Canadians like to think that although they are the junior partner in their trade relations with the United States, the 174 billion barrels of proven reserves in the oil sands of Alberta provide a powerful ace up their sleeve in any dealings with their energy-hungry neighbor. That belief has now been shaken by an American law that appears to prohibit American government agencies from buying crude produced in the oil sands of the western province.
41. ______. But that is the effect of banning federal agencies from buying alternative or synthetic fuel, including that from non-conventional sources, if their production and use result in more greenhouse gases than conventional oil. Transforming Alberta’s tarry muck into a barrel of oil is an energy-intensive process that produces about three times the emissions of a barrel of conventional light sweet crude.
Having woken belatedly to the danger, the Canadian government is now scrambling to secure an exception. Michael Wilson, Canada’s ambassador in Washington, has written to America’s secretary of defense, Robert Gates (whose department is a big purchaser of Canadian oil), stressing American dependence on Canadian oil, electricity, natural gas and uranium imports, and noting that some of the biggest players in the Alberta oil patch are American companies. Mr. Wilson added plaintively that both George Bush and his energy secretary, Samuel Bodman, have publicly welcomed expanded oil-sands production, given the increased contribution to American energy security. 42. ______.
The fear in Canada is that the American purchasing restriction, which at present applies only to federal agencies, is the start of a wholesale shift to greener as well as more protectionist policies under a Congress and potentially a White House controlled by the Democrats. 43. ______.
Yet environmentalists point out that Canada is now paying for its own foot-dragging at the federal level on green initiatives. Having signed the Kyoto agreement under a previous Liberal government, Canada did little to stop its emissions rising. They are now almost 35% above the Kyoto target. And although Mr. Baird likes to describe his plan as tough, it will not bring Canada into line with Kyoto. 44. ______.
The vagueness of the proposed federal rules did not stop the premier of Alberta, Ed Stelmach, from giving a defiant warning that he will stand up for the interests of Albertans (read oil industry) and will be examining the constitution to ensure that the federal government’s proposed plan does not intrude on provincial jurisdiction. His province has one of the weakest environmental regimes in Canada.
45. ______. But even if a deal is reached with the outgoing Bush administration, any exception for Canada may be short-lived if greening Democrats take the White House in November.
[A] Since 1999, Canada has been the largest supplier of U. S. crude and refined oil imports. In 2007, Canadian crude oil and petroleum products represented 18% of U. S. crude oil imports, at nearly 2.5 million barrels per day. From 2005 to 2007, the volume of Canadian crude oil exports to the United States increased by 7.4% per year.
[B] John Baird, the Canadian environment minister, referred this week to the American move when he unveiled new proposals to reduce industrial emissions in Canada, including the oil sands, by 20% by 2020.
Big states like California were making similar pronouncements, he told reporters. The oil sands were an important national resource, but had to be expanded in an environmentally friendly way.
[C] As Canada’s representative in Washington, Mr. Wilson is the point man on Canada’s lobbying efforts either to kill the Buy American clause, or to get a special exemption for Canada.
[D] The Energy Independence and Security Act 2007 did not set out to discriminate against Canada, America’s biggest supplier of oil.
[E] With energy exports, mainly from Alberta, driving the Canadian economy, this is not a happy thought for Canadians.
[F] Although the Canadian embassy says that there has been no official response to Mr. Wilson’s letter, there are reports of talks going on in Washington aimed at addressing Canada’s concerns.
[G]The rules for the oil sands, now the fastest growing source of greenhouse gases, have yet to be finalized and will not come into force until 2010. Furthermore, they rely on carbon capture, a promising but unproven technology.