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Energy

Canada’s Climate Fetish Could Decimate Key Industry For First Nations

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6 minute read

From the Daily Caller News Foundation

By VIJAY JAYARAJ

 

Obsessed with the faux climate crisis, the Canadian government in Ottawa seemingly discounts altogether the social and economic benefits of natural gas to First Nations communities of the country’s western region.

Approximately 5% of the world’s gas comes from Canada, mainly from the vast Western Canadian Sedimentary Basin underlying several provinces, including British Columbia, Alberta and Saskatchewan. In 2023, the country ranked fifth in global production behind the U.S., Russia, Iran and China.

Some First Nations communities — a designation that takes in indigenous people living south of the Arctic Circlehave — historically faced challenges in terms of economic development and social well-being. Limited access to education, healthcare and infrastructure has resulted in lower living standards compared to the national averagea — fact that I observed firsthand as a researcher in British Columbia. Unemployment rates are often higher in First Nations communities, and poverty remains a persistent issue.

However, oil and gas development has provided a pathway to prosperity for many of these communities. Liquified natural gas (LNG) projects, for example, require a significant workforce in both construction and operational phases. This translates into direct employment opportunities and much needed income for First Nations people otherwise lacking financial security.

The development of natural gas resources also necessitates infrastructure upgrades in nearby communities. These can include the construction or enhancements of roads, bridges and communication networks. Such improvements benefit the entire community by providing access to markets, educational opportunities and other essential services.

“For far too long, First Nations could only watch as others built generational wealth from the resources of our traditional lands” says Eva Clayton, president of the Nisga’a Lisims government. “But times are changing.”

First Nations participation in natural gas development goes beyond economic benefits. It represents an opportunity for communities to assert their self-determination and participate in shaping their own future. Communities can participate in natural gas projects through equity ownership and various arrangements, including Impact Benefit Agreements. According to the Canada Energy Centre, more than 75 First Nations and Métis communities in Alberta and British Columbia have agreed to ownership stakes in energy projects, including the Coastal GasLink pipeline and major transportation networks for oil sands production.

One such example is the recent Musqueam Partnership agreement by FortisBC, which will share the benefits of the Tilbury LNG facility’s expansion phase to begin in 2025. First Nations beneficiaries will include communities of the Snuneymuxw, T’Sou-ke, Esquimalt, Scia’new, Pacheedaht, Pauquachin, Huu-ay-aht, Kyuquot/Checleseht, Toquaht, Uchucklesaht and Ucluelet. Similarly, the Woodfibre LNG project to begin production in 2027 will directly benefit the Squamish community.

DemandObsessed with the faux climate crisis, the Canadian government in Ottawa seemingly discounts altogether the social and economic benefits of natural gas to First Nations communities for natural gas in North America and across the world should ensure increasing prosperity into the future, unless the federal government’s climate fetish undermines the industry.

Just such a possibility has prompted an alarm to be sounded by the First Nations LNG Alliance—a collective of communities supportive of LNG development in British Columbia.

“First Nations have made their choice about the LNG opportunity, informed by research and consultation,” says Karen Ogen, CEO of the LNG Alliance.

“However, when 88 environmental groups and other organizations recently demanded an end to LNG, no one bothered to talk to us,” she said. “I view that as a ‘re-colonization’ of energy by environmentalists. It’s a type of eco-colonialism that First Nations people like me are all-too familiar with, particularly as we seek to diversify our economies and provide opportunities for young people and future generations.”

Ms. Ogen’s complaint of “eco-colonialism” is not unlike the charge of “climate imperialism” that has been leveled against Western elites by leaders of the Global South who bristle at being pressured to adopt “green” agendas at the expense of actual economic development supported gas and other fossil fuels.

Indeed, the sentiments of Ms. Ogen almost certainly resonate with those who favor common sense over ideology. “Canadian LNG is Indigenous LNG, and that is good for the world and good for all of us here,” she says.

Vijay Jayaraj is a Research Associate at the CO2 Coalition, Arlington, Virginia. He holds a master’s degree in environmental sciences from the University of East Anglia, U.K.

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Business

Premiers fight to lower gas taxes as Trudeau hikes pump costs

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From the Canadian Taxpayers Federation

By Jay Goldberg 

Thirty-nine hundred dollars – that’s how much the typical two-car Ontario family is spending on gas taxes at the pump this year.

You read that right. That’s not the overall fuel bill. That’s just taxes.

Prime Minister Justin Trudeau keeps increasing your gas bill, while Premier Doug Ford is lowering it.

Ford’s latest gas tax cut extension is music to taxpayers’ ears. Ford’s 6.4 cent per litre gas tax cut, temporarily introduced in July 2022, is here to stay until at least next June.

Because of the cut, a two-car family has saved more than $1,000 so far. And that’s welcome news for Ontario taxpayers, because Trudeau is planning yet another carbon tax hike next April.

Trudeau has raised the overall tax burden at the pumps every April for the past five years. Next spring, he plans to raise gas taxes by another three cents per litre, bringing the overall gas tax burden for Ontarians to almost 60 cents per litre.

While Trudeau keeps hiking costs for taxpayers at the pumps, premiers of all stripes have been stepping up to the plate to blunt the impact of his punitive carbon tax.

Obviously, Ford has stepped up to the plate and has lowered gas taxes. But he’s not alone.

In Manitoba, NDP Premier Wab Kinew fully suspended the province’s 14 cent per litre gas tax for a year. And in Newfoundland, Liberal Premier Andrew Furey cut the gas tax by 8.05 cents per litre for nearly two-and-a-half years.

It’s a tale of two approaches: the Trudeau government keeps making life more expensive at the pumps, while premiers of all stripes are fighting to get costs down.

Families still have to get to work, get the kids to school and make it to hockey practice. And they can’t afford increasingly high gas taxes. Common sense premiers seem to get it, while Ottawa has its head in the clouds.

When Ford announced his gas tax cut extension, he took aim at the Liberal carbon tax mandated by the Trudeau government in Ottawa.

Ford noted the carbon tax is set to rise to 20.9 cents per litre next April, “bumping up the cost of everything once again and it’s absolutely ridiculous.”

“Our government will always fight against it,” Ford said.

But there’s some good news for taxpayers: reprieve may be on the horizon.

Federal Conservative leader Pierre Poilievre’s promises to axe the carbon tax as soon as he takes office.

With a federal election scheduled for next fall, the federal carbon tax’s days may very well be numbered.

Scrapping the carbon tax would make a huge difference in the lives of everyday Canadians.

Right now, the carbon tax costs 17.6 cents per litre. For a family filling up two cars once a week, that’s nearly $24 a week in carbon taxes at the pump.

Scrapping the carbon tax could save families more than $1,200 a year at the pumps. Plus, there would be savings on the cost of home heating, food, and virtually everything else.

While the Trudeau government likes to argue that the carbon tax rebates make up for all these additional costs, the Parliamentary Budget Officer says it’s not so.

The PBO has shown that the typical Ontario family will lose nearly $400 this year due to the carbon tax, even after the rebates.

That’s why premiers like Ford, Kinew and Furey have stepped up to the plate.

Canadians pay far too much at the pumps in taxes. While Trudeau hikes the carbon tax year after year, provincial leaders like Ford are keeping costs down and delivering meaningful relief for struggling families.

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Economy

Gas prices plummet in BC thanks to TMX pipeline expansion

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From Resource Works

By more than doubling capacity and cutting down the costs, the benefits of the TMX expansion are keeping more money in consumer pockets. 

Just months after the Trans Mountain Expansion (TMX) project was completed last year, Canadians, especially British Columbians, are experiencing the benefits promised by this once-maligned but invaluable piece of infrastructure. As prices fall when people gas up their cars, the effects are evident for all to see.

This drop in gasoline prices is a welcome new reality for consumers across B.C. and a long-overdue relief given the painful inflation of the past few years.

TMX has helped broaden Canadian oil’s access to world markets like never before, improve supply chains, and boost regional fuel supplies—all of which are helping keep money in the pockets of the middle class.

When TMX was approaching the finish line after the new year, it was praised for promising to ease long-standing capacity issues and help eliminate less efficient, pricier methods of shipping oil. By mid-May, TMX was completed and in full swing, with early data suggesting that gas prices in Vancouver were slackening compared to other cities in Canada.

Kent Fellows, an assistant professor of Economics and the Director of Graduate Programs for the School of Public Policy at the University of Calgary, noted that wholesale prices in Vancouver fell by roughly 28 cents per litre compared to the typically lower prices in Edmonton, thanks to the expanded capacity of TMX. Consequently, the actual price at the gas pump in the Lower Mainland fell too, providing relief to a part of Canada that traditionally suffers from high fuel costs.

In large part due to limited pipeline capacity, Vancouver’s gas prices have been higher than the rest of the country. From at least 2008 to this year, TMX’s capacity was unable to accommodate demand, leading to the generational issue of “apportionment,” which meant rationing pipeline space to manage excess demand.

Under the apportionment regime, customers received less fuel than they requested, which increased costs. With the expansion of TMX now complete, the pipeline’s capacity has more than doubled from 350,000 barrels per day to 890,000, effectively neutralizing the apportionment problem for now.

Since May, TMX has operated at 80 percent capacity, with no apportionment affecting customers or consumers.

Before the TMX expansion was completed, a litre of gas in Vancouver cost 45 cents more than a litre in Edmonton. By August, it was just 17 cents—a remarkable drop that underscores why it’s crucial to expand B.C.’s capacity to move energy sources like oil without the need for costly alternatives, allowing consumers to enjoy savings at the pump.

More than doubling TMX’s capacity has rapidly reshaped B.C.’s energy landscape. Despite tensions in the Middle East, per-litre gas prices in Vancouver have fallen from about $2.30 per litre to $1.54 this month. Even when there was a slight disruption in October, the price only rose to about $1.80, far below its earlier peaks.

As Kent Fellows noted, the only real change during this entire timeline has been the completion of the TMX expansion, and the benefits extend far beyond the province’s shores.

With TMX moving over 500,000 barrels more per day than it did previously, Canadian oil is now far more plentiful on the international market. Tankers routinely depart Burrard Inlet loaded with oil bound for destinations in South Korea and Japan.

In this uncertain world, where oil markets remain volatile, TMX serves as a stabilizing force for both Canada and the world. People in B.C. can rest easier with TMX acting as a barrier against sharp shifts in supply and demand.

For critics who argue that the $31 billion invested in the project is short-sighted, the benefits for everyday people are becoming increasingly evident in a province where families have endured high gas prices for years.

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