In defense of oil sands

A good neighbor lends you a cup of sugar.
A great neighbor supplies you with 1.4 million barrels of oil per day.

The province of Alberta has been avidly following the proposed Keystone XL pipeline development. Though the pipeline could carry oil from various sources in Canada and the United States, much of the permitting process debate seems focused on transporting oil from Alberta’s oil sands.

Certain U.S. lawmakers and environmental organizations are lobbying the State Department to reject the proposed expansion of the Keystone pipeline because it will transport oil produced from Alberta’s oil sands.

These oil sands have been developed because there is continuing demand for petroleum. We can all agree that alternative energy sources are part of the supply equation to power our future. But until those alternatives are developed commercially -- and at a price that consumers can afford -- we still require oil and gas to power our lives.

The United States reaps many tangible benefits through the continued development of Alberta’s oil sands. The obvious benefit is that it provides access to a secure and reliable supply of energy.

In 2009, Alberta was the largest supplier of crude to the United States. When considered in the context of other leading suppliers of crude -- including Saudi Arabia, Venezuela, Nigeria, Iraq, Angola and Algeria -- the energy security benefits of oil from Alberta are clear.

Today’s economic and security realities make the United States the natural market for the majority of Alberta oil exports. Improved access via projects like the Keystone XL pipeline can help Washington economically and allow the United States to continue getting oil from a country with environmental and social goals similar to yours.

Oil purchased from Canada delivers far more economic benefits to the United States than oil purchased from overseas sources, according to a Council on Foreign Relations report.

Over the next five years, the Canadian Energy Research Institute recently forecast, oil sands development could result in an additional 343,000 jobs in the United States. Over the next 15 years, it could mean an average annual increase in U.S. gross domestic product of more than $30 billion.

There are misconceptions around Alberta’s oil sands. Allow me to clarify:

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Alberta is — and continues to be — a reliable and responsible energy producer. We stand virtually alone in North America with respect to the regulation of greenhouse gas emissions from large industrial facilities.

Only here can you find mandatory greenhouse gas reporting requirements, legislation requiring mandatory greenhouse gas reductions and a price on carbon emissions. We reinvest the carbon revenue into clean energy research and technology development, which, one day, can be used all over the world -- including the United States

Technological developments continue lowering the carbon-intensity of the oil sands, while “conventional” crudes are getting more carbon intensive. In fact, between 1990 and 2008, the oil sands industry reduced average per barrel greenhouse gas emissions from production by 39 percent.

Industry here is legally obligated to reclaim all disturbed land to a productive state. Nearly 26 square miles of land has either been reclaimed or is undergoing active reclamation. Industry has planted 7.5 million tree seedlings that will help repopulate the boreal forest.

In the final analysis, total greenhouse gas emissions from all Alberta’s oil sands projects account for less than one-tenth of one percent of global greenhouse gas emissions.

The most recent studies on oil sands-related greenhouse gas emissions have found that average oil sands lifecycle carbon intensity is comparable to many other U.S. crude sources, both domestically produced and imported.

A Cambridge Energy Research Associates’ report found that the United States uses crude oils with a wide range of lifecycle GHG emissions -- some with higher emissions than oil sands. The report also found that total greenhouse gas emissions from oil sands are comparable to other crude oil sources used. In fact, they are superior to some sources.

Alberta has accomplished a lot through innovation and technology. But we recognize that much work still lies ahead.

We want to make responsible energy choices, just as you do.

My province and your country are on the same team when it comes to responsible development, energy security and jobs. Let’s work together to create a North American energy solution that is realistic and secure -- now and into the future.

Ed Stelmach is the premier of the province of Alberta.