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August 1, 2008 A recent U.S. statement confirms the ongoing push for greater North American energy integration that leaves Canada wide open for the worst of an energy gold rush. In addressing the Subcommittee of the House Committee on Foreign Affairs in Washington DC, Daniel Sullivan (Assistant Secretary for the Bureau of Economic, Energy, and Business Affairs) calls for more energy integration and dependence on market-based solutions in the face of rising oil and gas prices and the havoc this is wreaking on the U.S. economy. In arguing for expanding traditional sources of energy, Sullivan acknowledges the important role Canada is playing in ensuring greater U.S. energy security. Central to this is Canada’s tar sands, arguably the sticky goo holding the Security and Prosperity Partnership (SPP) together. In fact, he states that the oil sands production is projected to reach 3 million barrels per day by 2015. These same tar sands have already contributed to an environmental catastrophe, including the clear-cutting of the boreal forest, massive water depletion and increasing carbon emissions. Currently, almost all of the tar sands crude oil is heading south to the U.S. Canada exports 70% of our oil to the U.S. while importing 60% of what we consume from other countries. This may be a recipe for U.S. energy security, but certainly not Canadian energy security. To make matters worse, the proportional sharing clause under NAFTA ensures that Canada cannot cut back on the proportion of energy we produce and sell to the U.S., even if our country runs short. Canada, unlike many countries including the U.S., does not have strategic petroleum reserves. Sullivan goes on to call for enhanced energy supply routes between the U.S. and Canada. This means streamlining permit processes for more pipelines, the ‘plumbing’ of energy integration with the U.S. In other words, expect to see more pipelines heading south from the tar sands, Canada’s Mackenzie Valley (which contains natural gas resources) and Liquid Natural Gas terminals in Canada. The North American Energy Working Group set up under the SPP, is recognized by Sullivan as an important vehicle for achieving greater energy integration. This group, made up of corporate leaders and government officials, meets regularly behind closed doors to discuss energy policy that has serious implications for Canadians. In concluding, Sullivan suggests that the U.S-Canada relationship is an example of the benefits of market-based free trade agreements that promote more efficient energy markets. But efficient for whom? What we need is a Canadian Energy Security Strategy that gives Canadians control of their own energy supplies, guaranteed access to energy reserves in times of need, and strong policies that protect our environment and focus on finding alternative, less harmful energy solutions. Read the full statement here: http://www.state.gov/e/eeb/rls/rm/2008/107598.htm
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