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### Viewing cable 09OTTAWA771, S/CIEA Goldwyn visit to Ottawa - Energy security,

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09OTTAWA771 | 2009-10-02 21:09 | 2011-04-28 00:12 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Ottawa

`

    VZCZCXRO0634
    RR RUEHGA RUEHHA RUEHMT RUEHQU RUEHVC
    DE RUEHOT #0771/01 2752111
    ZNR UUUUU ZZH
    R 022111Z OCT 09
    FM AMEMBASSY OTTAWA
    TO RUEHC/SECSTATE WASHDC 9909
    INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
    RHEBAAA/DOE WASHDC

` `

    UNCLAS SECTION 01 OF 03 OTTAWA 000771

    SENSITIVE

    SIPDIS

    S/CIEA for Goldwyn, Hengel and Sullivan
    EB/ESC for McManus and Duggan
    WHA/ESPC for Corneille
    WHA/CAN for Hermann and Fox
    DOE for Deutsch and Lockwood

    E.O. 12958: N/A
    TAGS: ENRG EPET SENV CA
    SUBJECT:  S/CIEA Goldwyn visit to Ottawa - Energy security,
    cooperation in Haiti, oil sands messaging, positive coverage and
    lasting impression

    Sensitive But Unclassified; cleared by S/CIEA Goldwyn.

    ¶1. (U) Summary:  S/CIEA David Goldwyn's September 17-18 trip to
    Ottawa was immensely successful and has continued to reap positive
    engagement from Canadian interlocutors.  Goldwyn's message of Canada
    as a pillar of U.S. energy security was embraced by the Government
    of Canada and by a Canadian public that, at times, fears the U.S.
    undervalues the important role Canada plays as the USG's primary
    energy provider.   Goldwyn met with a range of Government of Canada
    officials from the PM's office, Department of Foreign Affair and
    International Trade (DFAIT), Natural Resources Canada (NRCan),
    Environment Canada (EC), and the Privy Council Office, as well as
    with the energy industry, i.e., Canadian Association of Petroleum
    Producers (CAPP), Canadian Gas Association (CGA), and Canadian
    Electricity Association (CEA).   The first high-level visit to
    Ottawa by a State Department official since the POTUS visit, Goldwyn
    received a welcome reception and press coverage of his visit created
    a positive buzz that continues.

    ¶2. (U) In addition to reassuring Canadians about their valued role
    as a reliable and open market provider of energy, Goldwyn's request
    to cooperate in the spirit of the Energy and Climate Change
    Partnership of the Americas on an energy project in Haiti was met
    with enthusiasm, as was his message for continued Canadian progress
    in lowering the carbon footprint of the oil sands, and better public
    outreach on this topic.  Post-trip interest and engagement remains
    high.  S/CIEA chaired a U.S.-Canada digital video conference (DVC)
    on September 29 to explore possible cooperation in Haiti, and
    numerous interlocutors from Minister Raitt to Senator McCoy of
    Alberta have expressed interest in further discussion on increased
    oil sands sustainability and public engagement.  Groundwork has also
    been laid on the upcoming U.S.-Canada Energy Consultative Mechanism,
    tentatively slated for early December.  End Summary.

    -- Energy Security

    ¶3. (SBU) Goldwyn's primary message that the U.S. views Canada as a
    valued and reliable energy partner fell upon receptive ears.   From
    the PM's office to NRCan, DFAIT and EC, we heard repeatedly that
    S/CEIA's message was welcome, 'music to their ears' and eased
    concerns about polls indicating that Americans are unaware of
    Canada's status as their primary energy supplier.  Goldwyn's visit,
    in conjunction with the recent decision to permit the Alberta
    Clipper, alleviated much Government of Canada and industry anxiety
    about the future of North American energy production and possible
    exclusion of oil sands product from the U.S. market.  Canada is keen
    to invest and focus on clean energy, but appreciated the reassurance
    that the U.S. intends to be a partner in this effort.   From the
    Government of Canada perspective, Goldwyn's public announcement that
    the U.S. relies on Canada for supply and trusts that Canada can be a
    responsible steward of its own climate-change targets, was
    immeasurably helpful.

    -- Energy and Climate Partnership of the Americas

    ¶4. (SBU) S/CIEA Goldwyn pitched the idea of collaborating on an
    energy project in Haiti, possibly in partnership with the
    Brazilians.  Deputy Foreign Minister Edwards was particularly taken
    with the idea and instructed his staff to follow-up immediately.  A
    subsequent joint digital video conference was held on September 29,
    Qsubsequent joint digital video conference was held on September 29,
    chaired by Goldwyn. Initial readout from the call was positive and
    discussions will continue at the working level between S/CIEA,
    WHA/EPSC, USAID, Canadian International Development Agency (CIDA)
    and DFAIT to outline a specific project and determine necessary
    funding.

    ¶5. (SBU) With NRCan Minister Raitt, Goldwyn also raised the
    possibility of Canada holding an ECPA working group session on the
    oil sands, focusing on new technologies, mitigation of land/water
    effects, and clean fossil fuel extraction.  Minister Raitt was very
    enthusiastic and embraced the idea.

    -- Oil Sands Messaging

    ¶6. (SBU) Both industry and the Government of Canada are clearly
    concerned about the mixed message the oil sands send and difficult
    headlines  Indeed Goldwyn happened to arrive on the heels of a
    well-publicized shut down of Shell's Albian Sands mine by Greenpeace
    activists.  NRCan and CAPP are both spending considerable time
    ruminating over the best approach to advocate on behalf of the oil
    sands.  While CAPP is ready to sell the lifecycle 'wells-to-wheels'

    OTTAWA 00000771  002 OF 003

    story, there is a lot of concern on the part of industry, noting
    this will be an uphill battle, with the NGOs already well ahead and
    companies not necessarily ready to commit the long-term funding
    necessary for a sustained PR initiative.   NRCan recognizes the need
    to find advocates outside of industry and have sponsored a two-year
    Council of Canadian Academies study looking at the technologies
    needed to continue improvements and reduce emissions at the oil
    sands beyond 2030.  NRCan Minister Raitt and Deputy Minister Doyle
    greatly appreciated Goldwyn's suggestions regarding the need for
    additional fact-based, third party research, trends on energy
    efficiency improvements, and increasing visibility and accessibility
    of more positive news stories. NRCan is pursuing a study by IEA and
    will explore other opportunities to engage universities and
    respected international think tanks.  The Government of Canada also
    took on board the message to reach out to the energy
    security/national security audience.

    ¶7. (SBU) Subsequent to his departure, Senator Elaine McCoy of
    Alberta reached out to ESTH Counselor praising Goldwyn's message and
    seeking to follow-up with a discussion about a possible CODEL and
    other initiatives Alberta could take to get out its message   DFAIT
    also reached out on October 1 to note that their Alberta affairs
    section appreciated the engagement and wanted to follow-up.   All
    parties praised the U.S.' handling of the Alberta Clipper pipeline
    permit issuance and welcomed the 'sophistication' of the U.S.
    message.

    -- Energy Consultative Mechanism

    ¶8. (SBU) DFAIT and NRCan both responded positively to adding an
    energy security focus to the agenda.  In general, the Government of
    Canada expressed a view that Canada hasn't taken an active enough
    role in the international energy security debate, due in large part
    to their more-than-sufficient resources and mindset that this was a
    U.S. concern. They are interested in taking a more active role in
    the future and would consider using Canada's future chair of the G8
    to advance the energy security dialogue.  NRCan informed ESTCouns on
    October 1 that they would like to add engagement at multilateral
    fora as an item to the next ECM agenda.  As for the date of the
    upcoming ECM to be hosted by the Government of Canada in Ottawa,
    NRCan is awaiting its new Assistant Deputy Minister for Energy,
    Christine Donoghue, to assume her position next week before formally
    issuing an invite.  However, both DFAIT and NRCan confirmed
    yesterday that the first week of December looks good.  DFAIT ADM
    Elaine Feldman and NRCan ADM Donoghue will co-chair the meeting.

    -- Canadian concerns

    ¶9. (SBU) The concerns most frequently raised during Goldwyn's visit
    were the implications of possible U.S. legislation and renewable
    energy standards on the sale of Canadian hydroelectricity to U.S.
    markets.  The Government of Canada and the Canadian Electricity
    Association would like to see the possible harmonization of
    differing state regulations vis-`-vis electricity and renewable
    portfolio standards addressed and would welcome a possible
    conference and further dialogue on the issue.  There was also
    notable concern about possible border measures proposed in the
    Waxman-Markey bill, low-carbon fuel standards, and potential
    consequences for future oil sands development.
    Qconsequences for future oil sands development.

    -- Comment

    ¶10. (SBU) S/CIEA Goldwyn's trip to Ottawa clearly struck a
    much-needed chord with the Government of Canada.  His interview with
    Globe and Mail Deputy Ottawa Bureau Chief Campbell Clark, printed in
    the September 23 edition, was hailed by the government and industry,
    spurring further discussion and debate within key energy circles in
    Canada.  Canada clearly appreciates USG recognition of their
    development initiatives in Haiti and seem to view collaboration on
    an energy project in Haiti as a way to further positive U.S.-Canada
    relations. The upcoming Energy Consultative Mechanism meeting in
    December will provide an opportunity to flesh out the energy
    security and oil sands messaging discussions.    The Government of
    Canada extended an open invitation to S/CIEA to visit Alberta and
    clearly hope that his trip was indicative of USG commitment to
    pursue emissions reductions and energy security as shared, and not
    mutually exclusive, goals.   End Comment.

    ¶11. (SBU) The following is a complete list of the Canadian
    interlocutors with whom S/CIEA Goldwyn met during his trip:

    OTTAWA 00000771  003 OF 003

    Prime Minister Office
    -- Adam Blinick, Special Assistant, Office of Strategic initiatives
    and Public Liaison.

    Department of Foreign Affairs and International Trade (DFAIT)
    -- Leonard Edwards, Deputy Minister of Foreign Affairs;
    -- Sheila Riordon, Director General, Environment, Energy and
    Sustainable Development Bureau;
    -- Gary Pringle, Chief, Energy Secretariat, Environment, Energy and
    Sustainable Development Bureau;
    -- Mark Berman, Director, Climate Change Division, Environment,
    Energy and Sustainable Development Bureau.

    Environment Canada (EC)
    -- Ian Shugart, Deputy Minister of Environment

    Natural Resources Canada (NRCan)
    -- Hon. Lisa Raitt, Minister of Natural Resources;
    -- Robert Klager, Chief of Staff to Minister Raitt;
    -- Cassie Doyle, Deputy Minister of Natural Resources;
    -- Kevin Stringer, Director General, Petroleum Resources Branch;

    Privy Council Office (PCO)
    -- Jacques Paquette, Assistant Secretary to Cabinet; Economic and
    Regional Development Policy

    Canadian Association of Petroleum Producers (CAPP) (by phone)
    -- David Collyer, President;
    -- Tom Huffaker, Vice President, Environment and Policy.

    Canadian Gas Association
    -- Michael Cleland, President & CEO;
    -- Brendan Hawley, Government Relations Consultant to the CGA.

    Canadian Electricity Association
    -- Pierre Guimond, President & CEO
    -- Eli Turk,  Vice President;
    -- Elisabeth Majeau, Senior Advisor, Electricity & Economic Policy;
    -- Geoff Smith, Senior Advisor, Government Relations.

    Globe and Mail Newspaper
    -- Campbell Clark, Deputy Ottawa Bureau Chief.

    ¶12. (SBU) The following is a list of the Canadian participants in
    the September 29, 2009 DVC:

    PM's Office

    Adam Blinick, Special Assistant, Office of the Prime Minister

    DFAIT

    Andre Dormehl, Senior Policy Analyst, Energy Secretariat
    Denis Robert, Director, Haiti Task Force
    Louis Saint-Arnaud, Deputy Director, Haiti Task Force

    CIDA

    Keith Fountain, Director of Policy, Office of the Minister of
    International Cooperation
    Elizabeth Cabrera, Office of the Minister of International
    Cooperation
    Isabelle Brard, Director General, Haiti and Dominican Republic
    Chantal Boucher, Program Manager (Economic Development), Haiti
    Program
    Philip Schubert, Energy Specialist

    Jacobson

`