Jason Kenney is now the premier of Alberta.
What was one of his first acts? Proclaiming into law the Preserving Canada's Economic Prosperity Act. It isn't his legislation. It was constructed by the previous NDP government. But it gives the Alberta Minister of Energy the right to reduce or increase oil flow from Alberta to British Columbia and the other provinces.
Or Minister Sonya Savage could turn off the taps entirely.
Except, of course, she can't actually do that. The intent of the law was to allow the Alberta provincial government to punish British Columbia for not allowing the Trans Mountain Expansion project to proceed. But the present pipeline feeds refineries in Washington state as well as British Columbia and turning off the tap would result in a challenge under NAFTA (which still exists). Alberta would be open to constitutional challenges by B.C. and legal damages by the United States.
According to Kenney in an op ed article and press conference, "The impetus for the act is to alleviate the resource backlog that has been exacerbated by delaying TMX. Unfortunately, since coming into office in July 2017, the B.C. government has oppose the expansion project every step of the way, most recently in the B.C. Court of Appeal. One province claiming to have the power to block exports from the rest of Canada would undermine one of the principles of our Confederation, the economic union between our provinces."
Yup. According to Premier Kenney, let's blame B.C. for the lousy oil prices in Alberta. That is basically his message. And judging by the comments posted in response to his rhetoric, his base is all fired up about the issue.
However, the price Alberta receives for its oil has nothing to do with a pipeline to the coast. Long before there was discussions of a new pipeline, Alberta was selling at a discount due to the structure of the FTA and its successor the NAFTA. Essentially, the energy clause in the agreement guarantees American interests unfettered access to our oil at whatever price they want to set. (Which begs the question - why didn't Kenney do something about this when he was a federal cabinet minister?)
But it sure makes for good PR to blame someone else for your problems.
In his op ed, Kenney goes on to say "British Columbians are currently facing a gasoline crisis, paying an unsustainable $1.70 per litre or more in Metro Vancouver. Premier John Horgan has suggested that Alberta's lack of refinery capacity is the problem while doing everything he can to block the expansion of the very pipeline that would get Alberta oil, refined or otherwise, to domestic and international markets."
So, let me get this straight, for 60 years, the Trans Mountain Pipeline has been providing petroleum products to the lower mainland, according to Kenney. And for 60 years, there hasn't been an issue with the supply. We have received all of the gasoline we need. But suddenly, the amount is inadequate, and the price of gasoline has gone through the roof?
What happened? Did everyone in the Lower Mainland suddenly double their consumption? Were whole fleets of vehicles bought by industry? Did the transit system suddenly get rid of their electric buses?
No. The price of gasoline has everything to do with refinery capacity. Refineries close down for maintenance on an annual cycle and the "local refineries" in Vancouver and Washington State have done just that. Further, the amount of crude oil being shipped by the pipeline to the Burnaby refinery means it is only operating at 80 per cent when running.
This puts pressure on the supply of gasoline. But by pumping gasoline through the pipeline from Alberta, these sorts of shutdowns can be accommodated.
However, if Premier John Horgan is correct, the amount of gasoline being piped to the lower mainland from Alberta has dropped over the past few weeks. Hence, the fuel shortage and the sky-rocketing prices. And if Alberta does turn off the tap, prices will jump to atmospheric levels.
That said, the Trans Mountain Pipeline can provide enough gasoline and diesel to satisfy the demands of the lower mainland.
This is where Kenney's argument falls apart. Horgan isn't interested in blocking the existing pipeline. Nor is he majorly opposed to expanding it although that is still with the federal government which is taking more time to fully engage in Indigenous consultations.
What Horgan, Green Party leader Andrew Weaver, and company oppose is an increase in the tankers off the B.C. coast. After all, one supertanker collision could ruin much of the lower mainland economy. Shipping oil overseas comes with inherent risks whether off the north coast or through the Strait of Georgia.
Kenney says "It is my job as premier to defend Alberta". The same goes for Horgan and in defending B.C. he has to take into account all of the economic and environmental interests.
