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Irving Oil exec not deterred by Energy East reviews, green-leaning government

WATCH: Mark Sherman, the head of Irving Oil, Canada's largest refinery, is urging the Trudeau government to speed up the environmental review into the proposed Energy East pipeline. But as Ross Lord reports, not everyone shares Sherman's enthusiasm – Mar 30, 2016

SAINT JOHN, N.B. — The prospect of an oil pipeline stretching from Alberta to Saint John, New Brunswick is exciting to Irving Oil’s chief operating officer.

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“I think from an infrastructure point of view, I liken it, in some ways, to other great historical projects that have been done in this country in the past” Mark Sherman told Global News in a rare interview.

“Whether it’s the railway, [or the] Trans-Canada Highway, those are fundamental game-changers for the country, in terms of the way commerce moves around, and the ease of transportation.”

The Energy East pipeline, proposed by TransCanada Corp., would transport about 1.1 million barrels of oil per day, stretch 4,600 kilometres from Alberta and Saskatchewan to the refineries of Eastern Canada and a marine terminal in Saint John.

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READ MORE: TransCanada asks Quebec judge to reject request for Energy East injunction

It would come at an estimated cost of $15.7-billion.

Primarily, it would provide an outlet for Canadian oil to world markets.

But it could also ease Canada’s dependence on foreign oil suppliers.

WATCH: Mark Sherman, the chief operating officer of Irving Oil, tells Global National’s Ross Lord what impact the proposed Energy East pipeline would have on Canada’s oil industry and oil prices.

The Irving refinery is Canada’s largest and currently imports almost 100 million barrels of crude oil per year — or about 310,000 barrels a day.

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It comes from a variety of sources including the North Sea, Saudi Arabia, western Africa, and the U.S. Gulf Coast.

The Energy East pipeline would bring 50,000 barrels Canadian oil there a day — possibly more.

It’s a sensible solution, according to Sherman.

“Fundamentally, as a Canadian, if I left Irving Oil out of it for a second, we have a great natural resource with oil,” he explained. “It seems certainly a shame… that we can’t get full value for that resource.”

Speaking in the same Saint John office where company founder K.C. Irving created his vast empire, Sherman resists criticizing the new federal government for adding an extra layer of environmental review for the pipeline.

READ MORE: N.B. energy minister unfazed by Quebec seeking injunction against Energy East pipeline

But, after repeated questioning about the Trudeau government’s position, he began to bristle.

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“There’s been several reviews and, yet, this is another one,” he said. “So, fair enough, let’s do it. Let’s do it right. Let’s do it quickly and responsibly.”

Dozens of groups that oppose the project hope it’s dropped entirely.

“We’re very concerned that investing in this type of fossil fuel infrastructure, at this time, will really blow our chances for meeting our greenhouse gas emission targets,” said Gretchen Fitzgerald, director of the Sierra Club Canada Foundation’s Atlantic chapter.

They Sierra Club and other environmental groups are not alone in their opposition to the pipeline.

The Quebec government has applied for an injunction to stop the pipeline, unless an environmental assessment is conducted in the province.

As the debate among other provinces becomes chippy, supporters say a pipeline means jobs — more than 2,000 in job-starved New Brunswick.

Proponents also tout cheaper prices for Canadian consumers.

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“If [refineries] get oil cheaper… that is reflected in the price they pay at the pump, or whatever oil they’re using [to] heat homes or otherwise,” said Terry Abel, Oil Sands Director for the Canadian Association of Petroleum Producers.

But Irving Oil is cautious about that, saying there are too many variables in the market to guarantee savings — even if the pipeline is established.

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