Irving Oil urges caution in big energy projects
Last Updated: Wednesday, September 16, 2009 | 4:21 PM ET
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Irving Oil Ltd.'s chief executive officer issued a direct warning to regional premiers and governors on Tuesday to be wary of building costly energy infrastructure projects.
Kenneth Irving used a speech at the New England Governors and Eastern Canadian Premiers conference in Saint John to underscore to the political leaders that no one can predict the future of energy trends.
'Maybe that same corridor may have value at some point for a pipeline, or maybe it could be natural gas or maybe it could be a corridor for hydrogen or for gathering greenhouse gas for processing.'— Kenneth Irving, CEO, Irving Oil Ltd.
He did not offer specific examples, but warned against building large power projects that could turn into white elephants if energy trends suddenly change.
"Until we first of all pause, think it through, get everyone to participate and define what it is we want to accomplish, we will be tempted to follow something that I think could be regretful in some point in the future," Irving said.
One of the major projects in the region that is still in the preliminary stage is a nuclear reactor that would be run privately by a consortium led by Atomic Energy of Canada Ltd. and located next to NB Power's Point Lepreau nuclear generating station.
Irving also advised the leaders not to discount the potential role that petroleum products may play in the region's energy future.
Energy corridor
He also weighed in on the topic of an energy corridor concept that is being pitched by New Brunswick Premier Shawn Graham and Maine Gov. John Baldacci that would send power from their jurisdictions and into New England and New York.
"Maybe that same corridor may have value at some point for a pipeline, or maybe it could be natural gas or maybe it could be a corridor for hydrogen or for gathering greenhouse gas for processing," Irving said.
Graham seemed to endorse Irving's concept of a broader energy corridor as he explained how he saw the project moving forward.
"The energy corridor needs to be flexible in its construction so that we can look at opportunities pertaining to natural gas, hydrogen and other energy sources that will be developed as our economies advance," Graham said.
Baldacci said he has no problem adding nuclear and natural gas-generated power to the mix involved in any future energy corridor that passes through his northeastern state.
"It's a lot better than oil, it's a lot better than coal," he said.
"It doesn't have the carbon emissions. We think it is smarter. So we think there is an opportunity to utilize those fuels."
Baldacci has appointed a special panel to discuss the energy corridor through his state.
Renewable projects
Another topic high on the leaders' agenda was how to get renewable power, such as hydro, wind and tidal energy, into the New England marketplace.
David Coon, the policy director of the Conservation Council, said tough new environmental laws are behind the interest from governors and premiers in the topic.
"The primary reason the New England governors are interested in transmission is to make those renewables available to the New England utilities where the potential for renewables is nowhere near as large in New England as it is here," he said.
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