The $7.4-billion, 1,150-kilometre-long Trans Mountain Pipeline (TMX) twinning project has dominated our national news agenda for what feels like ages now.
There are valid points on both sides of the argument to build versus not build it. Unfortunately, as is the symptom of society within today’s political climate, both sides are poles apart. I have no direct stake in any company potentially involved with the project, and as an advocate for the First Nations-respecting and environmentally responsible development of resources, I want to put the bluster aside and discuss the project without bias on its merits, along with its potential impact on our little town.
On one hand, as a technology, the use of refined fossil fuels to power internal combustion engines for transportation has reached maturity. New technologies are reducing our damage to the planet. This potentially negates the need for the construction of a major project like TMX, which would divert investment from other future-ready renewable energy industries. This is a sound argument.
On the other hand, there are safety, environmental and economic arguments in favour of TMX.
First, safety. Pipelines are safer than rail transport. Nobody would dare wish for another Lac Megantic tragedy, where 47 people lost their lives after a tanker exploded in the Quebec town. Indeed, although there are countless pipeline spills each year, even worse are the many train derailments potentially carrying crude. The human and ecological toll would be devastating should another large-scale train derailment occur near a populated centre.
Next, the environmental argument. Whether or not we acknowledge it, there will continue to be a demand for fossil fuel-based transportation and other petroleum byproducts for at least the next three decades. Although advanced economies — and, dare I say, societies — will adopt renewable transportation modes more quickly, on the balance, it’s fair to recognize significant demand for oil will continue to exist until at least 2040.
Demand exists whether we like it or not. Without TMX, if global demand is met through supply from other countries with weaker environmental regulations than Canada's, we’d be, in effect, allowing for a net increase in global pollution. That’s irony.
From a political-economic perspective, since fossil fuels are a finite resource, it also makes sense that we maximize our revenues from their mining and sale. Although the Energy East project would have been the most strategically important for Canada’s national interests (since we import a good 50 per cent of our country’s oil from other countries like Saudi Arabia), the Trans Mountain is Pipeline next most important. It will help generate $15 billion toward the national economy.
Canada loses, give or take, a quarter of its potential fossil fuel revenue from discounts imposed due to the leverage the U.S. maintains as our main customer. Combined with our imports, this translates into Canada losing value equal to three-quarters of every dollar our country earns. On a finite resource, this is truly absurd.
Meanwhile, China, as part of its 21st century plan called the Belt and Road Initiative, is building ports and pipelines in countries around the world, seemingly without limits, to project its power and influence. Although China would be an importer of oil from Canada, it is we who would control the taps. In our globalized world, TMX is therefore not only essential to Canada’s national energy security, but the West’s.
TMX will also benefit Sundre residents. It will require 15,000 construction workers, and 37,000 positions once in service. Much of our area’s population works in oil and gas, and many will likely be hired to work on the massive project. They’ll send money to their families in Sundre. Trucking and service companies will also benefit.
Since the government of Canada, and likely Alberta too, will have a public stake in the pipeline if it gets built, profits from TMX will also contribute toward reducing the burden of taxation on residents, and could help fund the transition toward a more sustainable Canada. Partial public ownership of TMX is a good thing.
However, the final decision on whether to approve the project will now fall to the Supreme Court following last week’s decision by the Federal Court of Appeal to void construction approval.
Not all pipelines are the same.
The Northern Gateway was foolhardy and the Keystone XL is short-sighted.
The TMX’s strategic value, however, merits its development.
— Jonathan Allan is the Town of Sundre's economic development officer
