Bitumen pipeline placementComments made by the late Peter Lougheed hung over public hearings Monday about a pipeline that would ship bitumen from Alberta's oilsands to Asian markets.
Both sides in the debate tried to claim the support of the former Alberta premier who died Sept. 13.
Rick Neufeld, lawyer for pipeline proponent Enbridge (TSX:ENB), suggested Lougheed backed the line's construction.
"In one of his last interviews, didn't he say the [Northern Gateway] pipeline was essential for Alberta?" he asked while cross-examining Gil McGowan, president of the Alberta Federation of Labour.
In response, McGowan suggested Lougheed was sympathetic to the federation's concerns that too many oilsands projects were exporting raw bitumen and robbing Albertans of some of the benefits they would reap from upgrading it in the province.
"Lougheed took an activist approach to ensure we had a value-added industry," McGowan told the National Energy Board. "It wouldn't have been here without government policy and intervention."
The federation's previous testimony that the $6-billion project would make it harder to create upgrading and refining jobs in Alberta, as well as increase fuel prices throughout Canada, came under repeated attack in Monday's cross-examination.
No shortage of bitumen
Neufeld pointed out there is no shortage of bitumen currently available for anyone interested in building a refinery. Nor has Calgary-based Enbridge ever said it would restrict access to bitumen.
He disputed the notion that pipelines encourage the export of raw natural resources. He noted that the Transmountain pipeline originally built to transport crude now moves both oil and refined products.
McGowan responded that the labour group believes projects such as Northern Gateway help price Alberta out of the market for new industrial development. He said the pipeline would only help speed oilsands development, creating demands for labour and materials that drive up their cost.
Neufeld also grilled federation adviser Robyn Allan over her testimony that the 550,000-barrel-a-day pipeline would drive up fuel costs in the rest of Canada.
"So if Canadian producers get higher netbacks in Edmonton, refineries will have to pay more in New Brunswick?" he asked.
Allan responded that oil shipped to Asia would no longer be available to North Americans, which will eventually raise its price.
"When you take oil out of North America and take it to Asia the price increase is going to affect all markets in the long run," she said.
Enbridge analysts have argued that the price of oil is set globally and the Gateway pipeline wouldn't change the price of the Venezuelan, European and Middle Eastern oil on which refineries in Central Canada rely.
In afternoon testimony, federation lawyer Leanne Chahley revisited potential Chinese ownership shares in the pipeline.
Cross-examining a panel of energy producers who hope to ship on Gateway, Chahley pointed out that one of them — Nexen — is being bought out by the Chinese National Offshore Oil Corp. Nexen holds one of 10 shares that give it an option for a five per cent ownership stake.
MEG Energy — owner of another of the ownership options — is about 15 per cent owned by the Chinese corporation.
Chahley also pointed out that Total E and P Canada, another hopeful Gateway shipper, is involved with two developments that include some level of Chinese investment.
CBC News and iPolitics, Mon Sept 24 2012
The Canadian Press
Hearings dealing with the Northern Gateway Pipeline continued in Edmonton, Saturday, and for the first time backers of the project were given the chance to cross examine those opposing it.
The pipeline would run nearly 1,200 kilometres from Bruderheim to Kitimat, on the BC coast. The project would allow bitumen to be sold to Asian markets.
Over the past few weeks, groups opposed to the pipeline have been voicing their concerns to an independent joint review panel. Among them, the Alberta Federation of Labour, which contends the project would move jobs out of the province.
"Our concern is that once it's built, it will become a bitumen superhighway, taking not only raw bitumen from the oil sands out of the province to places like China and the United States, but along with that bitumen we're afraid that it's also going to transport literally tens of thousands of jobs in upgrading and refining," said Gil McGowan, President of the Alberta Federation of Labour.
"The project doesn't preclude refining. We will be able to move synthetic or diluted bitumen, or more conventional oil, so there's nothing to prevent refining from happening. Certainly the very value is in accessing large markets and if refining proves profitable or economic at some point, we can certainly move those products as well," explained John Carruthers, President of Enbridge Northern Gateway Pipelines.
The independent panel is set to make its decision on whether the pipeline should go ahead by December 2013. While the panel's input will carry weight, the final say goes to the Federal Cabinet. It's decision is expected in the summer of 2014.
Global Edmonton, Sat Sept 22 2012
The benefits to the oil industry of Enbridge Inc.'s proposed Northern Gateway pipeline may be exaggerated and its costs to the economy and environment underestimated, hearings into the project heard Tuesday.
The $6-billion pipeline has been touted as a way to link burgeoning production from Alberta's oilsands to growing markets in Asia, which would allow Canadian producers to improve profits by reaping higher prices for crude overseas.
But a lawyer for the Haisla First Nation, which claims much of the land the pipeline would travel though, said projections of nearly $1.5 billion a year in increased revenue by 2018 are inflated.
Hana Boye said the estimate Enbridge (TSX:ENB) is presenting at the National Energy Board hearings was developed with figures from the Canadian Association of Petroleum Producers which suggest oil supply in Western Canada will grow by 6.5 per cent a year between 2011 and 2020.
The proposed route for Enbridge's Northern Gateway Pipeline is from just north of Edmonton Alberta to Kitimat on the West Coast of B.C. EnbridgeThe proposed route for Enbridge's Northern Gateway Pipeline is from just north of Edmonton Alberta to Kitimat on the West Coast of B.C. Enbridge
That's different than what Enbridge is telling its own investors and shareholders, said Boye. The company's own estimate is 4.4 per cent growth — a difference of 500,000 barrels a day by 2020 that leads to a corresponding drop in revenues earned by producers.
"Have you given a different supply forecast to your shareholders than that provided to the panel?" Boye asked Enbridge's Gateway manager John Carruthers on Tuesday.
Carruthers acknowledged that different figures have been used at different times. Estimates can vary depending on assumptions of what the mix of varying crudes would be, he said.
"There would be times when we would see differences."
But the variances aren't big enough to change the project's economics, Carruthers said.
"The minor changes over time don't change the project need."
Boye added that the project could discourage the upgrading of oilsands bitumen in Alberta and that its cost to the environment hasn't been fully evaluated.
She pressed Enbridge over the use of diluent — lightweight solvents mixed with bitumen or other heavy crudes to make them flow through a pipe. Although the mix varies, roughly one-third of what would flow through the Gateway line would be diluent. The Gateway project includes a second pipeline that would import diluent from the B.C. coast back to Alberta.
Boye suggested the cost of that diluent has not been factored into calculations of producer benefit.
Ignoring the cost of diluent exaggerates the case for shipping raw bitumen outside Alberta for upgrading or refining, said Robyn Allan, an analyst for the Alberta Federation of Labour, who is advising the Haisla.
"There is no economic analysis ... that's been supplied to the hearings (of the impact) to the Canadian economy when we import condensate instead of upgrading in Alberta," she said outside the hearing.
"Importing condensate instead of upgrading (bitumen) is hollowing out the sector."
Claims analysis ignored side effects
Boye also questioned environmental economist Mark Anielski about his dollar-value calculation of the project's environmental impact. She pointed out that his analysis only included the 50-metre pipeline right of way and ignored possible effects outside that corridor.
Anielski responded those effects could exist, but there's no credible method of putting a monetary value on them.
"This kind of information is not available," he said. "To speculate would be unprofessional of me."
Anielski also acknowledged his report didn't put a value on a wide array of ecological effects from forests that would be disturbed by the pipeline — everything from erosion control to genetic diversity to pollination.
Enbridge has promised to plant a tree for every one cut down for the pipeline right-of-way, he said. The company is also working with the Nature Conservancy to protect land that would offset areas disturbed by the project.
The hearings are expected to continue in Edmonton throughout the week.
The Canadian Press, Tues Sept 18 2012
The benefits to the oil industry of Enbridge Inc.'s proposed Northern Gateway pipeline may be exaggerated and its costs to the economy and environment underestimated, hearings into the project have been told.
The $6-billion pipeline project has been touted as a way to link burgeoning production from Alberta's oil sands to growing markets in Asia, which would allow Canadian producers to improve profits by reaping higher prices for crude overseas.
But a lawyer for the Haisla First Nation, which claims much of the land through which the pipeline would travel, said on Tuesday that projections of nearly $1.5-billion a year in increased revenue by 2018 are inflated.
Hana Boye said the estimate Enbridge is presenting at the National Energy Board hearings was developed with figures from the Canadian Association of Petroleum Producers that suggest oil supply in Western Canada will grow by 6.5 per cent per year between 2011 and 2020.
That's different than what Enbridge is telling its investors, Ms. Boye said. The company's own estimate is 4.4 per cent growth – a difference of 500,000 barrels a day by 2020 that would lead to a corresponding drop in revenues earned by producers.
"Have you given a different supply forecast to your shareholders than that provided to the panel?" Ms. Boye asked Enbridge's Gateway manager, John Carruthers, on Tuesday.
Mr. Carruthers acknowledged that different figures have been used at different times. Estimates can vary depending on assumptions of what the mix of varying crudes would be, he said.
"There would be times when we would see differences."
But the variances aren't big enough to change the project's economics, Mr. Carruthers said.
"The minor changes over time don't change the project need."
Ms. Boye added that the project could discourage the upgrading of oil sands bitumen in Alberta and that its cost to the environment hasn't been fully evaluated.
She pressed Enbridge over the use of diluent – lightweight solvents mixed with bitumen or other heavy crudes to make them flow through a pipe. Although the mix varies, about one-third of what would flow through the Gateway line would be diluent. The Gateway project includes a second pipeline that would bring diluent from the B.C. coast to Alberta. Ms. Boye suggested the cost of that diluent has not been factored into calculations of producer benefit.
Ignoring the cost of diluent exaggerates the case for shipping raw bitumen outside Alberta for upgrading or refining, said Robyn Allan, an analyst for the Alberta Federation of Labour who is advising the Haisla.
"There is no economic analysis ... that's been supplied to the hearings [of the impact] to the Canadian economy when we import condensate instead of upgrading in Alberta," she said outside the hearing.
Ms. Boye also questioned environmental economist Mark Anielski about his dollar-value calculation of the project's environmental impact. She pointed out that his analysis included only the 50-metre pipeline right of way and ignored possible effects outside that corridor.
Mr. Anielski responded that those effects could exist, but there's no credible method of putting a monetary value on them. He also acknowledged his report didn't put a value on a wide array of ecological effects from forests that would be disturbed by the pipeline – everything from erosion control to genetic diversity to pollination.
The Canadian Press, Tuesday Sept 18 2012
Byline: Bob Weber
EDMONTON — Premier Alison Redford is cutting short her trip to Asia and returning home as a result of the death Thursday of her friend and mentor, former Alberta Premier Peter Lougheed.
The Canadian flag over the legislature has been lowered to half staff and a dozen white roses have been placed by Lougheed's portrait outside the premier's office on the building's third floor.
The premier's spokesman Jay O'Neill said Redford plans to end her travel in Asia three days early.
"Arrangements are being made for her return," he said.
It isn't known whether Lougheed will lay in state at the legislature. The last to be honoured in that fashion was former Lt-Gov. Grant MacEwan.
Tributes have been pouring in for the 84-year-old former premier from all across the nation.
Prime Minister Stephen Harper said Canada had lost a truly great man.
"Peter Lougheed was quite simply one of the most remarkable Canadians of his generation," he said in a statement. "He was a driving force behind the province's economic diversification, of it having more control of its natural resources and their development, of Alberta playing a greater role in federation and of improving the province's health, research and recreational facilities. He was also instrumental in the creation of the Canadian Encyclopedia."
Harper noted Lougheed's legacy will live on in the institutions that he pioneered which continue to generate benefits for the people of Alberta and Canada.
Gov.-Gen. David Johnston said Lougheed never stopped believing in a better, stronger Canada.
"His was a full life, with a record of achievements that will be long remembered," said Johnston. "He was a loving husband, father and grandfather — and a dear friend — and he will be missed."
Premier Alison Redford said Lougheed was a visionary and an inspirational leader who forged for success and prosperity in the province. She expressed condolences to Lougheed's family on behalf of all Albertans.
"Peter Lougheed was a man who made us all so proud to be Albertans and he will be deeply missed," she said.
Colleen Klein expressed sympathy for the Lougheed family on behalf of her ailing husband, former premier Ralph Klein.
"Ralph, like all Albertans, understood how Peter Lougheed put Alberta on the global map, so that others, like Ralph, could follow," she said in a statement. "We are deeply saddened that he has passed away, but grateful for the doors that he opened."
Finance Minister Doug Horner, who grew up around the premier as the son of former Lougheed cabinet minister and right-hand man Hugh Horner, said Lougheed's legacy had a profound effect on Redford's Progressive Conservative government.
"He was a Progressive Conservative," he said. "We do have a social conscience and Peter Lougheed defined that and really did define what Progressive Conservative was all about."
He said everyone recognized that Lougheed always had Alberta's best interests at heart.
"From the right spectrum or the left spectrum, all of his ... political foes respected the fact he was in it for the right reasons, that he was there to do what in his heart was the right thing for his province. I think that's something all politicians should try and emulate."
Accolades have indeed come in from leaders of all political stripes.
"There's an element of grace to everything that he's done," said Roy Romanow, former NDP premier of Saskatchewan. "The hallmark of the man as an individual always will be that he was a gentleman."
Marc Lalonde, the former federal Liberal cabinet minister, there was nothing personal about the political battle between the Trudeau government and Alberta on the National Energy Program in the early 1980s.
He said Lougheed "was an extremely able politician and a very "hardball" player. He had very much at heart the interests of his province ... but nobody could question his strong views about Canada, and his strong support for Canadian unity."
NDP Leader Brian Mason said Lougheed fought for Alberta and was a tremendous builder of the province.
"His work to ensure that Albertans get a fair deal for their resources, to create a more progressive province, to improve our education system and to encourage a fairer society is of unquestionable importance to the province that we have today," he said in a statement. "He stood up for Albertans, but remained a passionate Canadian."
Liberal Leader Raj Sherman said Lougheed helped modernize Alberta.
"His zeal and determination to make our province and nation a better place will not soon be forgotten. He was a visionary Albertan who moved our province forward in the hopes of ensuring a prosperous future for our children and grandchildren."
Gil McGowan, president of the 150,000-member Alberta Federation of Labour, said Lougheed understood the concept of the public interest, and did not confuse what was good for private industry with what is good for the public as a whole.
"He was not a cheerleader for narrow business interests, and he did not engage in gimmicks or short-term thinking. He used our wealth to build a better Alberta."
The board and staff at the Epcor Centre for the Performing Arts expressed sadness at the loss of "a truly exceptional man and consummate statesman."
"Mr. Lougheed was a proud trailblazer for arts and culture in Alberta," the centre said in a statement.
The Calgary Herald, Friday September 14 2012
Byline: Darcy Henton
With files from James Wood and Kelly Cryderman
An outpouring of love and respect has touched the hearts of Peter Lougheed's family in the wake of his death Thursday at age 84.
A simple bouquet of white roses rested under his portrait in the premier's wing of the Alberta Legislature the day after his death. As flags flew at half-mast, around the province tributes and memories poured in for the man whose leadership moulded modern Alberta.
Edmonton resident Charles Bradbrooke recalled how Lougheed's campaign call for diligence and reward prompted him to relocate to Alberta.
"We moved from Saskatchewan to Alberta to help work our buns off so we wouldn't have to pay any taxes later," Bradbrooke remembered.
Subsequent government excesses blew that lead away, he said.
Solicitor General Jonathan Denis recalled said Lougheed's 2003 visit to his school shaped his career.
"He suggested three of us in the crowd would become MLA — at that moment I decided it was a career I wanted to pursue," Denis recalled.
What impressed Denis the most, he said, was the retired premier's positive attitude.
"His example to me is one of service — he looked at everyone around him as someone he served, one of his bosses," Denis said.
At the Alberta Legislature, where the Calgary native's upstart Progressive Conservative party blazed a new path four decades ago with a victory over the Social Credit party in a tide-turning election, tributes came in from all sitting parties.
"He modernized Alberta, toppled a political dynasty, diversified the economy, and established strong public institutions," said Liberal leader Raj Sherman, recalling Lougheed strengthening Alberta's role in confederation, taking on Prime Minister Pierre Trudeau's contentious National Energy Program over energy revenue sharing. A University of Alberta-educated lawyer with a Harvard MBA, Lougheed was well-served by his keen business sense and an aptitude for game-changing legislation.
"A true federalist, he was an outspoken proponent of Canadian unity and the Constitution Act. He also fought to enshrine our freedoms, defend property, and enhance civil liberties through the creation of the Alberta Bill of Rights," Sherman said.
Alberta NDP Leader Brian Mason said Lougheed's work is recognized nationally because as he stood up for Albertans, he remained a passionate Canadian.
"He was a giant of Alberta political history and, in many ways, the founder of modern Alberta — he was a huge figure in my political development, and I will miss him," Mason said.
Alberta Federation of Labour President Gil McGowan said Lougheed was a visionary and principled leader.
"He was unafraid of challenging his successors as they moved away from his priorities for the province.
Even when he was being actively critical of governments and leaders who came after him, he was always statesmanlike, always with a view to the bigger picture of Albertans' public interest," McGowan said.
Lougheed's family thanked all the professionals at Alberta Health Services who have helped care for him over the last months and days, which included a stay at the Peter Lougheed Centre named after him.
He is survived by his wife of 60 years, Jeanne (née Rogers), four children and seven grandchildren. The family plans a private service, and a public memorial will be announced, said Lougheed family spokesman Jason Hatcher. "The family are extraordinarily touched and grateful — in fact, overwhelmed — by the outpouring from Albertans and Canadians," said Hatcher
"They're very touched by the sentiments and many memories that have been expressed."
Citing Lougheed's many charitable interests, including The Banff Centre and the Lougheed House Conservation Society, as well as sports, health, education, parks and public spaces and culture, the family asked that donations or volunteer actions be given in lieu of flowers.
"Any donations or volunteer actions that support his charitable interests would continue to fulfil his hopes and vision for Alberta and Canada," Hatcher said.
Edmonton Sun, Friday September 14 2012
Byline: Jackie E. Larson
When Prime Minister Stephen Harper declared this summer the proposed Northern Gateway pipeline is "in the vital interest" of Canada, critics could be forgiven for suspecting the fix was in, that the public hearings reviewing the project were nothing more than a formality.
However, based on the hearings so far in Edmonton it would be unfair to dismiss the process as a rubber stamp. Conducted by a joint review panel from the National Energy Board and the Canadian Environmental Assessment Agency, the sessions have been a thorough, at times painstakingly so, dissection of the $6-billion project that would pump 525,000 barrels a day of Alberta's bitumen to the West Coast port of Kitimat for shipment by tanker to Asia.
The Edmonton portion of the hearings is focused on the economic impact of the project and has so far sat for five days with 10 more days on the agenda beginning next Monday, allowing a list of critics and supporters of the project to cross-examine Enbridge officials in minute detail over company estimates that the pipeline would boost Canada's gross domestic product by $312 billion over 25 years.
The hearings not only present critics with an opportunity to grill Enbridge officials, they also give groups such as the Alberta Federation of Labour a platform to present their own arguments that by shipping raw bitumen offshore, the pipeline represents a loss of refining jobs in Alberta.
The hearings are giving us not just Enbridge's argument for the pipeline but the critics' counter-arguments. The joint review panel is hearing from every conceivable corner in this debate before submitting its final report at the end of 2013, not that any actual debate has broken out on the floor of the hearings. Because the joint review panel is a quasi-judicial body with the power to swear in witnesses, it strives to maintain a decorum more befitting a court.
What the panel and the public are therefore seeing is a cold, bloodless look at the pros and cons of the most contentious energy project in the country.
Emotions might run a little higher in October and November when the hearings move to Prince Rupert and Prince George to examine the much more hot-button issues of pipeline safety, spill response and the effect of a spill on the coastal environment.
If Enbridge officials are feeling frustration with the pressure being applied by pipeline critics, they really have no one to blame but themselves. Enbridge badly tarnished its own reputation by allowing more than three million litres of oil to spill into Michigan's Kalamazoo River in 2010, opening itself up to condemnation by the U.S. government that likened company officials to the bungling Keystone Kops of silent movie fame.
Given the emotions the 1,200-kilometre project is stirring on both sides of the debate (and both sides of the Alberta-B.C. border), we need to judge this project calmly and coolly. That's what the joint review panel is offering us: a dispassionate examination of whether the Northern Gateway pipeline is indeed in the "vital interest" of Canada.
The Edmonton Journal, Wednesday Sept 12 2012
Listen to the first segment of Part 3 of CBC's "As It Happens" for Tuesday, September 4th titled "Northern Gateway Hearings. The Alberta Federation of Labour says the Enbridge pipeline project will actually eliminate Canadian jobs":
The Alberta Federation of Labour has two main criticisms of the Northern Gateway pipeline: (1) Canadian jobs would be created if the crude bitumen was refined in Canada and then exported rather than being exported directly; and (2) The pipeline will reduce the "Asian" premium, which means a higher price of oil in Canada and job loss due to the higher processing costs for Canadian refineries.
In about 200 words carefully explain why the creation of the Gateway pipeline from Alberta to Kitimat BC will raise the price of crude oil for Canadian refineries. Be sure to include proper references to your background material.
According to Gil McGowan (President of Alberta Federation of Labor), the creation of Northern Gateway pipeline will raise the price of crude oil for Canadian refineries. Oil refineries take crude oil as the raw material for production and convert it into consumable products like gasoline. Currently, the oil suppliers for Canadian refineries are primarily domestic, and the buyers/consumers of their refined products are primarily domestic as well.
With the pipeline in place, the expansion of Canadian crude oil industry to a world market would bid up the domestic price of crude oil to meet the world price (narrowing the gap between the domestic and the world price). This will be so as the result of a much higher demand from a worldwide refinery industry/oil market, particularly with access to the ones in Asia and West coast US. Mr. McGowan mentioned that the Saudi Arabia (currently the main oil supplier to the Asian market) when facing the Canadian entering their Asian oil market could lower their oil price to keep their market share. Thus, it would result in a reduced "Asian Premium". The "lowered" oil price in Asia market/world market would then still be higher than the current Canadian domestic price of crude oil because of the high demand. This would encourage Canadian crude oil export as long as it allows a higher margin of profit than selling the oil domestically. The potential shrinking supply of crude oil domestically would cause the domestic oil price to rise. In addition, the Canadian refineries' bargaining power would be reduced as the Canadian crude oil industry is open to the world market which would probably be reflected on an increase of price of crude oil as well.
Happy Trades Blog, September 10, 2012
Posted on September 10, 2012 by Mihaela Mardare — 1 Comment ↓
"Northern Gateway Hearings. The Alberta Federation of Labour says the Enbridge pipeline project will actually eliminate Canadian jobs"
Gil McGowan, the president of the Alberta Federation of Labour was one of the guests of the September 4th "As it Happens" show at CBC Radio. The Federation is opposing the construction of the Gateway pipeline from Alberta to Kitimat BC because exporting the crude oil to Asian markets will lead in the long run to loss of jobs and raise of oil price for Canadians.
In Asia, especially in China, the price for oil is a little higher than in North America. If the cruel oil from Alberta will be exported in Asia, the price of oil will rise on Canadian market too. The Canadian consumers, businesses and refineries will be paying more for the oil they need. The higher costs of production for refineries will lead to loss of jobs.
Another reason of price rising for Canadian refineries is the high cost of transporting on rail as Texas-based energy consultant Muse Stancil said: "Northern Gateway allows the Canadian crude producers to both stop selling to their least attractive refiner clients (from a pricing prospective) and reduces their need to ship heavy crude via comparatively expensive rail transport." http://www.cbc.ca/m/touch/canada/story/2012/09/06/pol-cp-gateway-hearings-dutch-disease.html
The president of the Alberta Federation of Labour suggested as the best alternative for Gateway pipeline the export of gas: "we should give the world gas in their tanks and keep the jobs in upgrading and refining for ourselves". This will prevent of sending the high valuable jobs out of the country and raising the price of crude oil as a result of higher costs of production for Canadian refineries.
September 10 2012
Michaela Mardare, U of BC Blog
Explanation of why the creation of the Gateway pipeline from Alberta to Kitimat BC will raise the price of crude oil for Canadian refineries.
Segment III titled, "Northern Gateway Hearings. The Alberta Federation of Labour says the Enbridge pipeline project will actually eliminate Canadian jobs"
It is true that the creation of the northern gateway pipeline will rise the crude oil price for the Canadian refineries. Despite the fact that Enridge alleged that there are thousands of new jobs created from the pipeline project, this economic benefit is deemed as insufficient to outweigh the enormous job losses from the refinery sector (as mentioned by Gil McGowen, president of Alberta Federation of Labour Union).
According to an economist from the CBC radio, the reason behind such detrimental impact to the refinery industry is because even though Canada is being paid with the so-called Asian premium when they agree to take China's offer. Consequently, the oil supply in Canada becomes more scarce due to large amounts of exports. This, in turn, rises the market price for oil which adversely affects the Canadian consumers, refinery industry, and oil upgraders plants, as oil in home country becomes more expensive. In effect, some oil refining firms choose to exit the market due to negative profits, which results in many job losses within Canada. The amount of job losses exceeds that of the new jobs generated by Enridge, and thus an approximation of $750m hit in the Canadian GDP.
The Get Out of Fail Free Card Mission, Sept 07 2012
Masters Student, U of BC