From the Canadian Energy Centre

By Will Gibson

Investment in ‘value-added’ projects more than doubled to $4 billion in 2024

In the 1930s, economist Harold Innis coined the term “hewers of wood and drawers of water” to describe Canada’s reliance on harvesting natural resources and exporting them elsewhere to be refined into consumer products.

Almost a century later, ATB Financial chief economist Mark Parsons has highlighted a marked shift in that trend in Alberta’s energy industry, with more and more projects that upgrade raw hydrocarbons into finished products.

ATB estimates that investment in projects that generate so-called “value-added” products like refined petroleum, hydrogen, petrochemicals and biofuels more than doubled to reach $4 billion in 2024.

“Alberta is extracting more value from its natural resources,” Parsons said.

“It makes the provincial economy somewhat more resilient to boom and bust energy price cycles. It creates more construction and operating jobs in Alberta. It also provides a local market for Alberta’s energy and agriculture feedstock.”

The shift has occurred as Alberta’s economy adjusts to lower levels of investment in oil and gas extraction.

While overall “upstream” capital spending has been rising since 2022 — and oil production has never been higher — investment last year of about $35 billion is still dramatically less than the $63 billion spent in 2014.

Parsons pointed to Dow’s $11 billion Path2Zero project as the largest value-added project moving ahead in Alberta.

​​The project, which has support from the municipal, provincial and federal governments, will increase Dow’s production of polyethylene, the world’s most widely used plastic.

By capturing and storing carbon dioxide emissions and generating hydrogen on-site, the complex will be the world’s first ethylene cracker with net zero emissions from operations.

Other major value-added examples include Air Products’ $1.6 billion net zero hydrogen complex, and the associated $720 million renewable diesel facility owned by Imperial Oil. Both projects are slated for startup this year.

Parsons sees the shift to higher value products as positive for the province and Canada moving forward.

“Downstream energy industries tend to have relatively high levels of labour productivity and wages,” he said.

“A big part of Canada’s productivity problem is lagging business investment. These downstream investments, which build off existing resource strengths, provide one pathway to improving the country’s productivity performance.”

Heather Exner-Pirot, the Macdonald-Laurier Institute’s director of energy, natural resources and environment, sees opportunities for Canada to attract additional investment in this area.

“We are able to benefit from the mistakes of other regions. In Germany, their business model for creating value-added products such as petrochemicals relies on cheap feedstock and power, and they’ve lost that due to a combination of geopolitics and policy decisions,” she said.

“Canada and Alberta, in particular, have the opportunity to attract investment because they have stable and reliable feedstock with decades, if not centuries, of supply shielded from geopolitics.”

Exner-Pirot is also bullish about the increased market for low-carbon products.

“With our advantages, Canada should be doing more to attract companies and manufacturers that will produce more value-added products,” she said.

Like oil and gas extraction, value-added investments can help companies develop new technologies that can themselves be exported, said Shannon Joseph, chair of Energy for a Secure Future, an Ottawa-based coalition of Canadian business and community leaders.

“This investment creates new jobs and spinoffs because these plants require services and inputs. Investments such as Dow’s Path2Zero have a lot of multipliers. Success begets success,” Joseph said.

“Investment in innovation creates a foundation for long-term diversification of the economy.”

From LifeSiteNews

By Clare Marie Merkowsky

While Trump has delayed imposing tariffs for 30 days, Conservative leader Pierre Poilievre is demanding Justin Trudeau recall Parliament as the threat of a trade war looms.

Prime Minister Justin Trudeau is still refusing to reopen Parliament despite the growing tensions between Canada and the United States.  

This week, Canadians pleaded with Trudeau to resume Parliament following the now-delayed 25% tariffs on Canadian exports that were set to be implemented on Tuesday by U.S. President Donald Trump. Despite the economic threat, Trudeau continued to deny the need for the reopening of the legislature.

“This is a moment where we need to set aside our differences and focus on delivering for Canadians, standing up for Canadians,” Trudeau told reporters on Saturday.   

“We’re going through a difficult time right now,” he continued. “Emotions may run high here and there.”  

“Will you recall Parliament?” asked a reporter.  

“We have the tools,” replied Trudeau, suggesting such a recall is unnecessary.

On Saturday, Trump said an unprecedented 25 percent tariff on all imports from Canada and Mexico would soon be coming. Canadian oil and gas exports, as well as electricity exports that the U.S. imports in abundance, would be subject to a 10 percent tariff. Of note is that Trump enacted only a 10 percent tariff on goods from China.   

Fortunately for Canadians, on Monday the country was given a 30-day reprieve from the tariffs by Trump after Trudeau promised to increase border security and crack down on fentanyl at the border.

Trudeau noted that Canada was implementing a “$1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl.” 

Trudeau, who spoke with Trump twice Monday, said that Canada now will have “10,000 frontline personnel” who are “working on protecting the border.” 

“In addition, Canada is making new commitments to appoint a Fentanyl czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering,” Trudeau said. 

Conservative Party Leader Pierre Poilievre pointed out that while Canadians are relieved to hear the tariffs will be paused, Parliament must resume so Canada can plan their response after the 30-day reprieve.  

“Like Canadians across the country, Conservatives are relieved to hear that there will be a one month pause on tariffs from the United States that would have hurt workers, families and businesses on both sides of the border,” he wrote on X.   

“But this is not a time to sit back. We must urgently work to strengthen Canada’s economy and do everything we can to ensure these tariffs are never brought in,” Poilievre continued.   

“Liberals must recall Parliament NOW and put country over Party so that we can put Canada First,” he declared.