THE MYTH OF ATLANTICA
Sending our energy resources south
June 2007
— download PDF version —
Atlantica is the proposed economic integration of
the Maritime provinces, Newfoundland (but not
Labrador), parts of Quebec, Maine, Vermont, New
Hampshire and upstate New York. This integration of Eastern
Canada and the North-Eastern United States would erase
border restrictions and regulations, creating a massive transportation
corridor to send Asian goods and energy resources
to the United States. Atlantica is a part of the Security and
Prosperity Partnership of North America (SPP) agenda, aimed
at creating a “free market” between Canada, The United States
and Mexico.
Energy exports from Atlantic Canada to the United States have
grown rapidly in the last decade. The United States continues
to look to Canada as a stable energy supplier as other parts of
the world become more difficult for the U.S. to count on.
A North American energy market
Deep integration discussions between Canada and the United
States make frequent reference to a “North American energy
market” or “North American energy security.” The SPP identifies
energy security as a priority. In the context of Atlantica,
it means Canada sending oil and gas reserves to American
companies, regardless of our own energy needs.
The Atlantica proposal includes the creation of an energy
corridor for the quick export of unrefined oil and gas to the
United States, leaving Atlantic Canadians to face the social,
economic and environmental concerns without the financial
benefits. While there is a proposal for an oil refinery in St.
John, New Brunswick, there is no timeline for its creation.
In the meantime, Atlantic Canadians will also lose out on job
creation, as raw, unprocessed resources are sent to the United
States where they will be refined by U.S. workers. The products
will then be sold back to Canadian consumers.
Exports rising quickly
According to the Canadian Centre for Policy Alternatives
(CCPA), energy exports from the Atlantic region to the U.S.
jumped dramatically between 1995 and 2005. Exports increased
from approximately $1.7 billion to $9.4 billion, or from 24 per
cent to 54 per cent. But there is growing public awareness that
these resources will not last forever. Local economists have
estimated that current annual oil production is peaking and
expected to decline steadily.
Although oil projects have made a lot of money for big U.S.
companies, there have been limited local benefits. While the
government of Newfoundland and Labrador has been trying
to negotiate a better deal for the province on future offshore
oil developments, U.S. oil companies have been reaping
significant profits from offshore Atlantic oil fields. Atlantic
Canadians have not found federal support in their fight. The
Harper government has refused to support the province’s
push for higher royalties.
Maritimes without energy security
The Maritimes and Northeast Pipeline sends natural gas from
the Sable reserves off the coast of Nova Scotia to the northeastern
United States. Built in 1999, the 1,000-km pipeline
has the capacity of 600 million cubic feet of natural gas per
day. Plans are in the works for another gasfield – the Deep
Panuke project – which will tap estimated reserves of 1 trillion
cubic feet of natural gas off the Nova Scotia shore. But
even while the bulk of natural gas from Nova Scotia going
to the Boston-New England market, there are many parts of
the Maritimes that have no access to natural gas.
Atlantic Canada and Quebec continue to rely on imports
to supply approximately 90 per cent of the petroleum they
consume. In the event of a natural disaster like a hurricane
on the east coast, experts warn that Atlantic Canada would
be in an energy crisis because Canada has no west-east pipelines.
The provinces couldn’t even access their own reserves
because there is no way to distribute the resources within the
region – the only pipelines that exist carry the resources to
the United States.
Say no to Atlantica
The big business agenda of Atlantica will have a negative impact
on Atlantic Canadians by reducing local energy security,
and is proceeding without public input. You can make a difference
by writing to your local MP or community newspaper and telling them why you oppose this proposal.
