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Climate Policies Could Threaten Canada’s Supply Chain

Canadian Fuels Association warns that climate change policies will impact oil exports and imports.
February 16, 2017

​OTTAWA, Ontario – This week, the Canadian Fuels Association issued a warning that current climate change policies in Canada and the United States could impact Canada’s fuel supply. Peter Boag, association president and CEO, thinks that the key to Canada’s reliable fuel supply “has been a healthy, competitive Canadian refining industry—part of Canada’s critical energy infrastructure—that produces more than enough fuel to meet Canadians’ needs. Indeed, for years Canada has been a net exporter of fuels, with the United States being the country’s most important export market.”

In his February commentary posted on the association’s website, Boag wrote that he sees “diverging Canada-U.S. climate policies as a potential bump in the road that could change this situation, jeopardizing fuel supply reliability and making Canadians dependent on fuel imports by putting us at the mercy of a long supply chain—much of it out of our control.”

He pointed out that Canadian refineries might have to contend with increased carbon taxes and regulations that could squeeze some out of business. “When everything works right, it will be ‘painless’ to Canadians (except for those whose refinery and related jobs have disappeared). But when unforeseen circumstances or events occur that disrupt the supply chain (geopolitical events, natural disasters, etc.) we won’t likely be the top priority for our out-of-country suppliers. …

“Add another bump in the road such as the potential for U.S. protectionist measures like a border adjustment tax, and our reliable domestic supply of essential transportation fuels could even more quickly become something from the past. In these uncertain times, Canadian political leaders need to balance their GHG reduction aspirations with the broader interests of Canadians, including reliable access to fuels.”