Canada Seeks Excemption for Oil Sands from US Law

The Economist notes that the Canadian government is now scrambling to secure an exception to The Energy Independence and Security Act 2007 over Canada’s dirty oil.

“The Act bans federal agencies from buying alternative or synthetic fuel, including that from non-conventional sources, if their production and use result in more greenhouse gases than conventional oil. Transforming Alberta’s tarry muck into a barrel of oil is an energy-intensive process that produces about three times the emissions of a barrel of conventional light sweet crude.”

“Michael Wilson, Canada’s ambassador in Washington, has written to America’s secretary of defence, Robert Gates (whose department is a big purchaser of Canadian oil), stressing American dependence on Canadian oil, electricity, natural gas and uranium imports, and noting that some of the biggest players in the Alberta oil patch are American companies.

Mr Wilson added plaintively that both George Bush and his energy secretary, Samuel Bodman, have publicly welcomed expanded oil-sands production, given the increased contribution to American energy security.

Although the Canadian embassy says that there has been no official response to Mr Wilson’s letter, there are reports of talks going on in Washington aimed at addressing Canada’s concerns. But even if a deal is reached with the outgoing Bush administration, any exception for Canada may be short-lived if the Democrats take the White House in November, although they may capitulate under oil industry pressure.