The Environment Lobby

"There seems to be an inference that it would be easier for the president to approve (Keystone) if there was some kind of quid pro quo change in U.S. Canadian policy. We got a response back from the ambassador -- and we will take them at their word -- that that's certainly not the case.
"A very well-organized lobby (of environmentalists) is making a case quite publicly that Canada doesn't care about the environment, so why should we want that oil. If we are demonstrating that we are serious about (the environment) and we have answers and we are willing to work with others on the answers, I think that that's an important part of the message."
Saskatchewan Premier Brad Wall

Canadian politicians and envoys have been busy visiting Washington and lobbying for the approval of the Keystone XL pipeline. The fear being that the powerful U.S. environment lobby would convince President Obama and Congress to turn down acceptance of the pipeline, even though the State Department issued its own green-lighted 2,000-page draft environmental impact statement.

The other concern is that President Obama would attempt to coerce Canada, to extract a quid pro quo agreement to strengthen its environmental regulations, to be rewarded by presidential acceptance of the pipeline. On the one hand, this would represent gross interference by one nation on the business of another. On the other hand, it would be totally consistent with past Canada-U.S. relationships where the giant bullies the pygmy.

"The most dynamic trade relationship in the world needs some extra tendering", commented Premier Wall. He insists that Canadian actions on meeting climate change obligations are often more robust than those taken in the United States.  Yet it remains incumbent on Canadian leaders to make their case both on action on climate change through effective regulations, and to stress the need for pipeline assent.

There is a huge problem in compensation for the province of Alberta and by extension the federal government. And it is an issue that impacts on Saskatchewan as well. Alberta, as a result of bottlenecks in the U.S. pipeline system and an oversupply, causing discounts in the price of heavy oil produced in both Albert and Saskatchewan, is being short-shrifted. 

 

The U.S. is getting Alberta and Saskatchewan-derived oil at bargain basement prices.

Both provinces are struggling with fiscal shortages.  "The Saskatchewan people who own the resource are really not maximizing the return on their oil", commented the premier wryly. But the American market is benefiting, hugely. Both provinces are selling their oil at about 19% below world prices, for significant annual shortfalls.

Former Secretary of State George Shultz is currently chair of the Shultz-Stephenson Task Force on Energy Policy whose mandate is to promote the development of clean energy technologies at MIT and Stanford Universities. Mr. Shultz expressed his opinion at the Woodrow Wilson Centre during an interview that Canada is being treated unfairly.

As far as he is concerned there are "no environmental issues" related to the pipeline. And if the U.S. doesn't take advantage of the pipeline and its assured oil deliveries, the result will be that China will be happy to. U.S. foreign policy, he stressed, begins "in the neighbourhood", with America's closest and most important trading partner.

"I'm not saying we should approve the pipeline because of that, but because I support the project", he clarified. 

 

From his mouth to President Obama's ear.