Harper vows to toughen oil-export rules

[CHIMO]

CALGARY, TORONTO — Taking the Alberta government and the oil industry by surprise, Conservative Leader Stephen Harper took advantage of a visit to Calgary to promise that he will stop future exports of bitumen to countries that have lower greenhouse-gas emissions standards than Canada's.

Canadian bitumen – the thick, heavy oil that is transformed into crude oil – is exported mainly to the United States. Mr. Harper's ministers noted that both U.S. presidential candidates have promised tougher emissions standards, so a ban might never apply to exports to the United States.

Still, Mr. Harper said his promise could affect eventual exports to Asia, where countries such as China haven't adopted emissions standards for heavy industrial plants.

Alberta's deputy premier, Ron Stevens, said oil companies are already dealing with regulatory ambiguities from federal emissions standards that are set to take effect in 2010.

http://www.theglobeandmail.com/servlet/story/RTGAM.20080926.welxnmain27/BNStory/Front

So there you are China. Don't bother yourself. Alberta's oil will only be exported to the US at a discount.
That is what I call a real leader. Someone who can made decisions.

[HeresyLives]

1. Liberals sent out this today.

MR. HARPER CLAIMS:

He will prohibit export of bitumen to foreign jurisdictions that don’t have equivalent reduction targets.

REALITY:

Mr. Harper’s plan exempts all existing agreements and contractual obligations, which includes pretty much everything that is currently being mined or from planned new mines.


Mr. Harper’s emission reduction targets are the weakest in the industrialized world, so it is unlikely that any country wishing to import raw bitumen would fall subject to this prohibition. The Conservative approach is weaker than those proposed by both John McCain and Barak Obama.

[CHIMO]

2. Had To Go Back

And re-read the Globe article. The article refers to green house gas emissions. Nothing in there about water.

Looks like he is using a wedge. He will allow the export of raw bitumen to the US but not to China. There is nothing about the refined product.

Some companies are planing to export the raw material to the US. So it won't hurt them. In fact the congressional rules that prevent the purchase of dirty fuel, or is it some other wording, might increase the pressure for Alberta to ship out the raw material. Much like sending the logs south.

Seems like something the big sisters dreamed up.

[HeresyLives]

3. How many refineries does Alberta have?

And the 'dirty oil' requires a special separate refinery.

I don't doubt Harper would be ready to cut China out, but with the economy sinking he won't have any choice but to sell to whoever wants it.

[CHIMO]

4. It Is Not

A question of how many are there now!

The upgrading requires new or additional facilities whether they are here or there. It is a question of value added and who adds that value.

In addition, the wording in the rule from congress does not explicitly rule out tar sands as it is not synthetic.

Harper's words seem more like cutting off China and befriending the big six sisters.

Just more of the same. He wants to show that Canada is a good colony.

[HeresyLives]

5. Oh I'll agree with that.

[daleo]

6. There is also a constitutional issue here

Natural resources belong to the provinces by virtue of the BNA Act, etc. It a Liberal (or NDP or Green) federal government even suggested this, the Alberta Conservatives would be howling like Banshees. But they play meek to Harper, even when legitimate federal-provincial issues are at stake.

I suppose the oil companies are stilling the federal-provincial waters.

[CHIMO]

7. Resources

Are in the provincial realm. However, once they move across borders it becomes a trade issue. I don't expect to see much noise from Alberta on this. Not until the US market has shrunk. By that time it will be too late.

[daleo]

8. Lougheed certainly argued that an export tax was an infringement on provincial rights

If I recall correctly. Personally, I am not so much interested by the merits of the constitutional issue, as the political aspect. Clearly, the Alberta Conservative government has decided to cede its authority to Harper. Given time, a new right wing Alberta splinter party will probably be the response, similar to Reform.

Harper's government has a lot of parallels with Mulroney's.