Canada bans offshore Arctic drilling
Canada and the U.S. moved to solidify their environmental credentials Tuesday by withdrawing hundreds of millions of acres of land in the Arctic and Atlantic Ocean from future offshore oil and gas drilling.
Ottawa said it would ban offshore oil and gas licensing in Arctic waters, a measure to be reviewed every five years.
At the same time, U.S. President Barack Obama used a little-known law called the Outer Continental Shelf Lands Act to protect large portions of the Chukchi and Beaufort seas in the Arctic and a string of canyons in the Atlantic stretching from Massachusetts to Virginia from oil exploration and the potential for spills.
“Today, President Obama and Prime Minister (Justin) Trudeau are proud to launch actions ensuring a strong, sustainable and viable Arctic economy and ecosystem,” a joint statement from the two governments said.
“These actions, and Canada’s parallel actions, protect a sensitive and unique ecosystem that is unlike any other region on Earth,” Obama said in a written statement. “They reflect the scientific assessment that even with the high safety standards that both our countries have put in place, the risks of an oil spill in this region are significant and our ability to clean up from a spill in the region’s harsh conditions is limited.”
In Canada, all Arctic waters will be designated as off-limits to new oil and gas licensing, Trudeau said, without specifying any restrictions on existing leases held by Canadian divisions of energy giants such as BP PLC, Repsol and Exxon Mobil Corp.
He left available for development waters around Newfoundland and Labrador, the heart of Canada’s current offshore production.
The joint announcement drew a rebuke from Bob McLeod, premier of the Northwest Territories, who said he was not involved in the decision.
He spoke with Trudeau Tuesday and expressed concern about the economic impact the move will have.
“We thought we would have a collaborative relationship when it came to these types of decisions, and we’re very concerned,” he said in an interview, adding such decisions should include residents of the North and not be “based on what would play to people in Vancouver, Toronto, Ottawa, what have you.”
The territory will look to the federal government to support other industries if oil and gas development is reined in.
“It’s a hard place to live. We need good jobs for people to support themselves and their families,” McLeod said.
It is the second time in as many months that a Trudeau environmental policy has drawn criticism from the provinces for not being collaborative.
In October, Trudeau promised to unilaterally impose a carbon price in those provinces and territories that won’t do it themselves.
The plan drew cries of betrayal and a lack of respect from some premiers with Scott Moe, Saskatchewan’s environmental minister, saying, “It’s not a good day for federal-provincial relations.”
For Obama, the move Tuesday puts some finishing touches to his environmental legacy. It will also test president-elect Donald Trump’s promise to unleash the nation’s untapped energy reserves.
Obama is making use of an arcane provision in a 1953 law to ban offshore leases in the waters permanently.
Environmental groups hope the ban, despite relying on executive powers, will be difficult for future presidents to reverse. The White House said it was confident the president’s order would withstand legal challenge and said the language of the statute provided no authority for subsequent presidents to undo permanent withdrawals.
Republicans, however, were quick to voice their concerns with Rob Bishop, chairman of the House Committee on Natural Resources, saying, “The extremes to which this president will go to appease special interests never ceases to amaze. This is not a moral calling; it’s an abuse of power.”
And industry officials objected to Obama’s proclamation, calling it “last minute political rhetoric.”
“Instead of building on our nation’s position as a global energy leader, today’s unilateral mandate could put America back on a path of energy dependence for decades to come,” said Dan Naatz of the Independent Petroleum Association of America.
In issuing a permanent ban, Obama appears to be trying to tie the hands of his successor. Trump has vowed a domestic energy revolution and is filling his Cabinet with nominees deeply opposed to Obama’s environmental and climate change actions.
Environmental groups were calling for a permanent ban even before the presidential election, but Trump’s victory has provided greater urgency for them and for businesses that rely on tourism and fishing. Trump has said he intends to use all available fuel reserves for energy self-sufficiency — and that it’s time to open up offshore drilling.