Transcript Slide 1

The future of the oilsands:
creating the link between pipelines and
upstream environmental management
CPANS 2012 Spring Conference
Nathan Lemphers
Senior Policy Analyst
24 April 2012
Outline
 Introduction to Pembina
 (de) Evolution of an Issue
 KXL Decision
 Dilemma
 Alternative Futures
The Pembina Institute
The Pembina Institute is an
environmental nonprofit
think tank with 55 staff in
seven offices across Canada.
We work to advance
sustainable energy solutions
through innovative research,
education, consulting and
advocacy.
Pembina’s Oilsands Experience
 ENGO with most experience on oil sands
issues (19+ yrs)
 Past and present multi-stakeholder group
involvement (WBEA, CEMA, CASA, OSEC)
 Bilateral negotiations with companies
 Participation in public hearings for major
oilsands projects
 Corporate consulting with oil sands
companies
 Research (60,000 downloads in 2011)
Pembina’s Perspective
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Responsible Oil Sands Development:
Current environmental impacts need to be addressed
Establish science-based, environmental limits
Future development occurs within science-based limits
Revenue from oil sands development used to transition
to a clean energy economy
Forecasted
Production
Primary Concern: Pace and scale in the absence of
environmental limits
9000000
8000000
Oilsands Expansion Plans
7000000
6000000
5000000
Barrels per day
4000000
3000000
2000000
1000000
0
NEB – 2035
Projection
8,109,820
Royal Society of Canada Report –
Key Findings
“The regulatory capacity of the Alberta and Canadian
Governments does not appear to have kept pace with
rapid expansion.”
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Inadequate government oversight
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A focus on public relations
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Lack of information to inform decision-making
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Little progress on cumulative effects management
(de) Evolution of an Issue
Climate change > Oilsands > Pipelines
(de) Evolutionary outcomes
 Oilsands and
Pipelines are poor
proxies for climate
change
 Pipelines are poor
proxy for oilsands
Total OIlsands Industry Intensity
Greenhouse Gas Emissions
Intensity (kg CO2e/barrel)
140
120
100
80
60
40
20
0
1990
11
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
(de) Evolutionary outcomes
 Increasing public
attention
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BP Oil Spill – April
2010
Source: US Chemical Safety Board
(de) Evolutionary outcomes
 Increasing public
attention
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BP Oil Spill – April
2010
Enbridge Pipeline Spill
– July 2010
Source: State of Michigan
(de) Evolutionary outcomes
 Increasing public
attention
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BP Oil Spill – April 2010
Enbridge Pipeline Spill – July
2010
Plains Midstream Canada
Rainbow Lake Pipeline Spill –
April 2011
Linking pipelines with
upstream impacts
 Pembina Institute
 environmental impacts of oilsands
 Oil companies/GOA
 economic benefits of oilsands
Keystone XL Decision
 Denial of
Presidential
Permit on Jan
18, 2012 by
President
Obama
Lessons for Industry/GOA
 From Ewart at Calgary Herald (20 Jan 2012)
 “Shareholder interest ≠ National interest”
 “Don’t overplay energy security or jobs”
 “A new world order” (public involvement)
 “If you don’t regulate, others will”
Dilemma
 Status quo: deny, deflect, defend
 Constriction of traditional policymaking
venues
OR
 Instigate national conversations
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Contextualize oilsands development
Alternative futures
 Decreasing or delayed market access
 LCFS, FQD, KXL, Northern Gateway
OR
 Improved long-term competitiveness
 Improved environmental performance
 Improved relations w/ FNs and ENGOs
Conclusion
 Growing links between pipelines and
upstream development
 Dilemma:
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status quo, limit venues, limit market
access
 create venues appropriate to the issues,
improve environmental management
For more information
 www.oilsandswatch.org
 www.pembina.org/subscription
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