Energy
How climate activists harm Canadian energy security
From the Daily Caller News Foundation
By NICK POPE
Canadian Official Reveals Damage Eco-Activists Have Wreaked On Great White North’s Energy Security
Rebecca Schulz — the minister of environment and protected areas of Alberta, Canada — sat down with the Daily Caller News Foundation at the Canadian embassy in Washington, D.C. to discuss how climate activists, along with the country’s left-wing government, have hampered Canada’s energy security.
Alberta is a province in Western Canada that is known for its abundant natural resources, especially oil and natural gas. However, the federal government in Ottawa — led by liberal Prime Minister Justin Trudeau — has moved to restrict development in the province, harming the many blue-collar Canadians who rely on affected industries to make a living, Schulz explained to the DCNF.
“We have seen, over the last number of years, the activist, radical left starting to shape policy in a way that is, I think, very concerning, not only for just the basic needs of everyday people when it comes to safe, affordable, reliable energy, but I think, when it comes to to energy security,” Schulz told the DCNF.
General Manager working on the Keystone XL pipeline says that “hundreds of guys” have already been laid off in Wisconsin as a result of Joe Biden's executive order halting construction of the pipelinepic.twitter.com/TMOf80ph2i
— Daily Caller (@DailyCaller) January 25, 2021
“Certainly, we have a prime minister that is completely just bending to the activist base and ignoring, I think, the very real concerns of everyday commonsense as Canadians, and that’s a problem,” Schulz told the DCNF, referencing Trudeau. Later in the interview, Schulz predicted that Canadian voters will “vastly reject” Trudeau when they next head to the polls, in large part due to “the woke, ideological policies” that his government has pursued.
In Canada, one such official with deep ties to the climate activist movement shaping policy is Minister of Environment and Climate Change Steven Guilbeault. A former Greenpeace activist who once scaled Toronto’s iconic CN Tower and climbed on the roof of a government official’s private residence to install solar panels in acts of protest, Guilbeault has stated that he does not seek to implement a “secret agenda” of policies aligned with his activist past while in office, according to CBC, a Canadian news outlet.
Notably, the Biden administration counts numerous former activists among its ranks, including Bureau of Land Management (BLM) Director Tracey Stone-Manning, who was connected to radical eco-activists concocting a tree spiking plot in Idaho in the late 1980s. BLM manages federally-controlled lands for uses like energy production and livestock grazing.
“It’s really problematic because it is completely ideologically driven and devoid of common sense and the realities that people are facing every single day. And I think, you know, of course, people do care about the environment. I, of course, as minister of the environment, I care that we’re doing the right thing for the environment that we’re leaving,” Schulz continued. “You know, the places that we live, and where we develop our resources from, we’re maintaining that for future generations. But I also know that we could not survive a day without oil and gas, or products made from oil and gas and petrochemicals. And that fact isn’t changing. That, in fact, is growing so, I think it’s pretty concerning that they are also then trying to essentially stifle any opinions or statistics or facts that don’t support their narrative.”
Canada isn't planning on pulling their weight https://t.co/QKdZdoCe4G
— Daily Caller (@DailyCaller) April 20, 2023
Canada is one of America’s biggest energy suppliers, providing about 52% of all gross oil imports in 2023 and exporting nearly three trillion cubic feet of natural gas to the U.S. in 2022, according to the Canadian Energy Centre. Most of the fuel comes to America via cross-border pipelines, though some is also delivered by rail or by sea, according to a 2021 report commissioned by the American Petroleum Institute.
The Keystone XL pipeline, a major project that would have helped bring oil from Alberta to refineries along the coast of the Gulf of Mexico in the U.S., was set to be a new expansion to the systems that bring Canadian energy to America.
However, activists waged a major pressure campaign against the project, and its developers ultimately scuttled it in June 2021 after the Biden administration nixed a crucial permit and generally showed minimal enthusiasm for the project upon entering office, according to The Associated Press.
“Projects like that, of that size and scope, obviously take a significant amount of political will,” Schulz said of Keystone XL. “And I think that was a hugely disappointing decision, because we know that market access matters for energy security and meeting the needs of, I would say, Canadians and Americans, and people around the world.”
Notably, Brent Sadler — a 26-year veteran of the U.S. Navy who now works as a senior research fellow for naval warfare and advanced technology at the Heritage Foundation — agrees with Schulz’s assessment that Keystone XL would have been a positive development for North American energy security.
In a recently-published report assessing American energy security in light of the Chinese Communist Party’s (CCP) geopolitical ambitions, Sadler argued that policymakers impose “unnecessary restraints” on cross-border energy interconnection, and that security interests would be better served if they instead “get out of the way” and “permit cross-border energy infrastructure projects such as the Keystone XL pipeline.”
For now, Schulz will turn much of her focus to the Trudeau government’s proposed emissions cap for the oil and gas industry, which could see the government require energy producers to slash their emissions by about 37% relative to 2022 levels by 2030, according to Reuters. Its opponents — many of whom are located in Alberta — are characterizing the policy as a thinly-veiled production cap that will severely hurt the province’s workers and regional economy.
If finalized, the policy “would kill thousands of jobs, I would say tens of thousands of jobs, just directly in conventional oil and gas, not to mention what we’re seeing in oil sands and, of course, other related industries,” Schulz told the DCNF. “We just have a federal government that doesn’t look at any socioeconomic data on the impacts that their policy would have … No competent, responsible government would see those numbers and move ahead with that cap, but that is, in fact, what our federal Liberal government is doing in Canada.”
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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