Energy
COMMENTARY: Let’s Hear From Real “Experts” When it Comes Our Critical Electrical Systems – Not Bureaucrats, Academics, Activists and Partisan Politicians
From EnergyNow.ca
By Deidra Garyk
We need to redefine who is an “expert”
Experts cannot only include bureaucrats, politicians, academics, activists, and white-collar corporate elites. We must include the people who do the work to keep society functioning, such as electricians, utility system operators, and oilfield and construction workers.
Who is given the mic (or the pen) is given the power to influence perceptions, sometimes resulting in demands for unworkable plans.
The Alberta Electric System Operator (AESO) issued an emergency alert Saturday, January 13 asking Albertans to immediately reduce their electricity use or risk rotating outages. The extreme cold across the West caused an increase in demand and a restriction of imports, and that resulted in the worst-case scenario.
Albertans did what Albertans do – they pulled together and shut down unnecessary usage, averting a crisis.
Alberta is a modern, energy-rich province, the envy of the world, in many ways. How did this crisis happen?
Reporting afterwards on the alert, Calgary newstalk radio QR 770 interviewed an “expert” – a multi-degreed economics and law professor at an Alberta university and part-time climate activist. He said several words and asked a similar question, but otherwise contributed little of substance because he does not have adequate expertise to identify practicable solutions.
I would like to know why QR 770 did not interview a utility system expert to explain what happened and why. AESO made experts available to media to answer questions. The role of the media is to inform the public, and that is best accomplished by interviewing a broad cross-section of people with real-world knowledge.
The Official Opposition in Alberta put out a statement trying to capitalize on the situation, as any political party would. Shadow Minister for Energy and Climate Nagwan Al-Guneid demanded immediate action be taken by the governing UCP while praising renewables for getting the province through the alert, and simultaneously forgetting it was her government that mandated all coal fired power plants be shut down by 2030. They even paid three power plant operators $1.36 billion to shut down their plants early.
Wind and solar renewables did not get Alberta through the most critical time – the coldest, darkest hours – of the electricity crisis and the data shows it. The assertion was at best missing context, and at worst disinformation for ideological gain.
Again, we need to redefine who is an “expert”.
There is a place for opposition parties, academics, corporate leaders, and even activists. However, they have an obligation to be serious and come to the discussion table in good faith. Otherwise, we have people with severe climate anxiety and a decade of “climate-induced insomnia” demanding that Canada build net zero hospitals powered by wind and solar to decarbonize and climate-proof the health care system.
The table must be expanded and seats added to include the people working closest to the source. Therefore, it would be beneficial for media organizations to interview the “invisible” people who work thanklessly to keep the systems running so much so that we take them for granted. We could all benefit from better understanding how the world works and how things are made.
I want to hear from electrical engineers, electricians, pipeline operators, oilfield workers, energy marketers, utility system operators, and anyone else who works to keep the electricity system functioning without fail.
They too must come to the discussion in good faith, ready to participate in complex but meaningful problem-solving discussions as their input is essential.
The reason the grid nearly failed and caused rolling blackouts is multi-faceted – extreme cold, taking coal plants offline early, not adding sufficient reliable power generation, renewables not producing during peak demand, increased population, increased business activity, and burdensome federal regulations, to name a few. It will take a truly diverse group of experts to build the grid that is able to withstand the most adverse weather to consistently deliver power during the coldest and deadliest times.
Over the weekend there were pleas on social media to get adults in the room to address the electricity grid crisis. We will not get adults in the room to create prudent energy policy for real people until we redefine who is an “expert”. This weekend proved that we need to do that soon.
About Deidra Garyk
Deidra Garyk has been working in the Canadian energy industry for almost 20 years. She is currently the Manager, ESG & Sustainability at an oilfield service company. Prior to that, she worked in roles of varying seniority at exploration and production companies in joint venture contracts where she was responsible for working collaboratively with stakeholders to negotiate access to pipelines, compressors, plants, and batteries.
Outside of her professional commitments, Deidra is an energy advocate and thought leader who researches, writes, and speaks about energy policy and advocacy to promote balanced, honest, fact-based conversations.
Connect with Deidra on Linkedin
Visit her website: DEIDRA GARYK: Canadian Energy Advocate
Energy
What does a Trump presidency means for Canadian energy?
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.
Energy
What Will Be the Future of the Keystone XL Pipeline Under President Trump?
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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