Herding Cats: Stakeholder Consultation and 2012 Changes to the National Energy Board Act

Abstract

Industrialization in the world market, particularly in Asia, coupled with an increase in Canadian energy production means that Canada needs the transportation infrastructure to bring its energy supplies to market. The most economical way to transport Canadian oil and gas is through pipelines, however the process of regulatory approvals for their construction has become a challenge.1 This is a result primarily of pressure from outside groups like environmental groups, aboriginal groups, unions, and landowners. Designed to evaluate projects on their own merit and potential affect on interested parties, wider societal questions of the oil industry and climate change has crept into the process, making it longer and adding costs to firms and the Canadian economy. By looking at the history of the National Energy Board (NEB), the justification for its creation, and its past performance, this paper will use data from the past ten years as well as relevant theory to address recent (2012) changes to the process used by the NEB. In particular, I will assess whether the legislation will accomplish its goal of a less delay-prone, more responsive approval process that will increase public confidence in pipeline reviews. The intended changes will result in a less delay-prone approval process that still enables public participation. This should have the effect of increasing public confidence in the process.