The Business Behind the Northern Gateway Pipeline
by Ben Gardiner ~ October 8th, 2012. Filed under: Uncategorized.
Fierce debate on both a national and local level regarding the pros and cons of building the Northern Gateway pipeline continue.
The debate regarding the controversial Northern Gateway pipeline project proposed by Calgary-based Canadian company Enbridge is soon to reach a critical breaking point. The pipeline would carry over half a million barrels of bitumen per day from northern Alberta to the B.C. coast, mainly for export to Asia where there is an enormous market demand.
Benefits include a predicted BC tax revenue of 1.2 billion dollars over 30 years and over 3000 jobs for the construction of the pipeline. For Alberta oil companies, the most obvious benefit is an increased strategic advantage for Albertan oil in world markets. Asian purchasers would increase demand for Alberta oil allowing corporations to greatly expand profit margins.
The controversy lies in the fact that politicians and locals are concerned about environmental issues (tanker spills) and impact on aboriginal groups, among other problems. Some, like Justin Trudeau, the Liberal Party leadership hopeful, have expressed deep concern for the ecosystems in the west coastal region. B.C. premier Christy Clark has clearly stated that her government is more interested in developing natural gas pipelines estimated to produce around a trillion dollars in econmomic benfit for B.C. She has no motivation to support the pipeline which may benefit Albertans more than anyone.
Although I have a strong bias as a born-and-raised Albertan, I feel that all Canadian businesses should have equal access to export their product via the west coast of British Columbia. I don’t believe this should be a battle between the B.C. and Alberta governments but rather a negotiation between Enbridge and local groups affected by the pipeline.