Energy
Nova Scotia and Feds kill offshore gas for good
From the Frontier Centre for Public Policy
Nova Scotia and the feds kill an offshore gas project, while their bills are paid by Alberta and Saskatchewan oil and gas
Well, isn’t that just peachy? Nova Scotia’s Progressive Conservative government teamed up with the federal Liberal government to put a bullet in the head of the province’s natural gas industry, whose body was apparently still twitching, despite having been thought dead since 2018.
On December 4, Tory Rushton, Nova Scotia Minister of Natural Resources and Renewables, and Jonathan Wilkinson, federal Minister of Energy and Natural Resources issued a joint statement overruling approval of the offshore regulator, Canada-Nova Scotia Offshore Petroleum Board.
The dollar figure, so far, wasn’t much, just $1.5 million work expenditure bid for the now dead exploration license. But if successful, the company in question, Inceptio Limited, could have maybe, just maybe, revived the offshore gas industry in Nova Scotia.
According to the regulator, there were two bids for eight parcels in the Sable Island area, only one of which was satisfactory. To be clear – the Canada-Nova Scotia Offshore Petroleum Board was apparently seeking bids for development. As in, they actually wanted companies to come and develop these natural gas resources.
But I’ll bet my reporter’s fedora someone realized it didn’t look good for Minister of Environment and Climate Change Steven Guilbeault speaking at COP28 in Dubai about how Canada would be eliminating venting and flaring, while his partner in crime Wilkinson had it in his power to kill off a new methane (natural gas) project in an area that had been purged of the demon gas industry.
No sir. That could not stand. Thus, the announcement killing the Nova Scotia exploration project on the same day as the announcement of the venting and flaring ban. (Saskatchewan calls that a “production cap by default”)
The message is clear to industry – no more new projects if the feds can stop them.
It was very clear in the joint ministerial statement that no more gas projects will be approved, so stop trying.
The ministers overrode the board, saying, “We recognize the expertise of the board and want to reiterate our confidence in the regulatory process that it undertook. However, we both agree that this decision must also account for broader policy considerations, including our shared commitments to advance clean energy and pursue economic opportunities in the clean energy sector, which are beyond the scope of the board’s regulatory purview. This decision will enable us to research and understand the interactions between the two industries as we transition to our clean energy future.
“Leveraging the experience of the Canada-Nova Scotia Offshore Petroleum Board as a world class regulator, Canada and Nova Scotia are actively pursuing the establishment of a joint regulatory regime for offshore renewable energy by amending the Atlantic Accord Acts to expand the board’s mandate so that it can regulate and enable the development of an offshore wind sector in Nova Scotia.
“This will ensure that Nova Scotians can seize the economic benefits associated with the energy transition, including the projected $1-trillion global market opportunity for offshore wind.”
In other words, there’s no future in oil or gas for you, so now you’re going to regulate offshore wind.
Never mind that just a little further down the coast, offshore wind projects are dying off. Never mind that offshore developers are in dire fiscal straits, with billions in losses. Expect the “Offshore Petroleum Board” to get a new name in the coming days.
And shame on the Conservative government of Nova Scotia for going along with this. While the governments of Saskatchewan and Alberta are standing their ground, reasserting control over natural resources, the Nova Scotia Conservatives went along with this travesty.
It’s pretty easy to do, if you don’t have to pay your own bills with your own resources. After all, Nova Scotia gets a huge chunk of its budget from the federal equalization program.
Here’s what Deputy Prime Minister and Minister of Finance Chrystia Freeland wrote to Saskatchewan Deputy Premier and Finance Minister Donna Harpauer in the most recent round of equalization payments:
“In accordance with the legislated formula under the Act and its regulations, your province does not qualify for an Equalization payment for 2023-24.”
Alberta, which has a massive oil and natural gas industry, was similarly stiffed.
And here’s what Freeland wrote to Nova Scotia Minister of Finance Allan MacMaster:
“In accordance with the legislated formula under the Act and its regulations, your province’s Equalization payment for 2023-24 will be $2,802.8 million.”
Alberta and Saskatchewan pay into equalization, largely with money from oil and gas, but Nova Scotia will continue to draw $2.8 billion from it, bit not develop their own natural gas resources.
Nova Scotia’s hospitals are still being paid for by natural gas, except that it’s Alberta and Saskatchewan’s gas, not their own.
Pretty peachy, indeed.
Brian Zinchuk is editor and owner of Pipeline Online, and occasional contributor to the Frontier Centre for Public Policy. He can be reached at [email protected].
Daily Caller
Trump Dresses Down The Davos Globalists
From the Daily Caller News Foundation
By David Blackmon
Organizers and attendees at this week’s annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, had to have been shocked at the new tone from the United States after four years of subservient obeisance from Joe Biden and his ineffective emissaries. In a wide-ranging speech via videoconference on Thursday, President Donald Trump essentially blew up the liberal world order consensus as it relates to the climate alarm agenda.
After putting the conference on notice that the United States would again become a sovereign nation with secure borders, Trump then turned to climate and energy policy. “I terminated the ridiculous and incredibly wasteful Green New Deal – I call it the Green New scam,” Trump began, “withdrew from the one-sided Paris climate Accord and ended the insane and costly electric vehicle mandate. We’re going to let people buy the car they want to buy.”
It was an opening salvo that flew directly in the face of remarks made earlier in the week by the likes of European Commission leader Ursula Von Der Leyen, John Kerry, Al Gore, UN Secretary General Antonio Guterres and many others. But Trump was far from done.
“I declared a national energy emergency to unlock the liquid gold under our feet and pave the way for rapid approvals of new energy infrastructure,” he informed the conference, adding, “The United States has the largest amount of oil and gas of any country on earth, and we’re going to use it.”
The message was crystal clear: The age of America conforming its energy and climate policies to fit the strictures of the liberal world order as formulated at international climate conferences organized by the WEF and the United Nations is over, at least for the next four years and possibly beyond that. It should be obvious to everyone by now that Trump intends to completely reverse the Biden Green New Deal agenda and implement policies designed to return the U.S. to the position of what he calls “energy dominance” achieved during Trump’s first presidency.
The net-zero fantasy goal has gone completely off the rails over the last two years as both the ESG and DEI philosophies fell into disrepute. The fading of those interrelated leftwing religions led major energy companies and the banking community alike to place heavier focus on mounting and financing major energy projects designed to enhance energy and national security.
Energy reality was already making a comeback before Trump emerged triumphant in the 2024 election. Despite these and other emerging realities, the WEF’s old guard came to Davos armed with the same old rhetoric.
Sec. Gen. Guterres, always eager to engage in laughable hyperbole, labeled the oil industry a “Frankenstein monster sparing nothing and no one” as it sows what he calls “climate chaos.”
Von Der Leyen’s bombast was no less absurd: “Heat waves across Asia. Floods from Brazil to Indonesia, from Africa to Europe, wildfires in Canada, Greece and California, hurricanes in the US and the Caribbean. Climate change is still on top of the global agenda,” she warned, sounding for all the world like Bill Murray and his fellow “Ghostbusters” in the famous “dogs and cats living together – mass hysteria!” scene from the 1984 film.
Kerry was somewhat more muted, likely due to the fact that he no longer holds any official role in representing U.S. interests. Gore essentially mailed it in, delivering virtually the same hyperbole-filled remarks he spewed to the 2024 conference.
But a pair of participants in a panel discussion held Wednesday were much more realistic.
Graham Allison, a professor at the Harvard Kennedy School, warned his audience not to underestimate the new president. “Trump has done something no person in the world has ever done before,” he said, adding, “A dead man, a dead politician has risen. This is the greatest comeback in political history of a politician.”
Longtime political columnist Walter Russel Mead added, “We need to also factor in not only who’s won, which is Trump, but who’s lost. Which is to say, us.”
He isn’t wrong, and the elitists who make up the liberal world order would do well to pay attention. Whether they like it or not, their world has changed.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
Economy
Trump’s Wakeup Call to Canada – Oil & Gas is Critical to our Economy
From EnergyNow.Ca
By Jim Warren
On the bright side, at least President Donald Trump’s threat to impose 25% tariffs on Canadian oil and gas, might have alerted some Central Canadians to the critical importance of oil and gas to the national economy. Trump’s tariff pronouncements may also have forced the Laurentian Elite to rethink the wisdom of allowing anarchy to reign in our immigration system and border management.
Any nation hoping to be a serious player in the areas of international trade and diplomacy needs to meet several critical criteria. Without them a country can have difficulty marketing its goods and services to the world and in retaining meaningful economic and political sovereignty. One of the key criteria is for a country to have a good measure of control over its borders. But there are other elements critical to having effective sovereignty and independence. Having access to versatile, readily transportable energy commodities like oil and gas is one of those essentials. Accordingly, oil and gas are considered strategically important industries.
Lacking any of the major building blocks of strategic economic sovereignty, like the steel and aluminum industries and a thriving manufacturing sector, as well as highly developed transportation sector and the energy industries needed to support all the other sectors can leave a country vulnerable to domination by others. The vulnerabilities can lead to economic and political crises for a country during trade wars, international disputes leading to trade sanctions and embargoes, shooting wars and big natural disasters. A lack of strong trade and military alliances can make matters even worse.
It’s not like there wasn’t a mountain of evidence underlining the strategic importance of oil and gas in the last few years. How smart was it for Angela Merkel to allow Russia, a state run by a psychopath and his team of criminal oligarchs, to control a major portion of its energy supplies? The Ukraine gets it. After its war with Russia began, the Ukrainian government allowed Russian gas to be piped across its territory to Eastern Europe for nearly two years. This was because they realized messing with a commodity critical to bordering states such as Hungary, Slovakia and Romania was politically hazardous.
It is true that a country can still have a thriving economy even if it is missing one or two items from the basket of strategically important industries. Singapore, for example, needs to import fossil fuel but is still considered one of Southeast Asia’s economic tigers. But this is only possible because Singapore is so good at most everything else. It has several other economic engines that perform exceptionally well.
Looking back several decades reminds us that Japan risked entering a World War to obtain the petroleum they needed. To get it, the Japanese concluded they needed to conquer parts of Indonesia. (Similarly they wanted Southeast Asia for its rubber.) They knew these were actions the US wouldn’t tolerate, but they decided they had to do them anyway.
While we’re on the topic of World War II, it is instructive to recall Hitler fought it with one hand tied behind his back. Germany had no oil of its own and gasoline refined from coal and the oil available from their Romanian ally were never enough. That’s why the German’s placed such great hopes in capturing Russia’s Caspian oil fields in 1943. Similarly, Hitler invaded Norway to ensure access to Swedish iron ore—another strategic commodity Germany lacked.
Canada’s oil revenues along with the taxes and royalties collected from those revenues are derived almost entirely from the oil we export to the US. Our export revenues for 2022, following the worst of the covid years, were $123 billion. They accounted for 15.8% of all Canada’s exports and 6.6% of GDP. The following year saw exceptionally high oil prices globally. That year the value of oil Canada’s oil production hit $139 billion and accounted for 7.1% of GDP. Pull even half of those revenues out of the Canadian economy for very long and we’re in economic depression territory.
So, thanks for the wakeup call president Trump. The fact Trump has indicated he will postpone his final decision until February 1, is of some comfort. Danielle Smith has met with him at Mar-a-Lago to make the case against tariffs on Canadian crude. Smith is among the most knowledgeable and capable people there are when it comes to oil and gas production and trade. We couldn’t hope for a better advocate for the producing provinces. She’s certainly a cut above Justin Trudeau and anyone else in his cabinet. Let’s hope Smith she managed to convince Trump how imposing tariffs would harm the economies of both countries.
There is an obvious way to prevent being in this sort of situation in the future – diversify our export opportunities by building more pipelines to tidewater. In my last column I focused on the difficulties involved in getting a pipeline built to the Atlantic coast. The challenges identified focused on the barriers thrown up by Quebec’s politicians and environmentalists. Trump’s ongoing tariff pronouncements suggest it would be in Canada’s national strategic interest to use whatever legal measures are required to sweep those barriers aside in both Quebec and British Columbia to get new tidewater pipelines built.
There is plenty the federal government can do to override the demands of municipalities, special interest groups and provincial governments in support of high national purposes and in emergencies. Section 91 of the constitution gives parliament broad, albeit somewhat vague, powers to do what needs to be done “to make laws for the peace, order and good government of Canada” in all matters not exclusively the jurisdiction of the provinces. And, you would think that if the heavy hand of the Emergencies Act can be used to prevent horn honking and traffic snarls in Ottawa, it could be employed to prevent the environmentally sanctimonious from blocking projects critical to our economic and political sovereignty. Of course doing any of this will require voting the Liberals out of office.
Sorry premier Ford, retaliatory tariffs and export taxes can’t be the only tools employed; especially when they cause self-inflicted wounds. Unfortunately, until we have more export opportunities for oil and gas we may need to limit our counter attacks on Americans to misleading travel directions and poor restaurant service.
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