Canadian Oil and Gas Industry Faces Environmental Regulation Challenges

The Canadian oil and gas industry is facing mounting pressure from environmental concerns, with regulatory bodies reevaluating permits and industry leaders attempting to negotiate with environmental groups to avoid further safeguards. This comes after two key decisions by federal and provincial authorities, the Alberta Energy Resources Conservation Board and the National Energy Board, which have set off alarm bells for the industry. Industry officials plan to meet with environmental groups in an effort to persuade them that increased environmental protection is unnecessary.

Key Takeaways:

• Industry officials are planning to meet with environmental groups in an effort to convince them that no further environmental safeguards are needed in Canada.
• The National Energy Board (NEB) has delayed natural gas exports until new environmental hearings are held, despite the fact that the gas is intended for export to the United States.
• Environmental groups have already succeeded in convincing the NEB to reevaluate natural gas export permits for five Canadian and U.S. companies, which were set to export 200 Bcf of gas over the next 15 years.
• The Alberta Energy Resources Conservation Board (AERCB) has allowed Husky Oil Ltd. and Rigel Energy Corp. to drill in an environmentally sensitive area in Alberta, despite opposition from environmental groups.
• Industry representatives emphasize that many environmental assessments have already been conducted by provincial authorities, and that an additional federal review is unnecessary.
• The NEB's decision to hold new environmental hearings is seen as a test case for evaluating the environmental impact of gas exports, despite the fact that the gas is being burned in the United States.

Statistics:

• The natural gas industry in Alberta generates approximately US$2.5 billion per year in exports.
• The NEB has delayed natural gas exports until new environmental hearings are held, despite the fact that the gas was set to start exporting in July.
• 200 Bcf of natural gas was set to be exported over the next 15 years, according to the NEB's revised permits.

Sources:

• "Canadian Oil and Gas Industry Faces Environmental Regulation Challenges"
• The Globe and Mail
• February 27, 1990