Category Archives: Oil and Gas

Dec 29 2013
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Business, Economy, Energy, Environment, Oil and Gas, Politics

2013: The year of treading water

U.S. economy may be heading for a hard, post-election landing

N.B. economy is heading for a repeat of 2013. . .only worse

New Brunswick enters the new year much as it did the outgoing one: Treading shark-infested waters, praying that the mighty predators will ignore it in favour of fatter, tastier castaways.

Under the grim circumstances, it’s a miracle that the government of David Alward was able to accomplish the little it did.

In 2013, population growth was at a standstill, general unemployment was among the worst in Canada (especially among what remains of the youthful labour force), the participation rate (those actively searching for work) was in a nose dive. About the only bright spot was low inflation and a relatively fixed consumer price index (measured in 2002 dollars).

Worse, perhaps, than any of this was the evident lack of new economic opportunities, without which the annual provincial deficit was fated to hover at $500 million on a structural, long-term debt of at least $11 billion in perpetuity. Theoretically, that meant that every New Brunswicker was on the hook for thousands of dollars.

The reality was that fewer public services were available to a dwindling number of people. And in the absence of any real vision for the future – any sense that timely sacrifices will ultimately yield durable boons – the province descended into caterwauling and complaining.

Some, of course, did their best to reverse the tide of bitterness and recrimination, while acknowledging the patently obvious.

“What we are facing in New Brunswick is a structural, secular decline,” former premier and current deputy chairman of T-D Bank Frank McKenna told me one wintery afternoon in his downtown Toronto office. “The problems we have don’t ebb and flow with the quality of our leadership. There is something more serious going on here. We face circumstances that combine to create a very negative outlook. The entire atmosphere is hugely challenging.”

In fact, he said, “the resource base that remains can be exploited with fewer workers and more mechanization, so it can’t support the number of workers that it once did. Yet, we remain a resource-based economy in a world where the Canadian dollar looks to be in a fairly constant state of parity with the U.S. dollar. So, this, too, is a peril.”

And yet, he said, “Even though I think our situation in New Brunswick is quite pessimistic, I don’t think that it is terminal. There are many places in the world that have faced dramatic challenges. In fact, adversity, itself, became the platform upon which they built sustainable economies. . . This isn’t just a problem of leadership in government. It’s also a problem of followership.

“Our citizens have to understand the full depth and breadth of the dilemma that we are facing, and they have to be prepared to face up to some inconvenient truths. It means that they have to become less reliant on government and more entrepreneurial. It means that they have to take responsibility for their own futures.”

For Mr. McKenna and, indeed, Mr. Alward, taking responsibility for the future means brining Alberta oil east for refining in Saint John – which would create thousands of construction jobs – and developing the province’s nascent shale gas industry.

“The way I look at it,” Mr. McKenna said, “the real win comes when we take our indigenous shale gas in the province and hook it into the Canaport liquified natural gas (LNG) facility in Saint John.”

His voice rose as his enthusiasm peaked. “We have in situ now, calculated by Corridor Resources Inc., 67 trillion cubic feet of gas. That’s bigger than western Canada. It’s a huge deposit. If ten per cent is exploitable, that’s enough to create a revenue source for New Brunswick for decades to come. All in, it would result in about $15-20 billion in investment and 150,000 person years of work. And for governments, it would result in between $7-9 billion worth of royalties and taxes.”

By and large, however, these were mere musings of a former public official. They did little to quell the outrage of a vocal minority of residents – people who firmly believed the provincial government had no business encouraging the development of an industry that they said would poison them.

Would it poison them? Was there, instead, a safe, environmentally responsible approach to the whole affair?

The issue will carry forward into 2014 and, like just about every other issue in New Brunswick, remain there unresolved, as the sharks keep circling.

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Dec 17 2013
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Business, Economy, Energy, Environment, Oil and Gas, Politics

The political art of fomenting depression

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What’s perplexing about the David Alward government’s decision to spend a few thousand taxpayer bucks on TV ads showing New Brunswickers mourning the state of their province’s economy is not that it reflects poorly on our lawmakers’ vision of the future.

What’s perplexing is that our lawmakers seem to believe it reflects well on their own political fortunes.

Less than a year before the general election, the Tories are bringing up the rear in popular opinion. Poll after poll suggests that if the ballot were held today, they’d lose to Brian Gallant’s Liberals by a wide margin.

This somehow impels the big brains who occupy the small offices reserved for government communications to remind New Brunswickers in convincing fashion, and just before the holidays, that the past three-plus years in office have been an unmitigated disaster for the Progressive Conservatives.

The ads show various men and women, who are presumably en route to the oil-black and money-green pastures of western Canada, hanging out on tarmacks and in airport departure lounges, their brows appropriately furrowed.

“I’ve been going for four years,” says one.

“We haven’t got enough opportunities here, we have to go do it out west,” says another.

Finally, up pops the kicker, accompanied by a stern-sounding VoiceOver: “This message is brought to you by the Government of New Brunswick.”

Now, we witness the game, if untried, Mr. Gallant mumbling under his breath and, indeed, over it: “Thank you, Mr. Alward, you just made my day.”

Of course, in the local media, he sounds more like this:

“New Brunswickers don’t need an ad to tell them that there aren’t enough jobs in New Brunswick. This is an ad that is virtually discouraging people to stay and invest in New Brunswick. It’s even demoralizing.”

To which, Premier Alward retorts, “Every day there are families that are living with separation and we believe there are good options long term to see our economy be stronger, our province be stronger, and our people be able to decide to be here and build their communities here. . .It’s a message to all New Brunswickers that we need to be saying yes to allow development to take place.”

Well. . .no, actually.

It is a message to all New Brunswickers that they are at death’s doorstep, and that their only salvation is via the kool aid of shale gas development, which may or not be true. (It’s too early to know anything with certainty).

What I do know, from my years in the marketing communications and advertising industry (I call them my “lucrative” epoch), is that scaring the bejesus out of people is guaranteed to produce only one, durable response: shoot the messenger.

Again, Mr. Alward, Mr. Gallant thanks you.

What’s intriguing about all of this is just how unnecessary it is.

The Alward government holds all the cards in the shale gas industry deck. Its regulations for development are, purportedly, the toughest in North America. It has the benefit of knowing all the best and worst practices. It even has a scientific panel, convened to guide its decisions (though only The Almighty knows when this efficacious advice will be forthcoming).

What’s more, its foes on this file are, though vocal, largely in the minority.

If it truly wants to win the hearts and minds of the majority, why doesn’t it produce ads that speak directly to the issue – spots that fight the fictions swirling around shale gas with facts?

Why not emphasize the positive attributes of an industry that, properly regulated, could help transform the province’s economy – thanks to the money it will generate for public coffers – into an incubator of commercially viable innovations in sectors not specifically related to resource extraction?

Those who argue that the provincial government has no business using public dollars to promote its economic agenda are, among other things, on the wrong side of history. Governments do this sort of thing all the time. In fact, we expect it of them, especially when they don’t do it. What is tourism, except a giant public-sector promotion campaign?

This Tory reign has staked its mandate on transforming the New Brunswick economy through its responsible stewardship of natural resources. Its most recent ad campaign, however, indicates that it has not yet learned how best communicate this otherwise clear and simple message.

Meanwhile, as goes its mandate, so goes any chance New Brunswick has of seizing its future for its now-departing citizens.

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Dec 03 2013
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Culture, Economy, Oil and Gas, Society

Cautionary tales from the oil rush

 

What goes up...well, you know

What goes up…well, you know

Forgotten somewhere behind the picket lines in rural New Brunswick, amid the gloomy certitudes about the oil and gas industry’s power to corrupt the environment, lies a more visceral byproduct of resource extraction: crimes not against nature, but humanity.

Canada’s violent offence rate is so low these days, few people associate lawlessness with mining and drilling operations anymore. History, of course, is replete with tales of banditry, thuggery and worse from the front lines and frontiers of assorted gold rushes and oil booms in North America.

There are, as Robert Service (the Arctic’s unofficial poet laureate) once wrote famously, “strange things done in the midnight sun, by the men who moil for gold.” Indeed, “the Arctic trails have their secret tales that would make your blood run cold.” Over the past year, however, such literary apocrypha has become reality in the border territories between western and Canada and the United States.

A New York Times piece, published on Sunday, describes recent disappearances and murders in the high plains of Montana and North Dakota. “Stories like these, once rare, have become as common as drilling rigs in rural towns at the heart of one of the nation’s richest oil booms,” the article reported. “Crime has soared as thousands of workers and rivers of cash have flowed into towns, straining police departments and shattering residents’ sense of safety.”

That observation echoed an earlier Times story in which “Christina Knapp and a friend were drinking shots at a bar in a nearby town several weeks ago when a table of about five men called them over and made an offer. They would pay the women $3,000 to strip naked and serve them beer at their house while they watched mixed martial arts fights on television. Ms. Knapp, 22, declined, but the men kept raising the offer, reaching $7,000. . .Prosecutors and the police note an increase in crimes against women, including domestic and sexual assaults.”

Regarding Canada, a piece in the Regina Leader-Post last April explained, “As the oil belt in southern Saskatchewan, North Dakota and Montana expands, police are grappling to deal with a resulting increase in crime. In our province, that means more traffic crime – specifically, more aggressive and impaired driving charges, as well as more fatal accidents. To address crime trends that have come about as a result of a population increase in the oilfield area, members of the Saskatchewan RCMP from the enforcement, intelligence and border security sections are in the midst of a two-day summit with their U.S. counterparts in Glasgow, Montana.”

Meanwhile, a story published on theatlanticcities.com last month observes that “in 2005, the Williston Police Department in Williston, North Dakota, received 3,796 calls for service. By 2009, the number of yearly calls had almost doubled, to 6,089. In 2011, the most recent year for which data is available, the Williston P.D. received 15,954 calls for service. . .The police department in nearby Watford City received 41 service calls in 2006. In 2011 they received 3,938. That’s life in an energy boomtown.”

Ask a dozen sociologists about the reasons for the phenomenon, and you’re likely to get a dozen different answers. But it seems clear that the word “boomtown” says it all: the uncontrolled explosion of opportunity generates unpredictable consequences – including roving bands of assorted misfits and bad guys – catching institutions, infrastructure and law enforcement off guard.

Here, in New Brunswick, of course, we don’t know much about any of this. The safety and serenity of our bucolic environs has as much to do with the fact that we export our criminals, as well as our law-abiding sons and daughters, out west.

But should the glint in Premier Alward’s eye – and that in those of at least 100 other political and business leaders in this province – ever manifest itself as a pipeline from Alberta into Saint John and/or a commercially viable, environmentally benign, shale gas industry proffering jobs and income, galore, we may want to remind ourselves about the social costs of overnight success.

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Nov 25 2013
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Energy, Oil and Gas

Institute’s mandate in search of a reason

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The last thing New Brunswick needs is yet another reason to bloviate about the provincial government’s diabolical plans to shove shale gas down the throats of its citizens. But for a polity that seems bound and determined to leave most of our natural resources in the ground, we do seem extraordinarily skilled at mass-producing hot air.

In an interview with CBC Radio out of Saint John last Thursday, Fred Metallic – a member of Listuguj First Nations in Quebec and a PhD in environmental science – explained why he suddenly quit the scientific advisory council of the New Brunswick Energy Institute, whose purpose is, according to its website, “to examine the science surrounding energy possibilities in our province.”

Declared Mr. Metallic: “When I was approached by the Institute. . .we were going to take a citizen-based approach to the development of energy. As a First Nations researcher, I generally work with people and (so) this was compatible with the way I like to approach (things). . .We did discuss aboriginal issues. However, these issues were not a priority, unfortunately. The priorities were more around the technology around shale gas development.”

What’s more, Mr. Metallic lamented, “At this point, the institute is more concerned about the government’s plans to develop shale gas and other forms of energy. It is more concerned about industry and whether industry and science can work together to ensure that these resources are developed safely. As First Nations researcher, I didn’t see First Nations issues to be central and that was a concern for me.

In the end, he said, “I have more faith in people to want to move things forward than I do with government, sometimes.”

Of course, that’s it in a nutshell. Isn’t it? Here is the cri de coeur of the modern age. And you don’t have to be a member of a First Nation to utter it.

Having little faith in governments is simply de rigueur these days, and not just for cultural warriors and libertarian trendsetters. Everyone – liberals, conservatives, radicals, reactionaries, progressives, the one per cent and the remaining 99 per cent – wants to thump his chest with one hand and with the other grab the nearest elected official by the scruff of his scrawny neck and declare: “You, sir, are a cad!”

But before we get caught up in this, the standard plot line, and cut and paste it to this, the latest chapter in the shale gas melodrama, it behooves us to recognize what, exactly, the New Brunswick Energy Institute actually does – which is, quite frankly, a whole lot of nothing.

“We feel that the institute is a scientific body,” Energy and Mines Minister Craig Leonard told the CBC last week as he gamely defended his government’s decision create it on the advice of departed and forcibly humbled academic Louis LaPierre. “The place for discussing treaty rights with First Nations is within government, itself. We want to keep those two separate.”

This is, of course, utter nonsense. The technology that enables shale gas drilling and the fracked ground that treaties may (or may not) protect as a collective resource (including the water therein) comprise a single issue.

But, the point is, the provincial government doesn’t appear to be enjoying much success on either of the issue’s constituent parts: nurturing scientific inquiry or ameliorating people’s concerns

In the case of the former, the number of “ongoing” research projects at the Institute number in the single digits, as in, zero. Ditto for the number of “requests for proposals”.

According to a Telegraph-Journal report last week, “Energy institute executive director Annie Daigle attempted to clarify the body’s mandate on Thursday, stating that its direction had been ‘muddied’ of late.”

She added: “Things sort of came to a standstill for a month and a half to two months. We haven’t developed any research, we haven’t signed any contracts or anything like that, and we haven’t put out the request for proposals for that work.

It is being reviewed by the scientific advisory council. We had some setbacks over the last couple of months, so we are just trying to get back on track.”

All of which suggests that if the provincial government is trying to shove shale gas down the throats of New Brunswickers, it isn’t yet relying on the Energy Institute for practical support.

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Nov 18 2013
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Government, Media, Oil and Gas, Politics, Society

No room for pleasantries in real politics

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Despite his occasional partisan bluster – a necessity of elective office, regardless of one’s political flavour – the premier of New Brunswick is a genuinely nice guy who actually cares about other people’s feelings.

In fact, until recently, about the only way to get an authentic rise out of David Alward was to suggest the he and his government ministers were aloof to the concerns of their fellow citizens, content to play king and courtiers in their castle made of sand above the high water mark on Freddy Beach.

“It bugs me,” the pastor’s son (who is a certified psychological counsellor, a former community developer and an active rural hobby farmer) once interrupted himself in mid-interview with yours truly. “I don’t know how anyone could describe us as closed or uncommunicative or not inclusive.”

The truth, of course, is that openness has all but typified the premier’s political oeuvre since he came to govern one of Canada’s defiantly ungovernable provinces in 2010. Where his predecessor, Liberal Premier Shawn Graham, protected his counsel like a NSA agent under house arrest, Mr. Alward has done a contortionist’s job at public events, and in private meetings, explaining, in often exquisite detail, his plans and priorities; in effect, his thinking.

And that may be his biggest problem.

On Friday, the premier was in a rare uncompromising, even antagonistic, mood. Lashing out at anti-shale gas activists in the province, he declared that they represented the point of the spear aimed directly at the heart of natural resources industries here.

“This is not just about SWN (Resources Inc.) being able to develop,” the Telegraph-Journal quoted him. “This not just about Rexton or Kent County and SWN. Mark my words that the same groups that are against seeing SWN move forward with exploration are against projects like Sisson Brook or other potential mining projects we have in New Brunswick. They are against seeing pipelines come across our country to Saint John and creating the prosperity (they) can.”

The denouement of his point was simply this: “The question the New Brunswickers should be asking is ‘what is our vision for our province’? . . .Do we want to have our young people living here in our province building their lives here or are we condemning them to having no choice of where they are going to live in the future?”

These are, indeed, the questions. They have always been the questions. It’s just too bad that Premier Alward has waited until now – less than a year before the provincial election – to pose them with such cogency and force.

In fact, had he spent more time over the past 18 months unapologetically supporting industry’s efforts to ascertain the economic potential of shale gas (indeed, of all promising avenues of natural resources) – and commensurately less time defending his government’s decisions and convening public panels in vain attempts to win friends and influence people – the conversation in this province might now be profoundly different, and radically more productive.

The bottom line is that Mr. Alward’s generally laudable instinct to consult ‘the people’ has also been a lamentable liability of his leadership, and on more files than natural resources.

The awful state of the province’s books – its rolling $500-million deficit on a long-term debt of $11 billion – is not, strictly speaking, the premier’s fault.

Still, in a way, it is.

By refusing to consider raising the provincial portion of the Harmonized Sales Tax, because he promised ‘the people’ he would consult them first, in the form of a referendum, he effectively tied the hands of his Finance Minister and severely compromised New Brunswick’s fiscal recovery from the Great Recession.

Had he forced the province to swallow this bitter, but necessary, pill early in his mandate, the public accounts would have been far healthier than they are today, providing the governing Tories with more and better options for health, education and social policies.

It might even have influenced the debate about shale gas by having eliminated much of the monetary hysteria that now underpins it.

Make no mistake: The consultative, empathetic premier of New Brunswick is a genuinely nice guy.

But, oftentimes, as the saying goes, nice guys finish. . .well, not first.

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Oct 29 2013
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Energy, Oil and Gas, Politics

Taking our lumps of coal

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New Brunswick stands poised between its very own imaginary rock and theoretical hard place as hundreds of people routinely gather to protest not the actual operations of a shale gas industry, but the very idea of one.

Such is the extraordinary depth of emotion this particular fossil fuel has plumbed in this province and many other jurisdictions around the world: There need not actually exist a wellbore pumping gas from the fracked ground to spark mass hysteria; just the threat of one.

Much of this has to do with the industry’s early record of public consultation, technical disclosure and environmental stewardship – which was not good. Some of it is related to organized information campaigns of various eco-warriors who are determined to drive the western world’s petro-chemical-industrial complex underground any way they can.

But as Premier David Alward juggles the oddly twinned priorities for shale gas development of forging ahead with supporters and stooping to chat with opponents, everyone on both sides of the issue seems blinkered to a far more tangible and existential evil.

Consider a recent Reuters report out of South Korea:

“Coal will surpass oil as the key fuel for the global economy by 2020 despite government efforts to reduce carbon emissions, energy consultancy firm Wood Mackenzie said on Monday (October 14). Rising demand in China and India will push coal past oil as the two Asian powerhouses will need to rely on the comparatively cheaper fuel to power their economies. Coal demand in the United States, Europe and the rest of Asia will hold steady.”

In fact, according to the news item, “Global coal consumption is expected to rise by 25 per cent by the end of the decade to 4,500 million tonnes of oil equivalent, overtaking oil at 4,400 million tonnes, according to Woodmac in a presentation on Monday at the World Energy Congress.”

As a source of energy, coal is both the cheapest and the dirtiest. Burning it produces a plethora of toxins, including nitrous oxides, sulfur dioxide, hydrogen chloride, arsenic, hydrogen fluoride  chromium, mercury and cadmium. What’s more, coal’s contribution to global warming surpasses those of all other fossil fuels.

Green America, a not-for-profit environmental group that is calling for a moratorium on the stuff, lists a few other choice facts: “Coal is the largest single source of fuel for electricity generation in the world; coal is the most widely distributed fossil fuel, and is mined on all continents except Antarctica; the three of the most affected coal-mining states are Wyoming, West Virginia, and Kentucky; there is enough coal left to last about 200 more years at current rates of production.”

At which time, presumably, old fears about climate change will have become a distant memory for denizens of Planet Hothouse.

Citizens in the developed world have known about coal’s eminent dangers far better and for far longer, than they have about shale gas’s comparatively manageable environmental challenges. And yet, the filthy bitumen continues to drive energy development wherever it’s mined.

“Coal hurts communities, destroys wildlife and countryside and contributes massively to climate change,” the U.K.-based Coal Action network reports. “But coal has also been on the up in the UK over the past five years – some 50 opencast related applications have been approved in that time, and currently there are around 40 at various stages of the planning system.”

We may agree to disagree about hydraulically fracturing shale gas. But the indisputable fact is that this resource is much cleaner than coal and is, for this reason alone, an attractive energy solution.

One’s ideal world may include astonishing breakthroughs in safe, pristine, endlessly renewable power systems and storage cells. We may, some day, pilot our solar-driven airships to our local, organic green grocers.

But we won’t get there from here without deploying some form of fossil fuel to keep the lights of innovation burning into the small hours of the morning.

In this regard, it makes no sense to expand production of coal, the dirtiest form, as the means through which we finally clean up our collective act.

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Oct 21 2013
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Government, Oil and Gas, Politics

Douse the fire that rages beneath

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Nothing ignites media coverage and inflames public opinion quite like images of burning cop cars. The realization that authority’s symbols can go up in smoke, just like anything else, with the strike of a match is horrifying to many; strangely satisfying to some.

But though news and opinion will inevitably focus on who started the conflagration (both literal and figurative) on a rural stretch of New Brunswick highway last week – a bonfire that claimed five police cruisers and resulted in the arrest of 40 native people protesting shale gas development in the province – the rooted issues are harder to untangle in an era when disenfranchisement is the normative language of public engagement.

Adam Huras’s excellent first-hand account, in the Telegraph-Journal, of the Thursday-morning raid of the protesters’ encampment near Rexton suggests that the RCMP may have overdosed on bowls of Wheaties the night before.

“On Thursday morning, at either end of the protest encampment were only a handful of RCMP officers learning up against a few cars,” he wrote for Friday’s edition.

“‘It was a slow night, you didn’t miss much,’ said one officer. ‘It’s quiet,’ added another.

And then it wasn’t. In an instant, two police cars flashing red and blue lights, closed off the road. ‘Move!’ yelled an officer. ‘And don’t you text anyone, not one person. Don’t touch your phone.’ I was being walked back to my car when the order was given to move in.”

At which point, he reported, the stuff really hit the fan: “Roughly two dozen unmarked cars, a large police van and a bus converged on the area at 7:15 a.m. – the vehicles flying down both the on and off ramps of Route 11. Jumping from them were police in full camouflage brandishing guns. About 20 Mounties entered the protest area and 20 more stood at the barricade. Wave after wave of reinforcements arrived.”

Then came the fires, set by angry protestors.

It’s tempting to think that the violence on both sides is exclusively about natural gas. The Elsipogtog First Nation, like many other groups in New Brunswick, is genuinely  concerned about the effects of hydraulic fracturing on supplies of drinking water. In this, they’ve chosen to believe fellow opponents from other parts of North America who have longer experience with the industry.

But gas merely fuels the fire that lies beneath.

An inchoate rage burns across the land. For Canada’s First Nations, it finds expression in the Idle No More movement. For others in towns and cities just about everywhere in the western world, it generates an irresistible desire to “occupy” something – a public park, a government quadrangle, the steps of St. Paul’s Cathedral in downtown London.

The suspicion that governments no longer represent the interests of average people, but only those of powerful lobbies and corporate interests has evolved into a conviction. The evidence, many believe, is everywhere.

What, they point out, was the financial meltdown of 2008 and subsequent Great Recession except an implosion of greed and avarice perpetrated by the few at the expense of the many?

What, they ask, is behind widening gaps in income and economic opportunity except the wholesale abrogation of democratic principles of equal and fair representation before the juggernaut of privilege?

Why can’t legislators in Washington keep their nation open long enough to do the people’s business? Why can’t lawmakers in Ottawa respect their own environmental regulations?

Shale gas protest, though specific in its own  right, in New Brunswick is also a species of this unease with, and mistrust of, public institutions.

The only way to address it is to talk candidly and openly with one another.

No long ago, Premier David Alward and First Nations leaders in the province made a good start. In fact, according to The Canadian Press on October 6, they arranged to “continue talks Monday in an effort to resolve a growing dispute over shale gas exploration. Alward and three of his cabinet ministers met Sunday with Elsipogtog council members and other opponents of the shale gas industry at a hotel in Moncton, N.B., in an effort to end a protest that has closed a highway in eastern New Brunswick for a week.”

If last Thursday’s events are any indication, the need for dialogue has never been more urgent.

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Oct 06 2013
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Energy, Oil and Gas, Politics

The institutional non-credibility problem

For and against shale gas in New Brunswick: The immoveable object meets the implacable foe

For and against shale gas in New Brunswick: The immoveable object meets the implacable foe

 

New Brunswick Premier David Alward’s concern that his provincial Energy Institute is losing credibility owing to the long shadow its not-so-dearly departed founding chairman, Louis LaPierre, has cast raises a certain question: What credibility?

Are not reputations, good or otherwise, built on track records?

The Conservation Council of New Brusnwick’s Stephanie Merrill comes as close as anybody to putting a finger on the matter when she tells the Telegraph-Journal, “We’re concerned about this institute. Its mandate and what it’s going to do have been very unclear.”

Though she allows that the province could use an organization that soberly deliberates the future of energy in this neck of the woods, she perceives a “serious flaw in continuing the discussions around shale gas, pipelines, the same old story and not a new vision.”

It is, of course, in her job description to question the merit of pursuing a fossil-fuel -based economy, but I wonder if she prematurely gives the Institute too much credit. In the several months since its formal founding, it hasn’t done much for or against “shale gas” and “pipelines” and what might be termed an “old vision” of industrial development.

That’s not to say it isn’t packed with expertise (a fact which critics, who are out to skin Dr. Lapierre for misrepresenting his academic credentials even as he, himself, conceived of the Institute, conveniently neglect to mention).

Its scientific advisory council includes Adrian Park,Tom Al, Maurice Dusseault, Karen Kidd, Richard Saillant, David Besner, and Fred Metallic. All but one hold PhDs in relevant disciplines, such as geology, earth sciences, civil engineering, environmental biology, chemical engineering.

Dr. Besner, who replaces Dr. Lapierre, will function as the Institute’s interim chairman, a job for which he is eminently qualified, at least according to N.B. Energy and Mines Minister Craig Leonard. “He is very familiar with the framework that has been established for the institute,” the minister declared in a statement last week. “I am pleased that he accepted to lead (it). . .as it prepares to launch the water monitoring program along with several other key initiatives.”

So, what are these “key initiatives?” A more intriguing question, perhaps, is how they’ll be prosecuted, given this tasty revelation, reported in the Telegraph-Journal on Friday: “Besner’s hgonorarium does not increase in his new position. All members (of the Institute) are entitled to $450 for a full day’s work. Previous to taking the new position, Besner said the job typically involved a day and a half of work a month. He expects he’ll be be busier as chairman.”

Still, “he’s not quitting his regular job as a consultant and will not work at the institute full time.”

All of which sounds like extraordinarily light duty for a deliberative body in which the premier and his lieutenants have invested both money and confidence.

Certainly, the organization’s website doesn’t offer much in the way of enlightenment. “The New Brunswick Energy Institute is an independent body separate from government that was created to examine the science surrounding energy possibilities in our province,” the home page states. “Made up of experts in different areas of science, the Institute will examine the science pertaining to oil and gas development in the province.”

The “Research” section lists two publications: Dr. Lapierre’s initial report, which called for the Institute’s establishment (hardly, we now know, a rigorous piece of science); and a Deloitte study on shale gas supply chain opportunities in the province.

Click on the “Ongoing Research” button, and up pops a promise: “Coming Soon.”

To be fair, the Institute is still young. It hasn’t had time to find its walking shoes, let alone hit the ground running. But the political spin surrounding its eminent authority and now endangered credibility, which, we are assured, must be urgently restored is both irksome and counterproductive.

The perceived misdeeds of one man have far less to do with the Institute’s reputation than does its own lack of deeds to date.

Let it actually do something before we assign any degree of importance to its role – good or bad – in framing energy policy in New Brunswick.

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Sep 22 2013
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Economy, Energy, Environment, Oil and Gas

Our increasingly dull song of praise for oil

You can just smell the methane

You can just smell the methane

One public page of the member-driven website, Geo-Help Inc., which bills itself as “The Virtual Geology Department providing Geological Expertise and Services to the Oil and Gas Industry in Canada,” offers a collection of quotes that reaffirms man’s (though, interestingly, not even one woman’s) abiding love affair with liquid, black gold down through the decades.

Odes have been written to exalt the substance, including this one, sponsored by Seneca Oil and published in 1850:

“The healthful balm, from Nature’s secret spring/ The bloom of health, and life, to man will bring/ As from her depths the magic liquid flows/ To calm our sufferings, and assuage our woes.”

Others, like Kansas geologist Wallace Pratt (1885-1981), also recognized the allure when he said, “Where oil is first found is in the minds of men.” Men, presumably, like American industrialist J. Paul Getty (1892-1976) who once declared that his formula for success was to “rise early, work hard, strike oil.”

The quotes are not uniformly laudatory. One describes oil as “the excrement of the devil.” Another complains, “You can’t get the grease without a lease.”

And some are way off the mark, as is one attributed to the Director of Anglo Persian Oil Company who, in 1926, observed, “Saudi Arabia appears devoid of all prospects for oil.”

Historically, though, our preoccupation with the stuff has been, until quite recently, laced with positive connotations. And this strikes me as somewhat paradoxical, because unless you happen to be an industry executive or petroleum geologist, the chances are very good that you, like me, find oil to be. . .well, pedestrian.

Or, if you will pardon the pun, boring.

Whenever a fixation becomes mundane, it has a tendency to subdue the other faculties of mind – imagination, ingenuity, creativity – that can, quite often, improve social, political and economic conditions.

This might help explain New Brunswick’s current circumstances. The rut the province is in – fiscally, commercially, even demographically – could well be related to, if not actually derive from, our single-minded focus on the promise of a pipeline from Alberta’s oil patch and the putative promise (and danger) of a fully functioning shale gas industry in the future.

I would never suggest that we should dismiss these projects for the sake of our becoming less tedious people. But it might profit us to pull our heads from the sand and take a look at what other jurisdictions around the world are doing with energy development. (A well-known writer – though, his name escapes me – on the industry from, of all places, Calgary made a similar observation on New Brunswick CBC Radio’s rolling-home show last week).

Science Daily reports, “It’s less costly to get electricity from wind turbines and solar panels than coal-fired power plants when climate change costs and other health impacts are factored in, according to a new study published in Springer’s Journal of Environmental Studies and Sciences.

“In fact – using the official U.S. government estimates of health and environmental costs from burning fossil fuels – the study shows it’s cheaper to replace a typical existing coal-fired power plant with a wind turbine than to keep the old plant running. And new electricity generation from wind could be more economically efficient than natural gas.”

Meanwhile, also according to Science Daily, “High school and college students got a recruiting call. . .to join the Solar Army and help solve one of the 21st century’s greatest scientific challenges: finding the dirt-cheap ingredients that would make sunlight a practical alternative to oil, coal and other traditional sources of energy.

‘Enough sunlight falls on Earth in one hour to provide all of the world’s energy – for 7 billion people – for an entire year,’ said Harry B. Gray, Ph.D., leader of the army. He is the Arnold O. Beckman Professor of Chemistry and Founding Director of the Beckman Institute at the California Institute of Technology. ‘If we can capture that energy and use it to split water, burning coal, gasoline and other fossil fuels will be history.’

Maybe. Maybe not. But even the thought is inspirational – which is more than I can say about oil.

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Aug 07 2013
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Energy, Environment, Oil and Gas

A tale of two shale gas protests

Quicksand for us; Grand Poupon for them

What shall we name it as midsummer slides effortlessly along the briny beaches of New Brunswick’s cottage country. The “kerfuffle in Kent County”? The “excitation of Elsipogtog”?  Surely, nothing so provocative as the “battle of Balcombe”. Besides, that name is already taken.

No one does controversy quite like the Brits. Compared to them, Americans are punters. Canadians are merely quaint. So it is with regular rounds of ministerial expense scandals. So it is with steamy love affairs, illicitly conducted in high office. So it is with shale gas exploration.

The battle of Balcombe, a town in West Sussex, roughly 75 kilometers due south of London, provides something for everyone. The controversy, says one recent “shortcuts” blog post in the online version of The Guardian, “has pitched police trying to ensure energy company Cuadrilla can drill an exploratory well outside (the) pretty, prosperous and hitherto sleepy. . .village against a coalition of protesters who fear the operation will lead to full-scale oil or gas production through the controversial process of fracking. The opposition alliance are a disparate bunch.”

There are, of course, the usual suspects, such as Friends of the Earth and the anti-gas groups Frack Off, Frack Free Sussex, Gas Field Free Sussex and No Fracking in East Kent. And there are the celebrities, including Bianca Jagger (ex-wife of Mick), Natalie Hynde (daughter of another rock icon, Chrissie Hynde of The Pretenders).

There is Simon Medhurst, the well-known activist about whom the Guardian writes, “also known as ‘Sitting Bull’, (he) earlier this year successfully delayed work on a new Bexhill-to-Hastings link road by tunnelling beneath it.”

And there is Marina Pepper (nee Baker), an East Sussex local councillor who was once a tabloid model, a Playboy Playmate of the Month for March 1987, actor and journalist. A Wikipedia entry says the ardent environmentalist “is known today as a practising Wiccan and author of several children’s books on Witchcraft, including Spells for the Witch in You; Spells for Teenage Witches: Get Your Way with Magical Power; Marina Baker’s Teenage Survival Guide; and Spells for Cats (the last was published under the name Daisy Pepper). In 2001, she worked as a magic consultant for a BBC documentary about the Harry Potter books.”

All of whom are dead, set against even the possibility of a shale gas industry in their green and pleasant land, a posture which moves the Telegraph to testily observe, “Unfortunately, the Balcombe protest against proposed exploratory drilling in the Weald has been hijacked by professional Swampy-style eco-warriors who would happily return the nation’s economy to pre-industrial times.”

In contrast, New Brunswick’s organized opposition to shale gas development, while vigorous and vocal, has been largely lacking in hot-headed celebrities – at least, on the ground. Where are the David Suzuki sand Margaret Atwoods, chaining themselves to trees felled to block the progress of seismic testing trucks?

Yes, police have made arrests. And yes, there have been incidents that appear very much like orchestrated vandalism. Still, the mood seems to have changed of late. It has become more reflective.

“The biggest thing that came out of this was we got to unite the people,” John Levi, an Elsipogtog warrior chief for the protestors in Kent County, told the Moncton Times & Transcript not long ago. “Like the non-natives, like the Acadians, the English, Metis, all the cultures, so that’s the biggest accomplishment here I see.”

Added Wendall Nicholas, a peacekeeper in the anti-gas movement, “Each time we’ve done our best to use our utmost respect and patience to see a peaceful outcome. We work in a very respectful and patient manner –  whether it’s on a logging road in 40-degree heat or a telephone conversation.”

It’s no sure bet that SWN Resources, which has been the target of much of the protests, would agree. Still, they’re not saying one way or the other.

Nope, we Canadians just don’t controversy like the Brits. Maybe, that’s a good thing, after all.

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