Enbridge Inc to Build New Pipeline in Gulf Coast
Oct 6th, 2010 by Mehrad Karimzadegan
Enbridge oil company plans to build a new pipeline off the US Gulf Coast after it recently had two oil spills, one in Michigan followed by one in Chicago. By doing this they will be able to generate 350,000 barrels of light oil per day, thus increasing the supply of oil and in turn bringing down its equilibrium price. Furthermore, the company is planning to invest into the Asian markets with its $5.5 billion Northern Gateway proposal, which will connect oilsands to tankers along the West Coast.
There are many issues surrounding the development of this new project. Environmentalists are protesting the proposed plan due to its health and environmental risks/hazards. On top of that, the First Nations tribes of BC are also very unenthusiastic, to say the least, about the Gateway proposal. They are argueing that these projects will be going into their native reserve and disturbing their rights; also, they are in agreeance with the environmentalists about the effects it will have on the environment.
It all comes back to the issue of ethics.
The oil companies aren’t much concerned with tribal policies but only with revenue and profit. Is it right to build another project on top of the many they already have and risk endangering many plant and wildlife species that are inhabiting the area? Is it also ethical to disregard the presence of the First Nations and devaluate and disrespect them? And to do this right after two major oil leak accidents.
This situation has the potential for a controversial confrontation between the two sides and it could end up very ugly for one if not both groups. If a compromise does not come into effect, the legal issues could damage everyone involved and neither side will be satisfied at the end.
Attached is the link to the article:
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b4743269