The Institute for Energy Economics and Financial Analysis (IEEFA) has released a report attacking the financial benefits of Teck’s Frontier Mine Project. They claim that the accounting that went into the calculations of these benefits was “misguided and reckless”. Even if oil doesn’t reach the $95 a barrel-like the IEA predicts, the economics at the more modest price in Teck’s shareholder presentation will still be profitable at the current cost of development. This is another shot across the bow at Alberta’s oil and gas industry by a group funded by foreign foundations such as the Rockefeller Brothers Fund and William & Flora Hewlett Foundation(notable for their participation in the ‘anti-tar sands’ campaign).
Here are some facts about the IEEFA and Teck’s Frontier project:
- Millions from the IEEFA’s funders have also been used to attack the Canadian oil and gas industry.
- Multiple Canadian experts have called the think tanks analyses into question before.
- Even if oil does not reach $95 a barrel, the modest price of $60-$70 per barrel is well within the current range for oil sands mining to be profitable.
- Regardless if there is a lower price of oil, Teck will still be a major economic driver providing jobs and taxes.
- All the First Nations in the surrounding area have signed agreements and support the project.
Instead of promoting their funders’ bias, the IEEFA should consider all the facts when it comes to reporting on Canadian hydrocarbon projects. This is clearly an attempt to change opinion in time for cabinet to make its final decision on the project. A foreign think tank should not be allowed the ability to influence regulatory approvals in Canada.