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

Energy East Pipeline: Job Creation Projections Provided by TransCanada

TransCanada Pipelines released an economic analysis of their Energy East pipeline project on September 9, providing detailed estimates of direct, indirect and induced job creation, as well as the impact on tax revenues and Canadian GDP. The report was prepared by Deloitte and Touche LLP, using a Statistics Canada input/output model. It forecasts more than 10,000 full-time jobs will be directly supported during the development and construction phase (2013 to 2018), with approximately half of the jobs in construction, engineering, architectural, and oil and gas support services industries. In the operational phase, approximately 1,000 full-time jobs are forecast.

Despite the enthusiasm of federal politicians and New Brunswick Premier David Alward, CBC and the Globe and Mail have reported skepticism about the job creation numbers by New Brunswickers. There is also serious opposition from Ontario and Quebec, based on environmental and safety concerns.

LINKS

Energy East: The Economic Benefits of TransCanada’s Canadian Mainline Conversion Project at the Deloitte website at: http://www.energyeastpipeline.com/wp-content/uploads/2013/09/Energy-East-Deloitte-Economic-Benefits-Report.pdf; A briefer (2-page) Backgrounder is available at: http://www.energyeastpipeline.com/wp-content/uploads/2013/09/Energy-East-Economic-Analysis-Backgrounder.pdf.

“TransCanada Touts National Benefits of Energy East Plan” (Sept. 10) in the Globe and Mail at: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/energy-east-pipeline-will-create-2000-jobs-transcanada/article14213238/

Energy East Pipeline may create 10,000 Jobs, Study Says (Sept. 10) is at the CBC website at: http://www.cbc.ca/news/canada/new-brunswick/energy-east-pipeline-may-create-10-000-jobs-study-says-1.1699614

“N.B. Mayor adds to Chorus of Dissent against Energy East Pipeline Plan” (Sept. 12) in the Globe and Mail at:http://www.theglobeandmail.com/news/politics/nb-mayor-adds-to-chorus-of-dissent-against-energy-east-pipeline-plan/article14298359/

“TransCanada’s Eastern Path hits Snag in Ontario”(Aug. 22) in the Globe and Mail is at: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/transcanadas-eastern-path-hits-roadblock-in-ontario/article13909022/