5 shocking myths about the Northern Gateway pipeline
- March 7, 2012
- By Cody Battershill
5 shocking myths about the Northern Gateway pipeline
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Northern Gateway is a proposed pipeline from Alberta to the coast of B.C. that will be used to transport Canadian oil sands crude to tankers that will ship the oil to customers in Asia. The Northern gateway pipeline is a critical project for Canada and is in the national interest. As the worlds holder of the largest investable oil reserves we currently have one customer, the USA. Any economist will tell you relying on a single customer for any business is not ideal.
Diversifying our customers is of critical importance to our economy and the future prosperity of Canada, the Northern Gateway Pipeline is of paramount importance to accomplishing this goal. Additionally every barrel of oil Asia imports from Canada is one barrel less that will be imported from places like Sudan and other oil producers where human rights, liberty and freedom is less prevalent. Canada is the worlds only major oil reserve country whose reserves fund democracy, freedom, life, love and liberty. This is one of the most important infrastructure projects currently proposed for Canada's economic future. There are many lies, myths, misconceptions and propaganda surrounding the project. Today I am going to examine 5 common and shocking myths and debunk them for you!
Myth #1 – Oil sands crude is corrosive to pipelines
Reality – Pipeline technology has come a long way over the past 60 years in Canada. All pipelines constructed in Canada must meet CSA standards. No pipeline built to these standards in the past 25 years has leaked. That’s a remarkable safety record considering the volume of oil shipped through them each day. The corrosive properties of oil sands crudes are very similar to other classes of crude oil transported in pipes. An independent studyconducted by Alberta Innovates found that historic data shows that the internal corrosion related pipeline failure rate of oil sands crude is statistically comparable to conventional oil in the US. Pipeline operators are more concerned about external corrosion caused by the natural environment than they are internal corrosion by the products being shipped in them. The Northern Gateway Pipeline will be built with the most modern technology and safety precautions.
Myth #2 – The pipeline will mow down pristine BC wilderness
Reality – The proposed pipeline route was designed to use the existing footprints of decades of industrial development in BC’s north. Forestry, mining, hydroelectricity and natural gas activities all have existing infrastructure in BC’s heartland, and another natural gas pipeline into Kitimat is slated to begin construction in 2012. The region is crisscrossed by forest service and mining access roads, cut blocks, power line rights of way, rail lines and highways. The proposed route is designed to minimize environmental impact by using the existing infrastructure as much as possible.
Myth #3 – The pipeline will cause a gas price shock in Canada
Reality – The Northern Gateway pipeline is about exporting oil sands products to new markets. Almost all Canadian exported oil is sold into one region of the USA today. Currently there is a glut of oil in this region, causing the price of Canadian oil to be deeply discounted when compared to the global market price. Canada imports almost 50% of the oil it uses to refine into transportation and heating fuels—mostly into eastern markets like Ontario, Quebec and the Maritime Provinces. This oil is already priced at the global market price. Because of this, all retail fuel prices are set to reflect the global costs. There is no existing “Canadian discount” on retail fuels. The difference in regional prices in Canada has more to do with transportation costs than where the oil came from. Northern Gateway certainly won’t help fuel prices fall—but it will help Canadians maximize the value of their oil resource, measured in billions of dollars per year—and Northern Gateway most definitely won’t cause a “gas price shock” to the Canadian economy. The benefits to the economy significantly outweigh the costs.
Myth #4 – The pipeline will destroy the Great Bear Rainforest
Reality – The Great Bear Rainforest is a public relations product of environmental lobby groups. There is no legally recognized area known as the Great Bear Rainforest. There are some provincially protected areas in BC’s north that fall within the boundaries of what advocates have named the GBR—the boundaries of which seem to be continually growing. This series of maps shows how the boundaries are being redrawn, almost every year, as environmentalists seek to block development in an already economically depressed area. At any rate, the pipeline ends in Kitimat, some 25 kilometers away from the nearest Great Bear Rainforest “boundary” as drawn on the most recent map in 2010.
Myth #5 – The pipeline is the fuse to a carbon bomb
Reality – Any argument that a pipeline is “a fuse to a carbon bomb” is ridiculous. A recent study by Canadian climate scientists points out the real climate culprit is coal not oil sands. Regardless, pipelines are the safest and most efficient way to transport hydrocarbons like oil and natural gas. They require less energy and emit less carbon than trucks and rail, and they have fewer accidents per barrel shipped. If Gateway isn’t approved, Canadian oil producers will find other ways to get their product to market—most likely by diesel powered rail. Anyone concerned about carbon emissions should be aware that rail transportation creates far more carbon emissions than a pipeline and suffers from a higher spill incident rate as well.
Now that you are aware of these 5 common myths, what will you say when you hear one of these lies repeated? As a Canadian who loves my country I will tell anyone who wants to listen the truth and help expose these lies for exactly what they are.