Chamber says let ‘em at it

The president of the BC Chamber of Commerce says fears surrounding the lifting of the moratorium against offshore exploration for gas and oil is misplaced

by John Winter

It is time to provide some balance to the offshore oil and gas debate in British Columbia.

I am writing to express my deep concern over the increasing level of potentially misleading statements regarding offshore oil and gas development currently in the public domain.

Much of this renewed rhetoric is based on certain key areas. Primary among these is the concept that the unique conditions in BC make large scale environmental damage increasingly likely. This is misleading to say the least. To suggest that BC waters are inherently more dangerous than other jurisdictions, where typhoons, hurricanes, earthquakes and tsunami’s are common, such as in the South China Sea, Indonesia, the North Sea or Alaska, is simply false.

Claims that there will be damage to the BC coastline because “zero discharge” offshore operations do not exist are also incorrect. For example, the new Osprey rig in Cook Inlet, Alaska and most of the 550 operating wells in Lake Erie, Ontario, are zero discharge. Indeed if we look at the total level of hydrocarbons in the world’s oceans (Ross 1995) the offshore industry is responsible for 2.2% of the total contribution, compared to 7.7% for natural seeps, 36.3% for municipal waste and 45.2% for general marine traffic.

When you look at areas such as Cook Inlet in Alaska, it should be noted that this is a fiord-like fishing and tourism area, with three active volcanoes, massive earthquakes, four-foot pan ice, and huge tides and currents. Cook Inlet in its 45 year history has never had a crude oil blow-out.

Criticism of BC’s regulatory regime is also misplaced. There is no regulatory regime for the BC offshore, and will not be until the moratorium is lifted to give a signal that it is worth spending millions to develop a custom-designed fiscal and regulatory regime.

Industry is not interested? Shell, a major lease-holder, has made the opposite clear—publicly. Dave Collyer, Vice-President Frontier with Shell Canada recently testified at the Federal Public Review Panel on BC offshore oil and gas: “If the moratorium were lifted we would be interested in a future opportunity to engage in exploration activity.”

While it is accurate to state that the industry has no immediate plans to drill, this is simply because in order to elicit industry participation a basic framework needs to be put in place addressing such issues as jurisdiction, tenure and taxation as well as community and First nation involvement.

On a final note, it should be noted that any talk of benefits are redundant until we have a full understanding of the actual resource. Having said this, a look at other jurisdictions around the world such as the UK, Norway and the east coast, show the real benefits a flourishing offshore industry can have on rejuvenating local communities and the economy.

Contrary to claims of no benefits, if we look at Norway, a country roughly the same size as BC in terms of population, their industry employs over 60,000 people in offshore activity and has recently saved a rainy day fund of over $130 billion.

Closer to home, of the $5.7 billion spent on Hibernia pre-production construction, some $2.7 billion went to Atlantic Canada. Benefits included schools, universities, retail services, research facilities and of course jobs and taxes. Hibernia alone contributed $812 million in general infrastructure investment.

These opportunities are already beginning to be realized in BC, with a proposal to establish an Ocean Engineering Initiative at UBC. This will ensure that BC is well placed to become a world leader in education and research with respect to ocean engineering activities.

The BC Chamber is committed to a scientifically sound and environmentally responsible offshore industry in BC as a vital component to rejuvenate communities hard hit by the decline in traditional industries. We would urge your publication to provide some balance to this debate to ensure your readership is fully aware of the facts surrounding this issue.

John Winter is President and CEO of the British Columbia Chamber of Commerce

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