At first glance, the National Energy Board’s thoroughness of the review the Enbridge Northern Gateway pipeline project might seem comforting, but with conditional approval of the project, British Columbians have serious reason to be concerned — particularly as Kinder Morgan has now also submitted its application to expand the capacity of the Trans Mountain Pipeline.
The Northern Gateway project would transport 525,000 barrels of diluted bitumen (dilbit) across B.C. each day. Kinder Morgan is proposing to transport nearly double that amount in its Trans Mountain pipeline: 890,000 barrels per day. That means that within a few years, B.C. could see well over a million barrels of bitumen cross our province and be shipped along our coast each day.
What make these proposals particularly problematic are the significant economic and environmental risks that we face in the Greater Victoria area, and in B.C. more generally, should a spill occur.
B.C. is projected to receive about $1.2 billion in tax revenue from the Northern Gateway pipeline over the span of 30 years — only $40 million a year toward a $44-billion provincial budget. Yet, according to the University of B.C. Fisheries Economic Research Unit, the economic cost of a single major tanker spill is estimated between $2.4 billion and $9.5 billion — from two to eight times more than the total 30-year economic benefit of the pipeline.
Meanwhile, to date no oil-spill response study has been able to account for bitumen itself; studies have only analyzed what would happen in the case of a spill from more commonly shipped crude oil.
Unfortunately, dilbit is unlike other crude oils in that whereas most oils will float on the surface, up to 50 per cent of dilbit will sink. Once that happens, we don’t know where it will go, how it will interact with currents and tides or how we could reasonably clean it up.
In some areas, it is projected that only three per cent of floating crude oil could be cleaned up. With dilbit, it would be even less. According to the Department of Fisheries and Oceans’ recent submission to the Treasury Board: “Behaviour models specific to dilbit spills do not exist, and existing commercial models for conventional oil do not allow parameter specific modifications.”
This means that if the Trans Mountain pipeline is built, at least one tanker will pass through the Strait of Georgia each day, with no science or research available to make effective spill response possible.
Fortunately, there are viable alternatives. We can shift away from our old economic model of selling our raw resources for short-term profit and instead position ourselves for the long term.
Let me offer two examples.
If we are going to develop the oilsands, and if we must transport oil along our coast, then at the very least let’s refine it first. This would offer two benefits: First, it would offer greater economic benefit to B.C., as we would benefit from a value-added refining and spinoff petrochemical industry instead of shipping those jobs to Asia.
Second, it would significantly decrease the environmental impact of a marine-based oil spill, as refined oil products (such as gasoline, diesel, or jet fuel) are much easier to clean up than dilbit.
This is not an ideal solution and it does not protect us from the ecological consequences of a marine-based oil spill, but it certainly mitigates the risk when compared to shipping dilbit.
Here’s a better option: With our abundance of renewable natural resources, our highly educated workforce, our business-friendly tax structure and our reputation for innovation, B.C. is uniquely positioned to become a leader in the clean technology sector — a sector that focuses on the production, storage, transmission and end-use of renewable energy. The cleantech sector offers long-term, high-paying and local jobs.
We need to grow our nascent cleantech companies rather than allow them to be scooped up and exported to the U.S. Yet developing this industry to its full potential requires the market to be sent a strong signal from government that this is the direction we want to head.
I am applying for intervener status on the Trans Mountain pipeline application. I encourage others to continue to raise their concerns as well.
Andrew Weaver is the MLA for Oak Bay-Gordon Head.
