Only $17 B added to GDP over 15 years?
Definitely not a good deal for us.
Factbox: Enbridge pipeline to the Pacific: facts and issues
PROJECT
Industry backers that have provided funding or shipping commitments to Northern Gateway include Suncor Energy Inc, Cenovus Energy Inc, Nexen Inc, Total SA, MEG Energy and China's Sinopec Corp.
Estimated cost: C$5.5 billion.
Capacity: 525,000 barrels a day of oil sands-derived crude. An adjacent pipeline would carry 193,000 bpd of condensate in the opposite direction. The light hydrocarbon is used as diluent that allows heavy oil sands bitumen to flow in pipelines.
RATIONALE
Ocean access for large volumes of oil sands-derived crude would, they say, will allow it to be priced against higher-value international benchmarks, raising returns for producers that are developing the tar sands, the world's third-largest crude deposit.
Enbridge has said its project could add up to $3 to the price of a barrel of crude.
Northern Gateway, and another West Coast expansion proposed by Kinder Morgan Energy Partners for its Trans Mountain Pipeline, would also benefit China and other Asian countries looking to be less reliant on Middle Eastern oil supplies. Companies from those countries have invested billions of dollars in the past decade in oil sands development projects in Alberta.
ISSUES
Environment: Many of the nongovernmental organizations that oppose Keystone XL, including the Natural Resources Defence Council, Greenpeace and Sierra Club, are also lined up against Northern Gateway. The route of the pipeline is too dangerous, owing to seismic activity, frequent landslides and other natural hazards that could lead to oil spills. The chemical makeup of the diluted bitumen that would flow through the pipeline is more corrosive than conventional oil, a contention that has not been proven by independent study. They point to a highly damaging Enbridge pipeline rupture in Michigan in 2010 as an example of the risks for British Columbia.
Enbridge has said the pipeline would use the newest technology, vastly reducing Northern Gateway's risks of rupture, and that it chose the route for its safety. For instance, the company considered running the line to an existing port at Prince Rupert, British Columbia, but ruled it out because of the steep and rugged terrain.
Environmentalists also decry the increased tanker traffic, more than 200 ships per year, that would sail in the Douglas Channel en route to Kitimat, and warn of catastrophic oil spills such as the Exxon Valdez disaster in 1989.
As with Keystone XL and other projects aimed at expanding markets for crude from the oil sands, Northern Gateway will foster more damaging development. Oil sands projects are more energy and carbon intensive than conventional crude production, and have a greater impact on land and water and on local communities.
Aboriginal relations: As part of the regulatory process, Enbridge is obligated to consult with dozens of native communities along the proposed route. For generations, Canada's aboriginal people have felt disregarded in the development of natural resources as their communities have missed out on wealth, jobs and other economic activity derived from their lands and waterways. Meanwhile, traditional ways of life have been threatened.
The company has said it has the support of 40 percent of aboriginal bands. But, some groupings, including the Coastal First Nations and Yinka Dene Alliance, each made up of several bands, have said they will not support the project under any circumstances, saying they fear environmental damage. Some are preparing legal cases should it get approved against their wishes.
Shawn Atleo, national chief of the Assembly of First Nations, the country's largest aboriginal organization, has said that Enbridge requires the consent of natives for the project to proceed. There are communities that have yet to decide on support for the project.
POLITICS
Prime Minister Stephen Harper and his senior ministers support Northern Gateway strongly.
Oliver speaks frequently about economic opportunities that will come with new markets for oil sands-derived crude, citing a University of Calgary study showing a C$17 billion increase in Canada's GDP between 2016 and 2030.
The Harper government, which has been a major ally of the oil industry, has gone on the offensive against environmental groups, with Oliver blasting many of them as "foreign-funded radicals" bent on "hijacking" the regulatory process. In fact, the government is now looking for ways to streamline reviews after the unprecedented number of participants in the Northern Gateway hearings led to a longer schedule.
This has angered opponents, from large organizations that do have some foreign funding to grass roots groups and individuals, who have said they believe the state seeks to demonize them for legitimately held concerns about a major industrial project. They have charged that the government trying to influence the arm's-length review panel.
At the provincial level, Alberta Premier Alison Redford is, unsurprisingly, a major supporter of the pipeline. Christy Clark, the premier of British Columbia, has yet to take a stance for or against.
Factbox: Enbridge pipeline to the Pacific: facts and issues - Chicago Tribune