbians shouldn’t be surprised to learn they will draw far fewer economic benefits than Alberta — or even Ontario — from the Northern Gateway pipeline, according to a new report.

B. C. Premier Christy Clark has argued her province has taken on 100 per cent of the marine risk while receiving not much more of the economic benefit than provinces that have no risk at all.

But a research report released Tuesday by the Canadian Energy Research Institute concludes B.C.’s what-if concerns aside, Ontario stands to gain much more because of its position as Canada’s manufacturing heartland.

The report examined only the forecasted value of ongoing upstream oilsands development.

“Ontario services the oilsands projects with steel and materials and equipment more so than British Columbia does,” said Dinara Millington, senior research director with the institute. “The outputs of one sector … would become inputs in the oilsands industry sector.”

The new report calculates the value of several key economic indicators around current and future oil production if Enbridge’s Northern Gateway and two other major pipeline projects go ahead as proposed.

Including the expansions by Kinder Morgan and Keystone XL, the report predicts Alberta alone will collect half a trillion dollars in taxes over 25 years but B.C. will only reap $9 billion. Ontario would garner $28 billion.

B.C. gains its taxation revenue from oil development mainly due to its proximity to Alberta and via a gas plant that exports gas to northern Alberta for oilsands projects’ use, Millington said.