WASHINGTON – Is the U.S. government ready to take meaningful steps toward reducing America’s reliance on far-away, unstable energy while leveraging secure, proximate energy sources to create jobs and opportunity here at home? That’s the conversation that took place today at the U.S. State Department, as the agency held another in a series of public forums on whether to grant a final permit in support of the Keystone XL pipeline project, which, upon completion, is slated to deliver 900,000 barrels of affordable Canadian energy a day to consumers in the U.S. who need it.

“Some might consider the State Department an unlikely setting for a discussion on energy in the United States,” said Michael Whatley, vice president of Consumer Energy Alliance (CEA) and on hand today to provide comments in support of the Keystone project for CEA. “But actually, the Keystone pipeline project is right up State’s alley – especially since the project has the potential to advance key national imperatives related to energy security, affordability and access for millions of Americans. The best part is: It has the potential to do all that without bringing harm to the environment. That’s why CEA supports the project, and that’s why we will continue to work with all stakeholders involved to ensure it happens swiftly and responsibly.”

Once completed, the Keystone XL project will consist of three new pipelines spanning roughly 1,380 miles across the United States from Canada, with the capacity to deliver roughly 900,000 barrels of secure, affordable Canadian energy to American consumers over the long-term. Despite that reach, the actual environmental footprint involved in executing the project is minimal – with the total disturbed area for the project only expected to be 150 square miles. Because the pipeline originates in Canada and crosses into the United States, State Department approval is required.

In addition to CEA, a number of organizations representing consumers, organized labor, and state and local governments appeared at today’s forum to lend their unique perspectives on why the Keystone project is so important to them and their constituents.

“We came here today to show our strong support for the TransCanada Keystone XL pipeline,” said Russ Breckenridge, a legislative representative of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada. “Right now the construction industry is currently facing on average 20 percent unemployment, and in some areas our members are facing 40 percent. The TransCanada pipeline will begin to put our members back to work with high-quality jobs, with full benefits and worker protection.”

Added Breckenridge: “Our organization wouldn’t be supporting this project if safety was any concern. … As President Obama has told our organization many times, his number one priority is creating jobs and turning the economy around. The Keystone project will achieve these two goals.”

Richard Moskowitz, vice president and regulatory affairs counsel for the American Trucking Associations – a CEA member – told the forum that the trucking industry supports the use of renewable and alternative fuels in the transportation sector, but “for the foreseeable future we will be dependent on diesel fuel to deliver virtually 100 percent of the consumer products in the United States.”

Moskowitz also addressed concerns related to the carbon output of fuels expected to be delivered by the pipeline: “The carbon required to transport that oil from Alberta down to Houston is going to be less than the amount of carbon required to transport that oil across Canada, load it on super-tankers, and bring it to China – which is what will happen if we don’t use that oil here in the United States.”

BOSTON, Mass. – The environment minister from the Canadian province of Alberta participated in a regional energy conference in Boston today that, among many important issues, examined the potentially adverse consequences of imposing a Low-Carbon Fuel Standard (LCFS) on the Northeast, a policy that could greatly reduce the region’s access to secure and affordable energy from Alberta.

“Alberta is committed to reducing the environmental impact of oil sands development, and we have already made great strides.  We are uniquely able to provide safe and secure energy resources that are essential to the northeastern United States and beyond,” said Alberta Environment Minister Rob Renner. “We are not asking for special treatment, only fair treatment. When one considers the full life cycle of a barrel of oil, the carbon intensity of Alberta’s oil sands is very much in line with many other sources of crude, including those in the United States.”

An improperly designed LCFS in the Northeast could discriminate against reliable, affordable sources of Canadian fuel and raise the prices of gasoline and diesel, forcing New England states to increase imports from foreign, far-away suppliers, participants discussed today. Massachusetts imported more than 2.8 million barrels of petroleum products from Canada in the month of March alone, according to the Energy Information Administration – supplies that would be put in danger under an LCFS.

“During this time of unprecedented economic uncertainty, instituting a region-wide policy designed to drive up gas and diesel prices and make essential energy commodities such as home heating oil a whole lot more scarce doesn’t make a whole lot of sense,” said Michael Whatley, vice president of Consumer Energy Alliance (CEA) and the emcee of the forum today. “Maybe the more unfortunate reality of the LCFS, though, is that it won’t do a thing to reduce global concentrations of greenhouse gases in the atmosphere. But that’s the LCFS: All pain, no gain.”

This afternoon’s regional low carbon fuel forum, hosted by CEA, drew the participation of the environment minister of Alberta, as well as a number of local and regional stakeholders, consumer groups and policy experts to discuss the regional impact of an LCFS, an initiative supported by Gov. Patrick and being pushed by the Boston-based group known as the Northeast States for Coordinated Air Use Management (NESCAUM).

Addressing the forum earlier today, Renner provided participants with an overview of the latest technological advances being deployed to develop Alberta’s oil sands in an environmentally sensitive way, highlighting among many other important points that CO2 emissions from the production of oil sands has come down by an average of 39 percent per barrel since 1990.

But maybe the two are a lot closer connected than meets the eye. Consider that in March alone, Massachusetts imported 2.8 million barrels of petroleum products from Canada, including fuels derived from Alberta oil sands, the second largest known source of oil in the entire world. Resources developed, processed, refined and eventually delivered to the Boston Harbor – in the forms of gasoline, diesel fuel and home heating oil, upon which nearly one million Bay State residents depend to keep their homes warm during the winter.

Today, I have the privilege to be in Boston to participate in an energy summit with the environment minister of Alberta, on hand to discuss new ways that his province can partner with New England to achieve shared goals related to security, the economy and the environment. The one big challenge to that progress? The imposition of a Low-Carbon Fuel Standard (LCFS), a policy being developed right here in Boston that would greatly reduce your state’s access to Albertan energy, while greatly increasing your reliance on suppliers half-a-world away.

Last December, Gov. Patrick joined 10 other governors in signing an agreement on an LCFS. Proponents argue it will improve the environment by lowering the carbon content of your fuels, all without costing consumers and motorists a thing. The reality, though, is that this issue is a lot more complex than those proponents suggest – with consequences that will significantly Bay State access to secure, affordable Canadian energy.

Under the LCFS proposal being considered, transportation and home heating fuels would be given a carbon value based upon emissions produced over their lifetime. All fuels require energy for their production — but so-called heavier crudes (such as those found in Alberta) receive higher scores because they require marginally more energy to produce. Under an LCFS, these are the fuels targeted for elimination.

But as study after study has shown, the carbon intensity of oil derived from Alberta’s oil sands is very much in line with the intensity found in a host of other crude sources, including in the United States – which is why study after study has also shown that greenhouse gas emissions aren’t actually lowered by the LCFS.

The reality is, the oil sands’ environmental footprint continues to shrink each and every year. Carbon dioxide emissions from the production of oil sands has come down by an average of 39 percent per barrel since 1990.  In some facilities, the reduction has been as high as 40-45 percent.

In 2007, the government of Alberta implemented greenhouse gas regulations requiring a 12 percent reduction in emissions per barrel. Emitters can meet the reduction target, acquire approved offsets, or pay $15 for every excess ton of emissions into a fund supporting research on improving the environment. As of 2009, over $186 million was paid into that fund, with many millions more expected to be deposited this year. Additionally, the Alberta and Canadian governments, along with industry, have invested over $10 billion in carbon capture and sequestration projects to reduce carbon emissions from energy production.

Alberta has taken significant strides to reduce the environmental footprint of oil sands production, and has the ability today to provide essential energy resources to the northeastern United States from a friendly, reliable trading partner. We’re hoping today’s energy forum brings some of those issues to light. For those in the area, we certainly hope you can find the time to stop by. For those who aren’t – we got you covered as well.

Since IHS Cambridge Energy Research Associates (CERA) recently released a report highlighting that Canadian oil sands production is expected to grow from 1.34 million barrels a day to between 3.1 million and 5.7 million barrels a day by 2030  (which could make up as much as 36 percent of United States oil imports by 2030), it is essential that we have the infrastructure in place to handle those volumes.

To build this needed expansion, Consumer Energy Alliance supports the proposed TransCanada Keystone XL pipeline project and the recently released U.S. State Department’s  Draft Environmental Impact Statement (DEIS) – a statement that confirms the delivery of secure, affordable supplies of Canadian energy to American consumers can be done without bringing harm to our environment. But wait: Don’t tell us you missed your chance to weigh-in on the proposed Keystone pipeline with Secretary Clinton? The deadline, after all, was June 1. Or at least it was. Good news is, this week it was announced the deadline will be extended to June 16, 2010 – and CEA is asking for your help to communicate your support for the project to the U.S. State Department.

Securing stable and affordable energy from our North Aerican allies through projects such as the Keystone Pipeline is in our national interest. While a final decision by the State Department has not been made on the Keystone Pipeline, what we’ve seen so far portends positive news for American consumers. And here’s why:

The project will consist of three new pipelines – one from Morgan, Montana to Steele City, Nebraska; another from Cushing, Oklahoma to Nederland, Texas; and the final one, from Liberty County, Texas to Moore Junction, Texas. The Keystone will initially carry 700,000 barrels of crude per day, eventually increasing to 900,000 barrels — significantly strengthening America’s energy and economic security, as well as creating thousands of family supporting jobs along the way. In fact, it is projected that during construction, Keystone XL will create more than 13,000 jobs funded with private investment, as well as additional revenue for local governments from the economic activity associated with construction and from pipeline property taxes.

Considering the economic and energy security benefits of Canada’s vital resources, policymakers should continue to expand America’s access to safe, affordable energy supplies to help ensure improved energy security and stable prices for consumers.

However, as CEA’s Michael Whatley recently mentioned at the Center for North American Energy Security’s energy summit, under a Low-Carbon Fuel Standard (LCFS), Canada would intentionally be singled out for exclusion. As a result, a nationwide LCFS would shut down projects like the Keystone XL and Alberta Clipper altogether – jeopardizing thousands of jobs and billions in economic activity.

Despite the State Department’s positive draft decision on the proposed Keystone XL pipeline, CEA’s grassroots supporters and affiliates will continue to be active contributors to the ongoing debate about commonsense energy legislation can create jobs and help drive down prices at the pump, and how misguided LCFS proposals threaten our nation’s energy security.

The United States currently produces about five million barrels of oil a day and imports 10 million more—Canada accounts for about 1.9 million barrels of the daily imports and about half of it is from the oil sands. However, IHS CERA projects oil sands production growing from 1.34 million barrels a day to between 3.1 million and 5.7 million barrels a day by 2030 – which could make up as much as 36 percent of United States oil imports by 2030.

The New York Times highlights this remarkable report in a story entitled “Reliance on Oil Sands Grows Despite Environmental Risks:”

In a new report, it projects that “The uncertainty and the slowdown in drilling permits in the gulf really underscores the growing importance of Canadian oil sands, which over the last decade have gone from being a fringe energy source to being one of strategic importance,” said Daniel Yergin, an oil historian and chairman of IHS CERA. “Looking ahead, its importance is only going to get bigger.”

In a world in which so many oil-producing nations are far away, unstable or hostile to the United States, Canadian oil sands hold great political appeal.

Echoing The New York Times, Consumer Energy Alliance’s (CEA) Michael Whatley recently characterized the situation this way at the North American Energy Security Summit hosted at the Canadian Embassy in Washington, D.C.:

“Canada is our closest trading partner in the world and our most important strategic ally in the hemisphere. Energy isn’t merely incidental to that relationship; it’s fundamental to it. No nation in the world sends more energy to the United States each day than Canada. And if we expect to have even a fighting chance at reducing our nation’s dangerous dependence on far-away, unstable energy in the future, Canadian energy will have to play an even more active role in helping us get there.”

Interestingly, The New York Times reported on this same event, stating “a phalanx of Canadian diplomats took advantage of a previously planned trip to Washington to promote oil sands” and an opportunity for Alberta’s premier, Ed Stelmach to highlight “what we have to offer, which is security of supply” and “a safe stable government.”

Reporting on the CERA predictions under the headline “Tar sands will become top source of U.S. imported oil this year,” Nathanial Gronewold with E&E News adds:

While future output will depend on the investment climate and government policies, but analysts see the tar sands’ development continuing to grow as the region becomes the United States’ most important foreign source. In their high-growth scenario, researchers say oil sands could constitute 47 percent of total U.S. crude imports and become the source of fully 26 percent of all crude oil and refined products.

Gronewold continues with an overview of how innovation is improving the environmental footprint of the oil sands: 

“Innovation in oil sands has been a constant theme,” the report says. “Since its inception, the industry has made and continues to make major technological strides in optimizing resources, innovating new processes, reducing costs, increasing efficiency, reducing greenhouse gas emissions, and reducing its environmental impact.” Technological progress should further lighten the burden of water pollution and other environmental concerns, the report adds.

However, despite the fact that newer and more efficient technologies have been deployed to develop the oil sands in an environmentally sensitive way, it seems that environmental groups bent on the sands’ destruction have agreed upon a strategy of releasing report after report filled with the same old tired criticisms of the oil sands. Fortunately, this broken record won’t change the truth – namely, that innovations in technology have helped reduce the sands’ carbon emissions per barrel by more than 30 percent since 1990.

Irrespective of this progress, these same groups would like to see a dangerous Low-Carbon Fuel Standard (LCFS) scheme passed in the United States – a policy that would severely restrict American access to secure and affordable sources of energy, and through that, 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 running.

Given that more than 20 states across the country are currently considering LCFS policies, the Canadians don’t appear all that interested in waiting around to see what happens next. In fact, plans are already under way for pipelines to be built from Alberta to Canada’s west coast for shipments to Asia and Ed Stelmach, Alberta’s premier, recently flew to China with a trade mission to Shanghai, Beijing and Harbin.

According to the Montreal Gazette’s recent story on Stelmach’s visit, titled “Alberta welcomes more Chinese investment in oilsands”:

When Premier Ed Stelmach said in Shanghai this week, “our doors are open,” it was a clear invitation for more Chinese investment in Alberta’s oilsands. In an interview Tuesday, the premier said that the world financial crisis means Alberta oil companies are looking for new investors and China is clearly on their radar.

Like many American consumers, CEA is concerned that China’s and India’s insatiable appetite for stable energy resources to continue to aggressively grow their economies, coupled with the consideration of job-killing LCFS proposals in the U.S., could send a troubling message to our strongest and most important trading partner to the north.

So as China continues to secure steady streams of affordable energy, like those produced from Canada’s sands, state and federal policymakers should reject dangerous LCFS schemes and remember America’s top source of imported oil this year and the unique role that Canada plays both as America’s largest fuel supplier and its closest friend.

Lea N. Wilson – executive director of the Washington Oil Marketers Association – recently penned a Bellingham Herald column entitled “Low-carbon fuel standard would hurt Washingtonians.” Here are key excerpts:

There’s a lot more than weather and wine that makes Washington different from California. But judging by Gov. Chris Gregoire’s recent legislative intentions, Washington may start to look a lot more like our coastal neighbor – and not to our benefit.

In short, an LCFS will only make the fuels in our tank harder to find and more expensive to purchase. And supporters of the initiative admit that if successful, an LCFS will make traditional energy sources so expensive that we Washingtonians will learn to favor those alternative sources that have yet to reach maturation and availability. Does your car run on hydropower? Mine doesn’t, and probably won’t for a long time.

Wilson continues:

And this will only hurt what has become a healthy and burgeoning trade relationship between Washington and our border neighbors to the north. Canada imports almost $6.6 billion worth of goods from Washington, including refined oil products. But with the burden of increased transportation costs lingering under LCFS provisions, we stand to lose much of that revenue.

Certainly our governor must know that Washington derives its energy from different places than California does – and further, that an LCFS scheme conjured up by consultants in Sacramento might not achieve its desired effect here in the Evergreen State. Unfortunately, it doesn’t appear as if that knowledge is making a shred of difference.

Gov. Gregoire’s administration is charging toward its July deadline, when it is set to fully assess what an LCFS would bring to Washington. But what we outlined here leaves little to assess: an LCFS will increase the cost of fuel during an economically challenging time, and make us ever more energy dependent.

Wilson is correct in voicing concerns about Governor Gregoire’s fast approaching July deadline and the fact that Washington’s fuel supply would be threatened under an LCFS policy. While Washington’s economy, and its consumers and small businesses, does rely on oil from Saudi Arabia, Angola and Argentina, more than 25 percent of its crude comes from Canada. Therefore, over a quarter of the state’s secure, affordable oil supply would be threatened under an LCFS.

Additionally, about 10 percent of the state’s gasoline – refined in Montana, but derived from Canada’s oil sands – could be prevented from crossing its eastern border. The consequences are far greater and more profound for the state’s workforce. Discrimination called for under an LCFS against Canada’s energy could also impact many jobs in the state, since refiners in Washington directly employed more than 2,000 workers in 2007 (latest numbers), and indirectly supported another 20,000 – paying out more than $400 million in wages.

Regrettably, Washington isn’t the only state in the nation that is currently considering adopting a California-style LCFS – which would effectively ban stable and reliable forms of North American energy from reaching U.S. consumers. The American people oppose higher fuel costs and increased imports from unstable regions of the world. Unfortunately, the real-life outcome of an LCFS will lead to higher prices at the pump and a deeper and more dangerous dependence on unstable regions of the world to ensure that our economy continues to move and grow.

Alberta premier Ed Stelmach reinforced the fact that Canada stands ready, willing and eager to build upon the unique and valuable relationship that exists with the United States to leverage energy resources into jobs, security and opportunity on both sides of the border. And following his remarks, David Goldwyn – a senior State Dept. advisor – weighed in regarding America’s historic partnership with Canada on issues related to energy security, affordability, and reliability, describing this strong and strategic relationship as a “model” for others to follow.

ClimateWire highlights Mr. Goldwyn’s remarks in story entitled “With offshore oil spilling, Alberta pushes its inland”:

“Having technically recoverable petroleum reserves that are on our border, and they’re delivered by pipelines that are controlled by a stable democracy and an ally and a friend in an open and transparent regulatory regime enhances … global energy security today and into the future,” David Goldwyn, who oversees international energy issues at the U.S. State Department, told an audience at the Canadian Embassy yesterday.

Following remarks from Stelmach and Goldwyn, CEA’s Michael Whatley added this about the importance of North American energy security:

Canada is our closest trading partner in the world and our most important strategic ally in the hemisphere. Energy isn’t merely incidental to that relationship; it’s fundamental to it. No nation in the world sends more energy to the United States each day than Canada. And if we expect to have even a fighting chance at reducing our nation’s dangerous dependence on far-away, unstable energy in the future, Canadian energy will have to play an even more active role in helping us get there.

Nick Snow of the Oil & Gas Journal reports this under the headline “Forum showcases benefits of Alberta oil sands development”:

The US Environmental Protection Agency’s effort to limit GHG emissions under the Clean Air Act poses the biggest threat, added Michael Whatley, vice-president of the Consumer Energy Alliance. “Demand has rebounded since the economy hit bottom in 2008 and 2009. China and India are trying to get more supplies than ever out of world markets,” Whatley observed. North America has sufficient energy supplies to meet growing demand, but US policies restricting access and mandating low-carbon fuels restrict their development, he said. “Let’s be clear: Demand is going to increase,” Whatley said. “Taking North American energy resources off the table will affect consumer prices and hurt the economy.”

Hosted by the Center for North American Energy Security (CNAES), the day’s event drew broad participation, including a number of U.S. and Canadian energy, economic and environmental experts. The discussion and debate throughout the day ranged from the capacity and permitting of local pipelines, to federal procurement rules for accessing oil sands-derived energy, all the way through to the political debate surrounding Low-Carbon Fuel Standard (LCFS) proposals, a policy that would severely restrict American access to secure and affordable sources of energy from Canada.

Canwest News Service’s Sheldon Alberts captured the possible threat of an LCFS in an article under the headline “Gulf spill makes oilsands more appealing”:

Still, oil sands supporters remain suspicious of the Obama administration and fear it will seek a low carbon fuel standard (LCFS) targeted at carbon-intensive energy sources like the oil sands. Michael Whatley, vice-president of … Consumer Energy Alliance, said it was ‘no coincidence’ that an early version of U.S. climate change legislation from the House of Representatives included plans for a low carbon fuel standard. Whatley said there’s also concern the Obama administration could target the oilsands through the Environmental Protection Agency … ‘The LCFS is a high priority for this administration,’ Whatley said at the Canadian Embassy. ‘They can move down that road. We are very concerned that they will.’

And under the headline “After spill, Stelmach touts oil,” the Globe and Mail reports this:

Mr. Stelmach said he’s only trying to ensure the oil sands gets fair treatment in the face of a wave of federal and state efforts that threaten to penalize Alberta’s heavy crude and other high-carbon fuels. Pending regulations from the U.S. Environmental Protection Agency – which is poised to cap greenhouse gases since Congress won’t – threaten to cut off the sale of oil sands crude from Alberta to refineries south of the border. And dozens of states are moving ahead with regulations that would penalize carbon-intensive fuels and spur use of greener alternatives. Major U.S. energy consumers, meanwhile, worry that a low-carbon fuel standard may be inevitable in the United States. “We’re very concerned,” said Michael Whatley, vice-president of the Consumer Energy Alliance, a broad coalition of major U.S. energy consumers.

Given the recent announcement that climate change legislation may be introduced very soon in the U.S. Senate, CEA will continue to remind policymakers about the dangerous consequences of imposing an LCFS in the U.S., as well as the importance of our closest trading partner and the barrels of secure and reliable fuel Canada sends the United States each day.

WASHINGTON – America’s historic and ongoing partnership with Canada on issues related to energy security, affordability, and reliability is a “model” for other nations to follow, a senior advisor from the U.S. State Department said today at the Canadian Embassy – and according to Alberta premier Ed Stelmach, Canada stands ready, willing and eager to build upon that existing relationship and leverage those resources into jobs, security and opportunity on both sides of the border.

“Canada is our closest trading partner in the world, and our most important strategic ally in the hemisphere,” said Michael Whatley, vice president of Consumer Energy Alliance and a panelist at today’s summit. “Energy isn’t merely incidental to that relationship; it’s fundamental to it. No nation in the world sends more energy to the United States each day than Canada. And if we expect to have even a fighting chance at reducing our nation’s dangerous dependence on far-away, unstable energy in the future, Canadian energy will have to play an even more active role in helping us get there.”

This morning’s summit, hosted by the Center for North American Energy Security (CNAES) and held at the Canadian Embassy in Washington, D.C., drew the participation of a number of U.S. and Canadian experts on energy, the economy and the environment – addressing issues ranging from the capacity and permitting of local pipelines, to federal procurement rules for accessing oil sands-derived energy, all the way through to the political debate surrounding the Low-Carbon Fuel Standard (LCFS), a policy that would severely restrict American access to secure and affordable sources of energy from Canada.

Addressing the summit earlier today, both Stelmach and senior U.S. State Department official David Goldwyn agreed that the energy resources made available to U.S. consumers today by way of the oil sands have strengthened our nations’ existing strategic partnership and contributed to robust economic development both in Canada and here in the United States. Stelmach additionally provided summit-goers with an update on the latest technological advances being deployed to develop the oil sands in an environmentally sensitive way, technology that has helped producers reduce the sands’ carbon emissions by nearly 40 percent over the past two decades.

Added Tom Corcoran, executive director of CNAES and a former member of Congress from Illinois: “As the energy and climate change debate continues to take shape in the U.S., policymakers should remember the 2.5 million barrels of petroleum Canada sends the United States each and every day — and the unique role that Canada plays both as America’s largest fuel supplier and its closest friend.”

You’d be hard-press to find a U.S. policymaker that would disagree with the fact that we need to lessen our dependence on fuel from the Middle East. Here at Consumer Energy Alliance (CEA), we agree believe that we need to use every bit of energy we have more wisely, and at the same time, responsibly increase access to our most stable and affordable forms of energy.

Some elected leaders, however, are mistakenly advocating policies that would force the U.S. to accepting stable, North American fuels from Canada and Mexico – which help more well over 20 percent of our daily demands.

Haven’t heard of this well-intended (perhaps) yet terribly misguided proposal? It’s called a Low-Carbon Fuel Standard (LCFS). Unfortunately, proponents of LCFS policies aren’t telling the American public that this dangerous scheme – which targets fuel sources that are more energy-intensive to producer, transport, refine and deliver to market – 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.

California was the first state to mandate an LCFS. Other states are also trying to enact similar polices. And in Congress, proposals that would place a one-size-fits-all LCFS across the entire nation are also being considered. As we mentioned earlier, other nations – many of whom the U.S. competes with directly – recognize these LCFS efforts as a major and strategic window of economic opportunity to secure Canadian energy resources that would have been otherwise directed to American consumers.

In fact, the Financial Post recently reported this under the headline “China’s clout draws oil sands IPO:”

Sunshine Oilsands Ltd., which snapped up more than a million acres of oil-sands leases between May 2007 and October 2008, is ready to launch a steam-assisted gravity-drainage pilot project. The Calgary company is looking to raise hundreds of millions of dollars on Hong Kong’s stock exchange, a first for a Canadian energy company that highlights just how anxious Asian investors are to grab a slice of the oil sands.

China has already shown fierce interest in Canada’s energy. Sinopec Corp., an oil company controlled by the Chinese government, struck a deal April 12 to buy a 9.03% stake in Syncrude Canada Ltd. for $4.56-billion. The deal is subject to regulatory approval, and could prove a test of Canada’s will to cede a significant amount of oil production to China. Sinopec also controls 50% of the Northern Lights oil sands project, with its partner Total SA, the France energy giant, owning the rest.

Last year, PetroChina International Investment Co., another state-controlled outfit, bought a 60% stake in two of Athabasca Oil Sands Corp.’s projects for $1.9-billion. A third government company, CNOOC Ltd., owns 16% of MEG Energy Ltd., a private oil sands player. Meanwhile, also last year state-owned Korea National Oil Co. purchased all of Harvest Energy Trust in a deal worth $4.1-billion.

Like many American consumers, CEA is concerned that China’s insatiable appetite for stable energy resources to continue to aggressively grow its economy, coupled with the consideration of job-killing LCFS proposals in the U.S., could send a troubling message to our strongest and most important trading partner to the north.

“The removal of the economy-killing LCFS is good news for consumers in the Badger State and we are pleased that Wisconsin’s legislators have woken up to the harsh realities associated with this dangerous proposal. By discriminating against Canadian fuels, an LCFS would restrict Wisconsin fuel supplies, raise gas and diesel prices at the pump and expand our dependence on energy from some of the most unfriendly regions of the world.

 “Unfortunately, the threat of an LCFS still exists in many other parts of the country, including those states that comprise the Midwestern Governors Association (MGA), of which Wisconsin’s governor is a member. CEA encourages the members of the MGA to understand that discriminating against Canadian fuel supplies is bad energy policy.”

However, Wisconsin consumers are not out of the woods yet. The Badger State remains an active member of the MGA, which is currently engaged in promoting an LCFS. In fact, MGA is expected to issue comments on its draft LCFS framework soon — releasing its final draft recommendations by June, and rendering its final recommendations to MGA member states by the end of 2010.

This issue is crucial to the Badger State since nearly half of Wisconsin’s oil comes from Canada, some through the Lakehead Pipeline System, and some via Illinois and Minnesota – two other mid-western states that rely heavily on secure, Canadian energy to keep their economies running. You see, under an LCFS regime, these stable supplies of Canadian crude would find themselves on the chopping block in the Midwest, casting serious doubt as to how states like Wisconsin would make up the difference in displaced supply.

Worse yet, Wisconsin isn’t the only state that is currently considering an LCFS. There are also efforts in the Northeast and Mid-Atlantic to pass a one-size-fits-all LCFS.

In Pennsylvania, former Illinois congressman Thomas Corcoran of the Center for North American Energy Security recently took to the pages of the Wilkes-Barre Times Leader to highlight the devastating effects that an LCFS could have on the Keystone State. In a column entitled, “Low-carbon pact will only lead to higher energy prices,” Corcoran writes:

 It’s ironic that LCFS advocates cite the imperative of combating greenhouse gases and curbing energy costs as reasons to support such a program. Not only are both assertions untrue, but they represent the direct inverse of what the program will actually achieve. Independent studies have determined that gas and diesel prices would increase, as would overall global greenhouse gas emissions because nations like China – our chief competitor in the global economy – are already working to secure Canadian supplies in the event that we block imports to the United States.

The former U.S. congressman and energy experts adds this in this column:

Pennsylvanians cannot afford higher energy prices. With gas prices steadily climbing toward $3 a gallon and home-heating costs on the rise, Gov. Rendell and leaders in Harrisburg should be working day and night to develop policies that will reduce energy prices rather than supporting an LCFS that will prohibit imports of abundant and secure North American energy resources, drive fuel prices even higher and increase worldwide carbon emissions.

CEA is encouraged by the decision in Wisconsin to drop the LCFS provisions and hopes that more state and national policymakers will take notice and follow Wisconsin’s lead by rejecting these misguided proposals. CEA will continue to educate the public about the dangers of an LCFS, and tirelessly advocate for commonsense policies that aim to keep energy prices stable and affordable by promoting more energy of all forms, and using what we have more wisely at the same time.