An In-depth Look at Pipelines

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Very rarely is there an issue that polarizes constituents in Canada such as the Trans-mountain pipeline. From those against the pipeline, we see an argument being made that the expansion to the already-existing Trans-mountain pipeline is an unnecessary project which endangers the ecosystem, and aside from the usual rhetoric of environmental-protectionism we also see many indigenous groups leading protests against the Kinder-Morgen pipeline on the grounds that the proposed pipeline runs through un-ceded indigenous land. From those who support the pipeline, we see an argument that claims that the pipeline will help save Canadian jobs from the recession, allowing many families to make ends meet. Furthermore, in congruency with the argument for jobs, the pipeline expansion will make Canada a much more competitive country in the global petroleum and crude oil industry.

 

Let’s dive into the facts.

The British Columbian Argument

To put it bluntly many British Columbians vehemently oppose the construction of the pipeline, claiming that the economic benefit to British Columbia is not as fruitful as the economic benefit to Alberta; where the oil industry is a staple in the economy. Macleans Writer Jason Markusoff puts it eloquently in his interview where he affirms that “the economic benefits of this pipeline in B.C. are not as big [as Alberta’s], but the environmental risk is” which sums up one of the main faucets of argument against the Kinder-Morgen pipeline.

Another important consideration in regards to the pipeline is the simple partisan nature of the controversy. The BC-NDP in a bid to firm up the environmental constituent base as well as appease the Greens, who are allowing John Horgan’s minority government to function, are not in favour of the establishment of this pipeline. It is also important to realize that the BC government is not even sure as to whether or not they have the authority to make a ruling on this, as it is thought that inter-provincial pipelines are the responsibility of Trudeau’s federal government. Despite the grey area, Justin Trudeau has made his point clear; “The environment and the economy need to go together,” and has so far stayed on message. Ottawa’s bid to play to both the environmentalists and the pro-pipeline activists has done anything but satisfy both sides, however the Liberals, by playing to the middle, are mitigating any potential backlash that may happen from supporting one province’s ideals against another.

 

The Albertan Argument

Related imageThe Albertan economy had been hit hard during the recession and has resulted in multiple bouts of downsizing in most industries, not just oil and gas. The creation of jobs as well as stimulation of the Albertan economy has led to overwhelming support for the project in Alberta, in contrast to the more equal British Columbian for/against rates, and the federal 50-50 rate of support. Currently, the majority of crude oil in Alberta is sent south of the border to the United States, where the Americans purchase it with a huge discount many Canadian cooperations are forced to accept, but the construction of the pipeline would allow Canadian oil to be sold to Asian markets which would diversify the economy. With the political climate in the United States, many Liberals, including Trudeau, are looking for trading partners elsewhere so as expand Canada’s oil exports. The construction of the pipeline may also act as a course of action which may improve Canada’s environmental footprint in the long-run, as the pipeline may sway Albertans to sign on to the National Climate Change Plan, and allow Canada to hit it’s climate change targets, which notably could never be ascertained without Alberta. Moreover on the environmental benefits of the pipeline; many oil companies in Alberta are currently forced to transport their goods by railcar, which is less efficient both economically and environmentally. Railcars also increase the risk for disaster, as showcased by the Lac-Megantic disaster.

Aside from the pipeline’s ability to allow many families to pay their bills and put food on the table, it would also make Canada a much more important player in the global oil economy. Given Canada’s already modest environmental footprint, it may be a smart idea to secure our place as an oil-exporting country on the global scene. By making ourselves more of a competitive economy not only are we protecting Canadian jobs and the Canadian economy, but we are also protecting Canadian values. Many nations of the world today are forced to purchase their petroleum from nations who do not share many of their values, and Canada’s ability to pander to those markets allows Canada to push Canadian values worldwide. This also means that Canada has much more freedom both economically and politically to trade with partners who Canadians want to trade with. For example, if hypothetical country X is a tyrannical regime, Canada, as well as many other nations, are no longer forced to fund the behaviour of said country’s regime.

 

So, in the end, the fundamental question is do we value our economy and workers over our environment?

 

 

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