TERRACE - The construction of the Northern Gateway pipeline won't preclude future development of Canadian refineries, according to the Canadian Association of Petroleum Producers.
"This application before you is not a choice between upgrading and refining on one hand and exports on the other," petroleum producers lawyer Keith Bergner told the National Energy Board's Joint Review Panel.
The petroleum producers are one of a handful of interveners who have come out in support of the $6.5 billion project, while a number of First Nations, environmental groups and some private citizens have expressed their concern about the pipeline.
Bergner spent much of his time challenging the final argument made Monday by the Alberta Federation of Labour.
The labour group said exporting raw oilsands products to Asia doesn't generate enough jobs and more should be done to build refinery capacity in Canada. Labour organizations are concerned possible long-term contracts for diluted bitumen will preclude future refinery development, like the one proposed by B.C. newspaper mogul David Black.
The oil producers counter that Northern Gateway could be converted to ship refined products if the market deems it's feasible.
"Refineries and upgraders will be built in Canada where it makes sense economically to do so," Bergner said.
If Northern Gateway is not built, the petroleum producers said it will result in lower prices for oilsands products, which will hurt the Canadian economy.
"Canada will lose out on significant benefits," Bergner said, noting royalties and taxes will be maximized only when the price for Canadian oil rises.
The Joint Review Panel will continue hearing final oral arguments from interveners until the end of next week. It will then prepare its recommendation to the federal government, to be delivered by the end of the year.
