UK to benefit from Canada oil sands

JAMES Wright, Canada's top diplomat to the UK, robustly defended his country's environmental record over the exploitation of "oil sands" in Northern Alberta, and argued that Scottish energy firms were set to benefit from increased involvement in the sector once a free trade agreement with Europe was signed this year.

He said from "well to wheel" carbons emissions from oil sands would only be 5 to 10 per cent larger than other forms of conventional oil recovery.

He said: "The oil sands present a terrific opportunity but also a challenge. Canada is blessed with the second largest proven reserve of oil behind Saudi Arabia, but in reality all the easy to find light sweet crude has already been found and developed. What the world is left with is unconventional sources such as oil sands."

He said emissions from the extraction of oil from sand had reduced by 40 per cent due to improved technology.

This year the Comprehensive Economic Trade Agreement will "open the door" to economic growth in both Canada and the EU, Wright said. "In the EU family, Britain stands to gain the most from the free trade agreement because its links are strongest," he added.

He said Canadian firms had invested "billions not millions" in the North Sea, including Talisman, Suncor and CNR, which produced 30 per cent of oil and gas in the North Sea.

He said Canada's experience of cutting its deficit through austerity measures which saw 50,000 civil servants lose their jobs in the 1990s has seen the country enjoy a budget surplus for the past 11 years which has helped it pay down its debt.

"Given the economic fundamentals there is no question that Canada as a global force can only grow in stature in time. The UK and Scotland are important partners for us and we are looking to grow the relationship."