Dennis McConaghy - Breakdown: The Pipeline Debate and the Threat to Canadas Future

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Copyright Dennis McConaghy, 2019

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise (except for brief passages for purpose of review) without the prior permission of Dundurn Press. Permission to photocopy should be requested from Access Copyright.

Cover image: istock.com/mattjeacock
Printer: Webcom, a division of Marquis Book Printing Inc.

Library and Archives Canada Cataloguing in Publication

Title: Breakdown : the pipeline debate and the threat to Canadas future / Dennis McConaghy.
Names: McConaghy, Dennis, 1952- author.
Description: Includes bibliographical references and index.
Identifiers: Canadiana (print) 20190127007 | Canadiana (ebook) 20190127015 | ISBN 9781459745087 (softcover) | ISBN 9781459745094 (PDF) | ISBN 9781459745100 (EPUB)
Subjects: LCSH: Energy developmentCanada. | LCSH: Petroleum pipelinesCanada. | LCSH: Energy policyCanada. | LCSH: Climatic changesGovernment policyCanada. | LCSH: Energy industriesCanada.
Classification: LCC HD9502.C32 M33 2019 | DDC 333.791/50971dc23

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We acknowledge the support of the Canada Council for the Arts and the Ontario Arts Council for our publishing program. We also acknowledge the financial support of the Government of Ontario, through the Ontario Book Publishing Tax Credit and Ontario Creates, and the Government of Canada.

Care has been taken to trace the ownership of copyright material used in this book. The author and the publisher welcome any information enabling them to rectify any references or credits in subsequent editions.

The publisher is not responsible for websites or their content unless they are owned by the publisher.

Printed and bound in Canada.

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Contents

Maps

Foreword

CANADA IS FACING A CRISIS.

Hydrocarbon development in western Canada is stalled because of the seemingly endless delays in getting approval to build new pipelines and realizing their construction. Provincial governments and resource companies are united in opposing new federal legislation that will make it much more difficult to develop future major energy projects. Meanwhile, there is no national consensus on carbon pricing, which Conservative provincial governments across the country oppose. These circumstances are raising the spectre of a constitutional crisis.

Dennis McConaghys Breakdown offers an insightful account of the challenges faced by Canadas energy sector in advancing and developing its natural resource bounty, and of the implications for all Canadians if those challenges are not overcome. McConaghy poses three crucial questions: Is it possible for Canada to have a national consensus that allows for the continued development of its world-class oil and natural gas resources? Do Canadians appreciate the value of these resources and their economic contribution? And, can hydrocarbon development be reconciled with a credible climate policy for Canada?

In trying to answer these questions, McConaghy explains the positions and actions of the competing interests involved in the debate surrounding hydrocarbon development. He outlines how the policy position of Prime Minister Stephen Harper clashed with that of U.S. President Barack Obama particularly in the many frustrated attempts by Canada to obtain approval for the Keystone XL pipeline. He describes the tectonic shift that occurred in the Canadian political landscape in 2015 as a result of an NDP government being elected in Alberta, and the impact of the policies enacted by the federal Liberals after they returned to office that same year. The situation soon came to a head in 2017 with the frustrating intransigence of the minority NDP government elected in British Columbia, reliant on the Green Party to stay in power.

McConaghy is particularly critical of Prime Minister Justin Trudeaus attempts to reconcile the need for energy development with the creation of a credible climate policy, all while accommodating the interests of Indigenous groups. McConaghy argues that in Trudeaus attempts to please everyone, he pleases no one. Even the federal governments decision to buy the Trans Mountain pipeline from Kinder Morgan is greeted with skepticism.

Breakdown elaborates the quest for a grand bargain on the part of Alberta a carbon tax and greenhouse gas emissions cap put in place by Alberta premier Rachel Notley in exchange for federal approval of much needed energy infrastructure projects. McConaghy rightly questions whether the efforts aimed at placating those opposed to energy development can ever be effective.

Breakdown comes at a time of great urgency for Canada. Profound decisions will determine many of the questions that McConaghy poses, and in so doing will determine what kind of country Canada is going to be.

As a journalist writing for the Calgary Herald, the Globe and Mail, and the CBC, Deborah Yedlin has been a pre-eminent commentator for the better part of twenty years on the nexus of business and politics in Canada.

Introduction

AT THE BEGINNING OF 2019, two impassioned Canadian protests took to the streets. For the United We Roll convoy, those streets began in Red Deer, Alberta, merged with the Trans-Canada Highway, and ended on Wellington Street in Ottawa, beneath Parliament Hill. Hundreds of workers arrived in their trucks to protest the threat to their livelihoods in the oil and gas industry the threat caused by a decade of frustrated hydrocarbon infrastructure development and ineffectual political response.

Weeks earlier, other Canadians had demonstrated just as fervently; in that case, they were protesting against the construction of any such infrastructure. The RCMP had arrested fourteen people blocking the access of pipeline workers onto land in north-central British Columbia, access required to carry out pre-construction for a legally approved project. That pipeline, Coastal GasLink, would carry natural gas to Kitimat, B.C., where it would be converted to liquefied natural gas (LNG) and exported to Asia. The Canadian prime minister and the B.C. premier had endorsed the project heartily and publicly just a few months earlier. The protestors came out in solidarity with the specific subset of the local Indigenous community that had adamantly resisted this project for over four years, and with those who opposed any further hydrocarbon development in Canada on the grounds that such development increased the risk of global climate change.

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