In the December issue of my newsletter “The Stimulator”, we observed that the topics of fracking and pipelines had been in the news almost constantly in recent months.
We also noted that, at their heart, these are ‘water’ issues . Fracking and its potential to damage groundwater quality; Pipelines and concerns about damage to watersheds in the event of breaks and leaks, and oil spills in coastal waters.
Peter Tertzakian is the chief energy economist and managing director of ARC Financial Corp and the best-selling author of ‘A Thousand Barrels A Second’ and ‘The End of Energy Obesity’.
In a year end column for the Financial Post (which also appeared in the Calgary Herald), he reviews his ‘10 most important trends, influences and issues that will shape the business in 2012 and beyond’.
(Perhaps it’s no surprise that a Globe & Mail piece on the same topic listed these same two issues in their article ‘Six energy trends to watch in 2012’).
Here are Peter Tertzakian’s #2 and #7 trends:
2. Fracking fracas. Stories of groundwater contamination, earthquakes and fire-breathing kitchen sinks won't end with the turn of the calendar. Instead, they will increase in frequency. Tighter regulations for hydraulic fracturing are likely to gain momentum in publicly sensitive North American jurisdictions, mostly in places without a long history of regulating the pro-cess. In Canada, most companies are innovating quickly, adopting environmentally responsible practices ahead of an already stringent regulatory curve. Those that don't will be fracked out of business.
7. Pipeline pondering: Northern Gateway the next flashpoint. The Keystone XL (KXL) pipe-line saga was a warm-up act for 2012. President Barack Obama must decide the fate of the KXL within 60 days. That's significant enough, but the bigger story of 2012 will be the public hearings on the Enbridge Gateway oil pipeline to the B.C. coast. Both KXL and Gateway are contentious, and their fates in 2012 will mark turning points in the industry for years to come.
No comments:
Post a Comment