June 2010

[Amber]

Enbridge plans $400-million oil sands expansion

Enbridge Inc. (ENB-T48.53-0.97-1.96%) said Monday it plans a $400-million expansion of its Waupisoo oil sands pipeline system and is joining a carbon-capture project backed by power producers TransAlta Inc. (TA-T19.61-0.71-3.49%) and Capital Power Corp. (CPX-T22.29-0.51-2.24%)

Enbridge, Canada`s No. 2 pipeline company, said producers have committed to ship another 229,000 barrels a day on Enbridge`s Waupisoo system, requiring a 255,000 bpd expansion of the line, which currently handles up to 350,000 barrels of oil sands crude daily.

Oil companies are again expanding operations in the oil sands region of northern Alberta, the largest oil reserves outside of the Middle East, after investment in the region dried up as commodity prices stagnated during the recession. Suncor Energy Inc., (SU-T31.65-1.35-4.09%) Total SA, (TOT-N44.68-1.84-3.96%) Imperial Oil Ltd. (IMO-T38.89-1.04-2.60%) and others are expanding existing operations or launching new projects as oil prices firm.

The expansion of the Waupisoo system, which gathers oil from projects and delivers it to a pipeline hub near Edmonton, 380 kilometres south, will be done in two phases. The first 65,000 bpd tranche will be complete in the second half of 2012, then a 229,000 bpd expansion will be added in the second half of 2013.


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[Amber]

Government-ordered biofuels inviting a water crisis, Nestle chairman warns

EDMONTON - Governments that impose biofuels regulations as a remedy for C02 emissions are doing more harm than good, the chairman of Nestle SA said Monday.

To meet the 20-per-cent biofuel requirement in gasoline and diesel that some governments have set, food production would have to triple right away, and that`s impossible, said Peter Brabeck-Letmathe.

"It`s the wrong political decision. In most cases biofuels are not even emissions-neutral, except for Brazilian sugar cane," said Brabeck-Letmathe, in Edmonton to speak to the Alberta Water Research Institute.

"These policies have significantly contributed to the food crisis, and as a result 200 million people more than in the mid-1990s go hungry to bed."

Environment Canada regulations require five-per-cent renewable gasoline content this year and two per cent in diesel and heating oil by 2011.

In 2007, the federal government committed $1.5 billion over nine years to develop a biofuels industry. Alberta has made $239 million available, and several biofuel plants are operating or under construction in the province.

But Brabeck-Letmathe said governments are missing the link between biofuel and food.

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[Amber]

Yedlin: Alberta sticks to oil sands high road

Interesting how the world operates.

Canada -- despite its oilsands being vilified by shareholders, environmental groups and governments running economies the size of this country`s -- continues to take the high road when making the case for the embarrassment of oil riches in northern Alberta.

Instead of pointing the finger at BP and playing the relative `what`s worse?` card, everyone from the corporate world to the elected officials are being careful to make the case for the oilsands on its own merits.

In current terms, think of it this way: Syncrude`s 1,600 dead ducks pale in comparison to the devastation of marine life in the Gulf coast region that is going to be felt for years to come.

Those inclined to take the pugilistic approach would have long seized on the opportunity to point out the relative risk profiles of drilling in the deep waters of the Gulf versus operating close to the surface in the oilsands.

Instead, the message being delivered is one playing to the merits of the oilsands, the strength of Canada`s regulatory system while recognizing the macro challenges of the energy business.

That was certainly the case during an hour long discussion with Federal Environment Minister Jim Prentice last week and in evidence at noon on Tuesday when Canada`s ambassador to the U.S. -- Gary Doer -- spoke to a Calgary audience of energy and finance execs.

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