U.S. “green team” threatens Canadian energy

Key environmental policymakers in President Barack Obama’s second-term cabinet will likely pursue a green agenda that will hinder Canada’s energy production plans.

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So finds a new study from the Fraser Institute. And the group’s senior director of natural resources, Kenneth Green, adds, “Obama’s new team [may] maintain the policy playbook from the president’s first term.”

He says, “[He’s] pushing for more aggressive environmental regulations, faster expansion of the renewable energy sector, and heavier regulations on natural gas production via fracking. Because the U.S. consumes virtually all of Canada’s energy exports, such policies are a blow to Canada’s energy export ambitions, including the Keystone XL pipeline.”

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President Obama’s green team is said to include: John Kerry, secretary of State; Sally Jewell, secretary of the Interior; Ernest Moniz, secretary of Energy; and Gina McCarthy, administrator of the EPA. These members typically favour energy programs that promote stringent environmental standards, plus wind and solar over conventional energy development.

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The study argues their positions climate change, green energy, and fracking will have a direct impact on Canadian policy and practice.

Read: NWT wants pipeline to Alberta

However, there’s an even bigger risk on the horizon for Canada’s energy sector. Due to the massive boom in U.S. oil and gas production, America’s appetite for Canadian oil may dwindle.

“U.S.-based environmental groups are already using the energy self-sufficiency argument to campaign against increasing Canadian access to American markets via the Keystone XL pipeline,” says Green.

Read: EU attempts to blacklist Canadian oil

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.