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Energy executives pitch Pelosi on ‘improved’ oil sands
News Articles | Financial Post | Carrie Tait | September 09, 2010
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CALGARY — A handful of Canada’s most powerful energy executives spent an hour with Nancy Pelosi, the Speaker of the U.S. House of Representatives, pitching how the oil sands industry has improved its environmental credentials, while making no attempt to correct what they see as misleading and incorrect statements that have been lobbed against them.
Rick George, Suncor Energy Inc.’s chief executive and one of the executives who was invited to sit down with Ms. Pelosi in Ottawa Thursday, said water, emissions, reclamation, and steam-assisted gravity drainage (SAGD) projects that use wells to extract bitumen rather than open pit mines, were among the topics discussed.
It was also “pointed out” that Canada’s energy industry benefits the United States more than by just serving as its largest supplier of crude, he said in an interview from Ottawa, following the meeting.
“The focus was really on technology and on continuous improvement, and of course SAGD is a big piece of that,” Mr. George said. “They were very interested in our track record of the oil sands over the last decade and what we see going forward in terms of improvement.
“I think that all hit home, for sure,” he said, although he would not divulge specific details of the meeting.
Roughly 80% of the oil sands will be developed using SAGD rather than mining. SAGD, however, comes with its own problems. While it does not require ugly open pit mines or toxic tailings ponds, it consumes large amounts of water and produces more greenhouse gas emissions than mining projects.
Mr. George said it was noted that U.S. jobs and investments are also tied to Canada’s energy industry.
“It is important to remember the Americans are very heavily invested in here, between Exxon, Conoco, Chevron, Marathon, Devon,” Mr. George said, rattling off some of the U.S.’s largest corporations. “The Americans are very heavily invested up here, so it is important to their companies, to their pension funds, to the investments in America and to jobs not just in Canada, but in the U.S. as well.”
Ms. Pelosi, a Democrat from California where opposition to the oil sands has been increasingly vocal, gave no indication about what she would do with the information she gathered. The meeting was a “two-way dialogue,” rather than Ms. Pelosi firing questions at the executives, Mr George said.
The Canadian executives did not spend time addressing what they believe are misconceptions about the their industry, Mr. George said. “No, I would say not in great detail…There is a whole industry based upon trying to skew the facts their direction, and I don’t want to engage in that.”
Environmental groups and First Nations representatives were also invited to speak with Ms. Pelosi and Edward Markey, chairman of the energy and environment sub-committee of the House energy and commerce committee, and chair of the select committee on energy independence and global warming.
Part of their discussion Thursday, which was not part of the industry’s meeting, touched on Calgary-based TransCanada Corp.’s proposed Keystone XL pipeline to the United States, which is facing opposition from at least 50 members of Congress. TransCanada’s former CEO, Hal Kvisle, attended the industry’s meeting.
“We discussed how new pipelines, like TransCanada’s proposed Keystone XL pipeline to the U.S, risk locking the U.S. and Canada into growing dependence on high-impact oil,” Marlo Raynolds, executive director of The Pembina Institute, said in a statement. “As the primary customer of Canada’s oil sands, Americans will rightfully question whether increasing their dependence on the oil sands advances or distracts from this clean energy agenda.”
Rick Smith, executive director of Environmental Defence, said in the same statement: “We took the time to clarify the serious environmental problems that exist right now in the tar sands and the risks posed by expansion.
“The U.S. needs to send a signal that projects like the proposed Keystone XL tar sands pipeline will not be approved until Canada takes responsibility for the environmental impacts and works with the U.S. to transition to a clean energy economy.”
Neither The Pembina Institute nor Environmental Defence rank in the radical category when it comes to environmental activists.
Ms. Pelosi also met with Ed Stelmach, Alberta’s premier, and Brad Wall, Saskatchewan’s top politician, Wednesday evening.
Mr. Stelmach said Thursday he was impressed by the free flow of information in his meeting with Ms. Pelosi and Mr. Markey, noting similar talks are often more structured and don’t include as much open dialogue.
Mr. Stelmach said he was buoyed by assurances he received from Pelosi that while the U.S. is looking to end its dependence on foreign oil, that doesn’t include Canadian crude and petroleum from the oilsands.
“That was a positive statement,” Mr. Stelmach told reporters in Calgary, shortly after returning from Ottawa. “She didn’t consider Canada to be foreign oil.”
All sides also promised to invest more dollars in environmental research and development, such as carbon capture and storage.
However, he recognizes that one meeting isn’t going to completely sway U.S. legislators to throw their support behind oilsands development.
“Most of the questions were focused on Alberta, on the oilsands. So, obviously a huge interest in the oilsands,” Mr. Stelmach added.
“Now, let’s not be naïve. One dinner may not alter or change a lot of, any positions or opinions by any of either the environmental groups or some of the elected officials.”
Financial Post with files from Postmedia News
Tagged with: pelosi-markey, suncor, financial post, rick george, sagd
