Nobody Likes to be Misled: Five False Claims Made by Activists – Cody Battershill

Let’s be honest. Nobody likes to be misled. That’s why an anti-Canadian oil and gas activist group’s ad that ran recently over the airwaves of our national broadcaster deserves some follow-up and correction.

The fact is, we all win when we work together. Canada’s oil and gas resources are produced to the highest global standards, and have generated almost a half trillion for our governments since 2000. Furthermore, the world needs an estimated $350 billion spent per year until 2040 on new oil and gas production to prevent supply shortages. Yes, the world needs more Canadian energy and yes we must stand up to the ongoing attacks against our resource sector.

So here are five claims the anti-Canadian energy activist group, Environmental Defence (ED), has made recently – followed by relevant facts that set each claim straight.

First, ED wrongly states that “Canadian oil has never been dirtier.” For activists, “dirty oil” emits more CO₂ in its production than conventional oil does. Specifically, activists claim without a source that since 1990 the emissions intensity per barrel of Canadian oil produced has “…increased by 16 per cent.”

Oil and gas producers have made great progress over the past two decades to decrease their environmental footprint. Big reductions in intensities of both greenhouse gas (GHG) emissions and water use, together with reduced volumes of methane gas flaring are just three examples of their continued leadership.

Of the world’s top 10 oil reserve holders, Canada ranks first on environmental, social, and governance standards. And of the top 20 global oil producers, Canada comes second on social progress and governance and fourth on environment performance. Is that “dirty”? Of course not.

Meanwhile, Natural Resources Canada reports that, “due to technological and operational efficiency improvements, oil sands emissions per barrel have decreased 36 per cent from 2000 to 2018.” IHS Markit, the London-based business information provider, notes “oil sands GHG intensity will decline by at least 16 to 23 per cent by 2030 (to a level 30 per cent below 2009).”

Further, gas flaring decreased by 42 per cent in Canada from 2015 to 2019, while global volumes have reached decade highs. As a matter of fact, the Global Gas Flaring Tracker Report released in July of 2020 found that Canada was responsible for just 0.67 per cent of the 150 billion cubic metres of gas flared by oil companies around the world in 2019. What an incredible accomplishment considering that Canada is responsible for roughly 5 per cent of global oil production. From this, it’s clear that Canada is a global leader in reducing methane from oil and gas operations.

Second on our list of five false or misleading ED claims, by saying “Canadian oil is dirty oil” ED employees suggest that our offshore blends are “dirty” as well. But upstream GHG emissions intensities per barrel of oil produced offshore along Canada’s East Coast are approximately 12 kilograms of carbon dioxide equivalent, more than 30 per cent lower than the world average of 18kg of CO₂ per barrel. Even former Newfoundland and Labrador Premier Dwight Ball recently reinforced this key point.

“While the world still needs oil, the oil offshore Newfoundland and Labrador has produced has a lower emission intensity than the world average, which is not only in our national, but global interests to reduce our carbon footprint,” Ball explained.

Third, ED falsely states that Canada’s oil industry has pressured governments to stop all climate policy. Canadian oil and gas companies are the largest spenders on clean technology in the country, accounting for roughly three-quarters of the $1.4 billion spent annually across all industries. In 2016, the sector spent $3.7 billion on environmental protection, or about 44 per cent of total spending that year.

And Canada remains the only top supplier of oil to the US with carbon pricing initiatives – a fact that’s held from 2007 to today. That same year, Alberta – where a majority of Canada’s oil is produced – became one of the first jurisdictions in the world to take climate action with mandatory GHG emission reduction targets for large industrial emitters across all sectors. If that’s not showing leadership on climate policy, I’m not sure what is.

Fourth, ED’s claim that the industry has not been paying taxes to municipalities is unfair and highly misleading. In 2017, Alberta’s oil and gas industry paid $1.25 billion in municipal property tax on upstream assets alone, despite the fact hundreds of oil and gas companies in Canada have gone out of business since the price crash of 2014.

When businesses dissolve, the taxes they pay to local municipalities dissolve as well. The resulting municipal shortfall is often addressed through increasing taxes on other businesses. It’s a lose-lose situation, particularly when a municipality is disproportionately dependent on energy revenues during a severe economic downturn. When the industry suffers, so does the community. That’s why these energy companies are so crucial.

Fifth and finally, ED’s claim that, in more words or less, new oil and gas project employment numbers are not tangible is simply untrue. Oil and gas projects currently underway are bringing well-paying jobs to communities in Canada, especially in rural areas where employment opportunities can be scarce. Consider just a couple key examples:

• 6,070 people were working on the Trans Mountain pipeline expansion as of August 31^st, 2020, including more than 600 Indigenous People
• Roughly 1,600 people are employed right now in Kitimat at the LNG Canada project, with the workforce expected to peak at around 4,500 throughout 2022 and 2023
• About 2,500 people are employed by the associated Coastal GasLink project, with completion slated for sometime in 2023 – this includes hundreds of Indigenous People.
• Canada’s portion of the Keystone XL pipeline is expected to create more than 2,000 jobs for Canadians over the next two years
• In BC alone, more than 5,400 people were employed by three major energy projects (LNG Canada, CGL, Site C Dam) by the end of July 2020, and 13,000 more will be needed by 2021

Real jobs are created by oil and gas projects in Canada, supporting thousands of workers and their families. Environmental Defense should correct its record for the benefit of all Canadians.

Cody Battershill is a Calgary realtor and founder / spokesperson for CanadaAction.ca, a volunteer-built organization that supports Canadian natural resource development and the environmental, social and economic benefits that come with it.

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