We’ve been given a reprieve, for now.
For months, there has been worried speculation in Alberta that a new U.S. law could seriously affect the export of oilsands-derived fuels.
Section 526 of the U.S. Energy Independence Act of 2007 could be seen to ban all federal government agencies from purchasing fuel produced from non-conventional petroleum sources, including the oilsands.
While the law extends “only” to U.S. government buyers, that takes in a wide swath. By itself, the Defence Department is the world’s largest-single purchaser of refined petroleum.
In fact, the controversial section of the act was apparently crafted expressly to target U.S. Air Force plans to build its own carbon-intensive coal-to-liquid plants, also now banned.
The spectre of the new legislation sent up flags throughout Canada.
Premier Ed Stelmach publicly criticized it on a recent trip to Washington, gently but firmly announcing that we would find other customers if our petroleum products weren’t wanted by our neighbours. Last month, Canadian ambassador Michael Wilson wrote to senior American officials asking for an oilsands exemption.
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