After Keystone XL Decision, Canada Faces More than Political Barriers in Getting Oilsands to Market

Pembina Institute
As the news broke on the afternoon of Jan. 18 that the U.S. government had denied the application of the proposed Keystone XL pipeline, speculation quickly followed about the future of the proposed Northern Gateway pipeline—a controversial and risky project that would see oilsands crude piped to the craggy northwest coast of British Columbia, then shipped by tanker to overseas markets.
The speculation was no-doubt driven by Prime Minister Stephen Harper’s response to the decision, in which he reiterated Canada’s intentions to find new customers for oilsands outside the U.S. (Harper had, until recently, called the approval of the Keystone XL pipeline a ‘complete no-brainer’ and his government has become a vocal proponent of the Northern Gateway project as well.)
As the pipeline debate on this side of the border shifts to the fate of the Northern Gateway proposal, the U.S. government’s rejection of the Keystone project shows that Canada faces real barriers in getting oilsands to market—and, despite what some pundits say, those barriers are not just political.
Not just an issue of access
Access to markets isn’t the only challenge facing the oilsands. Access to investment capital is a critical component to an industry with incredibly high start-up costs. Imperial Oil’s Kearl Mine is a case in point, with the total budget now ballooning to a record $28.5 billion.
In a 2010 report by the Fraser Institute on barriers to energy development in North America, the authors concluded that uncertainty around environmental regulations is very likely to cause some investors to be cautious about investing in the oilsands.
Businesses thrive when they have a predictable regulatory environment, and the oilsands industry is no different. The heads of companies need to know, for example, what royalties will need to be paid, what labour laws they must consider, and what accounting standards they will be required to follow.
The problem for the oilsands industry is there are many environmental aspects of operations that do not yet have clear regulations, such as tailings management, greenhouse gas emissions, reclamation, species at risk, wetlands and regional planning. This lack of regulation, and the resultant environmental challenges, is the driving factor behind the poor reputation Canada has internationally when it comes to energy development. Meantime, federal-provincial jurisdictional battles add to the lack of clarity.
Rather than constantly playing defense, Canada could proactively address our customers’ concerns about the impacts of oilsands development by improving how environmental issues are regulated. If the federal and Alberta governments could provide more certainty about their expectations of how the oilsands are to be managed environmentally—and ensure those standards are being met—then the oilsands may start to look like a more attractive investment, and a more attractive product.
The Harper government’s efforts to wield the threat of shipping to Asia as a political club against the U.S. is not new—although, following the Jan. 18 surprise decision, the Premier of Alberta also played up the prospects of taking oilsands elsewhere. A steady increase in Chinese demand for oilsands crude in the future is taken as a given among energy circles in Calgary, and to question otherwise is to challenge orthodoxy.
Playing China as an economic trump card appears rather presumptuous, however, given increasing concern that the oilsands are losing fashion in China. And it’s likely the current challenges facing the development of oilsands pipelines are not increasing optimism among potential customers in Beijing.
Compared to what we have to offer in Canada, China has access to higher-quality hydrocarbons from much closer sources. Even the chief energy researcher for a state-owned Chinese oil company agrees—“The oil sands are too costly and too polluting. Gas has a brighter future…Shale gas is much cheaper and cleaner.”
What’s the rush?
The denial of Keystone XL "only will embolden those opposed to Gateway and other new project developments," said Enbridge CEO Pat Daniels. Despite the long faces from some proponents of oilsands pipelines, there’s no rush to push these projects ahead. Alberta will not be landlocked in bitumen for at least another eight years, given industry production forecasts and current pipeline capacity. Moreover, some of the existing pipelines can be twinned or additional pump stations built to increase throughput.
From a capacity perspective, the argument for Gateway in a world without Keystone XL is weak.
Economic arguments in perspective
It is hard to miss the drumbeat of the economists in favour of Gateway these days, most of whom cite the benefits of diversifying export markets. Indeed, many Canadian and foreign-owned oilsands companies stand to benefit from the project.
But while economic diversification on its own is a sound and prudent economic principle, it is critical to consider the broader picture.
The Obama administration considered more than simply the economic aspects of the Keystone XL pipeline. They also listened to and considered the perspectives of a host of Americans that had real concerns about the pipeline and the oil that it would be shipping.
In the same way, the Harper government would be wise to learn from Keystone XL and consider multiple perspectives, including those labeled as ‘radical’. First Nations, British Columbians and environmental organizations are not radical for wanting to have a balanced and credible review process that is informed by more than the private economic interests of a handful of oil companies.
Due public process is critical to making an informed decision. For one thing, the process for Keystone XL showed that energy companies are capable of responding to public concerns and adjusting their plans when required to by a government that takes those concerns seriously.
The Obama administration’s decision to reject the Keystone XL application ought to be a clarion call for the Canadian government to ensure due process is respected for the Gateway hearings. Only by thoroughly examining the risks, along with the benefits, of the proposed Gateway pipeline can the government arrive at a decision that will be in the interest of Canadians.
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A Healthy Microbiome Builds a Strong Immune System That Could Help Defeat COVID-19
By Ana Maldonado-Contreras
Takeaways
- Your gut is home to trillions of bacteria that are vital for keeping you healthy.
- Some of these microbes help to regulate the immune system.
- New research, which has not yet been peer-reviewed, shows the presence of certain bacteria in the gut may reveal which people are more vulnerable to a more severe case of COVID-19.
You may not know it, but you have an army of microbes living inside of you that are essential for fighting off threats, including the virus that causes COVID-19.
How Do Resident Bacteria Keep You Healthy?
<p>Our immune defense is part of a complex biological response against harmful pathogens, such as viruses or bacteria. However, because our bodies are inhabited by trillions of mostly beneficial bacteria, virus and fungi, activation of our immune response is tightly regulated to distinguish between harmful and helpful microbes.</p><p>Our bacteria are spectacular companions diligently helping prime our immune system defenses to combat infections. A seminal study found that mice treated with antibiotics that eliminate bacteria in the gut exhibited an impaired immune response. These animals had low counts of virus-fighting white blood cells, weak antibody responses and poor production of a protein that is vital for <a href="https://doi.org/10.1073/pnas.1019378108" target="_blank">combating viral infection and modulating the immune response</a>.</p><p><a href="https://doi.org/10.1371/journal.pone.0184976" target="_blank" rel="noopener noreferrer">In another study</a>, mice were fed <em>Lactobacillus</em> bacteria, commonly used as probiotic in fermented food. These microbes reduced the severity of influenza infection. The <em>Lactobacillus</em>-treated mice did not lose weight and had only mild lung damage compared with untreated mice. Similarly, others have found that treatment of mice with <em>Lactobacillus</em> protects against different <a href="https://doi.org/10.1038/srep04638" target="_blank" rel="noopener noreferrer">subtypes of</a> <a href="https://doi.org/10.1038/s41598-017-17487-8" target="_blank" rel="noopener noreferrer">influenza</a> <a href="https://doi.org/10.1371/journal.ppat.1008072" target="_blank" rel="noopener noreferrer">virus</a> and human respiratory syncytial virus – the <a href="https://doi.org/10.1038/s41598-019-39602-7" target="_blank" rel="noopener noreferrer">major cause of viral bronchiolitis and pneumonia in children</a>.</p>Chronic Disease and Microbes
<p>Patients with chronic illnesses including Type 2 diabetes, obesity and cardiovascular disease exhibit a hyperactive immune system that fails to recognize a harmless stimulus and is linked to an altered gut microbiome.</p><p>In these chronic diseases, the gut microbiome lacks bacteria that activate <a href="https://doi.org/10.1126/science.1198469" target="_blank" rel="noopener noreferrer">immune cells</a> that block the response against harmless bacteria in our guts. Such alteration of the gut microbiome is also observed in <a href="https://doi.org/10.1073/pnas.1002601107" target="_blank" rel="noopener noreferrer">babies delivered by cesarean section</a>, individuals consuming a poor <a href="https://doi.org/10.1038/nature12820" target="_blank" rel="noopener noreferrer">diet</a> and the <a href="https://doi.org/10.1038/nature11053" target="_blank" rel="noopener noreferrer">elderly</a>.</p><p>In the U.S., 117 million individuals – about half the adult population – <a href="https://health.gov/our-work/food-nutrition/2015-2020-dietary-guidelines/guidelines/" target="_blank" rel="noopener noreferrer">suffer from Type 2 diabetes, obesity, cardiovascular disease or a combination of them</a>. That suggests that half of American adults carry a faulty microbiome army.</p><p>Research in my laboratory focuses on identifying gut bacteria that are critical for creating a balanced immune system, which fights life-threatening bacterial and viral infections, while tolerating the beneficial bacteria in and on us.</p><p>Given that diet affects the diversity of bacteria in the gut, <a href="https://www.umassmed.edu/nutrition/melody-trial-info/" target="_blank" rel="noopener noreferrer">my lab studies show how diet can be used</a> as a therapy for chronic diseases. Using different foods, people can shift their gut microbiome to one that boosts a healthy immune response.</p><p>A fraction of patients infected with SARS-CoV-2, the virus that causes COVID-19 disease, develop severe complications that require hospitalization in intensive care units. What do many of those patients have in common? <a href="https://www.cdc.gov/mmwr/volumes/69/wr/mm6912e2.htm" target="_blank" rel="noopener noreferrer">Old age</a> and chronic diet-related diseases like obesity, Type 2 diabetes and cardiovascular disease.</p><p><a href="http://doi.org/10.1016/j.jada.2008.12.019" target="_blank" rel="noopener noreferrer">Black and Latinx people are disproportionately affected by obesity, Type 2 diabetes and cardiovascular disease</a>, all of which are linked to poor nutrition. Thus, it is not a coincidence that <a href="https://www.cdc.gov/mmwr/volumes/69/wr/mm6933e1.htm" target="_blank" rel="noopener noreferrer">these groups have suffered more deaths from COVID-19</a> compared with whites. This is the case not only in the U.S. but also <a href="https://www.washingtonpost.com/world/europe/blacks-in-britain-are-four-times-as-likely-to-die-of-coronavirus-as-whites-data-show/2020/05/07/2dc76710-9067-11ea-9322-a29e75effc93_story.html" target="_blank" rel="noopener noreferrer">in Britain</a>.</p>Discovering Microbes That Predict COVID-19 Severity
<p>The COVID-19 pandemic has inspired me to shift my research and explore the role of the gut microbiome in the overly aggressive immune response against SARS-CoV-2 infection.</p><p>My colleagues and I have hypothesized that critically ill SARS-CoV-2 patients with conditions like obesity, Type 2 diabetes and cardiovascular disease exhibit an altered gut microbiome that aggravates <a href="https://theconversation.com/exercise-may-help-reduce-risk-of-deadly-covid-19-complication-ards-136922" target="_blank" rel="noopener noreferrer">acute respiratory distress syndrome</a>.</p><p>Acute respiratory distress syndrome, a life-threatening lung injury, in SARS-CoV-2 patients is thought to develop from a <a href="http://doi.org/10.1016/j.cytogfr.2020.05.003" target="_blank" rel="noopener noreferrer">fatal overreaction of the immune response</a> called a <a href="https://theconversation.com/blocking-the-deadly-cytokine-storm-is-a-vital-weapon-for-treating-covid-19-137690" target="_blank" rel="noopener noreferrer">cytokine storm</a> <a href="http://doi.org/10.1016/S2213-2600(20)30216-2" target="_blank" rel="noopener noreferrer">that causes an uncontrolled flood</a> <a href="http://doi.org/10.1016/S2213-2600(20)30216-2" target="_blank" rel="noopener noreferrer">of immune cells into the lungs</a>. In these patients, their own uncontrolled inflammatory immune response, rather than the virus itself, causes the <a href="http://doi.org/10.1007/s00134-020-05991-x" target="_blank" rel="noopener noreferrer">severe lung injury and multiorgan failures</a> that lead to death.</p><p>Several studies <a href="https://doi.org/10.1016/j.trsl.2020.08.004" target="_blank" rel="noopener noreferrer">described in one recent review</a> have identified an altered gut microbiome in patients with COVID-19. However, identification of specific bacteria within the microbiome that could predict COVID-19 severity is lacking.</p><p>To address this question, my colleagues and I recruited COVID-19 hospitalized patients with severe and moderate symptoms. We collected stool and saliva samples to determine whether bacteria within the gut and oral microbiome could predict COVID-19 severity. The identification of microbiome markers that can predict the clinical outcomes of COVID-19 disease is key to help prioritize patients needing urgent treatment.</p><p><a href="https://doi.org/10.1101/2021.01.05.20249061" target="_blank" rel="noopener noreferrer">We demonstrated</a>, in a paper which has not yet been peer reviewed, that the composition of the gut microbiome is the strongest predictor of COVID-19 severity compared to patient's clinical characteristics commonly used to do so. Specifically, we identified that the presence of a bacterium in the stool – called <em>Enterococcus faecalis</em>– was a robust predictor of COVID-19 severity. Not surprisingly, <em>Enterococcus faecalis</em> has been associated with <a href="https://doi.org/10.1053/j.gastro.2011.05.035" target="_blank" rel="noopener noreferrer">chronic</a> <a href="https://doi.org/10.1016/S0002-9440(10)61172-8" target="_blank" rel="noopener noreferrer">inflammation</a>.</p><p><em>Enterococcus faecalis</em> collected from feces can be grown outside of the body in clinical laboratories. Thus, an <em>E. faecalis</em> test might be a cost-effective, rapid and relatively easy way to identify patients who are likely to require more supportive care and therapeutic interventions to improve their chances of survival.</p><p>But it is not yet clear from our research what is the contribution of the altered microbiome in the immune response to SARS-CoV-2 infection. A recent study has shown that <a href="https://doi.org/10.1101/2020.12.11.416180" target="_blank" rel="noopener noreferrer">SARS-CoV-2 infection triggers an imbalance in immune cells</a> called <a href="https://doi.org/10.1111/imr.12170" target="_blank" rel="noopener noreferrer">T regulatory cells that are critical to immune balance</a>.</p><p>Bacteria from the gut microbiome are responsible for the <a href="https://doi.org/10.7554/eLife.30916.001" target="_blank" rel="noopener noreferrer">proper activation</a> <a href="https://doi.org/10.1126/science.1198469" target="_blank" rel="noopener noreferrer">of those T-regulatory</a> <a href="https://doi.org/10.1038/nri.2016.36" target="_blank" rel="noopener noreferrer">cells</a>. Thus, researchers like me need to take repeated patient stool, saliva and blood samples over a longer time frame to learn how the altered microbiome observed in COVID-19 patients can modulate COVID-19 disease severity, perhaps by altering the development of the T-regulatory cells.</p><p>As a Latina scientist investigating interactions between diet, microbiome and immunity, I must stress the importance of better policies to improve access to healthy foods, which lead to a healthier microbiome. It is also important to design culturally sensitive dietary interventions for Black and Latinx communities. While a good-quality diet might not prevent SARS-CoV-2 infection, it can treat the underlying conditions related to its severity.</p><p><em><a href="https://theconversation.com/profiles/ana-maldonado-contreras-1152969" target="_blank">Ana Maldonado-Contreras</a> is an assistant professor of Microbiology and Physiological Systems at the University of Massachusetts Medical School.</em></p><p><em>Disclosure statement: Ana Maldonado-Contreras receives funding from The Helmsley Charitable Trust and her work has been supported by the American Gastroenterological Association. She received The Charles A. King Trust Postdoctoral Research Fellowship. She is also member of the Diversity Committee of the American Gastroenterological Association.</em></p><p><em style="">Reposted with permission from <a href="https://theconversation.com/a-healthy-microbiome-builds-a-strong-immune-system-that-could-help-defeat-covid-19-145668" target="_blank" rel="noopener noreferrer" style="">The Conversation</a>. </em></p>By Jeff Masters, Ph.D.
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