Please buy our dirty oil

Mar 13th 2008 OTTAWA

A new American law could limit oil-sands production in Alberta.

There will appear an American law to prohibit American government agencies from buying crude produced in the oil sands of the western province. Canada, biggest supplier of oil in America, wasn’t meant to be discriminated by the Energy Independence and Security Act 2007. It’s just the effect of banning federal agencies from buying alternative or synthetic fuel if their production and use results in more greenhouse gases than conventional oil.

The Canadian government wants to secure an exception. The Canadian ambassador, Michael Wilson, has written to the secretary of defence stressing American dependence on Canadian oil, electricity, natural gas and uranium imports and noting that the biggest players in the oil are American companies.

John Baird, the Canadian environment minister, has new proposals to reduce industrial emissions in Canada, including the oil sands by 20% by 2020. I guess it would be very good if that works. It’s a good action of Mr Baird. He says also that oil sands were an important national resource, but it had to be expanded in a nice way for the environment.

Canadians fear that the American purchasing restrictions is the start of a wholesale shift to greener as well as more protectionist policies that will be controlled by the Democrats. Also because energy exports drive the Canadian economy.

Source: www.theeconomist.com