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Energy

A federally guaranteed Indigenous loan program is reconciliation progress, but only if it respects Indigenous agency

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Roger Marten, right, Chief of Cold Lake First Nations, and Curtis Monias, centre, Chief of Heart Lake First Nation, speak after Cenovus CEO Alex Pourbaix announces an initiative focused on Indigenous communities. Photo from The Canadian Press.

From EnergyNow.ca

By Resource Works

Indigenous communities are increasingly becoming partners and owners in major natural resource projects across the country.

Resource Works has been excited to be involved in that movement through our annual Indigenous Partnerships Success Showcase, where we convene Indigenous experts to discuss Indigenous partnerships in major projects and across the Canadian economy.

Under a proposed federal program, even more, Indigenous communities could become partners and even owners in major natural resource projects, from oil to natural gas and liquified natural gas (LNG).

Back in 2010, the proposed Northern Gateway oil pipeline from Alberta to Kitimat offered a 10% equity stake in the project to participating Indigenous groups. Yet despite having significant support, there was also considerable Indigenous opposition to the project. Ultimately, the project was killed when Prime Minister Trudeau banned oil tanker traffic on BC’s northern coast.

Fast forward twelve years, and the Coastal GasLink (CGL) natural gas pipeline and the LNG Canada project are nearing completion. In fact, CGL finished laying the last of its pipe in the ground in October 2023, completing a truly herculean engineering task, the first energy pipeline to the coast in decades. Despite some Indigenous opposition, CGL has the support of the elected councils of all 20 First Nations along the route and has offered an option for First Nations to purchase a 10% equity share in the pipeline.

Coastal GasLink will feed LNG Canada, the largest private sector investment in Canadian history. That project will turn CGL’s natural gas into liquid, where it can be shipped more densely to Asia to help replace coal, especially in industrial applications, and reduce global carbon emissions.

While CGL and LNG Canada near completion, two more proposals for LNG projects in BC are coming onto the scene. A historic first, these projects are led by First Nations: the Cedar LNG project near Kitimat from the Haisla Nation and Ksi Lisims LNG in Northern BC from the Nisga’a Nation.

A third LNG project, Woodfibre LNG, was approved by the Squamish Nation in the first-ever Indigenous environmental impact review and is now beginning construction.

Indigenous involvement – and leadership – in major energy projects has arrived. Indigenous LNG is Canadian LNG, and Canadian LNG has become Indigenous LNG. This is a global first.

Beyond natural gas and LNG, the Trans Mountain oil pipeline expansion project from Alberta to Burnaby is anticipating completion in March 2024. The expansion triples the pipeline’s capacity, the only oil pipeline to Canada’s West coast.

While there has been Indigenous opposition to this project, there has also been support, including formal agreements and billions in contracting deals for Indigenous businesses during construction. In fact, several Indigenous groups are working to acquire an equity stake in the pipeline.

Historic restrictions in the Indian Act mean Indigenous peoples face enormous barriers in raising or borrowing money to finance equity partnerships. Yet the ability to purchase equity in major projects is to enter the big leagues of economic development and wealth generation.

The federal government is expected to announce a guaranteed loan program that will enable Indigenous Peoples to finally bypass these structural obstacles and purchase equity shares in resource projects. Alberta and Saskatchewan already have their own programs, and the federal government has a lot to learn from them, particularly Alberta’s Alberta Indigenous Opportunities Corporation.

Supporters of such programs point out that Ottawa, without spending a cent of taxpayers’ money, could backstop loans to Indigenous communities. It’s a low-risk mechanism and another way to support economic reconciliation.

Unfortunately, there is uncertainty about whether this federal initiative will allow all projects to be supported. There are reports that Ottawa will exclude oil and gas projects from the guaranteed-loan program, in favour of exclusively renewable and green energy projects.

Indigenous groups argue that they can make up their own minds on what to invest in.

Four Indigenous groups have told the prime minister: “This program cannot be driven by an ‘Ottawa-knows-best’ policy approach – the judgement of Indigenous Nations about projects to pursue must be respected. . . . We believe that this initiative is not only a practical step towards reconciliation but an opportunity to demonstrate Canada’s commitment to a just future for First Peoples.”

If this loan program is created, it should be up to Indigenous peoples to decide what they want to get involved in. If we are in an era of reconciliation, shouldn’t we empower Indigenous Peoples to be decision-makers?

We can do big things as a country when we partner with Indigenous peoples. But we need to ground our policies in a positive framework that builds agency.

For many Indigenous peoples, that starts with charting their own economic destiny, including in natural resources.

Margareta Dovgal is Resource Works’ Managing Director and Event Lead for the Indigenous Partnerships Success Showcase

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Daily Caller

Trump Dresses Down The Davos Globalists

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From the Daily Caller News Foundation

By David Blackmon

Organizers and attendees at this week’s annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, had to have been shocked at the new tone from the United States after four years of subservient obeisance from Joe Biden and his ineffective emissaries. In a wide-ranging speech via videoconference on Thursday, President Donald Trump essentially blew up the liberal world order consensus as it relates to the climate alarm agenda.

After putting the conference on notice that the United States would again become a sovereign nation with secure borders, Trump then turned to climate and energy policy. “I terminated the ridiculous and incredibly wasteful Green New Deal – I call it the Green New scam,” Trump began, “withdrew from the one-sided Paris climate Accord and ended the insane and costly electric vehicle mandate. We’re going to let people buy the car they want to buy.”

It was an opening salvo that flew directly in the face of remarks made earlier in the week by the likes of European Commission leader Ursula Von Der Leyen, John Kerry, Al Gore, UN Secretary General Antonio Guterres and many others. But Trump was far from done.

“I declared a national energy emergency to unlock the liquid gold under our feet and pave the way for rapid approvals of new energy infrastructure,” he informed the conference, adding, “The United States has the largest amount of oil and gas of any country on earth, and we’re going to use it.”

The message was crystal clear: The age of America conforming its energy and climate policies to fit the strictures of the liberal world order as formulated at international climate conferences organized by the WEF and the United Nations is over, at least for the next four years and possibly beyond that. It should be obvious to everyone by now that Trump intends to completely reverse the Biden Green New Deal agenda and implement policies designed to return the U.S. to the position of what he calls “energy dominance” achieved during Trump’s first presidency.

The net-zero fantasy goal has gone completely off the rails over the last two years as both the ESG and DEI philosophies fell into disrepute. The fading of those interrelated leftwing religions led major energy companies and the banking community alike to place heavier focus on mounting and financing major energy projects designed to enhance energy and national security.

Energy reality was already making a comeback before Trump emerged triumphant in the 2024 election. Despite these and other emerging realities, the WEF’s old guard came to Davos armed with the same old rhetoric.

Sec. Gen. Guterres, always eager to engage in laughable hyperbole, labeled the oil industry a “Frankenstein monster sparing nothing and no one” as it sows what he calls “climate chaos.”

Von Der Leyen’s bombast was no less absurd: “Heat waves across Asia. Floods from Brazil to Indonesia, from Africa to Europe, wildfires in Canada, Greece and California, hurricanes in the US and the Caribbean. Climate change is still on top of the global agenda,” she warned, sounding for all the world like Bill Murray and his fellow “Ghostbusters” in the famous “dogs and cats living together – mass hysteria!” scene from the 1984 film.

Kerry was somewhat more muted, likely due to the fact that he no longer holds any official role in representing U.S. interests. Gore essentially mailed it in, delivering virtually the same hyperbole-filled remarks he spewed to the 2024 conference.

But a pair of participants in a panel discussion held Wednesday were much more realistic.

Graham Allison, a professor at the Harvard Kennedy School, warned his audience not to underestimate the new president. “Trump has done something no person in the world has ever done before,” he said, adding, “A dead man, a dead politician has risen. This is the greatest comeback in political history of a politician.”

Longtime political columnist Walter Russel Mead added, “We need to also factor in not only who’s won, which is Trump, but who’s lost. Which is to say, us.”

He isn’t wrong, and the elitists who make up the liberal world order would do well to pay attention. Whether they like it or not, their world has changed.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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Economy

Trump’s Wakeup Call to Canada – Oil & Gas is Critical to our Economy

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From EnergyNow.Ca

By Jim Warren

On the bright side, at least President Donald Trump’s threat to impose 25% tariffs on Canadian oil and gas, might have alerted some Central Canadians to the critical importance of oil and gas to the national economy. Trump’s tariff pronouncements may also have forced the Laurentian Elite to rethink the wisdom of allowing anarchy to reign in our immigration system and border management.

Any nation hoping to be a serious player in the areas of international trade and diplomacy needs to meet several critical criteria. Without them a country can have difficulty marketing its goods and services to the world and in retaining meaningful economic and political sovereignty. One of the key criteria is for a country to have a good measure of control over its borders. But there are other elements critical to having effective sovereignty and independence. Having access to versatile, readily transportable energy commodities like oil and gas is one of those essentials. Accordingly, oil and gas are considered strategically important industries.

Lacking any of the major building blocks of strategic economic sovereignty, like the steel and aluminum industries and a thriving manufacturing sector, as well as highly developed transportation sector and the energy industries needed to support all the other sectors can leave a country vulnerable to domination by others. The vulnerabilities can lead to economic and political crises for a country during trade wars, international disputes leading to trade sanctions and embargoes, shooting wars and big natural disasters. A lack of strong trade and military alliances can make matters even worse.

It’s not like there wasn’t a mountain of evidence underlining the strategic importance of oil and gas in the last few years. How smart was it for Angela Merkel to allow Russia, a state run by a psychopath and his team of criminal oligarchs, to control a major portion of its energy supplies? The Ukraine gets it. After its war with Russia began, the Ukrainian government allowed Russian gas to be piped across its territory to Eastern Europe for nearly two years. This was because they realized messing with a commodity critical to bordering states such as Hungary, Slovakia and Romania was politically hazardous.

It is true that a country can still have a thriving economy even if it is missing one or two items from the basket of strategically important industries. Singapore, for example, needs to import fossil fuel but is still considered one of Southeast Asia’s economic tigers. But this is only possible because Singapore is so good at most everything else. It has several other economic engines that perform exceptionally well.

Looking back several decades reminds us that Japan risked entering a World War to obtain the petroleum they needed. To get it, the Japanese concluded they needed to conquer parts of Indonesia. (Similarly they wanted Southeast Asia for its rubber.) They knew these were actions the US wouldn’t tolerate, but they decided they had to do them anyway.

While we’re on the topic of World War II, it is instructive to recall Hitler fought it with one hand tied behind his back. Germany had no oil of its own and gasoline refined from coal and the oil available from their Romanian ally were never enough. That’s why the German’s placed such great hopes in capturing Russia’s Caspian oil fields in 1943. Similarly, Hitler invaded Norway to ensure access to Swedish iron ore—another strategic commodity Germany lacked.

Canada’s oil revenues along with the taxes and royalties collected from those revenues are derived almost entirely from the oil we export to the US. Our export revenues for 2022, following the worst of the covid years, were $123 billion. They accounted for 15.8% of all Canada’s exports and 6.6% of GDP. The following year saw exceptionally high oil prices globally. That year the value of oil Canada’s oil production hit $139 billion and accounted for 7.1% of GDP. Pull even half of those revenues out of the Canadian economy for very long and we’re in economic depression territory.

So, thanks for the wakeup call president Trump. The fact Trump has indicated he will postpone his final decision until February 1, is of some comfort. Danielle Smith has met with him at Mar-a-Lago to make the case against tariffs on Canadian crude. Smith is among the most knowledgeable and capable people there are when it comes to oil and gas production and trade. We couldn’t hope for a better advocate for the producing provinces. She’s certainly a cut above Justin Trudeau and anyone else in his cabinet. Let’s hope Smith she managed to convince Trump how imposing tariffs would harm the economies of both countries.

There is an obvious way to prevent being in this sort of situation in the future – diversify our export opportunities by building more pipelines to tidewater. In my last column I focused on the difficulties involved in getting a pipeline built to the Atlantic coast. The challenges identified focused on the barriers thrown up by Quebec’s politicians and environmentalists. Trump’s ongoing tariff pronouncements suggest it would be in Canada’s national strategic interest to use whatever legal measures are required to sweep those barriers aside in both Quebec and British Columbia to get new tidewater pipelines built.

There is plenty the federal government can do to override the demands of municipalities, special interest groups and provincial governments in support of high national purposes and in emergencies. Section 91 of the constitution gives parliament broad, albeit somewhat vague, powers to do what needs to be done “to make laws for the peace, order and good government of Canada” in all matters not exclusively the jurisdiction of the provinces. And, you would think that if the heavy hand of the Emergencies Act can be used to prevent horn honking and traffic snarls in Ottawa, it could be employed to prevent the environmentally sanctimonious from blocking projects critical to our economic and political sovereignty. Of course doing any of this will require voting the Liberals out of office.

Sorry premier Ford, retaliatory tariffs and export taxes can’t be the only tools employed; especially when they cause self-inflicted wounds.  Unfortunately, until we have more export opportunities for oil and gas we may need to limit our counter attacks on Americans to misleading travel directions and poor restaurant service.

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