REFILE-EU might not condemn tar sands oil as dirty-Canada

Tue Oct 18, 2011 7:26pm GMT
 

* Canada sees "good chance" EU will back away from plan

* Canada worried about negative image of tar sands

* Says senseless to single out tar sands crude

By David Ljunggren

OTTAWA, Oct 18 (Reuters) - The European Union could yet reject a proposal to classify crude from Alberta's tar sands as dirty oil, the Canadian energy minister Joe Oliver said on Tuesday, a move which would potentially boost Canada's hopes of becoming a key global energy supplier.

As part of a plan to cut greenhouse gas emissions, the EU's executive commission wants to single out crude from the enormous northern Alberta oil sands as being particularly energy-intensive to produce.

Canada's Conservative government fears this could limit the future market for tar sands crude and blur the message that Canada is, in Oliver's words, a reliable energy superpower which will develop the sands in a socially responsible way.

Speaking to Reuters in an interview, Oliver insisted that a move to single out oil sands crude made no sense from a scientific point of view and would concern European firms who have invested heavily in the industry.

"We definitely don't think we've lost ... there's a good chance because we believe science is on our side," he said shortly before flying to Europe to press home the Canadian government's message. "This is far from over."   Continued...

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