Lethbridge Herald, The (Newspaper) - December 20, 1973, Lethbridge, Alberta
A responsible energy policy for Canada inc. Editor's The energy crisis has been discussed from nearly every viewpoint that of the the the environmen- the politician. Richardson whose main interest is that of the Canadian prepared this statement for its customers. Recent world name- ly the Arab-Israeli war and the cut-back in oil production by the Arab have accentuated energy and in some cases created a in virtually every in- dustrialized nation in the non- Communist bloc. In the case of Europe and which are lacking in domestic the present crisis was largely unavoidable. In the United the is only partly related to Arab cut-backs and could have and should have largely been avoided. Artificially low prices for oil and natural gas. partially the result of government discouraged new exploration and development and at the same time encouraged the wasteful use of energy. This artificially inflated demand had to be met by ever increasing imports of which in the current year will account for one-third of total oil consump- tion in the United States. The. growing disparity between United States supply and de- aggravated by the activities of environmen- talists who to successfully blocked the Alaskan oil and prevented the construction of badly needed refining and port and the exploration of the continental shelf of the United States. In addition to the supply problem the increasing reliance on im- ported energy has placed a heavy and growing strain on the United States balance of payments. The past policies of .the United States and the situation they have created provides a clear object lesson for Canadians. Currently. Canada is in the very enviable position of producing more oil than it consumes. As a result of the National Oil Policy establish- ed in 1961. markets west of the Ottawa Valley have been reserved for Western Cana- dian crude and those east of that line have been served by offshore imports. Western Canadian in ex- cess of the consumption of dedicated has found a reluctant but now a ready market in the United States. The availability of these markets in the United States was a major factor in the development of the petroleum industry in Western Canada. However. Canada is destin- ed to become a net importer of oil at the end of this or early in the 1980s if new Canadian reserves are not dis- covered developed. Simplistically Canada is at the stage the United States was in the in that we are probably already eating into the lead time re- quired todiscover.developand bring new supplies to market. This task must therefore be granted the highest priority by the federal and provincial governments and the appropriate policies and regulations developed to en- sure that exploration and development is carried on as expeditiously and as rational- ly as possible. As we are particularly concern- ed about the aspects of energy develop- ment and especially the piecemeal policies and the ap- parent lack of co-operation among all levels of govern- ment and the petroleum in- dustry. Canada must discover and bring to market new oil and natural gas and br- ing into production known reserves such as the Athabaska Tar Sands. In order to do so effectively and ef- a high order of co- operation is necessary among the federal the provincial the petroleum and the United States. It is appropriate to consider what factors Canadian energy policies and regulations must for The need for a continui- ty of supply of oil and natural gas. The long lead time re- quired from the exploration to production phase a period of 15 years or more is not un- common. The magnitude of some energy in relation to growth in domestic energy re- is such that they can probably only be developed on a co-ordinated basis with the United e.g.. the proposed Mackenzie Valley gas pipeline. The high risk involved. This risk has several dimen- sions exploration success the high costs of exploration and production in remote the availability of ready markets and the eventual wellhead The economic environ- ment must reflect these risks. The latter requires some enlargment. The petroleum after having assess- ed the ''geological Fact and fiction The petroleum industry has been subjected to criticism in regard to four major the energy the level of tax excess and recent increases in price. Let us examine each of these points fac- The criticism of or profits during 1973 fails to take into ac- count the increased rate of sales of finite and the cost of replacing that inventory. Due to the high degree of foreign ownership of the Canadian petroleum in- dustry there is a general belief that the increases in the price of crude oil go to enrich foreign owners. Of each increase in the price of crude approximately 85 cents remains in and of the latter amount 50-60 cents goes to the federal and provincial governments in the form of cor- porate income dividend withholding and income taxes on dividends to Cana- dian shareholders. The level of income taxes paid by the industry is frequently criticized. What has been overlooked is that under provisions of the tax profits are subject to income tax only after costs have been recovered. Up until the level of production relative to reserves has been therefore cost recovery has been slow in being realized. income taxes paid during 1973 have increased significantly because of increased reserve and this trend towards higher tax payment .will continue. There is no over-all shortage of energy in or the world for that but rather there is a definite scarcity of low-cost energy. Canada's total recoverable inventory of oil and gas proven and has been estimated to be the equivalent of 561 billion barrels of oil. To date total cumulative Cana- dian production has been about 10 billion less than two per cent of the total. The current wellhead price of a gallon of Canadian crude is approximately 11 cents and the reserves of oil available at that price are definitely limited. estimates contained in Energy Policy for Canada Phase suggest that a price of 20 cents per gallon would make available 60-85 billion barrels of oil. By way of total Canadian oil consumption in Canada this year will be approximately 650 million barrels. There has been a general tendency to lament the high cost of and to infer that the oil companies are somehow at fault. The facts are of the total retail sales price of a gallon of the dealer's margin is about 10 combined federal and provincial tax ranges from 18 to 28 cents depending on the and the oil com- pany receives about 26 cents from which it among other pay royalties and income taxes. The latter figure is approx- imately 25 per cent higher than it was 25 years ago in 1948. It is interesting to note that over this same period wages and salaries have quadrupled and the general wholesale index has doubled. Get in on the gold rush Our Golden Touch. Every week more people who appreciate fine Canadian whisky are discovering and staying with it. A mellow taste. The unmistakable smoothness of a perfectly blended whisky. Join the gold what's fast becoming one of Alberta's favourite ryes. Golden Touch. By Corby. Corby. Good taste in Canada since 1859 must then take into account the of the situation. This assessment must include availability of selling prices and the governments' shar- land property income and how these factors may change over the long period 30 years from the start to finish of the There is no disputing the desirability of having a con- tinuity of ''rules and under which the industry must but the establishment of a suitable level of incentive is a very contentious issue. The petroleum industry must have the opportunity to earn a fair rate of return on the capital invested in current and be provided with the incentive to continue and expand exploration and development activities. there has been a great deal of criticism directed at profits in the petroleum industry. This criticism is. for the most unfounded in that it fails to take into account that these profits are a reflection not just of price increases but also of a much higher rate of production of a finite amount of oil inventory. It does not recognize that during the 1960s the level of production and profits were not adequate to provide compensation com- mensurate with the risk and capital involved. this criticism does not take into account the higher costs of oil remote areas and or unconventional needed to replace this inventory. Policy makers must realize that the environment of pro- jected costs and governmental burden in rela- tion to the geological potential must represent an attractive return on capital if we are to assure continuity of supply for Canadian requirements. The current freeze in Western Canadian crude prices and the related export tax must be ex- amined in light of these re- and the dis- astrous consequences of similar policies in the United States. The federal government has indicated that it intends to es- tablish a national energy com- pany. There does not appear to be any particular need for a national energy company which would simply enter the industry on the same footing as existing companies. At the same time a national energy company endowed with special while it might satisfy the advocates of state could have a very detrimental affect on the industry. Other oil being at a competitive disad- could hardly be ex- pected to move forward aggressively to find and bring new reserves to market. It is very doubtful that a national energy company could successfully fill the gap it would let alone in an efficient and effective manner. It appears appropriate at this time to consider the need for co-operation rather than confrontation. Recent govern- ment which have been based on short-term ex- have been disrup- tive enough in but the manner in which they have been handled is even more dis- concerting. The petroleum in- because of its world- wide is accustom- ed to the vagaries of politics but there is a limit to what it will accept before it takes steps to reduce its com- mitments. The attractive geological ready availability of markets and favorable economic en- vironments in other areas such as the North offshore and continental United States. etc.. are all competing for develop- ment dollars at this time. There are already signs that Canadian technical expertise and personnel are being attracted away by more lucrative opportunities in the United States. The petroleum industry in Canada must be encouraged to press forward with the job it knows best and bringing petroleum products to Canadian consumers. Policy makers must provide a suitable operating environ- ment within which the in- dustry can perform its func- tion. The recent chain of events in Canada in the political area have been counterproductive and must be reversed if we are to benefit from the experience of the United States. Canadian studies By Peter local writer The recent announcement by the school boards in Lethbridge that they are anxious to co-operate with the rest of Alberta in the plan to introduce Canadian studies here is very welcome. For far too long the students in our schools have' shared the ignorance of their teachers in this regard. Perhaps nowhere in Canada is the more shallow American influence on outlook and behayiorso evident as in the lotus-land of Lethbridge and Southern Alberta generally. Instead of under- standing the background and identity of their own too many of our young here have beeq exposed to such superficial and fashionable pap as Scholastic and etc. The rich and varied history of with its two main cultural and its mosaic its former toughness and in- is almost unknown to students here. some of us try to leaven the curriculum with Canadian using Canadian films and themes in our English classes. But a much more substantial and enlightened effort is essential. The Cana- dian studies promises to provide this. its success depends on several con- ditions. without without a stress on ex- study in reasonable depth will not be and this will mean a watered- down so-called suffering from much the same malaise that afflicts social studies in many places. A basic source for those who wish to see the truth of this danger is A. B. Hodgetts' well-known book. What What In this very thorough by the way. by an independent the members of the National History Project Committee criticize severely the approaches and teaching methods in social studies showing from numerous classroom examples that so- called education' was very inadequate. they came to the conclusion in history was much more dynamically taught because of the vision that the people there bring to their own identity and their own past. as a re- cent editorial in the Journal of Canadian studies pointed the success of biculturalism in Canada will depend on how well the English sector appreciate their own for to truly understand that is to be in a position to understand the significance of French-Canadian concern with identity. In other those who really know or want to know what made with all its influences through four must be prepared to explore the common western European past and the Canadian experience. In the present climate of schools where real concern for the things of the mind and a pas- sion tor truth is not strikingly and where many of the influences come from the western United there will need to be iume dramatic change if Canadian studies is to bear the fruit which its chief protagonists jesire to see. Apart from study of history per se. certain books cannot be overlooked. No teacher of history can afford to have merely a slender reading of and no teacher of English should lack sound historical knowledge. contemporary reading in the foremost thinkers and writers of Canada today is essential. George Northrop Frye. Denis W. L. Donald Creighton. to name a are all making an important contribution to under- standing of Canada's unique role in North America. A book like Margaret Attwood's Survival can be appreciated only by those interested enough to read Canadian prose and poetry. Information sources are vital. Material may be obtained from the Canada Studies Foundation at 01SE at the Depart- ment of Canadian Studies at OISE and from the Symons Commission at Trent Peterborough. The second main point that needs to be emphasized is the need to avoid the wrong kind of nationalism. This means that it would be all too easy to pursue Canadian studies too narrowly by forgetting that the whatever its must not be neglected. This point is well-made in an article by Richard Davies. in the Spring. 1972 issue of Alberta and in a fine article by Don Gutteridge poet of Louis entitled the Canadian a Poet's in the February. 1973 issue of the Journal of Canadian Studies. At every school here should subscribe lo the Quarterly of Canadian Studies a journal specifically designed for secondary schools. Let's play Santa By Chris Herald staff writer Christmas shopping lists are bulging again with familiar names those remember with ties and scarves. The process is repeated yearly even though the recipients don't need additional items any more than we need the array we'll receive from them. tradition dictates the cvcle lie and goodness only we wouldn't slight Aunt Emma for the world no more than she would us. But what about those who have no relatives or friends to remember them this Christmas those who won't receive a decorated parcel topped with from Christmas to them will be cheerless and dreary. In the hurry of Christmas shopping we from warm-spirited families are apt to overlook such individuals. Perhaps it has never oc- curred to us that their Christmases are-bleak. Rather than keeping to our stereotyped lists why don't we deviate this year to include someone we don't even know. Giving using the nom-de-plume of Santa Claus. could introduce the recipient to a new world of wonder. He would recall all the friendly people he has one of he must have been the sender. Instead of allowing loneliness to engulf him he will be caught up with Christ- mas magic all because he was remembered. Such the case when a elderly hospital devoid of visitors or get-well cards was surprised to receive a beautiful bouquet sent to another patient by the same who wisely concealed the error I. From her nearby bed the younger woman observed with delight the tremendous joy and curiosity expressed by the recipient as she recalled aloud all her acquaintances in an effort to determine who the well-wisher could be. The error in delivery resulted in a remarkable improvement and the real recipient had viewed her many bou- quets with a rather matter-of-fact learned firsthand the importance of just plain being remembered. Sending a gift to someone you have never met might provide the needed motivation and incentive to so needed by many lonely and elderly people. Names of such in- dividuals in institutions and nursing homes can be provided upon request. The fact that someone out there really cares could provide more effective therapy than anything the doctor can recommend. ANDY RUSSELL Saga of an African wild dog by Hugo van Lawick 159 Very rarely does one have the opportunity to read such a beautifully illustrated animal book with such a story woven into such a depth of feeling and with so much meat of interesting information. For sheer drama this non-fiction work could not be surpassed by any fiction by way of an adventure account of the early life of this courageous African wild dog pup. There was a time when giving human traits to a wild one was considered very unscientific and scoffed at as being what is known in sophisticated English as But now even scientists are coming around to admitting many human characteristics are shared by associated species. among others who have spent a good portion of their lives studying and living with filming and writing about I have shared the conviction. The wild to varying know love for their young and hate and other traits commonly attributed to people. They love to sometimes to the point of complete and at times appear to even enjoy the beauty of their surroundings. In telling the story of Hugo van Lawick. was ob- viously strongly influenced by this ob- viousness in the lives of the wild dogs. Solo is one of these little known and mis- understood African wild dogs a whose brothers had been killed by the dominant bitch of the whose mother was deprived of food and ostricized by her and who was set nipped and abused by other bigger puppies of the pack every time she appeared above ground. Her is one of unflagging bravery and her so nearly tragic end and eventual salvation is a monument to persistant. warm hearted research under sometimes very trying conditions over an enormous piece of African scenery. As the author watched day after the pup fought for her and it seemed impossible that the underfed mite of a dog could stay alive. But survive she did in the face of some awful and when drought and poor hunting conditions moved the pack from the denning site towards better hunting grounds across many miles of van La wick's ac- count of her amazing endurance is a classic in nature for he and his assistants travelled with them. In spite of some help from mature dogs of the which took turns carrying her when she fell from ex- haustion. Solo kept falling back to the rear un- til she finally collapsed waiting for death in the jaws of hungry hyenas trailing the pack. But late again intervened and again she pick- ed herself up in completely strange surroun- never losing her will to live and stay a real wild dog. Not only has the author written the story brilliantly as it but he also recorded it with cameras and ultimately produced a film that is a masterpiece. The saga of Solo is accurate in every detail along with its aura of suspense and high and it reveals much of the true life style of the African wild dog a most interesting animal of which lit- tle has been known before. Hugo van Lawick was born in Indonesia and raised in Holland. In 1960 he went to Africa to assist Armand Denis film the TV With his Jane van Lawick- an eminent biologist in her own famous for her studies of baboons and other he has produced several classic wildlife films. they wrote. Innocent in a classic study of wild golden jackals and spotted hyenas. They have one son. Hugo Eric born in 1967. They live on the outskirts of Nairobi and spend most of their time on safari.