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].
Energy
Is Canada the next nuclear superpower?
From Resource Works
The rise of AI and other technologies have pushed energy demand through the roof, and Canada can help power that with nuclear.
Good to see Prime Minister Justin Trudeau pushing nuclear power as a key contributor to meeting the world’s soaring demand for electricity.
“The energy consumption necessary around AI (artificial intelligence) nobody has properly understood yet,” he said. “We have stepped up big time on nuclear.”
He cited Canada’s uranium reserves and progress in building both full-scale CANDU reactors and small modular reactors (SMRs). He said other countries need to “skate where the puck is going” on cleaner energy sources.
“We know that if we are going to meet our net-zero targets around the world, and certainly in this region, nuclear is going to be really part of the mix.”
He stopped short of saying Canada would build more major nuclear reactors for domestic use but spoke about the development of SMRs. Ottawa has previously stated it wants to become “a global leader in SMR deployment.”
Meanwhile, International Trade Minister Mary Ng said Canada is launching a gateway for nuclear development in the Asia-Pacific region. She said growing Pacific Rim economies will face increasing demand for electricity, not just to curb emissions.
“All this followed CANDU licence-holder AtkinsRéalis announcing a “multi-billion-dollar” sale of two CANDU reactors to Romania, the first to be built since 2007. The federal government contributed $3 billion, the company said.
And in one of our Resource Works Power Struggle podcasts, energy journalist Robert Bryce said: “We’re seeing the revitalization of the nuclear sector… There are a lot of promising signs.”
Also from Bryce: “Forty-seven per cent of the people on the planet today live in electricity poverty. There are over three billion people who live in the unplugged world; 3.7 billion who live in places where electricity consumption is less than what’s consumed by an average kitchen refrigerator.”
Policy Options magazine notes how Canada and 21 other countries signed a 2023 pledge to triple nuclear energy capacity by 2050, and says: “The reality would appear to be clear: there is no feasible net-zero future without the deployment of new nuclear power.”
For Canada, it adds: “We have an opportunity to expand our global status, but this requires overcoming years of policy inaction while other nations have modernized their nuclear strategies. To triple our nuclear capacity by 2050, we need clear priorities and unwavering political commitment.”
Earlier this year, François-Philippe Champagne, federal minister of innovation, science and industry, said nuclear power needs to grow for the world’s renewable-energy economy.
“Nuclear, definitely. For me, we have to look at hydro, we have to look at nuclear, we have to look at small modular reactors, we have to look at wind, we have to look at solar.”
Jonathan Wilkinson, energy and natural resources minister, promised to expedite the approval process for new Canadian nuclear projects.
Canada now gets about 15% of its electricity from nuclear generation, mostly from reactors in Ontario.
But the last nuclear reactor to come into service in Canada was at the Darlington station, east of Toronto, back in 1993. No new nuclear project has been approved since then, but multi-million-dollar upgrades are underway at existing Ontario plants.
Heather Exner-Pirot of the Macdonald-Laurier Institute and Jesse McCormick of the First Nations Major Projects Coalition see SMRs and micro-reactors as a plus for rural and remote areas of Canada that now rely on diesel to generate power. Some First Nations are also interested.
However, the two commentators point out that nuclear developers will need Indigenous support and will have to “provide meaningful economic benefits and consider Indigenous perspectives in project design.”
Now, the Wabigoon Lake nation in Ontario has stepped up as a potential host to a deep underground facility for storing nuclear waste.
As Canada looks to SMRs to meet electricity demand, our country also hopes to sell more uranium to other nations—perhaps with a little help from Russia.
In October, Russian President Vladimir Putin proposed restrictions on Russian uranium exports in retaliation for Western sanctions on Russian oil, gas, and LNG.
That boosted hopes for increased exports of Canadian uranium.
Canada, once the world’s largest uranium producer, is now the world’s second-largest, behind Kazakhstan, and accounts for roughly 13% of global output.
Putin’s threat gave more momentum to the plans underway by NexGen Energy for its $4-billion Rook 1 uranium mine in Saskatchewan.
The Canadian Nuclear Safety Commission has completed its final technical review of the project. Next comes a commission hearing, followed by a final decision on approval.
NexGen is working on detailed engineering plans in preparation for full construction, pending federal approval.
NexGen could push Canada to become the world’s largest uranium producer over the next decade. Other companies are rushing to Saskatchewan to start exploration projects in the Athabasca region, while existing players are reopening dormant mines.
All this follows the commitment by nearly two dozen countries in 2023 to triple their nuclear-energy output by 2050.
And so Britain’s BBC News topped a recent roundup on nuclear power with this headline: “Why Canada could become the next nuclear energy ‘superpower’.”
Alberta
REPORT: Alberta municipalities hit with $37 million carbon tax tab in 2023
Grande Prairie. Getty Images photo
From the Canadian Energy Centre
Federal cash grab driving costs for local governments, driving up property taxes
New data shows the painful economic impact of the federal carbon tax on municipalities.
Municipalities in Alberta paid out more than $37 million in federal carbon taxes in 2023, based on a recent survey commissioned by Alberta Municipal Affairs, with data provided to the Canadian Energy Centre.
About $760,000 of that came from the City of Grande Prairie. In a statement, Mayor Jackie Clayton said “if the carbon tax were removed, City property taxes could be reduced by 0.6 per cent, providing direct financial relief to residents and businesses in Grande Prairie.”
Conducted in October, the survey asked municipal districts, towns and cities in Alberta to disclose the amount of carbon tax paid out for the heating and electrifying of municipal assets and fuel for fleet vehicles.
With these funds, Alberta municipalities could have hired 7,789 high school students at $15 per hour last year with the amount paid to Ottawa.
The cost on municipalities includes:
Lloydminster: $422,248
Calgary: $1,230,300 (estimate)
Medicine Hat: $876,237
Lethbridge: $1,398,000 (estimate)
Grande Prairie: $757,562
Crowsnest Pass: $71,100
Red Deer: $1,495,945
Bonnyville: $19,484
Hinton: $66,829
Several municipalities also noted substantial indirect costs from the carbon tax, including higher rates from vendors that serve the municipality – like gravel truck drivers and road repair providers – passing increased fuel prices onto local governments.
The rising price for materials and goods like traffic lights, steel, lumber and cement, due to higher transportation costs are also hitting the bottom line for local governments.
The City of Grande Prairie paid out $89 million in goods and services in 2023, and the indirect costs of the carbon tax “have had an inflationary impact on those expenses” in addition to the direct costs of the tax.
In her press conference announcing Alberta’s challenge to the federal carbon tax on Oct. 29, 2024, Premier Danielle Smith addressed the pressures the carbon tax places on municipal bottom lines.
“In 2023 alone, the City of Calgary could have hired an additional 112 police officers or firefighters for the amount they sent to Ottawa for the carbon tax,” she said.
In a statement issued on Oct. 7, 2024, Ontario Conservative MP Ryan Williams, shadow minister for international trade, said this issue is nationwide.
“In Belleville, Ontario, the impact of the carbon tax is particularly notable. The city faces an extra $410,000 annually in costs – a burden that directly translates to an increase of 0.37 per cent on residents’ property tax bills.”
There is no rebate yet provided on retail carbon pricing for towns, cities and counties.
In October, the council in Belleville passed a motion asking the federal government to return in full all carbon taxes paid by municipalities in Canada.
The unaltered reproduction of this content is free of charge with attribution to the Canadian Energy Centre.
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