Tuesday 15 March 2016

JOHN KERRY: U.S. DOES NOT NEED ANY MORE CANADIAN PIPELINES



Mercifully, Minister of Natural Resources Jim Carr was not in Washington when Secretary of State John Kerry said the U.S. does not need any more Canadian pipelines. You see, unlike Justin Trudeau’s in-laws, Carr did not make the cut for the official visit with the Prime Minister, even though the U.S. trades more resources with Canada than any other country in the world by far. That’s no surprise, since energy was a forbidden subject between the two leaders, absorbed as they apparently are with global warming.

I say apparently, because America recently became the largest producer of oil in the world due to the fracking revolution. (Remember fracking? That’s the wealth-creating technology that several “have not” provinces imposed a moratorium on in their jurisdictions, but I digress.) Furthermore, the president recently lifted a 40-year ban on exports of domestic oil. So when you see President Obama smiling, it might have to do with the incredible growth in oil production in his country.

Any observer with a semblance of objectivity would agree that Obama’s rejection of the Keystone XL pipeline was about domestic politics, symbolism and his desire to burnish a green legacy over the jobs, economic growth and national security that the pipeline would have promoted.
Still, for the secretary of state to double down and cite the pipelines Americans have built as a reason to reject Canadian pipelines is unusually brazen. “We have some 300 pipelines, it’s not as if we’re pipeline-less,” he told the CBC last week. So not only is Keystone dead, but no other pipeline from Canada is welcome. Talk about chutzpah. Canadian oil has been crucial for his country’s economy and continues to be. But now he’s erecting a political wall to block more oil pipelines, although trains and trucks are welcome, irrespective of their cargo. Kerry expresses concern about climate change, yet his own State Department said building Keystone would be less risky and produce fewer emissions than the alternative, which is rail.
Why would Kerry suddenly declare this when the prime minister is in town on an official visit? Well, Keystone was publicly turned down a mere month after the Liberal government was sworn in, so the Obama administration is not too fussed about our new government’s feelings. Trudeau was not about to react to yet another slap in the face of Canada’s national interest. Just pass the canapés and pose for another selfie.
The honour of an official visit for a prime minister in office less than five months is reminiscent of the Nobel Peace Prize awarded to Barack Obama, based on nominations that closed 12 days after he became president. Although the process took another year, many people felt it was awarded as an inducement for future behaviour — to encourage him to do the things the Nobel Committee considered worthy of the prize. Trudeau’s invitation to the White House was partly about sending a similar message: Keep smiling and go along to get along. It was also an award for being a fellow “progressive” who talks the talk on climate, as well as an opportunity for the president to use their joint press conference to hammer the Republican Party and its leading candidate.
When he was prime minister, Stephen Harper hosted Obama in Ottawa for the president’s first foreign trip, and during almost a decade of Conservative government our countries had very close bilateral working relationships at every level. So one has to ask why Obama did not reciprocate and invite Harper to Washington. Perhaps Harper’s support for Keystone was a factor. After the State Department, with primary regulatory responsibility, effectively agreed with Harper on the facts and the science of Keystone, an official visit may have become too uncomfortable for the president. Sometimes, there is a price for publicly defending Canada’s interests.
Kerry’s remarks may not cause a media storm, any more than Trudeau’s observation that Americans should be more aware of what’s going on in the world. A Washington honeymoon was no place for uncomfortable questions. But the Liberals cannot avoid a harsh reality: Kerry slammed the door shut on new Canadian pipelines into the U.S. Hope for a change in direction from a new administration may prove elusive. Most polls indicate Donald Trump will not win the presidency. Hillary Clinton, who had supported Keystone, is now opposed. And regardless, the American market is not keeping up with our increasing production. That adds urgency to approve pipelines to ship our resources to Eastern Canada and foreign markets.
Jim Carr has been waiting in Ottawa for the unrequited love-in to end and the partygoers to return. Now the real work should start. I am rooting for the cabinet underdog. Hope springs eternal.


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