Canadians are inundated with ads from Enbridge, Cenovus, Kinder Morgan, Shell and the Canadian Association of Petroleum Producers.

But we’re also targeted by a more insidious type of PR brought into the spotlight by the New York Times scoop on a speech Richard Berman gave to the Western Energy Alliance.

In that speech, Berman told the group’s members — mostly oil and gas companies — they had to be prepared to "win ugly" in an "endless war" against environmentalists. 

We are now finding out we are also subjected to secretly funded propaganda from groups like the “Environmental Policy Alliance” (whose self-conciously chosen initials are EPA, the same as the U.S. government’s Environment Protection Agency), or the more obviously biased “Big Green Radicals.”

Let’s take publicity-averse oil and gas players like the Koch brothers, for example. They are one of the largest leaseholders in the oilsands, and major contributors to Canada's Fraser Institute. Their combined net worth of $85.4 billion is greater than that of Bill Gates. And they are no doubt secretly spending untold sums of money influencing elections throughout North America, lobbying against environmental groups and attempting to ridicule or “diminish [progessives'] moral authority.”

Loaded Messages and Commercial Warfare

Propaganda, as the Oxford English Dictionary defines it, is “an organized program of publicity, selected information, etc., used to propagate a doctrine, practice, etc.”

It is regarded as misleading and dishonest. It often presents facts selectively (thus possibly lying by omission) to encourage a particular synthesis or uses loaded messages to produce an emotional rather than rational response to the information presented. Propaganda can be used as a form of ideological or commercial warfare.

Enter Vivian Krause, the “researcher” who has spent years attacking Canada’s environmental groups.

Looking at a July 2014 Alberta Oil article penned by Krause, one can’t help but note how she delicately skirts around issues like the value of intact ecosystems and their useful services. She also ignores anthropogenic global warming and instead funnels the entire support system for Canada’s environmental advocacy groups down into her favoured conspiracy theory: the plan to destroy Canada’s fossil fuel industry to protect U.S. interests.

To do this, Krause needs some serious blinders on. For example, she describes a strategy paper called “Designed to Win: Philanthropy’s Role in the Fight Against Global Warming.” The phrase “global warming” is right there in front of her, in black and white, but she skips around it and zooms in on a pejorative view of the “education campaigns” to shift investment into large-scale renewable energy — as if going from fossil fuels to renewables was just some random, self-serving business decision.

She makes no mention of the concerns of the Intergovernmental Panel on Climate Change, the American Association for the Advancement of Science or the World Bank (does she see them all as a soft, self-serving and self-indulgent elite?), all of whom think that global climate change is a really big issue, and all of whom have far more credibility than Krause.

Krause writes disparagingly of the Consultative Group on Biological Diversity, an organization created in 1987 by the U.S. Agency for International Development. Over the years, it has morphed into a focal point for philanthropic foundations that want to help make a better world. The stated vision of the organization is: “A sustainable, just and healthy future for all life on Earth, advanced by a vibrant and effective philanthropic sector.”

These high-minded goals are of no interest to Krause. All she cares about is that some of the $440 million handed out all over the world by the 64 charitable foundations that compose this organization has gone to Canadian environmental groups and First Nations communities, and some of that portion of their donations has been used to advocate against expansion of fossil fuel extraction, processing and transport.

But the real monstrosity of her claim is highlighted by a look at the bigger picture in which Krause’s critique is placed. 

Adding up all the money that has been spent by American charitable foundations on environmental issues in Canada in the last 15 years — that appears to be the timeframe of Krause’ analysis — the entire sum, from the numbers scattered here and there in her article, is about $500 million.

That may seem like a very large sum of money at first glance, but put in context it’s not. First of all, this is spread across dozens of organizations and across a decade and a half, making the annual grants to any single organization modest.

Secondly, dwarfing these sums is the vast fiscal colossus of the fossil fuel industry itself. While berating environmental groups and their funders, Krause makes no mention of the astonishing wealth taken in and spent by the oil and gas industry on a constant, relentless basis, day in and day out.

In the year 2013, the players in the oil and gas industry who are connected just to the oilsands — let’s call them “the Bitumen Boys” — earned the following astronomical sums:

What is obvious in this table is that the in-and-out totals of the Bitumen Boys, and the profits delivered to shareholders, as well as the total revenue stream, dwarf anything received from philanthropy by several orders of magnitude. Of the 22 companies listed, most profited more in one year, by many multiples, than their non-profit counterparts gained in 15 years.

In fact, the total profits of these 22 Bitumen Boys in one fiscal year — $142.7 billion — is 284 times the entire sum of money given to all environmental groups mentioned by Krause over 15 fiscal years.

Put another way, all the money given to environmental groups over 15 years was 0.35 per cent of the net annual profits of the companies developing the oilsands.

Yet Krause finishes her Alberta Oil article by saying: “For the fossil fuel industries, the battle with environmental activists is no longer David versus Goliath.”

It’s misleading and dishonest and she’s got to know that isn’t the case. Propaganda anyone?

Overlooking Oil Industry Spending

We don’t know the exact amount of money Enbridge is spending on its ad campaigns, because the cost for this public relations blitz is buried in generalized headings like “operating and administrative” or similar non-specific designations.

Krause never mentions oil company expenditures. Couple it with the plethora of opaque front groups like Ethical Oil that play by the Richard Berman playbook, and it’s clear that only the industry's inner circle can find out who pays for what.

Krause casts a blind eye toward oil industry spending, as well as the biological and climatological science that motivates many philanthropic foundations and non-profit groups to take action. She also adamantly skirts mention of the massive profits that motivate the fossil fuel industry.

If Krause wants to opine that global climate change, widespread pollution, population growth, species loss and over-exploitation of biological resources are minor issues, then she and I (along with most other Canadians) part company.

I’m throwing my lot in with the IPCC, with ecological economists like UBC’s Bill Rees, with my colleague John O’Connor whose direct field observations as a physician raise serious concerns about oilsands development, with the economists who are taking climate change seriously and with the public relations industry that has ruled out working with climate deniers.

The question is: who’s left to throw their lot in with Krause?

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He had no idea he was being taped.

So when influential Washington, DC, political consultant Richard Berman talked about strategy and tactics to the oil and gas industry’s Western Energy Alliance in Colorado Springs this past June, he didn’t mince words.  

“This is an endless war,” Berman said.

The secret tape was published in the New York Times a few weeks ago, released by a displeased oil industry executive, on condition of anonymity.

As he urged industry reps to employ tactics like digging up embarrassing tidbits about environmentalists and liberal celebrities, Berman also made one emphatic point:

“People always ask me one question all the time, ‘How do I know that I won't be found out as a supporter of what you're doing?’ We run all of this stuff through non-profit organizations that are insulated from having to disclose donors. There is total anonymity. People don't know who supports us. We've been doing this for 20-something years in this regard.”

The Western Energy Alliance, at whose June meeting Berman laid out his cold-blooded strategy, describes membership as “an investment in the future of the independent oil and gas community in the West.” Its members throughout the U.S. and Canada “share and support our commitment to improve business conditions, expand opportunities and move the industry forward.” 

The only government member of the 480-member Western Energy Alliance is the Canadian Consulate.

Deliberately Misleading the Public

What was Berman, chief executive of Berman & Company, doing talking to the Western Energy Alliance? He was there to raise $3 million from energy executives to pay for an advertising and PR campaign named “Big Green Radicals.”

Berman boasts of having more than 25 “non-profit” front groups that launder money from industry players of all sorts, including the fossil fuel sector, with no way for citizens to find out about this clandestine funding.

“I am religious about not allowing company names to ever get used … And I don't want companies to ever admit that because it does give the other side a way to diminish our message.”

Major corporations secretly financing such a campaign should not worry about offending the general public because “you can either win ugly or lose pretty,” he said.

That strategy sounds familiar back in Canada.

Here’s a deliberately misleading statement that would seem to come straight out of Berman’s manual: “For the fossil fuel industries, the battle with environmental activists is no longer David versus Goliath.”

But this wasn’t a statement from Berman — no, this is the final sentence of an article by Vancouver "researcher" Vivian Krause, who came out of the woodwork in the fall of 2009 when she first started writing a blog called Fair Questions, taking aim at the David Suzuki Foundation’s work on farmed salmon and the support it received from U.S. charitable foundations.

Fun fact: Krause is a nutritionist who worked doing PR for the farmed salmon industry. But it didn’t take long for her so-called “fair questions” to extend to many other environmental issues and organizations.

Instead of searching for a fair answer, Krause settled upon a conspiracy theory. It was to be a story she told over and over again — and it goes like this:

The corporate sector is beleaguered by rich environmental groups bolstered by money from U.S. charitable foundations with a hidden, self-interested agenda — not to do good in the world, or protect the environment, but to attack Canadian competition.

Krause wrote that U.S. foundations were funding work to “demarket” Canadian oil, so the U.S. can control the market. She attacked one of British Columbia's greatest conservation achievements, The Great Bear Rainforest agreement, as part of this conspiracy, calling the forest, "The Great Trade Barrier."

She pursued this theory with blinders on — ignoring all other money in the debate, ignoring all rational explanations for U.S. foundations funding work in Canada and ignoring organizations like Ethical Oil and British Columbians for Prosperity that tout Krause’s arguments but don’t disclose their own sources of funding.

Krause’s work is largely responsible for providing the federal government the ammunition it needed to earmark $13 million for the Canada Revenue Agency to conduct audits of charities’ “political activities.” Diverting the attention of environmental groups to decrease their effectiveness is another strategy out of Big Oil’s dirty PR playbook — as indicated in the Edelman documents outlining a strategy to do just that in the TransCanada Energy East pipeline debate.

Krause has maintained she’s working out of her North Vancouver basement apartment, driven by a sense of injustice to right a wrong. No one was paying her. In fact, she was living on her savings. It seemed an implausible story given the time she put into the work.  

Eventually, Vancouver businessperson and civic advocate Sandy Garossino managed to get Krause to admit on Twitter that more than 90 per cent of her income from 2012 onward has come from resource sector speaking fees.

But this hasn’t stopped her message being picked up verbatim by those who agree with it.

In July 2014, Krause’s work was published in the fossil fuel industry magazine, Alberta Oil, an updated version of the same-old-same-old story.

Her message — now also Prime Minister Stephen Harper’s message — is reinforced by other contributors in the issue of Alberta Oil. There’s Ezra Levant, the abrasive Sun Media host, and author of "Ethical Oil" who asserts: “Some organizations are on the payroll, like the Council of Canadians, that took $1.6 million from U.S. foundations to fight against fracking.”

The editor of Alberta Oil, Sebastian Gault, tells readers that Krause “uncovered an international sponsored scheme [he just about said “conspiracy,” didn’t he?] to stall energy development.”

He adds: “We now have a better understanding of the rise of Big Green and its influence over pseudo-grassroots organizations working against the resource sector.”

"Big Green?" Guess where that term comes from? Straight from Rick Berman, who vowed to wage a campaign he would call “Big Green Radicals."  

Embarrass them publicly, ridicule them, don't worry about playing fair or being honest, the goal is simple: win. That is Berman's message and Krause’s years of attacks on Canadian environmental groups seem to play from his book.

—

Editor’s Note:

We know that upon publishing this article, angry tweets and messages in the form of personal attacks will be aimed at damaging the credibility of DeSmog Canada. 

We know this will happen because this is what Krause and her followers do again and again, straight from the Berman script. This makes many journalists wary of challenging what Krause says and particularly intimidates those she directly attacks.

But DeSmog Canada exists to cut through the spin clouding the debate on important national issues such as natural resource development, the economy and democracy — and we wouldn’t be doing our job if we shied away from this topic. 

Next up: Digging Deeper into Vivian Krause's Disingenuous Anti-Environment Witch Hunt

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Vivian Krause has spent years scrutinizing how Canadian environmental groups are funded, claiming she's just asking "fair questions."

But as the blogger-turned-newspaper-columnist has run rampant with her conspiracy theory that American charitable foundations' support of Canadian environmental groups is nefarious, she has continually avoided seeking a fair answer.

If Krause were seeking a fair answer, she'd quickly learn that both investment dollars and philanthropic dollars cross borders all the time. There isn’t anything special or surprising about environmental groups receiving funding from U.S. foundations that share their goals — especially when the increasingly global nature of environmental challenges, particularly climate change, is taken into consideration.

Despite this common-sense answer, Krause’s strategy has effectively diverted attention away from genuine debate of environmental issues, while simultaneously undermining the important role environmental groups play in Canadian society.

Creating Diversions a Trademark of Oil Industry Strategy

This diversion strategy is a well-known tactic of the oil industry. A strategy document leaked yesterday details how one of the world’s most powerful PR firms, Edelman, advised TransCanada to undermine opponents to the Energy East pipeline.

Edelman recommended TransCanada apply pressure to opponents by “distracting them from their mission and causing them to redirect their resources.” To achieve that, Edelman advises TransCanada to work with “supportive third parties who can in turn put the pressure on, particularly when TransCanada can’t.”

Sound familiar?

In Vivian Krause's resume, she proudly takes credit for spawning a Senate inquiry and Canada Revenue Agency audit — distractions that forced environmental groups to spend time defending themselves, rather than doing their important work as watchdogs and advocates for environmental protection.

While Krause has been busy maligning the funding of Canadian environmental groups, very little attention has been paid to where Krause gets her bread buttered.

Krause Receives 90% of Income From Resource Industries

Krause frequently claims her research is independent (PDF) and that her work is unaffiliated with any industry — yet she has admitted that since 2012, more than 90 per cent of her income has come from oil, gas and mining interests through honorariums and speaking fees.

Krause has been paid as much as $10,000 to speak to energy executives. While she may not be directly employed by the fossil fuel industry, her work certainly aligns with that industry’s interests.

Groups paying Krause speaker’s fees included the Canadian Association of Petroleum Producers, the Canadian Energy Pipeline Association, the Atlas Economic Research Foundation, the Association for Mineral Exploration and the Vancouver Board of Trade.

Large speaking fees are increasingly being used as a handy way to support the work of industry allies without directly employing them.

To see just how contentious speaking fees can be, take a gander at the recent Rex Murphy or Peter Mansbridge controversies. CBC ended up adjusting its policy, requiring hosts to disclose their speaking fees.

What Was Vivian Krause’s Argument Again?

So let’s get this straight: Krause, who has relied on speaking fees from the multinational resource sector for 90 per cent of her income for the past three years, argues that Canada’s environmental organizations are fronts for U.S. interests because they receive a portion of their funding from across the border?

Despite the spurious logic, Krause is still given a platform to spread her misleading information in the Postmedia chain of newspapers, including the Financial Post and The Province, as well as on Global News shows where she's a regular panelist on Unfiltered with Jill Krop.

While Krause may spin a mysterious tale, the answer is simple: philanthropic dollars crossing borders to support work on global issues is the norm. And Canadian charities are required to disclose all significant donations from foreign sources annually.

The Real Debate Canada Needs

The continued debate over the funding sources of the environmental community is simply a diversion tactic that favours the fossil fuel industry's desire to avoid having the real debate about Canada’s energy future.

The latest report from the Intergovernmental Panel on Climate Change urges nations to phase out fossil fuels immediately to avoid the worst impacts of global warming.

The report puts responsibility squarely on the shoulders of our elected leaders, saying they can “either put policies in place to achieve this essential shift, or they can spend the rest of their careers dealing with climate disaster after climate disaster.”

But Canada won’t meet its 2020 international climate target, according to Environment Commissioner Julie Gelfand.

“The federal government does not have an overall plan that maps out how Canada will achieve this target. Canadians have not been given the details about which regulations will be developed, when, nor what greenhouse gas reductions will be expected,” Gelfand wrote in a report last month.

Now that China and the U.S. have signed a deal agreeing to cut emissions, Canada is left with even fewer excuses not to act.

Meantime, the federal government’s mandate to advance an energy superpower agenda marches forth, resulting in controversy across the country — from the Kinder Morgan fiasco on Burnaby Mountain, to the First Nations legal battle against Enbridge Northern Gateway, to the Athabasca Chipewyan and Beaver Lake Cree First Nations’ fight to prevent oilsands expansion on their territory, to efforts to ban fracking in Nova Scotia.

These efforts are not the outcome of foreign conspiracy — they’re the outcome of a lack of any sensible national conversation about how to develop our natural resources while meeting our international climate change commitments.

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Today Vivian Krause published an opinion piece in The Province claiming “a vote for Vision is a vote for U.S. oil interests.” So, you might be wondering: just who is Vivian Krause? We’re so glad you asked…

An essential component of all public relations campaigns is having the right messenger— a credible, impassioned champion of your cause.

While many PR pushes fail to get off the ground, those that really catch on — the ones that gain political attention and result in debates and senate inquiries — almost always have precisely the right poster child.

And in the federal government and oil industry’s plight to discredit environmental groups, the perfect poster child just so happens to be Vivian Krause.

Krause describes herself as an “independent” researcher and a single mom asking “fair questions” about American funding of Canadian environmental groups. She blogged for many years in relative obscurity before becoming the federal Conservatives’ favourite attack dog.

Krause’s moment in the sun came in January 2012 when Joe Oliver, Canada’s then Natural Resources Minister, released his infamous letter decrying “foreign-funded radical” environmentalists for “hijacking” the Enbridge Northern Gateway pipeline review process.

Krause had primed the pump for the Conservatives to swoop in and achieve their goal — to discredit environmental groups by building a public narrative about them acting nefariously, thereby justifying spending millions of dollars on audits of charities’ political activities.

Never mind that philanthropic dollars cross international borders all the time. Never mind that the Northern Gateway proposal is sponsored by China’s state-owned oil company Sinopec, along with many other foreign oil companies. Never mind that there’s probably no more legitimate participation in a democracy than citizens signing up to speak at public hearings.

No, once you have a vendetta, inconvenient facts don’t matter. And Krause’s vendetta against environmental groups has been in the works for a long time — ever since she worked in public relations for the farmed salmon industry.

The Salmon Farming Industry and the Birth of a Vendetta

It was due to her interest in promoting salmon farming that Krause started rifling through the tax returns of large American foundations supporting wild salmon advocacy in Canada.

It didn’t take long for Vivian Krause to cook up a conspiracy theory involving American foundations working to undermine Canadian interests — and then to expand that theory to any number of conservation issues in Canada, with a special focus on conservation campaigns that were inconvenient for the oil industry.

To Krause, it seemed suspicious that foundations from across the border were giving money to Canadian groups working on Canadian conservation and energy issues. It must be, Krause surmised, that these big foundations are spending their dollars to manipulate Canadian energy and environment politics to further American interests. And, she went further to suggest, these Canadian groups are acting as pawns of these suspicious foundations.

Speaking of suspicious, by early 2013, Krause had admitted that more than 90 per cent of her income for 2012 had come from oil, gas and mining interests. Groups paying Krause speaker’s fees included the Canadian Association of Petroleum Producers, the Canadian Energy Pipeline Association, the Atlas Economic Research Foundation, the Association for Mineral Exploration and the Vancouver Board of Trade.

Vivian Krause's Convenient Aversion to Climate Change Facts

Fast forward to this week when Krause couldn’t resist weighing into the Vancouver election campaign, claiming that: “For Canada, there is no single economic issue that is more important than getting Alberta oil to global markets.”

While oil is no doubt an important part of the Canadian economy, Krause’s statement overlooks two inconvenient facts:

1) According to Statistics Canada, the oilsands account for only two per cent of the national GDP.

2) A study by Simon Fraser University and The Goodman Group Ltd released this week finds Kinder Morgan’s Trans Mountain jobs promises are overblown and recommends the proposed expansion be rejected as it is neither in the economic nor public interest of B.C. and Metro Vancouver.

The argument that continued oilsands expansion is a positive for the Canadian economy — and more to the point, the Metro Vancouver economy — is far from a slam dunk.

While Krause enjoys spinning another of her clandestine tales in linking Vancouver Mayor Gregor Robertson to U.S. foundations, it’s increasingly clear that it’s all a convenient cover story for her to push her own view that the fossil fuel industry should be allowed to expand.

“Voting for Gregor Robertson means voting to support a U.S.-funded, anti-pipeline campaign that continues the U.S. monopoly on Canadian oil, keeping Canada over a barrel,” Krause writes. “When you go to the poll, don’t vote for Gregor Robertson. Vote for Canada.”

Perhaps Krause missed the latest report from the Intergovernmental Panel on Climate Change, which states that governments need to peak emissions, rapidly phase out fossil fuels and transition to 100 per cent renewable energy pronto? Rapidly expanding the oilsands and building new pipelines to serve that expansion doesn’t actually fit into any plans to have an inhabitable earth — not to mention the terrifying consequences an oil spill could reap on Vancouver.

If Krause’s modus operandi is climate change denial, it would be nice if she just stated that right up front, instead of conveniently ignoring it.

(If you want to know where we’re coming from at DeSmog Canada, mosey on over to our About Us page, where you can find out. Hint: we agree with 97 per cent of scientists about climate change, we’re proud to accept donations from anyone who supports our mission and we’re not going to tell you how to vote because that’s not our thing.)

In a recent op-ed in the Calgary Herald, Barry Cooper, a University of Calgary professor and known climate skeptic called on Alberta Premier Jim Prentice to use Krause as an attack dog against environmental groups.

“[Prentice] knows from his work with Enbridge and B.C. First Nations that the real source of opposition to Northern Gateway are the enviros and the deep-pocketed American foundations that fund them,” Cooper wrote. “So, Jim, hire Vivian Krause, who has done a lot of work on this problem, and use the government megaphone to publicize her analyses of the pernicious sources of enviro funding.”

Which raises the question: did someone hire Krause to weigh in — clumsy as it may be — on the Vancouver election?

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