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WHY IS IT DIFFICULT TO
APPROVE OIL AND GAS
PIPELINES IN CANADA
PAUL YOUNG CPA, CGA
AUGUST 28, 2017
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
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/
PATH FORWARD FOR PIPELINES
Source - http://www.macleans.ca/opinion/why-canadas-pipeline-approval-process-is-such-a-mess-and-how-to-fix-it/
CANADA OIL PRODUCTION
Source – Stats Canada
NATURAL GAS
Source – Stats Canada
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/
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
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
•
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
CANADA NEEDS PIPELINES
Video Link - http:/www.bnn/.ca/commodities/video/more-pipelines-needed-in-canada-capp-s-2017-crude-
forecast-report~1145359
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.

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Why is it difficult to approve oil and gas pipelines in Canada - October 2017

  • 1. WHY IS IT DIFFICULT TO APPROVE OIL AND GAS PIPELINES IN CANADA PAUL YOUNG CPA, CGA AUGUST 28, 2017
  • 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. 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/
  • 4. PATH FORWARD FOR PIPELINES Source - http://www.macleans.ca/opinion/why-canadas-pipeline-approval-process-is-such-a-mess-and-how-to-fix-it/
  • 5. CANADA OIL PRODUCTION Source – Stats Canada
  • 6. NATURAL GAS Source – Stats Canada
  • 7. 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/
  • 8. 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
  • 9. 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 •
  • 10. 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
  • 11. CANADA NEEDS PIPELINES Video Link - http:/www.bnn/.ca/commodities/video/more-pipelines-needed-in-canada-capp-s-2017-crude- forecast-report~1145359
  • 12. 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.