fbpx
Connect with us

Energy

Analyst says Enbridge Line 5 fight shows Trudeau, Biden playing both sides on energy issues

The Trudeau and Biden administration are playing both sides of the coin in energy issues.

mm

Published

on

Natural Resources Minister Seamus O’Regan said the feds plan to take “whatever measures” to sustain the Enbridge Line 5 pipeline.

Alberta Premier Jason Kenney has said he wants Prime Minister Justin Trudeau to do whatever he can to save the line.

But on the other side of the 49th parallel, Michigan Governor Gretchen Whitmer cites environmental concerns as justification for cancelling the critical pipeline, which transports Alberta-based crude oil and natural gas liquids to refineries across the Midwest and Ontario. 

Jason Hayes, Director of Environmental Policy to the Mackinac Center for Public Policy, doesn’t buy that line of reasoning.

“The state of Michigan appears more concerned about following a Sierra Club scorecard than it is about the broad negative impacts the closure of Line 5 will have on the region,” said Hayes.

Secretary of Transportation Pete Buttigieg publicly called for the closure of Enbridge’s Line 5 pipeline, as did Interior Secretary nominee Deb Haaland at the 2018 Netroots Nation convention.

“It’s time to stop all new fossil fuel infrastructure in America. No more pipelines!” Haaland said.

By prioritizing the demands of progressive green pressure groups in the Democratic Party over a critical trading partner’s concerns, the President Joe Biden administration is trying to play both sides of the coin in energy issues, said Hayes.

“While other pipelines exist to transport oil to the U.S. from Canada, the threatened closure of the Line 5 pipeline sends a damaging and profoundly short-sighted, but still apparent and unmistakable, signal to one of Michigan’s largest trading partners,” said Hayes.

“Canadian officials, state legislators across the state of Michigan, the Governor of Ohio, building trade representatives in Canada and the U.S., and others, have also voiced their objections. The Consul General of Canada in Detroit, Joe Comartin, has noted that shuttering Line 5 will negatively impact refineries in Sarnia, Ont. and Quebec.” 

Democratic senators have also said Biden is going down the wrong path.

“The pipeline is essential to Sarnia-Lambton and the region at large. It is responsible for 50,000 jobs in related industries across the border — everything from refineries and downstream processors to home heating, jet fuel, and agriculture, said Marilyn Gladu, MP to Sarnia-Lambton.

She pushed back against Whitmer’s claims, as environmental studies indicate alternative means of transporting crude, including trucks and railcars, are less safe than the pipeline. She showed great concern over Canada’s limited pipeline capacity, as “there aren’t enough of them (trucks and railcars) to move the same volume as the pipeline, daily”. 

A shutdown would lead to fuel shortages and price increases across Ontario and Quebec, and further dependency on foreign supply to meet regional demands.

“My colleagues and I are doing everything we can to prevent this from happening, and secure jobs and energy for the region,” said Gladu, who called on all Canadians to sign Petition e-3081, which demands the prime minister defend Canada’s economic interests regarding Enbridge Line 5. 

She hopes the petition will pressure the prime minister to appeal to Biden to intervene and prevent Whitmer from inflicting overwhelming and catastrophic economic effects on Ontario, Quebec, Wisconsin and Ohio.

With the petition set to collect its final signatures Monday, Mike Simpson, Executive Director of Operations of the Canadian Energy Centre, or the “energy war room,” says it is too early to speculate on the actions the federal government might take. 

“We have asked our supporters to sign the petition and help grow it. What this shows is we need all Canadians to engage in this debate and support energy,” said Simpson.

However, he argues signing the petition is but one mechanism to alleviate concerns for the country’s key economic driver. 

“Canadians should talk to their neighbours and networks so that the federal government can realize supporting oil and gas is the right thing to do,” said Simpson.

“Every single person uses more carbon-based products in their daily lives than they probably even realize. If you look at the covid situation, the number of plastics needed for masks and PPE etc., are all based on fossil fuels.

“Decision-makers need to realize this is not an us vs them situation. It needs to be understood advocacy for the industry is not just government or industry responsibility. It is government, supporters, industry, workers, and everyday Canadians – once this is recognized, that path forward will be easier to follow.

“Climate change does not stop at our borders. It is a global problem, and we believe responsibly developed Canadian oil and gas is a big part of the solution.” 

Dhaliwal is the Western Standard’s Edmonton reporter.

Energy

BAROOTES: There’s nothing ‘just’ about Justin’s ‘Just Transition’ 

Erika Barootes says Albertans need a voice in the Senate to fight the phasing-out of the energy sector.

mm

Published

on

Erika Barootes is a Senate nominee candidate for the Conservative Party of Canada

A key reason I put my name forward to represent Alberta in the Senate is to speak up for the many Albertans whose lives and livelihoods are being fundamentally ignored by Ottawa.

The Liberal government’s so-called “Just Transition” scheme is only the most recent example. In its crosshairs are the 522,000 Canadians working in the oil and gas industry and the families that depend on them.

You easily could have missed it: right before the Liberals pulled the plug and called their opportunistic election in August, they launched consultations for “just transition” legislation. That consultation has already closed, with no further opportunities for feedback to be welcomed by the government.

No matter how it’s branded, the “transition” here involves putting resource workers out of work, with their livelihoods deemed a write-off.

The “Just Transition” plan, a scheme to mothball a key economic driver in our country, started long before the creation of Trudeau’s buzz term with the stopping of resource projects. Whether it was the prime minister’s killing Northern Gateway by cabinet order or the regulatory strangulation of the Frontier oil sands project, amongst others, the government knows the jobs it doesn’t want Canadians supporting their families with. 

The glaring omission in the idealistic “just transition” are the lives of those it impacts immediately. Much like the consumer carbon tax forced on provinces by Ottawa, the considerations for ordinary people weren’t taken into account: the carbon tax didn’t stop people from driving to work, or their kids to extra-curricular activities, or paying to heat their homes — it just made it more expensive. 

Leadership – especially amongst Alberta companies – in reducing GHG emissions per barrel, or ongoing innovation in the oil and gas industry, global demand for resources, and the uncomfortable question of “then who are we going to import our resources from?” don’t seem to resonate at all with Ottawa.

While the legislation hasn’t been introduced, nor has the report from the “consultations” even been finished, I’m not optimistic about where the NDP-backed Liberal minority government in Ottawa will land on this.

This is exactly why the Senate, the upper house, needs legitimate representation from our country’s regions. That was supposed to be the point of the Senate, a counterbalance and gut-check on the House of Commons. 

Another handpicked-by-Ottawa appointee to speak for Albertans only exacerbates the problem. 

I know what you’re thinking: you think this government is going to appoint the person Albertans choose? What’s the point? 

Hundreds of thousands of ballots were cast in Alberta’s Senate nominee elections in 1998 and 2004 during the previous period of federal Liberal governance. In 1998, there wasn’t even the hope of a merged federal Conservative Party on the horizon.

This election, and Alberta’s proud history of leadership on Senate reform, gives Albertans an opportunity to make their voices heard. 

The Liberals and NDP who mock and boycott these elections love the appointment process and an effective rubber stamp on whatever comes out of the House of Commons. No checks, no balances. 

With next-to-no consultation on consequential legislation like the upcoming “just transition” scheme coming out of Ottawa, it’s clear why we need real representation in the Senate to put checks and balances on the House of Commons. 

People’s livelihoods are too important to be lost in the process.

Erika Barootes is a Senate nominee candidate for the Conservative Party of Canada

Continue Reading

Energy

WITTEVRONGEL: The oil and gas industry is helping rein in Alberta’s deficit. Can it also help lower GHGs?

“If we want to have a chance of hitting this ambitious target, we need to shift the narrative from blaming the oil and gas industry to embracing it as an integral part of the solution.”

mm

Published

on

Alberta’s expected deficit will be less than half what was projected in February, largely thanks to the rebound of the oil and gas industry. Expanded oilsands production, improved oil prices, and increased oil and gas investment have resulted in higher than anticipated resource revenues. In fact, the province’s revised royalty estimates are now triple the original sums.

While the oil and gas industry steps in and once again saves Alberta, the forecasted resource revenue is being called too high to be sustainable. In addition, the serendipitous rebound occurs as we emerge from Canada’s “infernal summer,” with many calling for decisive action on climate change.

Given the federal government’s pledge to achieve net-zero emissions by 2050, we must consider how and where the oil and gas industry fits into that. While some are more than happy to see the entire sector go up in flames, others have a more nuanced vision of the future. With its technology, resources, and infrastructure, the industry is actually uniquely situated to not only play its part in a low-emission future, but to lead.

Capturing carbon

While the Canadian oil and gas sector contributes only about 0.3% of overall global GHG emissions, and work is well underway to develop more renewable energy sources for consumption, there are other high-emitting industries like steel and cement that lack viable options for reducing emissions. Therefore, without some form of carbon capture, utilization, and storage (CCUS), net-zero seems unrealistic. 

CCUS involves capturing carbon dioxide and, if not used on site, often transporting it (by pipeline) to be used elsewhere or injected into geological formations for permanent storage so it does not re-enter the atmosphere. The oil and gas industry, with its expertise, pipelines, and other infrastructure, is best positioned to lead in this area. In fact, the same formations we extract oil and gas out of can store CO2, deep in the ground.

In recent years, some of the world’s largest and most advanced carbon capture projects have been developed in Alberta. With a promised federal investment tax credit for CCUS slotted to take effect in 2022, this is an opportune time to expand and grow CCUS potential.

In addition, the much-vilified Alberta oilsands are in close proximity to Canada’s Western Canadian Sedimentary Basin, offering a world-class opportunity for permanent carbon storage. 

CCUS fits into the broader circular economy model for mitigating emissions. The four Rs of the circular carbon economy—reduce, reuse, recycle, and remove—were endorsed at the G20 Energy Ministers meeting in 2020 as being “a holistic, integrated, inclusive, and pragmatic approach to managing emissions.” As such, CCUS has a part to play in a resilient, sustainable system.

Reducing net GHG emissions to zero by 2050 is going to be a challenge. If we want to have a chance of hitting this ambitious target, we need to shift the narrative from blaming the oil and gas industry to embracing it as an integral part of the solution. 

Guest Column by Krystle Wittevrongel, Public Policy Analyst at the Montreal Economic Institute www.iedm.org

Continue Reading

Energy

Deal sees Alberta becoming half owner of the Sturgeon Refinery

North West Refining will be paid $425 million to forego future tolling revenue and for its 50% equity stake. Canadian Natural Resources Ltd., which owns the other 50% of the refinery, will also be paid $400 million.

mm

Published

on

The Alberta government now owns 50% of the troubled Sturgeon Refinery.

Energy Minister Sonya Savage said yesterday the move should free up $2 billion for provincial coffers.

“We are taking action to get a better deal for taxpayers and reducing long-term costs. This agreement provides more economic certainty which will benefit Albertans today and into the future. We look forward to our renewed arrangement with the refinery’s operator, the North West Redwater Partnership, in the years to come,” Savage said in a release.

Under the deal, the government is transferred a 50% ownership interest in the refinery previously held by North West Refining.

The government made the switch after reviewing contracts the Sturgeon Refinery signed with former premier Ed Stelmach’s government in 2011.

The Alberta director of the Canadian Taxpayers Federation, Kevin Lacey, wasn’t happy with the deal.

“The government is just trying to dig themselves out of bad contracts they signed in the past. We expect our government to run schools, hospitals and keep our taxes low, they should not be involved in the energy business,” Lacey told the Western Standard.

“Alberta needs our government to support our energy sector, yes, but it should not be directly involved in the industry. Let the politicians run the government and business people run businesses.”

With the deal, North West Refining will be paid $425 million to forego future tolling revenue and for its 50% equity stake. Canadian Natural Resources Ltd., which owns the other 50% of the refinery, will also be paid $400 million.

“This process will not cost taxpayers any additional funds than the government would otherwise be obligated to pay as a toll payer,” said a government release.

“Through the agreement, the government is able to capture the value of processing bitumen as both a toll payer and facility owner.

“This plan improves the government’s net present value for the refinery by approximately $2 billion over the life of the project. Net present value is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.”

The government said the agreement also frees up $1 billion in cash flow over the next five years because additional cash flow is a result of the restructuring.

The agreement includes a 10-year extension of the processing agreement to 2058.

“With this optimization, the government has an equal vote in the control of the refinery to which it is the majority toll payer. Canadian Natural will provide operational leadership to North West Redwater Partnership,” said the government.

The Sturgeon Refinery is designed to process approximately 79,000 barrels per day of diluted bitumen from Alberta’s oil sands into higher-value products like low-carbon, low-sulphur diesel, vacuum gas oil, diluent and natural gas liquids.

It was set to originally cost $5.4 billion but was completed last year at a cost of close to $11 billion.

Dave Naylor is the News Editor of the Western Standard
dnaylor@westernstandardonline.com
Twitter.com/nobby7694

Continue Reading

Recent Posts

Recent Comments

Share

Petition: No Media Bailouts

We the undersigned call on the Canadian government to immediately cease all payouts to media companies.

543 signatures

No Media Bailouts

The fourth estate is critical to a functioning democracy in holding the government to account. An objective media can't maintain editorial integrity when it accepts money from a government we expect it to be critical of.

We the undersigned call on the Canadian government to immediately cease all payouts to media companies.

**your signature**



The Western Standard will never accept government bailout money. By becoming a Western Standard member, you are supporting government bailout-free and proudly western media that is on your side. With your support, we can give Westerners a voice that doesn\'t need taxpayers money.

Share this with your friends:

Trending

Copyright © Western Standard New Media Corp.