Myths and Realities about Petroleum-Related Development: Lessons for British Columbia from Atlantic Canada and the North Sea

Abstract

The government of British Columbia has recently agreed to lift the moratorium on offshore petroleum exploration on Canada’s west coast, and the federal government has been asked to follow suit. There is a strong possibility, therefore, that drilling for oil and gas offshore British Columbia will begin in the near future. Some coastal communities, hard-hit by resource problems in forestry and fisheries with attendant unemployment and out-migration, have been lobbying in favour of lifting the moratorium, while environmentalists and some First Nations people have been lobbying equally as hard for its continuance. Predicated on the assumption that BC may well be on the verge of developing an offshore petroleum industry, this article essay explores several issues related to the development of such an industry. It poses the question: if the province is to develop an offshore oil and gas industry, how should it go about it in as environmentally and socially responsible a way as possible? Fortunately for British Columbia, two provinces on Canada’s east coast, Newfoundland and Labrador, and Nova Scotia, already have established offshore petroleum industries. They have a 40-year history of experiences in both the exploration and production phases of offshore development. This essay provides an overview of the Atlantic Canadian and North Sea experiences. It argues that it is, in principle at least, feasible to manage offshore developments in a socially and environmentally responsible way, and in such a way that local people and communities, including First Nations, can be beneficiaries. There is nothing automatic about this, however. It will require enlightened governance at both the provincial and federal level, and a willingness to devolve to effected communities enough decision-making authority to negotiate with the oil companies from a position of strength. Success will depend on local people becoming well informed about the industry and taking the lead in determining the conditions under which development can proceed.