The document discusses why it is difficult to approve oil and gas pipelines in Canada. It notes that the Liberal government has introduced new regulatory processes and carbon pricing that have made approval more challenging compared to the previous Conservative government. The lack of pipeline capacity is costing the Canadian economy billions annually. The document argues that pipelines are needed to help export Canadian oil and gas to international markets and that the oil and gas industry provides significant economic benefits through jobs and tax revenues.

1. WHY IS IT DIFFICULT TO
APPROVE OIL AND GAS
PIPELINES IN CANADA
PAUL YOUNG CPA, CGA
MARCH 26, 2018

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting,
Public Finance and Advanced
Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. SUMMARY
• USA to dominate the oil industry for the next five years - https://www.cnbc.com/2018/03/04/us-to-
dominate-oil-industry-for-next-5-years-iea-forecasts.html
• Suncor says “Canada needs to raise its game” - https://www.theglobeandmail.com/report-on-
business/industry-news/energy-and-resources/suncor-calls-on-canada-to-up-its-game-in-drive-for-
investment/article37897767/
• Lack of Oil Pipelines cost the Canadian economy nearly $11B -
https://globalnews.ca/news/4036046/pipeline-constraints-to-cost-canadian-economy-10-7b-in-2018-
scotiabank/
• Liberals plan to study oil - https://globalnews.ca/news/4123026/oil-and-gas-canada-falling-behind-
study/

4. AGENDA
• CPC vs LPC – (Oil Prices and Oil Rigs)
• Government policy changes
• Kinder Morgan
• Oil Production

5. CONSERVATIVE PARTY OF CANADA VS LIBERAL PARTY OF
CANADA - OIL MARKET
Source – BMO Economics and Baker Hughes
• Despite lower oil prices in November 2015 the CPC left a budget surplus of $1B - https://www.fin.gc.ca/fiscmon-
revfin/2015-11-eng.asp
• Liberals now have $19B budget deficit
https://economics.bmocapitalmarkets.com/economics/budget/2018ca/budget.pdf.
• Oil rigs are only off 8.5% from the post recession average
• Oil Prices are only down 16% from the post-recession average
• Headcount is down. Oil production is basically return, but not the jobs. Oil sector works make on average
$2,000/week

6. WHAT HAS CHANGED SINCE NOVEMBER 2015
• Regulatory Process - https://globalnews.ca/news/4120862/danielle-smith-environmental-extremism/
or http://business.financialpost.com/commodities/energy/energy-reforms-are-eroding-trust-in-
governments - “Review of emissions both downstream and upstream, first nations involvement, climate
change impact, etc
• Introduction of Carbon Tax (all provinces will be have carbon tax or carbon pricing) -
http://business.financialpost.com/opinion/kevin-libin-trudeaus-carbon-tax-is-close-to-blowing-up-in-
his-face
• No changes tax write-off of equipment
• Government has pushed back on the methane targets -
https://www.thestar.com/news/canada/2017/04/21/ottawas-methane-gas-delay-a-real-blow-to-
canadas-climate-targets.html

7. WHY IS IT DIFFICULT TO APPROVE PIPELINES IN
CANADA
Source - http://www.macleans.ca/opinion/why-canadas-pipeline-approval-process-is-such-a-mess-and-how-to-fix-it/

8. PATH FORWARD FOR PIPELINES
Source - http://www.macleans.ca/opinion/why-canadas-pipeline-approval-process-is-such-a-mess-and-how-to-fix-it/

9. CANADA OIL PRODUCTION – DECEMBER 2017
Source – Stats Canada - http://www.statcan.gc.ca/daily-quotidien/180309/dq180309c-eng.pdf

10. OIL PRICE AND OIL (MONTHLY % CHANGE)
Source – BMO and BakerHughes

11. PATRICK MOORE AND THE OIL SANDS
Oil Sands are world’s
largest land
reclamation project

12. PIPELINES / CANADA
Source – BMO, TSX, https://www.newswire.ca/news-releases/canada-jumps-to-4th-in-new-global-cleantech-ranking-
628470793.html, http://www.digitaljournal.com/business/oil-and-gas-industry-impacts-on-canadian-
economy/article/499923 and Stats Canada
• Clean Technology companies in general do not make money
• Energy Sector contributes over $6B more in taxes than clean
technology
• Clean Technology cannot exist without carbon

13. WORLD WIDE OIL PRODUCTION
• “ Oil production growth from the United States, Brazil, Canada and Norway can keep the world well supplied, more
than meeting global oil demand growth through 2020, but more investment will be needed to boost output after
that, according to the International Energy Agency's latest annual report on oil markets. Over the next three years,
gains from the United States alone will cover 80% of the world's demand growth, with Canada, Brazil and Norway -
all IEA family members - able to cover the rest, according to Oil 2018, the IEA's five-year market analysis and
forecast. ”
Source - http://www.worldoil.com/news/2018/3/5/iea-record-oil-output-from-us-brazil-canada-and-norway-to-keep-
global-markets-supplied

14. ENVIRONMENT VS ECONOMY
• Liberals constantly spin the CPC never got it right with balancing the environment with the economy. I do not agree
with LPC statements as they are dead wrong. The CPC had balance approach that supported all aspects of the
economy including clean technology.
• The same people involved with green economy are the same ones that destroy Ontario -
https://www.blazingcatfur.ca/2015/04/30/trudeau-advisor-gerald-butts-green-energy-policies-cost-ontario-300000-
jobs-admits-liberal-think-tank/ Ontario wages barely grew for a decade due to loss jobs in Ontario -
https://www.theglobeandmail.com/report-on-business/economy/census-2016-statscan-income/article36242392/
• “We’re absolutely committed to meeting our target,” McKenna, in Edmonton for an international conference on
cities and climate change, told The Canadian Press.” This purely spin game as Ms. McKenna either lacks details or
credibility with her statements. Source - https://www.slideshare.net/paulyoungcga/profitability-old-economy-vs-
clean-technology-company or https://www.slideshare.net/paulyoungcga/climate-change-catherine-mckenna-
emissions-march-2018

15. NATURAL GAS
Source – Stats Canada

16. KINDER MORGAN PROJECT
Source - http://globalnews.ca/news/3690223/b-c-moves-ahead-in-trans-mountain-legal-battle/
The British Columbia government has applied for intervener status in court challenges against the Trans
Mountain pipeline expansion.
The NDP government announced earlier this month that it would be joining the legal fight against Ottawa’s
approval of the $7.4-billion project and hired former judge Thomas Berger to provide legal advice.
Several First Nations and municipalities have filed legal challenges against the project, which would triple the
capacity of the Alberta-to-B.C. pipeline and increase the number of tankers in Vancouver-area waters.
Global TV – August 23, 2017
Prime Minister Trudeau approved the Kinder
Morgan – source
https://www.theglobeandmail.com/news/britis
h-columbia/trudeau-robertson-mum-on-trans-
mountain-during-meeting/article35861098/

17. BLOG - EAST-WEST PIPELINE
• Energy East Pipelines benefits
• 10.0B and $25.3B in additional GDP for the Canadian economy during the six-year development and construction phase and the 40-year operations phase, respectively (note: while 40 years was
used as the time horizon for the purpose of this economic analysis, regular maintenance is expected to extend the life of the pipeline significantly beyond 40 years). This economic activity will
occur within Ontario (37% of total), Alberta (22%), Quebec (18%), New Brunswick (8%), Saskatchewan (7%), and Manitoba (5%)
• 2,341 additional annual direct full-time equivalent (“FTE”) jobs during the 2013-2015 development period (7,118 annual FTE jobs total for three years including direct, indirect and induced
impacts) and 7,728 additional annual direct FTE jobs during the 2016-2018 construction period (23,498 annual FTE jobs total for three years including direct, indirect and induced impacts), or a
total of 91,849 one-year FTE jobs over the entire period, primarily within the construction and engineering industries8 in Quebec (31%), Ontario (26%), Alberta (16%), New Brunswick (12%),
Saskatchewan (6%), and Manitoba (4%)
• 1,087 additional annual direct FTE jobs would be sustained during operations for 40 years (4,252 annual FTE jobs total including direct, indirect and induced impacts), primarily within the pipeline
operation & management and power industries in Ontario (42%), Alberta (21%), Quebec (13%), New Brunswick (9%), Manitoba (6%) and Saskatchewan (6%)
• Wynne comments: http://business.financialpost.com/2014/11/24/alberta-and-saskatchewan-premiers-fire-back-at-ontario-and-quebec-conditions-on-energy-east-pipeline/?__lsa=aee6-20a4
• Gerald Butts: Yet we have people like Butts that will start at nothing to have no carbon in Canada: http://www.youtube.com/watch?v=zrdSCKDR5-Y. JT does support keystone
http://www.youtube.com/watch?v=ViTIdnDJPj0
• Irving Oil - http://canadians.org/blog/irving-behind-push-energy-east-pipeline
• Brad Wall comments: http://www.thestar.com/opinion/commentary/2014/11/25/brad_wall_ontario_quebec_should_embrace_energy_east_pipeline.html
• Chamber of Commerce/Business - http://www.bloomberg.com/news/2014-06-19/canada-pipeline-plans-turn-to-energy-east.html
• NDP likes the East to West Pipeline - http://www.bnn.ca/News/2014/6/30/Justin-Trudeau-tries-to-bury-fathers-legacy-with-energy-pitch-.aspx
• Valero/Montreal - http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/line-9-approved/article17352483/
• Pipelines - http://toronto.citynews.ca/2016/02/11/baloney-meter-not-a-kilometre-of-new-oil-pipeline-built-since-2011/
• Pipeline Capacity - https://www.nextbigfuture.com/2017/10/lack-of-oil-pipeline-
capacity.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fadvancednano+%28nextbigfuture%29 “Trans Canada canceled the oil project due to
regulatory issues.
• Source:
• https://www.energyeastpipeline.com/wp-content/uploads/2013/09/Energy-East-Deloitte-Economic-Benefits-Report.pdf

18. LPC AND PIPELINES
• http://www.miningweekly.com/print-version/feds-to-delay-pipeline-project-decisions-in-wake-of-interim-environmental-
assessment-measures-2016-01-28
• or
•
• http://news.nationalpost.com/full-comment/john-ivison-trudeau-convinced-that-pipeline-strategy-must-be-top-priority
• http://www.cepa.com/wp-content/uploads/2015/11/15-CEPA-0027_Report_EN_FINAL_one-up_Oct13-2015.pdf
• NAFTA and/or trade investment deals have clauses related to investment. The LPC seems to ignored these clauses when
discussing regulatory policies. http://www.thestar.com/business/2016/01/07/transcanadas-nafta-challenge-over-keystone-not-
a-pipe-dream-experts-say.html.
• http://www.torontosun.com/2014/11/25/federal-government-makes-the-case-for-energy-east-pipeline-project
• LPC - Emissions - http://www.cbc.ca/news/business/neb-kindermorgan-transcanada-carr-pipelines-upstream-emissions-
1.3422166. Yet Foreign Oil does not have those restrictions - http://business.financialpost.com/commodities/energy/taking-on-
opec-how-meg-energys-proprietary-technology-is-helping-transform-the-company
• Myths and Truth – Oil - https://www.youtube.com/watch?v=H-bq-8N_JnM
• Oil Market - https://www.youtube.com/watch?v=pzjpLaoEE_w
• Canada and USA - https://www.youtube.com/watch?v=RU8stQb8gFc
• Trade - https://www.youtube.com/watch?v=9CL-VM9JvGs
•

19. GHG AND OIL PIPELINE IMPACT
Source - http://www.huffingtonpost.ca/2017/08/24/energy-east-pipeline-review-will-include-carbon-emissions-a-first-for-canada_a_23166201/
Huffington Post – August 24, 2017

20. CANADA NEEDS PIPELINES
Video Link - http:/www.bnn/.ca/commodities/video/more-pipelines-needed-in-canada-capp-s-2017-crude-
forecast-report~1145359

21. SUMMARY
• Canada needs more pipelines as part of expanding oil and natural gas to export markets like Asia
• New NEB process is being tested out with East-West Pipeline – Climate Change Impact
• Oil accounts for only about 2% of GDP
• Oil Pipelines have spin offs, i.e. steel, construction, property taxation, corporate and personal income
taxation.