OTTAWA, ON. – FSJ for LNG Founder Alan Yu was in Ottawa in early October to submit his testimony on the effects of transitioning to a low carbon economy and carbon tax.
Yu testified via document submission on how the transition to a low carbon economy will impact the oil and gas industry in Northeast B.C.
Yu said, “I was originally asked to testify to the Senate Standing Committee on Energy, the Environment and Natural resources in regards to the Oil and Gas Industry. However that changed to a document submission at the last minute and my flight was already booked. I then met with policy advisers from across Canada as earlier that day Trans-Canada announced their withdrawal from the Energy East Pipeline.”
He stated in his meeting with advisors about how two projects could have created thousands of jobs in Canada and pump billions into the economy.
Yu added, “When the TransCanada withdrew from the Energy East Pipeline it strengthened the point I was trying to make to the Senate in my testimony. The main point of which was that oil and gas projects are subjected to delays and regulations that project proponents walk away from in Canada. For example, the Pacific North West Energy LNG and the Energy East Pipeline would have safely transported Canadian Oil to eastern parts of Canada instead of the alternative involving transport oil on trains from other parts of the world.”
He believes the reason the two projects were withdrawal isn’t because the price of oil and gas is too low, but because of the continuous regulatory delays. As an example, Yu points out pipelines south of the border are being built right now and going to the same destinations in Asia.
According to Yu TransCanada said, “A month before they backed out that the federal review of the upstream and downstream components of the Energy East made them review the Energy East Pipeline project.”
Carbon taxation was also something Yu brought up as a concern since northern residents are affected by the taxation due to the fact that we tend to use more hydrocarbons to heat our homes, dry our crops and operate our farm machinery compared to those in southern B.C. He feels a carbon tax will make our living expenses increase.