WHAT’S FUELLING OUR ECONOMY: Is Kinder Morgan’s Proposed Pipeline Inconsistent with New Economic Trends and Realities?

Report Compiled by Liz McDowell, Tarah Stafford and Felicity Lawong

Conversations for Responsible Economic Development (CRED)

November 2016

Executive Summary

British Columbia is leading economic growth in Canada, largely due to a diverse and thriving economy. Extractive industries, including oil and gas, play a surprisingly small role. The biggest sectors are real estate, construction and wholesale and retail trade.

Despite regional variation, Canada’s economy has some clear parallels to BC. Wholesale and retail trade and construction are thriving nationally, and the majority of the country’s jobs are found in wholesale and retail trade and the health sector, like in BC. Even before the price of oil began its steep decline in 2014, this sector was responsible for just 1% of employment across Canada, and provided very low tax contributions. It is the finance and insurance industries, as well as the manufacturing sector, that contribute the largest tax revenues toward social services.

The federal government has been faced with a difficult decision on whether or not to invest in the Kinder Morgan pipeline. Our analysis shows that the pipeline would create few jobs, minimal tax revenues and would not impact energy security or guarantee a long-term solution to Alberta’s ailing economy. The pipeline also comes with the additional concerns (and costs) of an oil spill. Beyond the direct clean-up costs, the indirect economic impacts would be long lasting, impacting sectors from tourism to agriculture.

It’s crucial that the federal government reject the KM pipeline and instead support sectors in BC that create family- sustaining jobs, make significant tax contributions, insulate the regional economy from boom-and-bust cycles, and promote economic growth compatible with Canada’s national climate commitments.

Our key findings:

  • BC Jobs: Technology, tourism, construction, film and television each create more jobs than oil, gas, and mining combined.
  • National trends are similar to BC: Oil and gas have a bigger role in Canada as a whole than in BC, but real estate, finance and manufacturing contribute more in federal corporate tax.
  • More people across Canada work in the beer economy than in the oil sands.
  • The proposed Kinder Morgan pipeline would only create 50 permanent jobs and generate an insignificantamount of taxes federally and provincially in BC.
  • A large oil spill could have a $1.2 billion impact on BC’s economy.
  • Canada’s emissions growth between 1990 and 2014 was driven primarily by increased emissions from mining and upstream oil and gas production and transport. Now that Canada has committed to a national climate plan, emissions from extractive sectors must be taken into consideration when considering project approvals.
  • Labour market outlook: Neither activity nor employment in Canada’s oil and gas industry will recover to levels prior to 2014’s steep decline in the industry.

Read more: http://credbc.ca/wp-content/uploads/2016/11/Whats-Fuelling-Our-Economy_KM_WEB.pdf

NEB’s Kinder Morgan pipeline expansion boost based on outdated info: economist

 October 5th 2016

#525 of 526 articles from the Special Report:Race Against Climate Change

The Trudeau government says that the advice it received from a federal regulator calling for the approval of a major oil pipeline expansion project was based on outdated estimates that fail to account for national efforts to fight climate change.

Read more…

Big oil vs. big whale: Will pipeline trump iconic orca?

‘Species at risk’ designation could mean unique court challenge for NEB and Trans Mountain project

By Jason Proctor, CBC News

If you don’t live on the West Coast, perhaps it’s hard to appreciate just how poorly approving an oil pipeline at the expense of an endangered population of killer whales might play out.

To give it an Eastern perspective, it’s a bit like saying Bonhomme might have to die to make way for a new museum dedicated to Stephen Harper’s legacy.

In approving Kinder Morgan’s Trans Mountain pipeline expansion this week, the National Energy Board said it weighed the benefits of the project against its burdens.

Among the “adverse effects” deemed to be most “significant” were those likely to impact a population of about 80 southern resident killer whales found off the coast of Vancouver Island.

Read more…