American Pipeline Will Diminish Energy Security, Prominent Canadian Says
InsideClimate News 2013-03-14
Summary:
By Maria Gallucci
Prominent Canadian economist Robyn Allan made waves in Canada last year with papers claiming that rapid oil sands growth would do more economic harm than good for her country.
Allan's controversial analyses focused on the Northern Gateway pipeline, a proposal to carry raw tar sands bitumen through British Columbia for shipment to Asia. One of her main points was that shipping raw crude for upgrading and refining in other countries also means exporting those industries—and jobs—abroad.
She also warned that increased oil sands exports would drive up the value of Canada's currency. Already, an inflated "petro-dollar" is making it tough for Canadian goods to compete in export markets and is "hollowing out" manufacturing sectors, she said.
Now, Allan is making the same arguments about an even bigger and more contentious export pipeline: the Keystone XL. If approved by the Obama administration, the pipeline would send 830,000 barrels of bitumen a day from Alberta to the Texas refining hub.
Allan, a former CEO of the Insurance Corporation of British Columbia, one of Canada's biggest insurance firms, says that through presentations, meetings and op-eds she's trying to "balance out" the economic debate on the Keystone XL, which she claims has been reduced to a simple choice between jobs and the environment.
"There are economic costs that haven't been considered," she says.
In an extensive interview, Allan—who supports measured oil sands development—explains her position on the Keystone XL and discusses potential economic risks to Canadians if it's approved.