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Alberta's Oil Sands Could Hold the Key to U.S. Energy Security

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Alberta's Oil Sands Could Hold the Key to U.S. Energy Security RESOURCE akrdc.org A periodic publication of the Resourcereview Development Council for Alaska, Inc. June 2010 Alberta’s oil sands could hold the key to U.S. energy security Two energy realities face the United States in the 21st century: worldwide demand for energy is forecasted to grow 50 percent by 2030 and fossil fuels will continue to be the dominant energy source, accounting for over two-thirds of global consumption decades from now. Canada is positioned to play a major role in supplying the U.S. and other energy- hungry nations with the fuels they need to power their economies. Th e western province In the mining process, of Alberta ranks second only to Saudi Arabia every day about 500,000 in proven energy reserves. Most of these tons of oil sands are reserves are found in the oil sands. mined using shovels with buckets that hold 100 Until recently, Alberta’s northern oil tons. The ore is sands near Fort McMurray were considered transported for too remote, too diffi cult to extract, and processing by some of too expensive to produce. However, new the world’s largest trucks. technology and higher oil prices have The remaining material transformed these massive deposits into is stockpiled and used in economically viable fi elds that may hold the reclamation efforts. The key to North American energy security. photo above shows a new Developing this resource, however, diverse forest rising over a previously mined area. has released a wave of controversy and concerns about the environmental impacts oil sands are receiving international scrutiny industry are taking to mitigate impacts. of development on such a large scale. Th e as governments consider adopting climate Th e visitors were exposed to Alberta’s change regulations and treaties. Th e Alberta vision for developing one of the world’s government and industry are well aware of largest deposits of oil. Th ey also learned the strong opinions in the U.S. and around about legislation and policies that protect In is Issue the world on development of the oil sands water, air, land, and ecosystems in the oil Alberta’s oil sands 1, 4-5 and understand that energy resources must be sands region. Message from Executive Director 3 produced in a responsible manner. Canada is the top supplier of oil to the RDC Deputy Director Carl Portman U.S., supplying more than 2.4 million barrels Gas pipeline update 6 recently visited the oil sands with per day. Of this, more than 1.3 million Shell remains focused on OCS 7 Commissioner Larry Hartig of the Alaska barrels of crude oil comes from the oil sands. Department of Environmental Conservation Canada’s oil reserves are the second largest in Teck to develop Aqqaluk 8 and 30 others from western states to learn the world. Of 178 billion barrels in reserves, State targets beluga whale listing 9 about the oil sands, what they mean for U.S. 97 percent are located in the oil sands. energy security, and the steps Alberta and (Continued to page 4) Steller sea lion protections 10 Industry digest 11 This edition sponsored by: CH2M HILL & Northrim Bank achieve more. Ready to take your business to the next level? Talk to Northrim. We can help you spot the turns and opportunities that lie ahead for Alaska. And we have money to loan. Northrim Bank. For Business. northrim.com Resource Development Council Executive Committee Officers The Resource Review is the official periodic 121 W. Fireweed, Suite 250 President Wendy Lindskoog publication of the Resource Development Anchorage, AK 99503 Sr. Vice President Phil Cochrane Council (RDC), Alaska's largest privately Vice President Stephanie Madsen (907) 276-0700 funded nonprofit economic development Treasurer Tom Maloney e-mail: [email protected] organization working to develop Alaska's Secretary Len Horst www.akrdc.org natural resources in a responsible manner and to create a broad-based, diversified Material in this publication may be reprinted Staff economy. without permission provided appropriate credit Executive Director Jason Brune is given. For additional information, contact Carl Past issues of the Resource Review Deputy Director Carl Portman Portman at [email protected]. Membership Director/ Deantha Crockett (1978-2010) are available at akrdc.org. Projects Coordinator Projects Coordinator Marleanna Soto Page 2 June 2010 Resource Review akrdc.org From the Executive Director - Jason Brune The amazing power of a simple pen “I gave her my heart, and she gave me a pen.” – Lloyd Dobler referring to Diane Court in the movie Say Anything. A simple ballpoint pen has tremendous signifi cance and power in the making of laws in the state of Alaska. I recently was invited to attend the signing of HB36, the Open and Transparent Initiative Act, with Governor Sean Parnell at a ceremony in beautiful, but rainy, Ketchikan. Given the impact initiatives have had on RDC members over the last fi ve years, passage of this legislation is one of the most important successes we can claim of late. Indeed, much work was done by the bills’ cosponsors, Representatives Kyle Johansen, Charisse Millett, and Peggy Wilson as well as by the bill’s lead staff er Sonia Christensen of Rep. Johansen’s offi ce. Upon completion of the ceremony, I was given one of the pens Governor Parnell used to sign the bill into law. It was quite a symbolic gesture. In Ketchikan, Governor Sean Parnell signs HB 36, the Open and Th is very piece of legislation was put in place to track, among Transparent Initiative Act. From left to right are Senator Dennis Egan, other things, the amount of money that is spent in the eff orts to RDC Executive Director Jason Brune, Representative Charisse Millett, get people to pen their signatures to put initiatives onto the ballot. and Representative Kyle Johansen. Passage of HB 36 goes a long way Signifi cant, but up until now, undisclosed sums of money were spent to achieving openness and transparency in the ballot initiative process. by anti-cruiseship, anti-mining, and anti-oil industry interests, as well as others to try to get things on the ballot without letting Alaskans system.” A complete copy of his letter is found on our website at know how much money was actually spent in their eff orts. How www.akrdc.org/legislature/. Th ough I do not agree with the Governor’s many Outsiders were brought up to hold stacks of pens and signature justifi cation, I very much appreciate that he took our letter into booklets has been unknown. Th is is no longer the case and I am consideration in his decision making process, ultimately penning a grateful for the Legislature’s and Governor’s eff orts to bring more response to RDC justifying his action. openness and transparency to Alaskans. Each of you also has the power to use your pen (or keyboard) to By contrast, a pen may also be used by Alaska’s governor to line write comment letters when RDC sends you action alerts. Without item specifi c things out of the capital or operating budgets. After your voice, local, state, and federal policy makers will make their the 90-day legislative session, RDC and numerous other Alaskan decisions without your input. Th e true benefi ts of a project may never groups, Native Corporations, businesses, and individuals wrote to be known if RDC members choose not to participate in the many Governor Parnell requesting he veto a $750,000 appropriation for the public comment periods we are aff orded. Indeed, when your pen Legislative Council to conduct an independent study of the potential remains silent, bad policy may in fact result, and ultimately responsible large mine development in the Bristol Bay drainage, a study that resource development projects likely won’t come to fruition. As I’ve appears to wrongfully target one industry, and Pebble in particular. said oftentimes before, you reap what you sow. We argued that funding such a study will set a dangerous precedent Further, as we embark on campaign season, each of you also can for resource development projects across all industries in the state. use the power of your pens to write checks to candidates you support. Alaska’s permitting system is among the most stringent in the world You can also write checks to Political Action Committees such as the and companies have invested millions of dollars in this state with the State Chamber’s Alaska Business PAC (ABPAC), the Alaska Miners understanding that they will be aff orded the opportunity to navigate Association PAC (AMAPAC), the Associated General Contractors of the rigorous permitting process in a manner that is both fair, and Alaska PAC (AGCPAC), and others. Th is is your constitutional right, consistent for all. and with rights, come responsibilities. Willy nilly opening of your Unfortunately, Governor Parnell did not use his pen to veto this checkbooks to everyone that is running in a campaign, in my opinion, item. In his letter to RDC outlining his reasons, Governor Parnell is not doing justice to this responsibility. stated, “In evaluating applications to State agencies for permits to I encourage you and all RDC members, to use the pens you have develop our state’s resources, my administration remains committed been given to help shape the future of Alaska, and indeed, this nation. to following Alaska’s permitting laws and regulations. Th ere is no Otherwise, we could end up like Lloyd Dobler and only have a pen full study that will change that – only deliberate action on the part of the of ink (and a government full of red ink) to show for our inaction.
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