Oilsands Cause Conflict in Canadian Elections

04/04/2011

Oilsands projects and their subsidies have become a contentious issue in the Canadian federal elections, as the New Democratic Party's Jack Layton vowed to eliminate C$2 billion in oil and gas subsidies and use the money instead for renewable energy. The party has also proposed a moratorium on new oilsands projects pending efforts to manage their environmental impacts. Liberal Leader Michael Ignatieff criticized the current government for failing to regulate the oilsands, saying "I don't want to be a country that is associated with the reputation of having dirty oil." Calgary Southeast Conservative MP Jason Kenney, the regional minister of southern Alberta, agreed that the budget should remove "special incentives" for oilsands, but criticized Layton's "pejorative tone" for the major industry, saying he was trashing the projects for short-term political gain. In addition, Alberta Premier Ed Stelmach said that federal leaders shouldn't be using a resource of national importance to divide the country. However, subsidies for Alberta's oilsands are at risk of being cut in response to growing opposition from First Nations and environmental groups, and the industry will likely have to bear the cost of a new environmental monitoring framework costing C$20 million to collect surface water data. Data monitoring is crucial to the future of the industry, as its continued growth rate depends on project approval contingent on its ability to defend its environmental record. Pat Daniel, Enbridge Inc.’s CEO, spoke of the need for Canada to access markets besides the United States in order to become an energy superpower. Daniel has been meeting with party leaders seeking approval for a new pipeline and an end to efforts to ban oil tanker traffic of the coast of British Columbia. For the full story, see http://www.calgaryherald.com/business/energy-resources/Oilsands+crosshairs+Layton+wants+subsidies+Ignatieff+calls+regulation/4540337/story.html. For the new monitoring scheme, see http://www.foxbusiness.com/markets/2011/03/25/canada-proposes-new-oil-sands-environmental-monitoring-plan/. For Enbridge's efforts, see http://www.theglobeandmail.com/report-on-business/enbridge-pushes-for-political-support-of-oil-sands-pipeline/article1965103/.