Keystone XL Project

Smoky Lake Signal Article No. 197 (November 16, 2011)

Whispering in the Wind

Keystone Pipeline Project –
Last week I thought the TransCanada Keystone XL pipeline project was being put on hold for about a year or at least until after the US Presidential election set for November, 2012. It all seems quite logical, President Obama is seeking re-election for the presidency and he has been hassled by some major “celebrity” environmentalists and farmers who don’t want the pipeline crossing the important Ogallala aquifer in the Sandhills region of Nebraska. On Sunday, in Hawaii, Prime Minister Harper expressed his “disappointment” on the US’s decision to delay the pipeline project until 2013 – nevertheless, the Prime Minister was quick to add that he was not concerned about any fundamental shift Canada – US relations and the Keystone pipeline delay was only due to the “political season.” On Monday Premier Alison Redford was in Washington to promote the Keystone pipeline but had to change her emphasis slightly after the US State Department’s announcement – Premier Redford could only acknowledge that the United States’ regulatory process would have to take its course, but her modified message was clear, Alberta was eager and ready to supply bitumen to the Texas Gulf coast refineries. At the same time in Nebraska, Alex Pourbaix, president of TransCanada’s pipeline division announced that his company would re-route the proposed 1,700 mile pipeline to avoid the sensitive Ogallala aquifer and that would only mean another 30 or 40 miles of pipe and one additional piping station. I think Mr. Pourbaix’s announcement came as a surprise to many political types on both sides of the border – but as fluid as the situation is, I still think the final decision on the Keystone Pipeline Project will not be made until 2013.

Prime Minister Harper, Playing Hardball
Prime Minister Harper has to be congratulated on the way he handled the Asia Pacific summit conference in Hawaii and particularly the way the he addressed Canadian issues and concerns with the conference’s host, President Barack Obama of the United States. The PM was amiable and friendly but in my mind, his messages were clear – not only did the Prime Minister outline to President Obama Canada’s concerns and “disappointment” regarding the announced delay in the Keystone pipeline project, Mr. Harper also made clear that Canada should be exempted from any Buy American provisions that have appeared or might appear in the President Obama’s job creation initiatives. Further Mr. Harper expressed Canada’s objection to the political delays attached to the Canada – US security perimeter initiative and to the $5.50 inspection surtax being placed on Canadians traveling into the United States. To add force to the Prime Minister’s foreign policy sentiments, the PM made it clear that circumstances in the United States (particularly the delayed Keystone XL project) is pushing Canada toward the sale of bitumen into Asian markets – at the conference China’s President, Hu Jintao without hesitation extended an invitation to Prime Minister Harper to visit China in 2012. To add further force to what could be a major change in Canada’s “new” foreign policy thrust, Prime Minister Harper has expressed an interest to join the Trans Pacific Partnership group – something the PM did not consider relevant or warrented just a few months ago.