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Energy

Bill Banning Oil and Gas Ads Won’t Pass, and Rightfully So

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9 minute read

From EnergyNow.ca

By Margareta Dovgal of Resource Works 

” it wouldn’t just ban “advertising” but would also punish anyone caught saying anything positive about fossil fuels in Canada.

Corporate producers could be jailed for two years or be hit with a $1-million fine. The penalties for smaller agencies and individuals could mean $500,000 fines and imprisonment for two years less a day. “

Resource Works Margareta Dovgal shakes her head at a private member’s bill in Parliament.

Jail for saying something positive about oil and gas?

Yes, really.

Fines or prison time are in a private member’s bill before the House of Commons, Bill C-372 from NDP MP Charlie Angus, an Act Respecting Fossil Fuel Advertising.

Only it wouldn’t just ban “advertising” but would also punish anyone caught saying anything positive about fossil fuels in Canada.

Corporate producers could be jailed for two years or be hit with a $1-million fine. The penalties for smaller agencies and individuals could mean $500,000 fines and imprisonment for two years less a day.

There are several prohibitions. Section 6 would prohibit promoting a fossil fuel, and Section 8 would, for one, prohibit promoting LNG as having less impact than other fossil fuels, and prohibit spreading the word on a positive impact, such as reducing net emissions or contributing to Indigenous economic reconciliation.

The legislation would prohibit companies and people from making comparisons between different types of fossil fuels — even if the comparisons were factually and scientifically accurate. To say that one fuel that has a lower emissions profile than another would be illegal if the bill passes.

Angus as an MP has generally supported First Nations needs and priorities, but his bill was quickly slammed by some First Nations leaders. No surprise, as Canada’s oil and gas sector employs 10,400 Indigenous people, better than 6% of the total workforce. And nearly 50 Indigenous communities are becoming owners of major oil and gas and energy projects.

Angus’s First Nations critics have included these:

  • Stephen Buffalo, CEO of the Indian Resource Council: “One of the most contemptible pieces of legislation since the introduction of the Indian Act in 1876. “Angus’ proposed fossil fuel advertising act would outlaw oil and gas advertising and the ‘promotion’ of fossil fuels, even by some private citizens. If passed, this would be the most egregious attack on civil liberties in recent Canadian history.

“Angus and his environmental supporters . . .   have shown themselves to be no fans of Indigenous peoples. These single-minded environmentalist organizations ignore the interests of First Nations, Métis and Inuit communities, except when they want to impose their will on them.”

  • Karen Ogen, CEO of the First Nations LNG Alliance: “The NDP MP for Timmins-James Bay and his party want to shut down fossil fuel production, a move that would devastate the Canadian economy and undermine the greatest — and often the only — opportunity that many First Nations have for economic renewal.

“Even that is not enough. He wants to shut us up, telling us what to think and threatening us with jail and fines for not adhering to his strange, unrealistic and dangerous views of energy and environmental protection.”

And columnist Brian Lilley in The Toronto Sun called Angus’s bill “a joke” and “one of the craziest private member’s bills that I’ve ever read.”

Some commentators have seen the the bill as criminalizing dissent, rather than trying to get people on board with Angus’s cause in a constructive and meaningfully engaged way as you have to do in a democracy.

It all comes amid debate over environmental policy in Canada, and, following court rulings on some federal moves, over jurisdictional overreach.

Over the last two decades, environmental policy has been a more prominent part of federal politics. The federal government, particularly through Steven Guilbeault, minister of environment and climate change, has increased its presence and powers in matters environmental.

But there have been cases where the feds have tiptoed over the jurisdictional line, as the provinces have rights under the constitution to manage their own natural resources.

Angus’s misguided bill could also establish a dangerous precedent. How could Canadians talk democratically about any issue, adopt positions on it, and democratically resolve it, if the law banned them from advocating their positions?

Angus’s bill needs also to be treated with plain common sense: 80% of all of the energy we use in the world right now comes from fossil fuels. They are thus literally the foundation for the modern life and civilization that we have globally right now.

It’s a little bit bizarre, too, for MP Angus and his fans to say he’s merely doing for oil and gas what Canada has long done to restrict tobacco advertising.

Tobacco was a big industry in Canada, and continues to be one globally. Yes, tobacco has some serious health effects. But tobacco doesn’t keep the world’s economy running.

As we talk about solutions to climate change, as we try to deal with over 100 years of putting fossil fuels into the mix to power our daily life, it’s undeniable that we have emitted (and still emit) a lot of greenhouse gases into the atmosphere.

But criminalizing merely talking about one of the key components of our energy system is a really bizarre approach to problem solving.

It also seems a weird move from a party, the NDP, that is committed to democracy and democratic rights. There was significant silence on the bill from NDP leader Jagmeet Singh, although when two NDP MLAs in Alberta questioned the bill, he said, “We’re a large party and that’s a normal thing that happens.”

The office of Environment Minister Guilbeault: “We welcome the NDP’s bill to the House. Advertisement has a big role to play in public perception, and the industry is raking in record profits. We will carefully assess their bill and look forward to productive debates and discussions around this important issue.”

Fortunately, the chances of the law passing are slim to none, even if it goes to second reading.

In the end, Charlie Angus’s bill will die a quiet death in Parliament. And so it should.

Margareta Dovgal is Managing Director of Resource Works. Based in Vancouver, she holds a Master of Public Administration in Energy, Technology and Climate Policy from University College London. Beyond her regular advocacy on natural resources, environment, and economic policy, Margareta also leads our annual Indigenous Partnerships Success Showcase. She can be found on Twitter and LinkedIn.

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Energy

What does a Trump presidency means for Canadian energy?

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From Resource Works

Heather-Exner Pirot of the Business Council of Canada and the Macdonald-Laurier Institute spoke with Resource Works about the transition to Donald Trump’s energy policy, hopes for Keystone XL’s revival, EVs, and more. 

Do you think it is accurate to say that Trump’s energy policy will be the complete opposite of Joe Biden’s? Or will it be more nuanced than that?

It’s more nuanced than that. US oil and gas production did grow under Biden, as it did under Obama. It’s actually at record levels right now. The US is producing the most oil and gas per day that any nation has ever produced in the history of the world.

That said, the federal government in the US has imposed relatively little control over production. In the absence of restrictive emissions and climate policies that we have in Canada, most of the oil production decisions have been made based on market forces. With prices where they’re at currently, there’s not a lot of shareholder appetite to grow that significantly.

The few areas you can expect change: leasing more federal lands and off shore areas for oil and gas development; rescinding the pause in LNG export permits; eliminating the new methane fee; and removing Biden’s ambitious vehicle fuel efficiency standards, which would subsequently maintain gas demand.

I would say on nuclear energy, there won’t be a reversal, as that file has earned bipartisan support. If anything, a Trump Admin would push regulators to approve SMRs models and projects faster. They want more of all kinds of energy.

Is Keystone XL a dead letter, or is there enough planning and infrastructure still in-place to restart that project?

I haven’t heard any appetite in the private sector to restart that in the short term. I know Alberta is pushing it. I do think it makes sense for North American energy security – energy dominance, as the Trump Admin calls – and I believe there is a market for more Canadian oil in the USA; it makes economic sense. But it’s still looked at as too politically risky for investors.

To have it move forward I think you would need some government support to derisk it. A TMX model, even. And clear evidence of social license and bipartisan support so it can survive the next election on both sides of the border.

Frankly, Northern Gateway is the better project for Canada to restart, under a Conservative government.

Keystone XL was cancelled by Biden prior to the invasion of Ukraine in 2022. Do you think that the reshoring/friendshoring of the energy supply is a far bigger priority now?

It absolutely is a bigger priority. But it’s also a smaller threat. You need to appreciate that North America has become much more energy independent and secure than it has ever been. Both US and Canada are producing at record levels. Combined, we now produce more than the Middle East (41 million boe/d vs 38 million boe/d). And Canada has taken a growing share of US imports (now 60%) even as their import levels have declined.

But there are two risks on the horizon: the first is that oil is a non renewable resource and the US is expected to reach a peak in shale oil production in the next few years. No one wants to go back to the days when OPEC + had dominant market power. I think there will be a lot of demand for Canadian oil to fill the gap left by any decline in US oil production. And Norway’s production is expected to peak imminently as well.

The second is the need from our allies for LNG. Europe is still dependent on Russia for natural gas, energy demand is growing in Asia, and high industrial energy costs are weighing on both. More and cheaper LNG from North America is highly important for the energy security of our allies, and thus the western alliance as it faces a challenge from Russia, China and Iran.

Canada has little choice but to follow the US lead on many issues such as EVs and tariffs on China. Regarding energy policy, does Canada’s relative strength in the oil and gas sector give it a stronger hand when it comes to having an independent energy policy?

I don’t think we want an independent energy policy. I would argue we both benefit from alignment and interdependence. And we’ve built up that interdependence on the infrastructure side over decades: pipelines, refineries, transmission, everything.

That interdependence gives us a stronger hand in other areas of the economy. Any tariffs on Canadian energy would absolutely not be in American’s interests in terms of their energy dominance agenda. Trump wants to drop energy costs, not hike them.

I think we can leverage tariff exemptions in energy to other sectors, such as manufacturing, which is more vulnerable. But you have to make the case for why that makes sense for US, not just Canada. And that’s because we need as much industrial capacity in the west as we can muster to counter China and Russia. America First is fine, but this is not the time for America Alone.

Do you see provinces like Alberta and Saskatchewan being more on-side with the US than the federal government when it comes to energy?

Of course. The North American capital that is threatening their economic interests is not Washington DC; it’s Ottawa.

I think you are seeing some recognition – much belated and fast on the heels of an emissions cap that could shut in over 2 million boe of production! – that what makes Canada important to the United States and in the world is our oil and gas and uranium and critical minerals and agricultural products.

We’ve spent almost a decade constraining those sectors. There is no doubt a Trump Admin will be complicated, but at the very least it’s clarified how important those sectors are to our soft and hard power.

It’s not too late for Canada to flex its muscles on the world stage and use its resources to advance our national interests, and our allies’ interests. In fact, it’s absolutely critical that we do so.

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Energy

What Will Be the Future of the Keystone XL Pipeline Under President Trump?

Published on

From EnergyNow.ca

By Terry Winnitoy, EnergyNow

The Keystone XL Pipeline, proposed in 2008, was designed to transport Canadian crude oil from Alberta to refineries in the United States, specifically to Steele City, Nebraska, and onward to refineries in Illinois and Texas, as well as to an oil pipeline distribution center in Cushing, Oklahoma.

Spanning approximately 1,179 miles and designed to transport up to 830,000 barrels of oil per day, the pipeline promised significant economic and energy security benefits. However, it became a focal point of political and environmental controversy, leading to its eventual cancellation by Presidents Obama and Biden.

Here’s a brief look at its history, the reasons it should have been built, the political dynamics that led to its cancellation and will President-elect Trump revive it?

Why the Keystone XL Pipeline Should Have Been Built

Economic and Job Creation

The pipeline was projected to create thousands of construction jobs and several hundred permanent jobs, providing a significant boost to the economy. It was also expected to stimulate economic activity through the development of related infrastructure and services.

Energy Security

By facilitating the efficient transport of a large volume of oil from a stable and friendly neighboring country, the pipeline would have reduced American dependence on oil imports from more volatile regions, enhancing national energy security.

Environmental Safety

Pipelines are generally safer and more environmentally friendly for transporting oil compared to rail or truck, with lower risks of spills and accidents. The Keystone XL was designed with the latest technology to minimize leaks and environmental impact.

Regulatory Oversight

The project underwent extensive environmental reviews and was subject to strict regulatory standards to ensure it adhered to environmental protection and safety measures.

Political Reasons for Cancellation

Environmental Activism

The pipeline became a symbol for environmentalists who opposed further development of fossil fuel infrastructure. They argued it would contribute to climate change by enabling the extraction and consumption of oil sands, which are more carbon-intensive than other oil sources.

Obama’s Cancellation

President Obama rejected the pipeline in 2015, citing environmental concerns and its potential impact on global climate change. He argued that approving the pipeline would have undercut America’s leadership on climate change.

Trump’s Reversal and Biden’s Final Cancellation

President Trump revived the project in 2017, citing economic benefits and energy security. However, President Biden canceled it again on his first day in office in 2021, fulfilling a campaign promise to prioritize climate change issues and transition towards renewable energy.

Political Symbolism

For both Obama and Biden, the decision to cancel the Keystone XL Pipeline was also a symbolic gesture, demonstrating a commitment to environmental sustainability and a shift away from fossil fuel dependence in line with their administrations’ climate policies.

Will President-Elect Trump Reinstate It?

Currently, there is no definitive answer on whether President-elect Trump will reinstate the Keystone XL Pipeline. His previous administration showed support for the project, citing its potential economic and energy security benefits. However, reinstating the pipeline would require navigating significant political, legal, and environmental challenges that have developed over the years.

It would also depend on the current geopolitical, economic, and environmental priorities at the time of his taking office. The Keystone XL Pipeline’s history is a complex tapestry of economic aspirations, environmental concerns, and political maneuvers.

Its cancellation has been a contentious issue, reflecting the broader national and global debates over energy policy and climate change strategy. Whether it will be reinstated remains a significant question, contingent on a multitude of factors including political will, environmental policies, and market dynamics.

That all said, re-instating its approval might be the perfect “in your face” moment for Trump to Obama and Biden as he begins his second term of presidency. We’ll have to wait and see.

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