Nov
22
Profits vs. Sustainability?
Posted by: Paul Dhaliwal | November 22, 2011 | Leave a Comment
When I came across Fraser Mcgee’s blog post about the Alberta Tar Sands operation, I was surprised to find him discussing the compatibility of environmentalism and profitability. In my opinion, his argument that oil production can be environmentally sustainable is doubtful at best. Deforestation cannot be expressed as Eco-friendly in any way; neither can the loss of many species natural habitats.
More so, if guidelines regarding environmentalism were established by the federal or provincial government and imposed upon the Alberta Tar Sands operation, there could be various negative results. The loss of profits features prominently amongst these negative results, as this could potentially dissuade firms from this operation, and render the allocation of resources (capital) rather sluggish. Ultimately the effects of implementing stringent environmental guidelines would not be desirable from the provincial or federal governments’ point of view. As I see it, their sights are fixed upon a resurgent economy propped up by a booming oil industry, rather potential success impeded by government intervention.
Oil Pump- Courtesy of ETF Trends
Environmental responsibility is indeed an issue that oil and developmental companies should keep in mind while striving for profits, but environmentalists should also realize that such a potentially profitable endeavour will not be readily shut down, given its’ economic potential.