Cablegate: S/Ciea Goldwyn Visit to Ottawa - Energy Security,

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FM AMEMBASSY OTTAWA
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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'

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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:

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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

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