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magazine / ja04

July/August 2004 issue


À LA CARTE
 

Mixing water and oil
A renewed push to lift a 32-year-old moratorium on British Columbia's offshore oil-and-gas exploration is again pitting the economy against the environment
By Steven Fick and Elizabeth Shilts

British Columbia's offshore oil-and-gas exploration
Click map to enlarge

Through the 1950s and 1960s, the resource industry probed the sea floor off the coast of British Columbia for a possible El Dorado of oil and gas. In 1972, however, the federal government imposed a moratorium on all offshore drilling in the area, citing concerns over potential environmental impacts. Then, in the aftermath of Alaska's devastating Exxon Valdez oil spill in 1989, the province added its own moratorium, and Ottawa abruptly halted plans to reconsider its ban.

More recently, talk of lifting both moratoriums has resurfaced. With downturns in commercial salmon fisheries and forestry industries, the province is again looking out to sea for riches. The Geological Survey of Canada estimates that the Queen Charlotte Basin, the area with the most potential, could hold some 1.56 billion cubic metres of crude oil and 734 billion cubic metres of natural gas — about 10 times the amount expected from Newfoundland's Hibernia oil field.


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Hibernia and Sable Island, N.S., are the only offshore sites currently operating in Canada. Hibernia produces about 12 percent of the country's oil, and in 2002 alone, the oil industry pumped $1.3 billion back into Newfoundland and directly employed 2,880 people. Royalties from Sable Island are estimated at up to $2.3 billion over the reserve's 25-year lifespan.

Proponents of lifting the moratoriums cite the productive offshore operations in Alaska's Cook Inlet and off the southern California coast (right) as examples of viable seabed drilling closer to home.

Opponents — including federal Environment Minister and Victoria MP David Anderson, who wants part of the region made a protected marine park — say drilling here is risky because it is prone to earthquakes and some of the biggest waves and strongest winds on the coast. These conditions increase the chance of blowouts and spills, which could threaten the rich biota. They add that offshore exploration doesn't make much economic sense. Three of the biggest stakeholders in the region — Chevron, Petro-Canada and Shell — have no immediate plans to drill even if the moratoriums are lifted. Projects such as Hibernia have also required hefty government grants.

In February, a Royal Society report commissioned by the federal government to review the issue found no scientific reason oil and gas should not be explored off the B.C. coast. Nevertheless, Ottawa is holding a series of public hearings and consulting First Nations before making a final decision. The province, on the other hand, is ready to drill, pointing out in the 2003 throne speech that by 2010, British Columbia will "have an offshore oil-and-gas industry that is up and running, environmentally sound and booming with job creation."

Whales
  • About 12,000 grey whales migrate through Hecate Strait every year
  • Northern resident orcas forage and travel through the strait, Queen Charlotte Sound and the Dixon Entrance
  • Fish
  • Hecate Strait is a major breeding and fishing ground for crab, halibut, sole, brill and rock fish
  • The main areas under consideration for oil exploration account for more than half the landed value of all B.C.'s fishery products
  • Sponge reefs
  • Glass sponge reefs (Hexactinellids) were discovered in Hecate Strait and Queen Charlotte Sound in the late 1980s and are one of a kind in the world
  • Some of the reefs have already been harmed by fishing trawlers
  • Birds
  • An estimated 1.5 million seabirds nest along the Queen Charlotte Islands every summer
  • Dozens of migrating bird species stop on the islands, located along the Pacific flyway, in the spring and fall
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