

Currently released so far... 12646 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AORC
AF
AU
ASEC
AMGT
AS
APER
AR
AEMR
AG
ARF
AJ
AA
AINF
APECO
AODE
ABLD
AMG
ATPDEA
AE
AMED
AGAO
AFIN
AL
ASUP
ASECKFRDCVISKIRFPHUMSMIGEG
AID
ASCH
AM
AORL
ASEAN
APEC
ADM
AFSI
AFSN
ADCO
ABUD
AN
AY
AIT
ACOA
ASIG
AADP
AGR
ANET
ADPM
AMCHAMS
ATRN
ALOW
ACS
APCS
AFFAIRS
ADANA
AECL
ACAO
AORG
AROC
AO
ACABQ
AGMT
AX
AMEX
AFGHANISTAN
AZ
AND
ARM
AQ
ATFN
AMBASSADOR
ACBAQ
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
AFU
BR
BTIO
BY
BO
BA
BU
BL
BN
BM
BF
BEXP
BK
BG
BB
BTIU
BBSR
BRUSSELS
BD
BIDEN
BE
BH
BILAT
BC
BT
BP
BX
BMGT
BWC
CS
CA
CH
CD
CO
CE
CU
CVIS
CASC
CJAN
CI
CPAS
CMGT
CDG
CIC
CAC
CBW
CWC
COUNTER
CW
CT
CR
CY
CNARC
CACM
CG
CB
CM
CV
CIDA
CLINTON
CHR
COE
CIS
CDC
CONS
CF
CFED
CODEL
CBSA
CEUDA
COM
CARSON
COPUOS
CIA
CL
CN
CROS
CAPC
CTR
CACS
CONDOLEEZZA
CICTE
COUNTRY
CBE
CKGR
CVR
COUNTERTERRORISM
CITEL
CLEARANCE
CARICOM
CSW
CITT
CDB
CJUS
CTM
CAN
CLMT
CBC
EAID
ECON
EFIS
ETRD
EC
ENRG
EINV
EFIN
EAGR
ETTC
ECPS
EINT
EPET
ES
EIND
EAIR
EU
EUN
EG
ELAB
EWWT
EMIN
ECIN
ESA
ER
ETRDEINVECINPGOVCS
EAIG
ET
ETRO
ELTN
EI
EN
EUR
EK
EUMEM
ENIV
EPA
ENGR
EXTERNAL
EUREM
ELN
EUC
ENERG
EZ
ERD
EFTA
ETRC
ETRN
EINVECONSENVCSJA
EEPET
EUNCH
ENVR
ESENV
ENNP
ERNG
ENVI
ETRDECONWTOCS
ECINECONCS
EFINECONCS
EXIM
ELECTIONS
ECA
EINVEFIN
ETC
EAP
ECONOMY
EINN
ECONOMIC
EXBS
ECUN
ENGY
ECONOMICS
EIAR
EINDETRD
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
EFIM
EAIDS
EREL
EINVETC
ECONCS
ETRA
IC
IV
IAEA
IR
IT
IO
IN
IS
IZ
IMO
IPR
IWC
ICAO
ILO
ID
ICTY
ICJ
INMARSAT
INDO
IL
IMF
IRS
IQ
IA
ICRC
IDA
IAHRC
IBRD
ISLAMISTS
IDP
IGAD
ILC
ITRA
ICTR
ITU
IBET
ITF
INRA
INRO
INTELSAT
IEFIN
IRC
IRAQI
ITALY
ISRAELI
IIP
ITPGOV
ITALIAN
INTERNAL
INTERPOL
IEA
INRB
INR
IZPREL
IRAJ
IF
ITPHUM
ISRAEL
IACI
KBTR
KPAO
KOMC
KCRM
KDEM
KHIV
KBIO
KTIA
KMDR
KNNP
KSCA
KTIP
KWMN
KIPR
KCOR
KRVC
KFRD
KPAL
KWBG
KE
KTDB
KUNR
KSPR
KJUS
KGHG
KAWC
KCFE
KGCC
KOLY
KSUM
KACT
KISL
KTFN
KFLU
KSTH
KMPI
KHDP
KS
KHLS
KSEP
KMRS
KID
KN
KU
KAWK
KSAC
KCOM
KAID
KIRC
KWMNCS
KMCA
KNEI
KCRS
KPKO
KICC
KIRF
KPOA
KV
KDRG
KSEO
KVPR
KTER
KBCT
KFIN
KGIC
KCIP
KZ
KG
KWAC
KRAD
KPRP
KTEX
KNAR
KPLS
KPAK
KSTC
KFLO
KSCI
KIDE
KO
KOMS
KHSA
KSAF
KPWR
KVRP
KENV
KNSD
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KCGC
KVIR
KFSC
KDDG
KPRV
KTBT
KWMM
KX
KMFO
KR
KMOC
KRIM
KCRCM
KBTS
KOCI
KGIT
KNUP
KPAONZ
KNUC
KNNPMNUC
KERG
KTLA
KCSY
KTRD
KNPP
KJUST
KCMR
KRCM
KCFC
KCHG
KREL
KFTFN
KLIG
KDEMAF
KPAI
KICA
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KHUM
KREC
KSEC
KPIN
KESS
KDEV
KWWMN
KOM
KWNM
KRFD
KMIG
KRGY
KIFR
MARR
MOPS
MASS
MX
MNUC
MCAP
MO
MR
MEPP
MTCRE
MAPP
MEPN
MZ
MT
ML
MA
MY
MIL
MD
MASSMNUC
MU
MK
MTCR
MUCN
MAS
MEDIA
MAR
MC
MI
MQADHAFI
MPOS
MARAD
MG
MTRE
MASC
MW
MRCRE
MP
MOPPS
MTS
MLS
MILI
MEPI
MEETINGS
MERCOSUR
MCC
MIK
MAPS
MV
MILITARY
MDC
NATO
NZ
NL
NO
NK
NU
NPT
NI
NG
NEW
NSF
NA
NPG
NSG
NE
NSSP
NS
NDP
NSC
NAFTA
NH
NV
NP
NPA
NSFO
NT
NW
NASA
NORAD
NGO
NR
NATIONAL
NIPP
NZUS
NC
NRR
NAR
NATOPREL
OEXC
OTRA
OPRC
OVIP
OAS
OECD
OIIP
OSCE
OREP
OPIC
OFDP
OMIG
ODIP
OVP
OSCI
OIC
OIE
OPDC
ON
OCII
OPAD
OBSP
OFFICIALS
OPCW
OHUM
OES
OCS
OTR
OSAC
OFDA
PGOV
PREL
PM
PHUM
PTER
PINR
PINS
PREF
PARM
PL
PK
PU
PBTS
PBIO
PHSA
PE
PO
PROP
PA
PNAT
POL
PLN
POLITICAL
PARTIES
PCUL
PAK
PGGV
PAO
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PAS
PGIV
PHUMPREL
PDOV
PHUMPGOV
PCI
PTBS
PEL
PG
POLITICS
POLICY
PINL
POGOV
POV
PRAM
PP
PREO
PAHO
PBT
PREFA
PSI
PAIGH
POSTS
PMIL
PALESTINIAN
PARMS
PROG
PTERE
PRGOV
PORG
PS
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PMAR
PRELP
PINF
PNG
PFOR
PUNE
PGOVLO
PHUMBA
PSEPC
PNR
POLINT
PGOVE
PHALANAGE
PARTY
PDEM
PECON
PROV
PGOC
PY
PHUH
PF
PRL
PHUS
RU
RS
RO
RW
RP
RFE
REGION
REACTION
REPORT
RCMP
RM
RSO
ROBERT
RICE
RSP
RF
ROOD
RIGHTS
RIGHTSPOLMIL
RUPREL
RELATIONS
SENV
SU
SCUL
SOCI
SNAR
SL
SW
SMIG
SP
SY
SA
SHUM
SZ
SYRIA
SF
SR
SO
SPCE
SARS
SN
SC
SIPRS
SI
SYR
SEVN
SNARCS
SH
SAARC
STEINBERG
SG
SCRS
SENVKGHG
SAN
ST
SIPDIS
SNARIZ
SNARN
SSA
SK
SPCVIS
SOFA
SANC
SWE
SHI
SEN
TW
TU
TBIO
TSPL
TPHY
TRGY
TC
TT
TSPA
TINT
TERRORISM
TX
TR
TS
TN
TD
TH
TIP
TNGD
TI
TZ
TF
THPY
TP
TBID
TL
TV
TK
TO
TRSY
TURKEY
TFIN
TAGS
UN
UK
UNSC
UNGA
US
UNESCO
UP
UNHRC
UNAUS
USTR
UNDP
UNEP
UNMIK
UY
UNCHR
UNO
UG
UZ
UNPUOS
USEU
UNDC
UNICEF
UV
UNHCR
UNCND
UNCHC
UNCSD
USUN
USOAS
UNFCYP
USNC
UNIDROIT
USPS
USAID
UE
UNVIE
UAE
UNODC
UNCHS
UNFICYP
UNDESCO
UNC
Browse by classification
Community resources
courage is contagious
Viewing cable 05CALGARY656, CALGARY ENERGY ROUND-UP: OCTOBER 2005
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05CALGARY656.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
05CALGARY656 | 2005-11-04 03:56 | 2011-04-28 00:00 | UNCLASSIFIED | Consulate Calgary |
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 05 CALGARY 000656
SIPDIS
STATE FOR WHA/CAN, EB/ESC/ISC, EB/PPD
USDOE FOR IA (DEVITO, PUMPHREY, DEUTSCH)
E.O. 12958: N/A
TAGS: ENRG EPET ETRD PGOV SENV CA CH UK
SUBJECT: CALGARY ENERGY ROUND-UP: OCTOBER 2005
¶1. Alberta Minister Melchin Warns Ottawa to Keep Energy out of
Softwood Lumber Dispute: "Hands off Our Oil"
¶2. NEP2 on the Horizon?
¶3. Alberta Energy Company Buys North Sea Developer
¶4. New Terasen-Pembina Partnership Proposes Condensate Pipeline
¶5. New Oilsands Regulations Raise Environmental Concerns
¶6. Kitimat Chosen as Western Port for New Pipeline System
¶7. CEPA Head Warns That Lack of Regulatory Reform Threatens
Mackenzie Pipeline
¶8. Revenues from Oil and Gas Promise to Make 2005 Banner Year
for Saskatchewan
¶9. Saskatchewan Officials Strengthen Business Ties in China,
Hong Kong
¶10. Alberta Considering Building Refinery Facilities
¶11. Retiring EnCana Founder Lauded as "Visionary"
¶12. Gas Output in US Rockies to Overtake Western Canada's,
Predicts Think Tank
¶13. Enough Natural Gas for Everyone, Claims Melchin
¶14. New Road Aids Flow of Labor Between Saskatchewan and Alberta
¶15. Albertans Not Surprised at Findings that Province is Top
Polluter
--------------------------------------------- --------------
--------------------------------------------- ----
¶1. ALBERTA MINISTER MELCHIN WARNS OTTAWA TO KEEP ENERGY OUT
OF SOFTWOOD LUMBER DISPUTE: "HANDS OFF OUR OIL"
--------------------------------------------- --------------
--------------------------------------------- ----
Alberta Energy Minister Greg Melchin made public in October his
opposition to using energy policy as a bargaining chip in the
softwood lumber dispute, after meeting with top US energy
officials. The provincial government has been dismissive of
those in Ottawa calling for the linkage of energy and lumber,
reminding Canadians that Prime Minister Martin can "talk all he
wants, but the fact is the resources~are owned by the
provinces". Tariffs imposed by the United States on Canadian
softwood lumber continues to be the major point of contention in
the Washington-Ottawa relationship, with Secretary Rice's recent
talks with Martin bringing the issue to the forefront. With
Canada supplying an increasingly large portion of the United
States' seemingly insatiable energy consumption, energy
resources are seen as one of the few areas of trade where Ottawa
is negotiating from a position of strength. Support for
restricting energy exports has grown exponentially since August,
when the United States called for further talks following a
NAFTA ruling ordered Washington to compensate Canada for the
US$5 billion in tariffs levied against the Canadian lumber
industry.
-------------------------------------
¶2. NEP2 ON THE HORIZON?
-------------------------------------
The 25th anniversary of Canada's National Energy Program (NEP)
this month saw an Alberta eerily similar to its 1980s
counterpart; the province is booming as a result of high energy
prices, a Liberal government in Ottawa is beginning to see a
smaller and smaller part of a larger and larger royalty pie, and
a Conservative government in Alberta is beginning to get
suspicious. Although a repeat of the NEP is almost universally
considered impossible, Alberta Premier Ralph Klein has been
public about his concerns that another "threat is on the
horizon". Several highly visible events over the past two months
have combined to form the proverbial perfect storm in the
oilsands: Alberta's almost obscenely large budget surplus,
budget deficits in some of the eastern provinces, and the
softwood lumber dispute with the United States. Ottawa has
mentioned utilizing Canada's booming energy trade as a
negotiating tool in the softwood lumber fight, infuriating
Albertans who still remember the last time the federal
government encroached on what is legally the property of the
provinces. Premier Klein has lead the fight against a possible
politicization of oil and gas, telling Ottawa to "keep its hands
off" Alberta's resources. While a revival of the NEP is
unlikely, several proposals which Albertans say has the same
effect are on the table. One such idea, which would increase
Ottawa's resource revenue take without violating NAFTA or
provincial property rights, would link energy directly to
Canada's commitments under the Kyoto Protocol. Although the
details of the plan are still sketchy, proponents suggest a tax
on carbon, directly affecting Alberta's "dirty energy" oilsands
industry. This proposal was pushed to the forefront in October
when a report by Environment Canada found that Alberta is now
the top provincial air polluter in Canada, surpassing Ontario
for the first time in eight years. Whether a grab is made for
Alberta's energy revenue or not will ultimately depend on
popular support for the federal Liberals.
--------------------------------------------- --------------
--------------------------------
¶3. ALBERTA ENERGY COMPANY BUYS NORTH SEA DEVELOPER
--------------------------------------------- --------------
--------------------------------
Calgary-based Talisman Energy Inc. announced Friday that it
would buy Britain's Paladin Resources PLC for C$2.52 billion,
giving a huge boost to Talisman's oil reserves and exploration
potential. Nearly three-quarters of Paladin's reserves and
production are in the North Sea, where the company produces
145,000 bbls per day. Talisman has aggressively pursued growth
in the region since its acquisition of Bow Valley Energy Inc.
over a decade ago. The purchase also gives Talisman 600,000
acres of properties in the Norwegian sector of the North Sea,
greatly enhancing the company's opportunities for exploration.
The buyout was surprisingly unpopular with investors.
Jarislowsky Fraser, Talisman's largest shareholder, believes the
company's dropping share value is a result of their lack of
long-term vision: "When the price of oil is high, you pay a high
price~the rule of buying low and selling high is not being
observed". In good news for petroleum consumers worldwide,
Talisman told reporters that before the end of the decade,
production by Paladin's oil facilities is expected to increase
by half, to 70,000 bbls per day, before the end of the decade.
--------------------------------------------- --------------
--------------------------------------
¶4. NEW TERASEN-PEMBINA PARTNERSHIP PROPOSES CONDENSATE PIPELINE
--------------------------------------------- --------------
--------------------------------------
Calgary-based pipeline companies Terasen and Pembina made public
the creation of a new partnership between the two to oversee the
possible development of a new condensate delivery system. The
C$1 billion Spirit Pipeline would transport offshore condensate
from a deepwater port in Kitimat, British Columbia to Edmonton.
Condensate is an ultra light oil used to dilute the heavy crude
oil produced in the northern Alberta oilsands, allowing it to be
transported by traditional oil pipelines. Demand for condensate
in Alberta has been increasing along with development of the
oilsands, while its supply from natural gas wells has dropped.
The pipeline will be designed to transport 100,000 bbls of
condensate a day, considerably less than the quarter-million
bbls a day expected from Enbridge's proposed delivery system.
Terasen and Pembina believe they have one advantage over rival
pipeline designs however: timing. The Spirit Pipeline is
expected to be in place by mid-2009, a full year earlier than
that of Enbridge. Also working in the partnership's favor is the
proposed route of Spirit, which will avoid most of British
Columbia's greenfield, requiring fewer regulatory approvals and
falling mainly under provincial jurisdiction. The construction
of the pipeline will occur simultaneously with new condensate
import facilities in British Columbia, with several energy
companies planning to expand terminaling and port capacity in
Kitimat.
--------------------------------------------- --------------
-------------------------------------------
¶5. NEW OILSANDS REGULATIONS RAISE ENVIRONMENTAL CONCERNS
--------------------------------------------- --------------
-------------------------------------------
A newly published Alberta Government plan would give oilsands
development highest priority in northern Alberta. The new
regulatory scheme creates a development zone around Fort
McMurray, promising oil companies they now have the right to
mine anywhere in the region. Previously, oil companies had to
compete with producers of other resources, such as the lumber
industry. The new plan, called a "Mineable Oil Sands Strategy"
(MOSS) is still in the process of being drafted by the Oil Sands
Ministerial Strategy Committee. While new mining projects are
still required to pass environmental assessments, as well as
receiving approval from the Alberta Energy and Utilities Board
(EUB), critics say the new plan will lead to the destruction of
the pristine forests of northern Alberta. Chris Severson-Baker,
director of the energy watch program at the Drayton Valley,
Alberta-based Pembina Institute, an environmental think tank,
claims the new regulations will essentially demolish 2,800
kilometers of old-growth forests. The plan also has the
potential to generate friction between Edmonton and local First
Nations; the development region surrounds the Fort McKay
reserve, and it is possible that hunting and fishing by
aboriginals will be prohibited inside the zone.
--------------------------------------------- --------------
-------------------------------------
¶6. KITIMAT CHOSEN AS WESTERN PORT FOR NEW PIPELINE SYSTEM
--------------------------------------------- --------------
-------------------------------------
Calgary-based Enbridge Inc. announced this month that the
company had chosen Kitimat, British Columbia as the western
terminus for the proposed C$4 billion Gateway pipeline project.
Kitimat's deep water port will enable easy loading for the oil
tankers, which will carry heavy crude from Gateway to markets in
Asia and California. Gateway would consist of two pipelines, one
transporting up to 400,000 bbls of heavy crude oil a day, and
the other a 150,000 bbl a day condensate supply system.
Condensate is used in the oilsands to facilitate flow of the
heavy crude through traditional pipeline systems. If the
National Energy Board (NEB) accepts the proposal, Enbridge hopes
to complete construction by 2010. Discussions are underway
between the company and several entities concerning use of the
pipeline, including China government-owned Petro-China, which
last April finalized a preliminary deal with Enbridge for half
of Gateway's daily shipping capacity.
--------------------------------------------- --------------
--------------------------------------------- --
¶7. CEPA HEAD WARNS THAT LACK OF REGULATORY REFORM THREATENS
PROPOSED
MACKENZIE VALLEY PIPELINE
--------------------------------------------- --------------
--------------------------------------------- --
The recent announcement that an agreement has been reached with
Conoco Phillips to build a US$20 billion oil pipeline in Alaska
has raised doubts that the proposed Mackenzie Valley natural gas
pipeline will be completed on schedule, if at all. David
MacInnis, President of the Calgary-based Canadian Energy
Pipeline Association says the Alberta assumption that Mackenzie
has a two or three year head start on the Alaska pipeline is
inaccurate. The US$20 billion pipeline would deliver 4 bcf of
natural gas from the North Slope oil fields to US markets in the
Midwest. The State of Alaska will hold an equity share of about
US$4 billion, or 20%. The state government is also considering
two competing pipeline proposals; TransCanada is bidding for a
similar pipeline, and another proposal would parallel the
existing trans-Alaska line, delivering LNG to the port of
Valdez. Energy officials argue that the delays in processing the
Mackenzie project demonstrate the need for regulatory and fiscal
reform. Although Ottawa has spent C$75 million on improving
regulatory capacity in the Northwest Territories, where the
pipeline would originate, none of the 24 benefiting regulatory
bodies are fully staffed. A recent study found that a two-year
delay in construction of a pipeline in the region (either the
Alaska or Mackenzie pipelines) would cost Canadian consumers
C$57.7 billion in higher natural gas prices over the next 20
years.
--------------------------------------------- --------------
--------------------------------------------
¶8. REVENUES FROM OIL AND GAS PROMISE TO MAKE 2005 BANNER YEAR
FOR SASKATCHEWAN
--------------------------------------------- --------------
--------------------------------------------
Strong interest in Saskatchewan's oil and gas resources promise
to make 2005 a record year for the province. With one sale still
to go this year, 2005 is already one of the province's top seven
years in terms of revenues from the sale of crown lands and
resource rights. Sale of petroleum and natural gas rights has
reaped Saskatchewan a total of C$114 million as of October 31st.
The largest single sale was for a permit allowing Canadian
Landmasters Resource Service Ltd. to work over 156,000 hectares
near Chamberlain, costing the company C$3.5 million.
--------------------------------------------- --------------
-----------------------------------------
¶9. SASKATCHEWAN STRENGTHENS BUSINESS TIES IN CHINA, HONG KONG
--------------------------------------------- --------------
-----------------------------------------
Saskatchewan Premier Lorne Calvert and provincial Industry and
Resources Minister Eric Cline wrapped up their meetings with top
Chinese and Hong Kong businessmen in October. The pair
reportedly used the meetings as a forum to promote
Saskatchewan's growing energy and agricultural trade with the
Far East. Premier Calvert reminded his audiences that China is
now Saskatchewan's largest trading partner, besides the United
States. Two-way trade between China and the province has
increased in recent years, especially in potash shipments and
agricultural commodities. Saskatchewan is the world's largest
producer of potash, and is China's fourth largest trading
partner in Canada. As a result of the meetings, China National
Petroleum Corporation (CNPC) gave Saskatchewan high priority as
a future strategic partner in energy related investment. The
premier also applauded the close ties between Chinese and
Saskatchewan universities; Calvert presided over the signing of
two Memorandums of Understanding (MOUs) while in Beijing: one
between the University of Regina and the CNPC, and one between
the University of Saskatchewan and the Beijing Institute of
Technology. Premier Calvert and Minister Cline concluded their
four-nation tour with trips to Kazakhstan and Tokyo this week.
--------------------------------------------- --------------
----------------------------
¶10. ALBERTA CONSIDERING BUILDING REFINERY FACILITIES
--------------------------------------------- --------------
----------------------------
While Alberta Government officials have downplayed rumors that a
C$7 billion refinery project will soon receive regulatory
permits, they have confirmed that the province is spending
C$200,000 to study the proposal. The study, commissioned by the
Hydrocarbon Upgrading Task Force, is also funded in part by a
group of industry sponsors interested in adding value to
Albertan bitumen before being shipped to American markets. The
task force initially looked simply at upgrading bitumen to
synthetic light oil, but soon expanded the study's scope to
review a broad range of value-adding petroleum products.
However, provincial officials have attempted to minimize news of
the project, saying it is still several steps removed from even
becoming a feasibility proposal. Cindy Goodyear of Alberta
Economic Development stated, "It's a hypothetical refinery used
to illustrate the potential benefits of integrating a refinery
with existing plants". Alberta Economic Development is
organizing a group of 16 corporate participants in the study. If
completed, the proposed refinery would be the first in North
America in over a quarter century, and with a 300,000 bbls per
day refining capacity, the largest in Canada.
--------------------------------------------- --------------
-------------------------
¶11. RETIRING ENCANA FOUNDER LAUDED AS "VISIONARY"
--------------------------------------------- --------------
-------------------------
The resignation announcement of Gwyn Morgan, President and CEO
of Calgary-based EnCana, one of Canada's largest corporations,
came as a surprise to an energy industry that has watched the
company's share price grow more than 80% this year. Morgan has
been credited with the strong performance of the company since
its inception in 2002, when he brokered a merger deal between
homegrown entities Alberta Energy Company (AEC) and PanCanadian
Petroleum Limited. The resulting company was the largest in
Canada in recent months, a result of high oil and gas prices.
Morgan was responsible for many controversial changes in the
corporation, including the re-focusing of EnCana on North
American energy projects, when the company sold many of its
foreign assets in South America and the North Sea. Morgan
downplayed reports that his resignation was in response to the
rumored acquisition of EnCana by Royal Dutch Shell. Morgan will
remain as an officer of the company until 2006, working in an
advisory capacity for new president and CEO Randall Eresman.
Eresman has been with EnCana and its predecessor, AEC, since
1980, and played a key role in the early development of EnCana
after the 2002 merger.
--------------------------------------------- --------------
---------------------------------------
¶12. GAS OUTPUT IN US ROCKIES TO OVERTAKE WESTERN CANADA'S,
PREDICTS
ENERGY THINK TANK
--------------------------------------------- --------------
---------------------------------------
Highly-respected energy consulting firm Ziff Energy has
predicted that natural gas production in the US Rockies could
overtake western Canadian output as early as 2012, mainly from
increased exploitation of low-permeability rock. Production is
expected to increase by about 2.5 bcf a day to 16 bcf in 2012,
although Dennis Elias, manager of gas consulting for
Calgary-based Ziff, warned that expansion could be seriously
hampered by a lack of pipeline capacity in the region. A number
of new pipeline projects have been proposed to meet the expected
rise in demand for gas transportation systems, including a US$3
billion pipeline from Wyoming to eastern Ohio and a much larger,
1,500 mile project outlined by Kinder Morgan Energy Partners.
--------------------------------------------- --------------
---------------------------------
¶13. ENOUGH NATURAL GAS FOR EVERYONE, CLAIMS MELCHIN
--------------------------------------------- --------------
---------------------------------
Alberta Energy Minister Greg Melchin assured Canadians this week
that the expanding oilsands will not consume an overly large
portion of the province's natural gas. Environmental and
consumer groups have been concerned that oilsands production,
which uses natural gas to extract bitumen from the ground, would
eventually take the lion's share of natural gas, raising already
record high prices. Several alternatives to using natural gas in
the oilsands are being studied. One promising proposal is to use
gasified coke, a byproduct of the oilsands mining, as a
replacement fuel for the process. According to Melchin, even if
a cost-effective alternative is not discovered, the northern
Alberta oilsands would require only one-third to one-half of the
natural gas being transported by the proposed Mackenzie Valley
pipeline, which, if built, should be in operation early next
decade.
--------------------------------------------- --------------
------------------------------------------
¶14. NEW ROAD AIDS FLOW OF LABOR BETWEEN SASKATCHEWAN AND ALBERTA
--------------------------------------------- --------------
------------------------------------------
Alberta Premier Ralph Klein and Saskatchewan Premier Lorne
Calvert released plans this September to strengthen
infrastructure ties between the two provinces with a C$45
million all-weather road linking La Loche, Saskatchewan with
Fort McMurray, Alberta. Klein's government will provide the
majority of funding; the cost of the Alberta leg of the proposed
road will top C$40 million, while Saskatchewan's portion is
estimated at approximately C$5 million. The project was hailed
by both premiers, with Klein predicting that "the La Loche Road
will give employers in the Athabasca oilsands access to a
valuable new resource-the labour pool in northern Saskatchewan."
The road is expected to provide relief to Fort McMurray's
strained labor force. The northern Alberta town has boomed in
recent years, a response to exponential increases in labor
demand from local oil and gas companies. Construction on the La
Loche Road could begin as early as the first months of 2006, and
is expected to be completed by 2009.
--------------------------------------------- --------------
----------------------------------------
¶15. ALBERTANS NOT SURPRISED AT FINDINGS THAT PROVINCE IS TOP
POLLUTER
--------------------------------------------- --------------
----------------------------------------
A recent survey conducted by Environment Canada has reported
that Alberta is the nation's biggest polluter in 2003,
surpassing Ontario for the first time in eight years and
accounting for nearly a quarter of Canada's total emissions.
"The numbers weren't a surprise to us because we are such a
heavy petroleum producer in the country", said Alberta
Environment spokesperson Erin Gregg. The provincial government
has begun to address rising environmental concerns by
encouraging companies to use cleaner technologies and enforcing
tougher emissions standards for coal-fired power plants.
However, many environmental groups believe Edmonton could do
better. Chris Severson-Baker, an energy specialist with the
Drayton Valley, Alberta-based Pembina Institute, argues that the
province has yet to make substantial improvements in the
environment; certain emissions, such as sulfur dioxide may be
down, but increases in other hazardous pollutants bring into
question Alberta's commitment to air quality. Severson-Baker
noted, "Those reductions are being outstripped by the sheer
growth of the oilsands". The Pollution Watch report also showed
that Canada was beginning to lag behind the United States in
reducing emissions.
AHMED