Pipelines - particularly interprovincial pipelines - are a federal concern and Prime Minister Trudeau has given the green light to Kinder Morgan's Trans Mountain pipeline.
You might think that would be the end of it but no, Kinder Morgan's pipeline will come into play heavily in the next 111 days as we inexorably march towards a provincial election.
On the one side are the B.C. Liberals and their commitment to growing our economy. On the other are both the NDP and the Green Party claiming the pipeline will foul the waters off the coast and is not worth the risk.
The decision to approve the pipeline is also another salvo in an ongoing divisive war which will further separate the rural and urban economy of the province.
The interior of the province recognizes the role played by resource extraction and export; the Lower Mainland has forgotten where the wealth of this province is generated.
Indeed, the mayors in the Lower Mainland have already come out in strong opposition.
Vancouver Mayor Gregor Robertson issued a statement saying: "The new conditions laid out today still fall far short of addressing the serious economic and environmental concerns raised by local residents, communities and First Nations.
"Despite the federal government's commitment to an Oceans Protection Plan, and the BC government's support, even with a 'world class' oil tanker spill response in Vancouver's waters, a major oil spill would be absolutely devastating to our environment and economy. That's why I continue to oppose Kinder Morgan's pipeline expansion: it would create enormous risk to Vancouver and the B.C. coast."
Clearly Vancouver and the Lower Mainland don't recognize their role within the provincial economy. It is not service industries. It is by facilitating primary resource extraction and export.
Primary resources are the skeleton of our economy and if they were to disappear, the rest of the economy would collapse.
This has been made apparent a number of times over the past two decades with economic studies by organizations on both sides of the political spectrum recognizing the importance of oil and gas, forestry, and mining to the economy. But these industries don't occur in downtown Vancouver so people in the Lower Mainland forget their importance.
It is a bit like going to a restaurant. The food appears but very few diners consider just how many people were involved in getting it there. Not just the waiter and chef but all of the people involved in transporting the vegetables and meat, and the farmers who raised the animals and grew the crops, and so on.
Vancouver has forgotten where it gets its electricity (doesn't it come from the wall?) and products for export (we export?). The Port of Vancouver is a major hub for the transportation of billions of dollars in goods.
The pipeline is just part of that infrastructure.
It follows an existing route and uses an existing terminal. Vancouver already pumps out 300,000 barrels of crude oil per day. The projected pipeline will increase that to 890,000 barrels. Where are the protests over the existing facilities? Why have they been running for decades with nary a complaint?
Does this mean I support the Kinder Morgan pipeline?
No, not really. Shipping oil overseas still leads to increased use of a carbon-based fuel. It continues the economic model we have which has resulted in profligate consumption of oil.
Further, consider that an increase in oil export of 590,000 barrels per day is 215 million barrels per year. For this, we might get $50 million or about 4.3 cents per barrel. Better than nothing, but with the price of oil in the $50 per barrel range and the excess revenue both Alberta and the federal government will obtain from these exports, surely we could have gotten a better deal.
Fifty million dollars per year sounds like a lot of money but it is a blip in the overall provincial budget. Consider it is only half the cost of the new teachers we will need in the education system or one-30th of the money collected from the carbon tax.
No. The deal is not really as good as it is made out to be but if we are going to continue to export oil overseas, then the Kinder Morgan Trans Mountain pipeline is the one which makes sense. After all, people in Vancouver will be able to plainly see the costs of their present lifestyle as the tankers leave the harbour.
In the short term, it is likely to be a win-win for the B.C. Liberal party in the coming election. With the NDP and the Green Party fighting over the environmental electoral vote, the way will be cleared for a number of ridings to swing to the Liberals.
And winning the next election is really what it is all about.
