18 July 2011 - HIGHLIGHTS OF THE ESCTER AND STCEES VISIT TO CANADA, 11-14 JULY 2011

In a joint mission of the Economics and Security (ESC) and the Science and Technology (STC) Committees, 19 members of parliament participated learned more about Canada ’s substantial unconventional energy assets and the technology being employed to extract these resources.

The delegation was led by Mr. Leon Benoit, a Canadian Member of Parliament and Chairman of the ESC’s Sub-Committee on Transatlantic Economic Relations, and Mario Tagarinski, a Bulgarian Member of Parliament and Chairman of the STC’s Sub-Committee on Energy and Environmental Security.

The delegates visited Alberta ’s massive oil sands region around Fort McMurray, touring both mining operations, where petroleum-rich sands are found closely beneath the surface and so-called steam-assisted gravity drainage facilities.  In the latter facilities, the thick and heavy petroleum lies deeper and is made to flow to the surface through horizontal pipes by way of heating the sands through steam.   Furthermore, the delegation visited shale gas extraction operations in Dawson Creek.  In contrast to traditional natural gas extraction through vertical pipes, the gas found in hard and dense shale layers deep beneath the surface has to be extracted through controlled explosions and by pumping sand, water and some chemicals into the stone so that the gas can flow to the surface through horizontal pipes.

Technological advances and high energy prices have contributed to the boom in Canada ’s energy industry, but extracting these resources is still technologically challenging, costly and environmentally controversial, the delegates learned.   Industry leaders, however, argue that they have made great progress on all three fronts.  It must be noted that the delegation did not meet with environmental groups or First Nation representatives, who often oppose the exploitation of these resources.  Still, the delegates did have the opportunity to discuss with industrial representatives about their efforts to ensure that their operations were as environmentally sustainable and as beneficial to native inhabitants and their life style as possible.  

Concerns about greater gashouse emissions generated by unconventional extraction were also addressed. Company representatives and provincial authorities underlined that they are working to lower these emissions.  However, they maintained that 85 per cent of emissions stem from end use, not energy producers, and that there is tremendous scope to improve energy efficiency across all sectors. Public policy should accordingly focus on this aspect, rather than on restricting energy production and singling out unconventional oil and gas, particularly as world energy demand is soaring. 

The delegation also learned of the challenges for industry, provincial authorities and the Canadian government in bringing Canadian oil and gas to markets other than the United States, where virtually all the country’s oil and gas is sold.  Eager to bring their products to global markets and improve transportation to the United States, the delegates were informed about the current status of pipeline projects to the west coast of Canada and to the US Gulf Coast, which are facing various obstacles from non-governmental organizations and certain US authorities.

Furthermore, the delegation had discussions on other topics, receiving briefings about environmental change and security challenges in the High North; the rise of China and Canada’s relationship with the country; and the state of the Canadian-US economic and strategic partnership.

A full Mission report  (on the NATO PA Facebook page) will be available soon...