Close X
Sunday, November 24, 2024
ADVT 
National

Is Quest For Canadian Oil Independence More A Political Pitch Than Economics?

Darpan News Desk The Canadian Press, 29 May, 2019 07:10 PM

    Conservative Leader Andrew Scheer says he wants to end Canadian imports of foreign oil by 2030, a move experts say would mostly affect purchases from the United States and could endanger deep trade relationships.


    Scheer raised the idea in a recent speech, stating Canada shouldn't buy oil from "rogue states" with poor human-rights and environmental records, like Iran, Venezuela and Saudi Arabia.


    In dollar terms, the vast majority of Canadian oil imports — about 64 per cent — came from the U.S. last year, while 18 per cent came from Saudi Arabia, six per cent from Azerbaijan and three per cent from Norway. Nigeria, the United Kingdom and Algeria were also sources of imports last year into Canada.


    Canada hasn't imported any crude from Iran or Venezuela in recent years.


    Meanwhile, virtually all the millions of barrels of crude oil Canada exports each day are sold to the United States.


    Pedro Antunes, chief economist for The Conference Board of Canada, said outright oil independence is not a big economic issue for the country. Alleviating transportation and logistical pressures on Alberta's oilsands is far more important, he said.


    "If you're really just trying to target all of our oil imports, then yeah I think that might cause some difficulties," Antunes said. "We have some very open trade relations with some of the countries that are oil importers into Canada."


    Scheer also said he no longer wants to depend on oil from the United States, which he called Canada's "biggest economic competitor." He argued that "an energy-independent Canada would be a Canada firing on all cylinders."


    Part of Scheer's plan includes the creation of a cross-Canada utilities corridor to ease pipeline construction and to open up new domestic markets for oilsands bitumen.


    Like the Conservatives, the Greens have also made a pre-election pledge — for different reasons — to end Canada's reliance on foreign oil imports.


    Green party Leader Elizabeth May, whose ultimate objective is to wean Canada completely off oil by 2050, has promised to end foreign crude imports as soon as possible. Since May opposes new pipelines, she envisions moving more raw bitumen by rail, with help from investments to improve train services, until Canada stops consuming oil.


    Talk of any determined push towards Canadian crude independence appears to be a message crafted to appeal to some voters.


    A number of experts, however, worry an absolute target of oil independence could also send unwelcome protectionist signals to the world and mean resisting market forces. Instead, the country should be focused on loosening bottlenecks that are preventing Albertan oil from getting to new markets.


    "I think there is a concern of protectionism whenever you're limiting imports," said Grant Bishop, an associate director of research at the C.D. Howe Institute think-tank.


    "You have to have a good economic or security reason for doing so. I'm not sure that there is one here for crude-oil production."


    Martha Hall Findlay, CEO of the Canada West Foundation think-tank, said exploring the viability of a utilities corridor is "fantastic." But the pursuit of oil independence sounds "extremely protectionist," said Findlay, a former federal Liberal MP.


    "We're heavily dependent on trade, so why would a trading country start talking about protectionism and independence? It doesn't make sense for an economy such as ours," Findlay said.


    "I really think that this idea of independence and protectionism is politics — but economics would say we're crazy not to buy our own."


    Mike Moffatt, an assistant professor of economics at Western University, said he's concerned whenever he hears politicians say their goal is to get completely off foreign oil.


    "That's a decision that should be left to companies," said Moffatt, who was an adviser to Prime Minister Justin Trudeau between 2013 and 2015. "It does seem to be a shift in messaging from a traditional, free-market Conservative positioning to one that's sort of more nationalistic."

    MORE National ARTICLES

    Otter's Long Departure Means Koi Can Return To Vancouver Chinese Garden

    VANCOUVER — Koi are safe to swim again in the Dr. Sun Yat-Sen Classical Chinese Garden in Vancouver that was once a hunting ground for an elusive otter.

    Otter's Long Departure Means Koi Can Return To Vancouver Chinese Garden

    Dozens Of Passengers Rescued From B.C. Whale-Watching Boat Off Washington Coast

    Dozens Of Passengers Rescued From B.C. Whale-Watching Boat Off Washington Coast
    OAK HARBOR, Wash. — The U.S. Coast Guard says dozens of passengers have been rescued from a British Columbia whale-watching boat off the coast of Washington state.    

    Dozens Of Passengers Rescued From B.C. Whale-Watching Boat Off Washington Coast

    Rare Look At Northern Spotted Owl Chick Now Possible Thanks To B.C. Webcam

    Curious bird lovers can now get a glimpse of the youngest member of one of the most endangered creatures in Canada.

    Rare Look At Northern Spotted Owl Chick Now Possible Thanks To B.C. Webcam

    Nunavut RCMP Officers Pull Child On Daycare Outing From Snow Crevice

    CAMBRIDGE BAY, Nunavut — RCMP officers in Nunavut had to jump into action this week when a child who was on a daycare outing fell into a crevice.

    Nunavut RCMP Officers Pull Child On Daycare Outing From Snow Crevice

    Man Accused Of Killing 4 People In Fredericton Shooting Spree Returns To Court

    FREDERICTON — A New Brunswick man accused of murdering four people, including two police officers, in a shooting spree last August was back in a Fredericton courtroom Friday.    

    Man Accused Of Killing 4 People In Fredericton Shooting Spree Returns To Court

    Trudeau Says B.C. Money Laundering Report Is 'Extremely Alarming'

    Trudeau Says B.C. Money Laundering Report Is 'Extremely Alarming'
    Prime Minister Justin Trudeau says a report out of British Columbia on the extent that criminals are laundering their dirty money in Canada is extremely alarming and absolutely unacceptable.    

    Trudeau Says B.C. Money Laundering Report Is 'Extremely Alarming'