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Why the hell is Big Oil getting subsidies in Canada?


Harbinger

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OTTAWA - Canada is making waves heading into the global Rio+20 Earth Summit by trying to prevent the conference from adopting commitments requiring an end to public fossil fuel subsidies.

Environment Minister Peter Kent was unable to explain why Canadian negotiators were trying to ask the conference to "consider" eliminating the subsidies instead of supporting the positions of others, such as the European Union, who are calling for a firm commitment for a full phase-out.

The details of the Canadian government negotiating tactics have emerged through a leaked draft text obtained by Britain's Guardian newspaper.

"There was a lot of hope around the world that this (Rio+20 Summit) could have been a moment of change and in a lot of ways it's really sad," said Aleksandra Nasteska, co-founder of We Canada, an initiative launched by a coalition of volunteers and Canadian organizations promoting sustainable development, reached by phone in Rio de Janeiro.

"It's been a long process and (the leaked text) is quite heartbreaking to see."

David Sawyer, an environmental economist and director of climate change and energy at the International Institute for Sustainable Development, has estimated the federal government could save more than $1.3 billion per year if it phases out all of the existing subsidies for the oil and gas industries.

Former Conservative environment minister Jim Prentice, who left politics in November 2010 to accept an executive position at the Canadian Imperial Bank of Commerce, had previously urged Finance Minister Jim Flaherty in a memorandum to phase out the oil and gas subsidies, honouring a commitment made by Canada with the G20 countries. But Flaherty has protected many of the existing tax incentive programs for oil and gas exploration and development.

An industry lobby group has argued that it doesn't get any preferential treatment, citing a research paper that was co-authored by a board member of Imperial Oil.

But Kent, who is leading Canada's delegation at the Rio Summit, which marks the 20th anniversary of the 1992 Earth Summit that resulted in major international environmental agreements, declined to answer questions from Postmedia News about the government's position.

Regarding Canada's opposition to recognizing a historic principle of "common but differentiated responsibilities, Kent's spokesman, Adam Sweet, acknowledged that Canada doesn't support the "one size fits all" approach that suggests the richest countries of the world should take on a greater burden than developing countries to promote sustainable development.

But Canada has recognized in its official submission to the conference that "particular attention should be given to assisting countries that face significant capacity challenges."

Canada has also stated it "believes that countries need to focus and strengthen efforts on the management of their natural resources in a sustainable and socially responsible manner."

It said that these efforts should include policies to improve natural resource management, environmental sustainability and corporate social responsibility.

Sweet said Canada's delegation is made up of federal and provincial government officials, led by Keith Christie, an assistant deputy minister from the Department of Foreign Affairs and International Trade. But he was not aware whether any of the governments had included representatives of Canadian youth on their delegations.

Christie has been involved in Canada's diplomatic efforts to promote the oilsands industry and jokingly referred to the exercise as "doing God's work," in an internal e-mail from June 2010 obtained by Postmedia News.

mdesouza@postmedia.com

Twitter.com/mikedesouza

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There isn't much justification for Big Oil not getting money, especially given how justifiable the reasons compared to so many other things. That's the essence of government subsidies.. need to be fair.

OTOH, government shouldn't be subsidizing students nor big oil, but that's rather moot now obviously.

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Still on that oil d... spike, huh.

They don't create jobs, demand creates jobs. Everyone pumps money into local communities, that's how an economy works. Every business worth its salt sponsors or contributes to events, that's what they do to appear like they care when they really don't.

Oil companies make record profits, pollute our environment, affect domestic manufacturing (biggest production industry) by driving up the dollar, and are the second smallest industry (which also includes forestry, mining, fishing, and gas) in Canada (behind utilities).

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Every industry pollutes the environment - just as every living person in Canada pollutes our environment - so what?

Really? The Oil companies drive up the dollar? Wow...I didn't know that we can blame them for our dollar being on par with the US...and here I thought it was because of the US economy that drove their's down - which gave the illusion that ours went up...

Banks make record profits...Oil companies make no where near the profit that banks do...

What do you expect?

"Hi there, my name is Scorpio and I want to start a company with the purpose to lose money." :picard:

Yeah...that's what every business man wants to do.

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Some news for you:

45 years of success!

The success of our oil sands operation is the result of the contributions of thousands of people over the last 45 years. To mark the occasion and celebrate the people who built and run the operation as well as the close tie between Suncor and the community, a number of events were held at the end of May and in early June.

In recognition of their hard work, employees from Oil Sands, In Situ, Major Projects, Oil Sands Ventures, and supporting Functions based in Fort McMurray were invited to one of four Suncor Salutes events, held on May 25, 26, 30 and 31. Dinner, dancing and a look at how far we’ve come – from a plant authorized to produce 45,000 barrels per day of synthetic crude into an operation producing about 300,000 barrels per day – were part of the evening.

A community reception was also held with community leaders. Mark Little, EVP Oil Sands and In Situ, talked about the role Suncor has played in the growth of Fort McMurray and our commitment to ensuring that community needs are met.

“We are about building capacity, supporting the infrastructure and ensuring Fort McMurray has the foundation to support our families, employees and neighbours for years to come,” said Mark.

Mark presented a Suncor donation of $45,000 to Heritage Park and the Fort McMurray Historical Society in celebration of our shared history with the region.

----------------------------------

Climate Change was the topic of the recent Sustainability Speakers Series and there was more to talk about than just the weather. In the fourth installment of the Series, Peter MacConnachie, Fiona Jones and Stephen Kaufman, three of Suncor's leading climate change specialists discussed our approach to addressing the climate change issue.

Peter set the tone by reinforcing Suncor’s commitment to emissions management.

“We’re already big, we’re going to get bigger,” said Peter, senior sustainability issues management specialist, at the event. “That means we’re always looking for ways to make sure our greenhouse gas (GHG) emissions doesn’t increase as the same rate as our operation growth.”

Suncor has had a climate change action plan in place since 1997, which includes collaborative efforts, internally and externally, to manage our GHG emissions. The plan’s focus includes a renewable energy strategy, seeking out technology that will reduces the intensity in our production, participating in academic and industry research, and supporting energy literacy programs.

“Our participation in policy is another angle to the plan,” explained Fiona, director, climate change policy & strategy. “There is no shortage of people who have their own ideas as to how we should be regulated, so we participate very actively in terms of trying to get a climate change policy that is sustainable; in other words, one that not only meets Canada’s environmental objectives, but also economic and social objectives.”

Addressing climate change isn’t just about reducing our environmental footprint. It’s part of our pursuit of the triple bottom line – healthy environment, social well being and strong economy. One of our environmental performance goals is to improve our energy efficiency by 10 per cent throughout our business. Stephen, general manager, sustainable development, Oil Sands & In Situ, admits it’s a challenging goal because one of our growth areas is also one of our most energy intensive areas - In Situ. Making sure our facilities operate efficiently by making sure we keep them reliable and up to date and ensuring employees in those facilities have the right information about energy use is helping to move us towards our environmental and business goals.

“It’s about giving the operators the information they previously didn’t have,” said Stephen. “If they know that this is what it’s costing us per hour to run this tower at this temperature, and we can run it five degrees less and still have an effective chemical process and save a bunch of money, they’re very keen to help. That kind of activity from employees can make a big difference.”

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Every industry pollutes the environment - just as every living person in Canada pollutes our environment - so what?

Really? The Oil companies drive up the dollar? Wow...I didn't know that we can blame them for our dollar being on par with the US...and here I thought it was because of the US economy that drove their's down - which gave the illusion that ours went up...

Banks make record profits...Oil companies make no where near the profit that banks do...

What do you expect?

"Hi there, my name is Scorpio and I want to start a company with the purpose to lose money." :picard:

Yeah...that's what every business man wants to do.

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You just don't know when to stop...

Does every industry and its product pollute the environment to the extent the oil industry does? Weren't you oh so concerned with childrens' health in the smoking thread? I could see the self-serving hypocrisy when you supported getting rid of AirCare because you could finally modify your cars.

There is a lot you don't know, and even the things you know are probably wrong judging by the nonsense you post. No, US economy isn't the only thing affecting our dollar, and neither is the oil.

OECD sees signs of Dutch disease in Canada

Banks make record profits... for banks. Oil companies make record profits for... Oil companies. You are a very smart!

What do I expect? I expect our government to not give out over a billion dollars to some of the most profitable corporations in the country and the world, while slashing budgets related to environmental protections. Though that's just me wanting a responsible government, I know you don't share that desire.

"Hi there, my name is Scorpio and I want to start a company with the purpose to lose money."

That right there is why I laugh at you. The topic itself has nothing to do with the business side. We're talking about governmental subsidies, if you can't keep up. Oil companies make billions, yet you - a fiscal conservative who hates seeing his dollars help poor people - are propagating giving them another 1.3 billion. Hypocrisy, thy name is Heretic.

That IS what every businessman wants to do - get money from the government. What was your point again? That businesses.. uhh..

You see how I didn't say anything you think I said. At least, I hope you do.

It is not I that lacks a coherent argument just because I didn't wish to waste time on intellectual midgets. You force my hand Heretic.

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Do they at least pass some of the savings back to the consumer?

From the looks of gas prices, I would guess no. What's more, why is it that gas is more expensive in a net oil exporting nation such as Canada than it is in a net importing nation like the US?

What's more, why doesn't the saving from this subsidy trickle down to the consumer due to competition between oil companies? Can you say 'collusion'?

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Do they at least pass some of the savings back to the consumer?

From the looks of gas prices, I would guess no. What's more, why is it that gas is more expensive in a net oil exporting nation such as Canada than it is in a net importing nation like the US?

What's more, why doesn't the saving from this subsidy trickle down to the consumer due to competition between oil companies? Can you say 'collusion'?

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