Last week, following the announcement that Whole Foods and Bed Bath & Beyond intend to turn their corporate backs on secure, affordable, North American energy derived from Canada’s oil sands for their transportation fleets, a host of stories from both Canadian and U.S. news outlets quickly surfaced. However, Bed Bath & Beyond is beginning to hedge its position, understanding full-well how critical the U.S.-Canadian trading partnership is, especially as it relates to affordable energy. BNET reports this:
Turns out, though, that boycotting oil sands also puts your brand at risk. Just one day after the big announcement BB&B distanced itself from the boycott, Alberta consumers and businesses called for a boycott of BB&B stores in the province in response to the attack on oil sands, the Globe and Mail reported.
Consumer Energy Alliance’s (CEA) fired off a statement shortly have last week’s misguided Whole Foods announcement, which was highlighted in a Calgary Herald article:
CEA flooded the media with an e-mailed statement by its vice-president, Michael Whatley, saying the Whole Foods boycott is “hypocritical in the best case and downright disingenuous in the worst.” As Whatley said of the Whole Foods situation: “We recognize this may be an opportunity to work with these companies to educate them on what the oil sands are really about, and how they can be used to create jobs here at home and strengthen America’s energy security, all while protecting and preserving our environment.”
Globally, the thirst for affordable energy continues to swell, especially in developing and emerging nations, such as China. Whole Foods’ objective – to ban Canadian oil sands, which would be achieved under a federal, one-size-fits-all Low-Carbon Fuel Standard (LCFS) – will result in higher prices at the pump for U.S. consumers, and a deeper, more dangerous dependence on some of the most unstable and unfriendly regions of the world to keep our economy fueled.
As it relates to China’s strategic positioning to secure Canada’s job-creating energy reserves, BNET reports:
The industry is already preparing for the possibility of a real threat from U.S. businesses and government policies that would reduce use of oil sands: They’re looking east to China. PetroChina recently acquired a majority share in two oil sands projects — an investment that required Canadian government approval. “There will definitely be more,” Prime Minister Stephen Harper told the Guardian.”
And under the headline “China eyes tar sands as Western firms back off,” Greenwire reports:
As U.S. and European companies scale back investment in oil sands due to environmental and cost concerns, Chinese oil companies are making their largest investments to date. “Expect more Chinese investment in the resource and energy sectors,” Canadian Prime Minister Stephen Harper said.
“There will definitely be more.” Peter Tertzakian, chief energy economist at ARC Financial Corp. in Calgary, said China’s investments currently appear to be a “token toehold” in the market. He said the Canadian government appears to have become more willing to accept Chinese investment in the oil sands. “From a continental energy security perspective, of course there is a little more hesitation when emerging powers come here, but the Canadian government has over the last year indicated more willingness to do business with China,” Tertzakian said.
Like many American consumers, CEA is concerned that China’s insatiable appetite for energy resources to continue to aggressively grow its economy, coupled with the consideration of job-killing LCFS proposals across the U.S. and in Washington, could send a troubling message to our strongest and most important trading partner to the north.
Interestingly, this important topic will likely be discussed later this week in Washington when the nation’s governors and seven of Canada’s premiers meet at the National Governor’s Association (NGA) conference. The Canadian Free Press’ Lee-Ann Goodman reports this under the headline “Premiers, governors talk tough topics; Energy, trade, environment lead agenda”:
The premiers of Ontario, Quebec, Saskatchewan, Manitoba, Nova Brunswick, Nova Scotia and Prince Edward Island were scheduled to meet U.S. governors for an hourlong session entitled Common Border, Common Ground at the winter meeting of the National Governors Association, an influential get-together that often influences policy for both the White House and Congress. The premiers aren’t exactly on the same page on environmental issues. Charest has criticized Ottawa for insisting that Canadian greenhouse gas policy must be in lockstep with the Americans, while Wall and other oil-producing provinces are in agreement with the feds that the U.S. and Canada must be in synch.
With the threat of an LCFS being adopted in a host of states and regions throughout the U.S., including the Mid-West, the Northeast and the Mid-Atlantic, policymakers must engage in a strong dialogue about the critical role that Canada continues to play in ensuring that energy prices remain stable and affordable for consumers, families, seniors and small businesses – especially during this time of generational economic downturn.
Hopefully, and for the sake of struggling consumers across the nation who cannot afford higher prices at the pump, this week’s meeting in Washington will shed like on and underscore the dangerous economic and security realities associated with an LCFS.
