ENTERTAINED. MORE RECENTLY, THE GOVERNMENT HAS
ASKED THE NATIONAL ENERGY BOARD TO CALL A HEARING TO
DETERMINE THE LEVEL OF OIL EXPORTS THAT ARE CONSISTENT
WITH THE CANADIAN INTEREST. AS YOU KNOW, UP UNTIL
RECENTLY OIL EXPORTS FROM CANADA WERE NOT REGULATED
THERE.

THE ENVIRONMENTAL SPOKESMEN TESTIFYING HERE
YESTERDAY AFTERNOON STATED THAT CANADA WAS WILLING
TO INCREASE ITS OIL EXPORTS TO THE UNITED STATES
DURING THE CONSTRUCTION OF AN OIL PIPELINE FROM
PRUDHOE BAY. THIS STATEMENT IS OUT-OF-DATE AND
INCONSISTENT WITH THE CONCLUSIONS REACHED BY THE
NATIONAL ENERGY BOARD IN A RECENT STUDY DEALING WITH
OIL SUPPLY IN THAT COUNTRY. THIS STUDY WAS THE MAIN
FACTOR THAT LEAD TO A CURTAILMENT OF OIL EXPORTS FROM
CANADA TO THE UNITED STATES. IT SHOWED THAT CANADIAN
OIL PRODUCTION IN WESTERN CANADA WILL PEAK WITHIN THE
NEXT TWO YEARS.

ALTHOUGH MANY PEOPLE BANDY ABOUT THE POSSIBILITIES OF THE ATHABASCA TAR SANDS CONTRIBUTING SIGNIFICANTLY TO OIL PRODUCTION IN CANADA, CURRENTLY, ONLY ONE SMALL PLANT WITH AN OUTPUT OF 40,000 BARRELS PER DAY IS IN EXISTENCE. ONE MORE PLANT WITH A CAPACITY OF 125,000 BARRELS PER DAY IS BEING PLANNED AT PRESENT. EXPERT WITNESSES IN OTTAWA HAVE TESTIFIED THAT EACH TAR SANDS PLANT WILL TAKE THREE YEARS TO DESIGN AND CONSTRUCT. THE PLANT REFERRED TO ABOVE IS NOT EXPECTED TO BE IN

PRODUCTION FOR THREE TO FOUR YEARS. EVEN THEN THE 125,000 BARRELS PER DAY OF NEW CAPACITY WILL DO

VERY LITTLE TO ALLEVIATE OIL SHORTAGES WHETHER THEY BE IN CANADA OR THE UNITED STATES. EACH TAR SANDS PLANT, BY THE WAY, WILL COST WELL OVER ONE-HALF BILLION DOLLARS,

I WOULD ALSO LIKE TO MAKE SOME STATEMENTS WITH
REFERENCE TO THE MACKENZIE VALLEY RESEARCH LIMITED
REPORT SUBMITTED HERE YESTERDAY. IT IS AN EXCELLANT
STUDY PERTAINING TO THE ENGINEERING, ECONOMIC, AND
ENVIRONMENTAL FEASIBILITY OF AN OIL PIPELINE DOWN THE
MACKENZIE DELTA CORRIDOR. FEW WOULD ARGUE THAT AN
OIL PIPELINE CANNOT BE BUILT THERE. HOWEVER, AS I
TRIED TO DISCUSS WITH YOU TODAY THERE ARE SERIOUS
PROBLEMS ASSOCIATED WITH BUILDING AN OIL LINE IN
CANADA THAT ARE ABOVE AND BEYOND THE CONSIDERATIONS
OF THAT REPORT. SOME OF THESE PROBLEMS ARE QUITE
UNIQUE TO THE CANADIAN SITUATION, SUCH AS THE
CANADIAN CONTENT CONSTRAINT, THE CANADIAN OWNERSHIP
CONSTRAINT AND THE BALANCE OF PAYMENTS PROBLEM THAT
CANADA WOULD FACE IF IT WERE TO ATTEMPT TO BUILD TWO
PIPELINES DOWN THE DELTA CORRIDOR AT THE SAME TIME.
THE 3RD- CONCLUSION OF THE SUMMARY REPORT PRESENTED
HERE YESTERDAY IS THE ONE THAT I CONSIDER ILL-FOUNDED.
HOW CAN WE ASSUME GOVERNMENT APPROVALS WOULD BE

GRANTED WITHIN FIVE YEARS LET ALONE WITHIN THE FIRST
YEAR. I CERTAINLY AGREE THAT A SECOND OIL LINE
FROM THE ARCTIC SHOULD COME DOWN THE MACKENZIE DELTA

IF THAT IS POSSIBLE. BUT IF WE DO NOT MOVE AHEAD
ON THE TRANS-ALASKA PIPELINE WE WILL BE SETTING BACK

THE TIMETABLE FOR INITIAL OIL DELIVERIES FOR MANY

YEARS. WE CANNOT AFFORD TO DO THIS.

IT HAS BEEN POINTED OUT THAT THE MIDWEST IS AN OIL DEFICIENT AREA. IT ALSO HAPPENS TO BE A SEVERELY

GAS DEFICIENT ONE. THE CURRENT GAS SHORTAGE IS PROPOUNDING AS MORE AND MORE PROSPECTIVE GAS

THE OIL SHORTAGE.

CUSTOMERS AND EXISTING INTERRUPTABLE GAS CUSTOMERS

ARE FORCED TO TURN TO OIL, THE OIL SHORTAGE GETS MORE
SERIOUS. BY APPROVING THE TRANS-ALASKA PIPELINE WE
WILL LIKELY BE ABLE TO GET EARLIER DELIVERY OF GAS TO
THE MIDWEST AREA FROM CANADA AND ALASKA.

IN CONCLUSION IT IS EXTREMELY NAIVE OF US TO THINK
THAT WE CAN SOLVE OUR PROBLEMS BY HANDING THEM OVER TO
THE CANADIANS. ENVIRONMENTAL ISSUES DON'T DIE WHEN
THEY CROSS BORDERS. INDIAN CLAIMS ARE NOT SETTLED BY
GOVERNMENT STATEMENTS THAT THEY ARE WILLING TO NEGOTIATE.
BEFORE ANY PIPELINE IS BUILT IN CANADA THE NATIONAL
ENERGY POLICY OF THAT COUNTRY MUST BE FORM'JLATED,
LENGTHY HEARINGS MUST BE COMPLETED BEFORE THE NATIONAL
ENERGY BOARD AND THE DEPARTMENT OF INDIAN AFFAIRS AND
NORTHERN DEVELOPMENT, AND FINALLY, THE CANADIAN
GOVERNMENT MUST GIVE A FINAL GO AHEAD.
SOUND LIKE A SHORT-TERM DELAY TO YOU?

DOES THIS

A TEN YEAR DELAY WILL RESULT FROM SUBSTITUTION OF A TRANS CANADIAN OIL PIPELINE FOR A

TRANS-ALASKAN OIL PIPELINE

Prepared and Distributed By:

BP Alaska, Inc.

270 Park Avenue New York, New York

A TEN YEAR DELAY WILL RESULT FROM SUBSTITUTION OF A
TRANS CANADIAN OIL PIPELINE FOR A TRANS-ALASKAN LINE

Some of the opponents of the Trans-Alaskan Pipeline (TAP)

are fundamentally opposed to any and all development of the Alaskan North Slope. If the companies which own the North Slope reserves dropped TAP, and requested permission to construct a Trans-Canadian pipeline (TCP) they would be met with as much opposition and delay, by many of the same opponents, as has been mounted against TAP.

Even if there were no legal delays to TCP, such as the present injunction proceeding lodged against TAP, it would be impossible to build TCP, as a replacement for TAP, in a time frame that would be acceptable to most Americans, given the present energy crisis. If TAP is completed, as planned, in 1977 it will have taken eight (8) years from commencement of planning to completion of the line. The Canadian Arctic Gas line will have taken eleven (11) years to complete. The transCanadian oil pipeline, which is twice as long as TAP merely for the first leg to Edmonton, is no further along than the