Pipeline controversialism in Canada (Economic)
Article Title: “Trudeau cabinet approves Trans Mountain, Line 3 pipelines, rejects Northern Gateway”
November 29, 2016 Author: John Paul Tasker Publisher: CBC News Place: Southern part of Canada |
Issue overview and spatial Significance:
The Kinder Morgan Trans Mountain and Enbridge's Line 3 pipeline projects were both approved by the federal government in early December, 2016.The 1150 kilometre-long Kinder Morgan Trans Mountain pipeline will cost the government $6.8-billion, (B. Bambury,2016) and the Enbridge’s Line replacement project will cost $7.5-billion (The Canadian Press, 2016), and it is 1,660-kilometre in length. The Trans Mountain expansion project is expected to triple the capacity of the original pipeline’s oil capacity to 890,000 barrels a day because of its design which extends an existing oil pipeline from Edmonton to Burnaby. The government of British Colombia has shows generous support to this pipeline extension project. The construction of the other pipeline, Enbridge’s Line 3 will be done by Canada and the United States. The old Enbridge’s Line is almost half a century old and its regulated capacity has been reduced through pressure and restrictions to about 390,000 barrels of oil per day. The renew project will restore the capacity of the pipeline to 760,000 barrels per day. (The Canadian Press, 2016) The two construction plans will affect million Canadians in the following years. These pipeline construction approval go with conditions to preserve the environment, yet there are still many opposing voices from environmentalist and the aboriginal people.
The Kinder Morgan Trans Mountain and Enbridge's Line 3 pipeline projects were both approved by the federal government in early December, 2016.The 1150 kilometre-long Kinder Morgan Trans Mountain pipeline will cost the government $6.8-billion, (B. Bambury,2016) and the Enbridge’s Line replacement project will cost $7.5-billion (The Canadian Press, 2016), and it is 1,660-kilometre in length. The Trans Mountain expansion project is expected to triple the capacity of the original pipeline’s oil capacity to 890,000 barrels a day because of its design which extends an existing oil pipeline from Edmonton to Burnaby. The government of British Colombia has shows generous support to this pipeline extension project. The construction of the other pipeline, Enbridge’s Line 3 will be done by Canada and the United States. The old Enbridge’s Line is almost half a century old and its regulated capacity has been reduced through pressure and restrictions to about 390,000 barrels of oil per day. The renew project will restore the capacity of the pipeline to 760,000 barrels per day. (The Canadian Press, 2016) The two construction plans will affect million Canadians in the following years. These pipeline construction approval go with conditions to preserve the environment, yet there are still many opposing voices from environmentalist and the aboriginal people.
Patterns and trends:
The approval of both oil pipelines is a historical moment in Canada as infrastructure proposals are usually hard to get approval from Canadian government as well as the generally public in regard of the environment and the rights of the First Nations. In the past, there were many projects killed in the first stage. There have been protests against the production of nuclear generated electricity, coal fired generators, windmill farms, and new hydroelectric dams. For instance, the Northern Gateway pipeline, which was expected to be 1,177-kilometre long was rejected by the cabinet because it was “not in the best interest of the local affected communities”according to the Prime Minister Justin Trudeau. Furthermore, the pipeline construction plans are hard to get a start because it may involve two countries in unanimous decision sometimes, for example, the Keystone XL pipeline was approved by Canadian government, but got rejected by the U.S. president a year ago. (B. Bambury,2016) Furthermore, two years ago, the government rejected the application of a gold-copper mining company, Taseko Mines Limited, who wish to drain Fish Lake in order to turn it into a tailings pond. Fish Lake is a fish bearing lake in the Chilcotin, and it is an important traditional site for the local First Nation.. Draining the fish pond will destroy the ecosystem nearby and produce irreversible harm to the environment. Thousands of Canadians have sent rejection letters, emails, and messages to voice out their opinions to the government. (David Suzuki Foundation, n.d.) It shows Canadian government and her citizens have put environment in high priority when making important decisions.
The approval of both oil pipelines is a historical moment in Canada as infrastructure proposals are usually hard to get approval from Canadian government as well as the generally public in regard of the environment and the rights of the First Nations. In the past, there were many projects killed in the first stage. There have been protests against the production of nuclear generated electricity, coal fired generators, windmill farms, and new hydroelectric dams. For instance, the Northern Gateway pipeline, which was expected to be 1,177-kilometre long was rejected by the cabinet because it was “not in the best interest of the local affected communities”according to the Prime Minister Justin Trudeau. Furthermore, the pipeline construction plans are hard to get a start because it may involve two countries in unanimous decision sometimes, for example, the Keystone XL pipeline was approved by Canadian government, but got rejected by the U.S. president a year ago. (B. Bambury,2016) Furthermore, two years ago, the government rejected the application of a gold-copper mining company, Taseko Mines Limited, who wish to drain Fish Lake in order to turn it into a tailings pond. Fish Lake is a fish bearing lake in the Chilcotin, and it is an important traditional site for the local First Nation.. Draining the fish pond will destroy the ecosystem nearby and produce irreversible harm to the environment. Thousands of Canadians have sent rejection letters, emails, and messages to voice out their opinions to the government. (David Suzuki Foundation, n.d.) It shows Canadian government and her citizens have put environment in high priority when making important decisions.
Geographic Perspectives and Interrelationships:
Social: The potential impacts to aboriginal people in the temporary-worker camps and the nearby communities must be considered, therefore the construction of the pipelines require consultations with First Nations. As a result, the government of British Columbia added 37 conditions in the environmental approval section to the 157 conditions already established by the federal government. (J.Hayward, 2017) Many conditions are taking care of the standpoints of the First Nations because the construction route will also be affecting the aboriginal local communities. In addition, the B.C. government has required Kinder Morgan to generate a report on an aquifer on the Coldwater First Nation’s reserve land located at the south of Kamloops. (J.Hayward, 2017)
Economic:The federal government believes the potential revenue from the pipeline projects worths the investment cost. Kinder Morgan’s pipeline project alone can generate a revenue estimated to be around $1 billion over 20 years for the provincial treasury or between $20 million and $50 million annually, depending on the economic performance. (J.Hayward, 2017)
Environmental:Alberta has a rich reserve of oil sands. The government and developers have foreseen the chances to make good use of these resources to boost up the country’s economy, and this factory has contributed to the approval of the pipelines. From 2000 through 2014, the oilsands grew exponentially. (B. Bambury,2016) This unconventional oil resources become more attractive to the Canadian as oil price continue to rise. The government already witnessed the economic opportunities for Canada in Alberta’s oil sands, and it has contributed to the decision making process.
Political: Since Line 3 has already approved by the U.S. government Canada is most likely to approve the project, as Canada wants to continue to keep a close relationship with U.S.. (The Canadian Press, 2016)
Social: The potential impacts to aboriginal people in the temporary-worker camps and the nearby communities must be considered, therefore the construction of the pipelines require consultations with First Nations. As a result, the government of British Columbia added 37 conditions in the environmental approval section to the 157 conditions already established by the federal government. (J.Hayward, 2017) Many conditions are taking care of the standpoints of the First Nations because the construction route will also be affecting the aboriginal local communities. In addition, the B.C. government has required Kinder Morgan to generate a report on an aquifer on the Coldwater First Nation’s reserve land located at the south of Kamloops. (J.Hayward, 2017)
Economic:The federal government believes the potential revenue from the pipeline projects worths the investment cost. Kinder Morgan’s pipeline project alone can generate a revenue estimated to be around $1 billion over 20 years for the provincial treasury or between $20 million and $50 million annually, depending on the economic performance. (J.Hayward, 2017)
Environmental:Alberta has a rich reserve of oil sands. The government and developers have foreseen the chances to make good use of these resources to boost up the country’s economy, and this factory has contributed to the approval of the pipelines. From 2000 through 2014, the oilsands grew exponentially. (B. Bambury,2016) This unconventional oil resources become more attractive to the Canadian as oil price continue to rise. The government already witnessed the economic opportunities for Canada in Alberta’s oil sands, and it has contributed to the decision making process.
Political: Since Line 3 has already approved by the U.S. government Canada is most likely to approve the project, as Canada wants to continue to keep a close relationship with U.S.. (The Canadian Press, 2016)
Key Stakeholders:
The Canadian government: The federal government believes it has made a decision to the best interest of Canadians, and it expects a considerable economic growth from the projects. On the other hand, the government must consider the social and environmental impacts of the project, therefore near 100 conditions for each project are set. In a local scale, the B.C government will get federal funds for ocean improvement, improve marine safety, ship-tracking, training and response upgrades.
The First Nations: One First Nation was in the opposition side of the project because the route of construction of the Trans Mountain pipeline could threaten the community's very "survival”. The majority were in agreement with the project as 39 of them have signed "mutual benefit agreements" with the project's proponent, U.S.-based Kinder Morgan. The agreements have promised money and jobs for them.
The environmentalist: The biggest opponent of the project will be the environmental activists. They fear the oil leakage will pollute the ocean , and affects the bears, caribou and killer whales near the area.
The Canadian citizens:The construction work may affect millions Canadians. There will be noise and alternative road arrangement during the construction period.
The Canadian government: The federal government believes it has made a decision to the best interest of Canadians, and it expects a considerable economic growth from the projects. On the other hand, the government must consider the social and environmental impacts of the project, therefore near 100 conditions for each project are set. In a local scale, the B.C government will get federal funds for ocean improvement, improve marine safety, ship-tracking, training and response upgrades.
The First Nations: One First Nation was in the opposition side of the project because the route of construction of the Trans Mountain pipeline could threaten the community's very "survival”. The majority were in agreement with the project as 39 of them have signed "mutual benefit agreements" with the project's proponent, U.S.-based Kinder Morgan. The agreements have promised money and jobs for them.
The environmentalist: The biggest opponent of the project will be the environmental activists. They fear the oil leakage will pollute the ocean , and affects the bears, caribou and killer whales near the area.
The Canadian citizens:The construction work may affect millions Canadians. There will be noise and alternative road arrangement during the construction period.
Issue Implications:
Economic: Thousands of jobs can be generated as Kinder Morgan and Enbridge will hire workers wherever it is necessary, and many international investments are willing to be involved. Also. it is estimated that more than $19 billion of potential economic profit will be generated, and the profit will be shared with the government.
Environmental: The risk for environment is high. Despite the federal government and provincial government’s environment commitment to the project, a major oil spill would be disastrous to the underwater ecosystems in the Pacific, Arctic and Atlantic oceans. Furthermore, Killer Whales live around the coastal area will be under threat as more business tugboats are expected to be present at the harbour in the future once the pipelines are in use. Animal inhabitants around the pipeline will also be affected. Moreover, the construction itself will generate a huge number of carbon emission. In addition, vegetations and soil in the construction route will also be damaged.
Political: The pipeline issue was ambiguous in Canada. The approval was signed with almost half of the general public still opposing the projects. It may affect the reputation and image of the Prime Minister, and that would mean less trust from the Canadians. This is a serious issue as the support from general public is crucial to the enforcement of policies.
Economic: Thousands of jobs can be generated as Kinder Morgan and Enbridge will hire workers wherever it is necessary, and many international investments are willing to be involved. Also. it is estimated that more than $19 billion of potential economic profit will be generated, and the profit will be shared with the government.
Environmental: The risk for environment is high. Despite the federal government and provincial government’s environment commitment to the project, a major oil spill would be disastrous to the underwater ecosystems in the Pacific, Arctic and Atlantic oceans. Furthermore, Killer Whales live around the coastal area will be under threat as more business tugboats are expected to be present at the harbour in the future once the pipelines are in use. Animal inhabitants around the pipeline will also be affected. Moreover, the construction itself will generate a huge number of carbon emission. In addition, vegetations and soil in the construction route will also be damaged.
Political: The pipeline issue was ambiguous in Canada. The approval was signed with almost half of the general public still opposing the projects. It may affect the reputation and image of the Prime Minister, and that would mean less trust from the Canadians. This is a serious issue as the support from general public is crucial to the enforcement of policies.
Citations:
B. Bambury (December 2016) “How oil pipelines became one of the most divisive issues in Canadian politics”CBC. Retrived Jan 11 from http://www.cbc.ca/radio/day6/episode-314-pipeline-politics-hitler-s-drug-use-holiday-tv-specials-beauty-pageant-burkinis-and-more-1.3876123/how-oil-pipelines-became-one-of-the-most-divisive-issues-in-canadian-politics-1.3876141
David Suzuki Foundation (n.d) “B.C. mine project rejected thanks to activism” Retrieved Jan 11 from http://www.davidsuzuki.org/issues/freshwater/science/industrial-impacts/bc-mine-project-rejected-thanks-to-activism/
The Canadian Press (November 29, 2016) “What you need to know about Enbridge's Line 3 pipeline” Retrieved Jan 11 from
http://www.ctvnews.ca/business/what-you-need-to-know-about-enbridge-s-line-3-pipeline-1.3182067
B. Bambury (December 2016) “How oil pipelines became one of the most divisive issues in Canadian politics”CBC. Retrived Jan 11 from http://www.cbc.ca/radio/day6/episode-314-pipeline-politics-hitler-s-drug-use-holiday-tv-specials-beauty-pageant-burkinis-and-more-1.3876123/how-oil-pipelines-became-one-of-the-most-divisive-issues-in-canadian-politics-1.3876141
David Suzuki Foundation (n.d) “B.C. mine project rejected thanks to activism” Retrieved Jan 11 from http://www.davidsuzuki.org/issues/freshwater/science/industrial-impacts/bc-mine-project-rejected-thanks-to-activism/
The Canadian Press (November 29, 2016) “What you need to know about Enbridge's Line 3 pipeline” Retrieved Jan 11 from
http://www.ctvnews.ca/business/what-you-need-to-know-about-enbridge-s-line-3-pipeline-1.3182067