Keystone XL: Canadian oil will find new paths to American markets

The head of Canada’s oil and gas lobby group says Canadian oil will find new paths to markets, pursuing all forms of energy transportation to markets in all directions, despite U.S. President Barack Obama’s political decision to deny the Keystone XL permit.

“While President Obama stated that the Keystone XL decision is not in the US national interest, Canada’s oil and natural gas industry is clearly in the Canadian national interest,” said Tim McMillan, president and CEO of the Canadian Association of Petroleum Producers said today.

McMillan says increased market access will create jobs, economic benefits and government revenues by taking advantage of growth opportunities in Eastern Canada, the U.S. Gulf Coast, Washington state, California and emerging global markets.

“The Keystone XL pipeline deserved to be approved on the facts of its environmental, economic and energy security merits,” McMillan said. “Comprehensive US reviews found Keystone XL will cause no substantive change in global GHG emissions or other undue environmental impacts.”

Canada develops its oil sands resources responsibly with a strong focus on the environment.

Photo: Suncor

For instance, among the top suppliers of oil imports to the United States (Canada, Mexico, Nigeria, Saudi Arabia and Iraq, Venezuela), only Canada has GHG rules in place. Alberta set greenhouse gas emission regulations in 2007 and recently increased its carbon price.

“Canada has demonstrated leadership in GHG policy and technologies relating to the oil and natural gas industry,” McMillan said.

President Obama failed to recognize Alberta’s leadership on climate policy, according to CAPP.

“Alberta’s oil and natural gas producers have paid a levy on carbon for longer than Keystone XL has been under regulatory review,” McMillan said.

In the Canadian oil sands, companies have found ways to reduce per-barrel GHG emissions by 30 per cent since 1990 and continue to seek more reductions through technology development.

Companies are investing more than $1 billion collectively into developing new technologies to improve environmental performance through Canada’s Oil Sands Innovation Alliance.

“Canada has what the world needs – a reliable supply of energy that is produced safely and responsibly,” McMillan said. “Canadians will find a way to meet the demands of these global markets.”