While there are many environmental concerns with the oil sands, the issue of greenhouse gas emissions (GHG) has the most potential to prevent Albertans from realizing the true value of the resource. The term dirty oil has clearly resonated with environmental groups both in the US and in Europe and will continue to be used by those who seek to limit our access to important markets. Our governments, both federal and provincial, seem to think that we face a dichotomy – either we can have an oil sands industry or we can have a globally credible GHG policy. Industry, with a few notable exceptions, has done little to alter this perception. I disagree entirely. I believe that a globally credible GHG policy is the only way to ensure the continued success of the oil sands industry, but I believe that we must build the policy on our own terms, not using reference points which were chosen for the benefit of other regions. An Albertan or Canadian policy, based on 5 modifications of the current Alberta GHG regulations, would send a signal to the rest of the world that Alberta and Canada are prepared to be part of a global effort but that we are not prepared to be taken for a ride.
Month: February 2011
What can green energy advocates learn from the oilsands?
I think that if you asked most oilsands opponents to categorize their objections to the industry, their responses could be classified under one of three headings. First, they might cite the lack of appropriate planning, monitoring, and mitigation of local environmental impacts (see the RSC report executive summary here). Second, they might cite a failure to consider global implications of oil sands extraction, specifically as they relate to climate change. Third, there would likely be many who would cite the fact that Albertans are simply not getting their fair share of the benefits from the expansion of activity in Northern Alberta despite owning the resource. In general, I think most opponents would agree (and please correct me if I am wrong) that most of these problems boil down to a government policy that focused on ramping production up as quickly as possible, and where the primary measures of success were investment dollars coming into the province and barrels per day of production. The government was unwilling to “touch the brake” on the industry that its own policies had created. I think that the Government of Alberta is now learning some hard lessons and finding that their approach to oilsands development has significantly eroded the social license of the industry both at home and abroad. To their credit the Government has shown signs of turning the tide on this. I believe the government could and should go further, but at least we no longer have our Premier talking about the myth of environmental damage from the oilsands. In the meantime, I believe there is a lot that advocates who would grant a free pass to poorly designed green energy policy can lean from the errors of the past in Alberta.
The strange relationship between environmentalists and the oil price
Environmentalists have a very strange relationship with the price of oil. I asked around among friends, students, and online acquaintances and every one replied without question that high oil prices were a good thing if you care about the environment. Why? Well, high prices discourage consumption they said. Not only that, high prices enable alternative energy sources. Of course, both of these statements are correct, but if you look deeper into the economics of oil and gas, it is not so easy to say that you should pray for high oil prices if you care about the environment.
Something remarkable happened this week…but you probably missed it
Peter Kent has already done something as Environment Minister that few others who have held the same position over the last 10 years have had the courage to do. He stood up, in front of a group of business leaders no less, and stated that Canada’s current greenhouse gas emissions policies would not be sufficient to meet our targets, and that we needed much broader regulation. He went on to say that, “Climate change is one of the most serious environmental issues facing the world today,” and that, “Canada… is determined to do our part for the planet.” In fact, while President Obama did not say “climate change” once while delivering the State of the Union, Minister Kent uttered the phrase at least 9 times in a luncheon address. Minister Kent then committed to a, “systematic approach of regulating GHG emissions sector by sector,” to meet the goal of 17% below 2005 emissions by 2020. It’s no wonder Peter Kent and his advisers were miffed at the ENGO responses which centered on the fact that today’s policies aren’t enough to meet our goals. In his shoes, I would have been hard-pressed not to scream too.