Canada needs a new conversation about pipelines

It’s time for a new conversation about building pipelines in this country, a conversation about how Canada can get full value for its oil production while at the same time addressing environmental concerns. This dialogue needs to take place with the type of constructive, interest-based, problemsolving approach that Canadians expect.

Getting Canadian oil to market safely and in a manner consistent with our environmental values is foundational to the discussion. We know that addressing climate change is part of that focus.

Ottawa recently announced additional principles it will consider, along with the recommendation of the National Energy Board, before approving a pipeline. One of the principles involves an assessment of the greenhouse gas emissions from pipeline projects, including emissions associated with the production of the oil the pipelines will carry.

We believe Alberta’s new climate plan will be strong evidence in the federal government’s assessment. The development of Alberta’s climate plan benefitted from consultation with many stakeholders and acknowledges that polarization and conflict are not constructive.

Currently, we are all focused on the proposed expansion of the Trans Mountain Pipeline, now in the final stages of regulatory review. If approved, the project would provide a vital link between Alberta’s vast oil resources and worldclass marine facilities in B.C. As producers and refiners of Canada’s oil resource, we believe approval of this pipeline would launch a new era in export opportunities.

Over-dependence on the U.S. as our only major customer has forced Canada to sell its oil at lower prices for years. With access to Asia and other markets where prices are typically higher, we will have the opportunity to receive full value for our energy exports. Approval of the Trans Mountain expansion project will benefit more than just oil producers. It will provide significant economic potential for the entire country. The construction and long-term operation of this key infrastructure project will provide lasting benefits for all Canadians.

Assessments from a number of independent financial institutions have concluded that Canada is missing out on billions of dollars a year in revenue because of our lack of access to overseas markets for our oil. Investment dollars go to wherever they can get the best returns. That’s why opening up West Coast marine access for Canadian oil is crucial to the long-term success of the country’s energy industry and to the overall strength of the Canadian economy.

The latest research from the Conference Board of Canada projects the Trans Mountain expansion project would generate more than 800,000 person-years of employment over the next 20-plus years and nearly $47 billion in government revenues, which would help pay for services such as health care, schools and infrastructure to transition to a lower-carbon economy.

The project is undergoing a rigorous review by the National Energy Board, which has already placed 150 draft conditions on the project that must be met by Kinder Morgan Canada before construction or operations can begin. The company has spent thousands of hours consulting with and listening to residents, stakeholders, landowners and native groups. The project will adhere to the highest operational and environmental performance standards.

Furthermore, Kinder Morgan has committed to continue to work with stakeholders to ensure a world-class response to potential marine spills. Kinder Morgan Canada has an outstanding record of operating excellence.

Canada needs to make progress on pipeline project approvals. Preventing pipelines from being built will not reduce global oil demand, but it will prevent Canadians from benefiting from filling that growing demand. It will mean customers won’t have access to Canadian oil that is produced with stringent safety and environmental laws.

That is why we, a group of seven companies that directly employ more than 27,000 people in Canada, believe we can work together with everyone who has a voice in the pipeline discussion to foster a new conversation focused on finding solutions to overcome the deadlock that’s holding up pipeline projects. We are ready to engage in this dialogue and to see projects such as the Trans Mountain Pipeline expansion built and we hope other Canadians are as well.

Murray Edwards is executive chairman of Canadian Natural Resources Ltd. Brian Ferguson is president and CEO of Cenovus Energy. They wrote this on behalf of BP Canada, Canadian Natural, Cenovus, Devon, Statoil, Suncor and Total.