Proposed Pipelines would Bring Miniscule Benefits to Quebec; Moratorium Urged for Oil Exploration in the Gulf of St.Lawrence

A report dated January 2014 but only released on June 2 examines the claims of economic benefits and job creation for Quebec if tar sands are transported and refined in Quebec. It concludes that Quebec will receive “miniscule” benefits but will bear almost all of the risk and cost of spills and other environmental impacts. Even if all the proposed projects (Line 9B, Energy East and a Suncor coker plant) were approved, the report estimates the economic contribution related to operating activities for the entire crude oil sector would likely remain at about 0.50% (or less) of the total economy and 0.30% (or less) of total jobs. This report was prepared by the consultants at the Goodman Group, in collaboration with Équiterre and Greenpeace Canada.

A report by the St. Lawrence Coalition looks at the issue of the exploration for and exploitation of oil in the Gulf of the St. Lawrence River, and the impacts on the five provinces which border it: Quebec, New Brunswick, Nova Scotia, PEI, and Newfoundland. The report describes the environmental impacts, and also includes a section dealing with socioeconomic impacts such as job creation, wealth distribution, and how oil-related activity can coexist with the existing fisheries industry and with the First Nations. Because of the current gaps in knowledge, the report calls on the precautionary principle and recommends a moratorium on development to allow “a vast public consultation as part of an ad hoc public review …, which would involve the coastal communities of the five Gulf provinces when it comes to decide whether or not the Gulf should be opened to the oil and gas industry.” The authors of this report are employed at the David Suzuki Foundation, Canadian Parks and Wilderness Society (CPAWS) Quebec, Nature Québec, and Attention FragÎles.

LINKS:

Economics of Transporting and Processing Tar Sands Crudes in Quebec is available at http://www.greenpeace.org/canada/Global/canada/report/2014/06/Goodman%20report.pdf
Gulf 101: Oil in the Gulf of St. Lawrence: Facts, Myths, and Future Outlook by the St. Lawrence Coalition is at http://www.coalitionsaintlaurent.ca/wp-content/uploads/2014/06/DSF_Golfe_101_English_June_4_2014_V2.pdf (English version) and http://www.coalitionsaintlaurent.ca/wp-content/uploads/2014/06/DSF_Golfe_101_Francais_June_4_2014.pdf (French version).

Energy East Pipeline: Transporting Crude Oil for Export, not Processing

Contrary to the economic projections put forth by TransCanada Pipeline, a new report released on March 18 contends that the proposed Energy East pipeline will be used primarily as a means to export crude oil, rather than to refine it in Canada.

The Energy East project would convert 3,000 kilometres of existing natural gas pipeline in Saskatchewan, Manitoba, and Ontario to carry crude oil, and also would build over 1,500 km of new pipelines through Quebec and New Brunswick, with the objectiveenergyeastreport of carrying 1.1 million barrels of crude oil per day. In September 2013, an industry-sponsored report by Deloitte & Touche consultants projected job creation in the order of 10,000 jobs in development and construction, and 1,000 ongoing jobs in the operational phase.

TransCanada’s Energy East Pipeline: For Export, Not Domestic Gain argues that the crude delivered by Energy East would exceed the processing capacity of existing Canadian refineries, given that they also source crude from the U.S., the Newfoundland offshore, and in the future, the newly-approved Line 9 pipeline project. The authors argue that new refineries are unlikely to be built in Canada, and point to TransCanada’s proposed plans for export terminals at Gros Cacouna, Québec (east of Québec City) and Saint John, New Brunswick to prove that the intended purpose of the oil is export.

LINKS

TransCanada’s Energy East Pipeline: For Export, Not Domestic Gain, prepared jointly by the Council of Canadians, Ecology Action Centre, Environmental Defence and Equiterre, is available at: http://www.canadians.org/publications/transcanada%E2%80%99s-energy-east-export-pipeline-not-domestic-gain

CBC summary is at: http://www.cbc.ca/news/business/energy-east-pipeline-benefits-overblown-report-says-1.2576782

Energy East: The Economic Benefits of TransCanada’s Canadian Mainline Conversion Project (Sept. 2013) is on the Deloitte website at: http://www.energyeastpipeline.com/wp-content/uploads/2013/09/Energy-East-Deloitte-Economic-Benefits-Report.pdf