US pushes Arctic oil drilling after meeting with Canada and Mexico

by Beth Gorham

04-05-06

It's long past time to open up the Arctic National Wildlife Refuge to oil drilling, US Energy Secretary Samuel Bodman said after meeting with Natural Resources Minister Gary Lunn and their Mexican counterpart.
"We'd like to see it done now," Bodman said after a meeting centred on securing the continent's energy supply amid skyrocketing oil prices and limited supply.

Long a priority of the Bush administration, the move has repeatedly stalled in Congress. But officials hope voter outrage about paying more than $ 3 a gallon at the pumps will finally spur legislators up for re-election this fall to pass the measure.
Canada has always opposed opening up the Alaskan park, saying there are better ways to pad future supplies, including the Alberta oil sands and natural gas from the far north.

The former Liberal government actively lobbied against drilling, saying it would devastate migrating caribou herds that cross the border and sustain aboriginal communities on both sides. Conservatives, mostly quiet on the subject until now, say they expect to actively oppose the measure on Capitol Hill as well.
"There are some very serious ecological considerations here," said Emma Welford, spokeswoman for Lunn. "It's not something we'd like to see happen."

US legislators have been scrambling to quell anxiety about gas prices, which have hit C$ 1 a litre in Canada. The House of Representatives has passed a bill aimed at cracking down on oil price gouging and the White House wants to boost fuel-efficiency standards for cars.
"We're trying to do everything that we can do that we know that works," said Bodman. The three officials, including Mexico's Fernando Canales Clariond, are tasked with integrating North America's energy markets, including keeping common statistics and the same efficiency standards for appliances. They talked about natural gas markets, energy efficiency and new technology.

The US has increasingly been eyeing potential north of the border.
"Nobody istalking about guarantees of supply from one country or another," said Lunn. "There's no question we have some great opportunities up in the oil sands but there's many other opportunities as well. All of these could have an impact on the price... We're going to do everything we can to ensure there's a long-term, stable supply and we believe it's there."

In March, Bodman called future energy from the Alberta oilsands a "very important component" of the US supply, saying he's unconcerned about Chinese investment in the rich resource and he's hoping proximity will ensure most of it flows south.
"There's been a predisposition for the US to believe that whatever develops will find its way to the US market," said energy analyst Frank Verrastro at the Centre for Strategic and International Studies. "And the two countries are better aligned now. But you don't take this for granted. Producers have a lot more leverage."

The energy security initiative was established by the three countries under the Security and Prosperity Partnership at a meeting in Mexico in March.
Canada is the top exporter of oil to the US, accounting for 17 % of its imports. It has the world's second largest proven oil reserves at 179 bn barrels.
 

 

Source: The Canadian Press