Michael Cai

Canada warned about U.S. energy protectionism

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/canada-warned-about-us-energyprotectionism/article11630534/

SHAWN MCCARTHY - !"#A! $N$R Y R$%"RT$R OTTAWA The Globe and Mail Published Tuesday, Apr. 30 2013, 11:27 AM EDT Last updated Wednesday, May. 01 2013, 6:37 PM EDT

Canada needs to beware U.S. energy protectionism including policies that insist this country adopt greenhouse gas emission regulations for its oil and gas industry while giving U.S. and offshore producers a free pass, says former Conservative environment minister Jim Prentice. In a speech delivered in alifa! on "uesday, #r. Prentice cited U.S. renewable energy strategies that discriminate against Canadian hydroelectric power from $uebec and %abrador, as well as proposed low carbon fuel standards, li&e the one in California that disadvantages oil sands companies while e!empting heavy oil producers in that state. 'Canada must continue to fight for a continental energy mar&etplace that is free of national and subnational impediments interventions by government, while well meaning, are nevertheless potentially damaging and counterproductive,( said #r. Prentice, now deputy chairman of Canadian Imperial )an& of Commerce. In an interview, he sided with "ransCanada Corp., which complained recently that the U.S. *nvironmental Protection +gency is urging ,ashington to wor& with +lberta and Canada to reduce greenhouse gas emissions from the oil sands as part of the review process for the -eystone .% pipeline. "ransCanada said the *P+ recommendation would amount to an infringement of sovereignty. #r. Prentice also e!pressed concern if the pressure to regulate flows only one way. 'It/s an infringement of sovereignty if the +mericans are telling us to 0cut oil industry emissions1 and they/re not doing anything,( he said in the interview. )ut he said Canada and the United States should wor& together to harmoni2e environmental and climate change standards so energy producers en3oy unfettered access to a continental mar&et that may re4uire no imports from offshore. +s well, there needs to be 'consistent rules on production that comes in from #e!ico and 5ene2uela( so those producers don/t en3oy a competitive advantage. ,hen he was environment minister, #r. Prentice advocated for a Canada6U.S. energy pact that would include a harmoni2ed environmental approach, but that Canadian effort went nowhere with the 7bama administration. Instead, the two governments have wor&ed to fashion common emission standards in areas such as motor vehicles and appliances, while pursuing their own priorities in regulating energy producers. Canadian refiners are particularly worried that they will face onerous emission regulation while their competitors in the U.S. do not. 7ttawa and +lberta are now negotiating with industry on greenhouse gas regulations for the oil and gas sector, which *nvironment #inister Peter -ent e!pects to introduce later this year.

While U.S. officials are watching with interest, there are no talks between the two countries to adopt a common approach.

Michael Cai

Protectionism Exercise
A. The article I ha e read is focused on the U.S. energ! protectionism, stating that there will be policies that suggest Canada follow the greenhouse gas emission regulations for its oil and gas productions, while allowing the U.S. is e"empt from these regulations. The U.S. proposed lower carbon fuel standards that disad antages oil sands companies, but profiting other hea ! oil produces. This energ! protectionism concerns man! Canadian refiners as the! will face onerous emission regulations while companies in the U.S. do not. Mr. #rentice, now deput! chairman of Canadian Imperial $ank of Commerce, stated that %It&s an infringement of so ereignt! if the Americans are telling us to 'cut oil industr! emissions( and the!&re not doing an!thing.) $. The U.S. go ernment introduced a *uota which limits the greenhouse gas emission regulations. This energ! polic! discriminates against Canadian energ! companies, and wants lower carbon fuel standards. This basicall! tells Canada to cut down on the oil production, while the U.S. is not affected b! this. This is the U.S. renewable energ! strateg!, which gi es concerns to Canadian refiners. C. With limitations to the oil industr! and oil production, it can gi e rise to man! emplo!ment problems. Such as +ob loss in the oil sector and with the lowered carbon fuel standards Canadian business will lose to other hea ! oil companies in the U.S. ,imited oil production, means limited oil e"ports to countries. This means a drop in the Canadian oil industr!, and less profit, which gi es U.S. one less competitor in the oil industr!. The Canadian go ernment is tr!ing to make agreements with the U.S. go ernment to come up with a common approach, and negotiate new greenhouse gas emission regulations for the oil and gas sector.