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Ostriches on the runway

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PAUL WELLS

Dominic LeBlanc says it’s time to rise above partisanship. Watch the skies

“The protection of our democracy demands that we rise above partisanship,” Dominic LeBlanc told reporters Saturday morning in the lobby of the West Block’s backup House of Commons. “Canada isn’t the only country facing the threat of foreign interference. Many of our allies are, even now, having discussions on ways to protect their democracies against this scourge. If they can have reasoned and constructive discussions on this subject, Canada should be able to do the same. That’s why the prime minister tasked me [on Friday] with consulting, over the coming days, experts, legal scholars and opposition parties on what the next steps should look like — and determine who best may be suited to lead this public work.”

You can tell the Trudeau government is really badly rattled when it starts doing what it should have done in the first place. “Consulting experts, legal scholars and opposition parties” was an option in March, when Trudeau decided instead to lay the foundation for Friday’s debacle. Talking to people — in the old-fashioned sense of (a) showing the slightest interest in what they have to say and (b) allowing it to inflect your actions in any perceptible way — is always an option. Nor is it in any danger of getting worn out through overuse, where this government is concerned.

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“It’s our government’s hope that the opposition parties will treat this issue with the seriousness it deserves,” said LeBlanc, whose boss ignored a string of reports from the National Security and Intelligence Committee of Parliamentarians and whose early-warning system for news of Beijing’s intimidation against a sitting MP was named Fife and Chase.

LeBlanc opened the floor to questions. The first: Shouldn’t there be a public inquiry? “A public inquiry has never been off the table,” he said. “All options remain on the table.” This was change masquerading as continuity. Johnston took a public inquiry off the table three weeks ago. Trudeau accepted the un-tabling. By putting it back on the table, LeBlanc was bowing to what may be the inevitable conclusion of the last few days: that the opposition parties, by adapting a common line in favour of a full inquiry, may have made one inevitable.

Another characteristic of this government is that it views its tribulations as tests of other people. The short odyssey of David Johnston, in other words, is a learning opportunity for us all. “My job,” LeBlanc said, “is to, in the very next few days, in short order, ask opposition leaders to take this matter seriously. Not just to simply say, ‘Oh, there has to be a public inquiry.’ OK: Make suggestions about who could lead this public inquiry. What would the terms of reference be? What do they see as the timelines? How do they deal with the obvious challenge of respecting Canadian law that protects some of the most sensitive intelligence information?”

I should say I take LeBlanc at his word when he claims to be seeking input in good faith. As a general rule, his arrival tends to mark an improvement in this government’s handling of a difficult file. But just to be on the safe side, it’s worth saying some obvious things clearly.

The opposition parties should give input when asked. It’s useful for each of them to go through the exercise of conceiving in detail the proper handling of the election-interference file. And it’s good of the government to ask, albeit way later than it should have.

But everything LeBlanc plans to ask them — whether to have an inquiry, who should lead it, its mandate and deadlines and legal justification — remains the responsibility of the government. If the opposition parties chicken out, or play dumb games, or deadlock, or suggest people who decline to participate, the responsibility for designing a workable policy remains the government’s. I’m pretty sure Trudeau volunteered for the job of prime minister. In fact I’m sure there was something in the papers about it. He is in this fix now because he wanted Johnston to make his decisions for him. As I wrote nearly three months ago.

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LeBlanc kept saying an inquiry should be run by someone “eminent.” I mean…sure? Whatever? I suppose eminence shouldn’t be actively disqualifying, at least. But to me the craving for eminence is a strange instinct. Eminence is distinctly relative: I suspect more than half of Canadians could never, at any point, have told you who David Johnston is, or Julie Payette, or Craig Kielburger. I’ve come to suspect that “eminent” translates as “impressive to Katie Telford,” which is fine but, again, an odd criterion. Instead may I propose “competent”?

When I wrote about Johnston’s appointment in March, I a suggested a few alternative candidates for the job of deciding how to respond to the mandate for which I already thought Johnston was ill-suited. My list was concocted at random on a few minutes’ notice, with varying degrees of enthusiasm, purely for illustrative purposes. I could come up with a dozen other names, and I don’t even know what I’m talking about. If I were burdened in LeBlanc’s place with such a task, I’d begin by asking for a list of associate deputy ministers at the departments of Global Affairs and Justice, as well as a list of currently serving and recently retired ambassadors. Probably the guy who used to be the national director of the Liberal Party of Canada would be a bad idea, I guess I need to add.

I also might do some reading. I’d recall that when the lawyer Kenneth Feinberg was brought in to decide compensation for families of the 9/11 victims in the U.S., he couldn’t have been further from a household name. When James B. Donovan got Francis Gary Powers released by the Soviets, or Jean Monnet invented the European Union, or Elissa Golberg became Canada’s first civilian representative in Kandahar, they weren’t household names. They still aren’t. They were just good at their work. You know that uncomfortable suspicion that Canada is just six pals from the McGill alumni club who gather every Friday to carve up the spoils of elite consensus over pitchers of iced tea on the verandah of the Royal Ottawa Golf Club? The first step toward perpetuating that suspicion is the urge to find “eminent” people for technical work.

The title of today’s post is cryptic. When LeBlanc said our democracy depends on rising above partisanship, I thought, Uh-oh, and I started thinking about objects or creatures that don’t normally rise above much. Which led to a mental image of ostriches trying to fly. I actually have seen non-partisanship, many times, including from some of the most partisan operators in Canadian politics. But I still wouldn’t bet on it happening in any particular case. The incentives run all the other way. To insulate against it, politicians might want to read the latest from Alliance Canada Hong Kong, the diaspora group that has been chronicling foreign interference for years, for whom the issue is not a fun partisan football and the prospect of testifying yet again, to educate some eminent commissioner, is not appealing.

I keep saying the under-served constituency in this country is the people who would like to see serious problems treated seriously. Not in the sense of cheap theatrics — furrowed brows, jabby index fingers, “my time is limited” — but in the sense of, you know, seriousness. It feels cheap to lodge such a complaint. It’s too easy, too timeless. OK, smartass, what are you proposing? I dunno, more, uh…. seriousness, I guess. But I think everyone senses it.

Last September, the CBC’s Aaron Wherry reported, Justin Trudeau told his caucus “to focus on four Cs: competence, confidence, contrast and campaign-readiness (in that order).” I’m left wondering how the prime minister defines competence and how he thinks he’s doing. This is a guy who, when he made those remarks, was less than a year past deciding that the biggest problem with his cabinet was that Marc Garneau was in it.

Meanwhile, I checked with Pierre Poilievre’s Twitter account to see whether he had responded to LeBlanc’s overture. Here’s how the Conservative leader spent his Friday afternoon:

I sometimes wonder whether these people know we can see them. It’s time to rise above partisanship. Flap, you big gorgeous birds! Flap!

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International

U.S. Army names new long-range hypersonic weapon ‘Dark Eagle’

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One of the Long Range Hypersonic Weapon Transporter Erector Launchers assigned to Bravo Battery, 5th Battalion, 3rd Field Artillery, Long Range Fires Battalion, 1st Multi-Domain Task Force, participates in exercise Bamboo Eagle 24-3 on Nellis Air Force Base, Nev., Aug. 5, 2024.

From The Center Square

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The U.S. Army’s newest long-range hypersonic weapon will be called “Dark Eagle” the Pentagon announced Thursday after a successful test flight.

The land-based, truck-launched system is armed with hypersonic missiles that travel 3,800 miles per hour with a range of 1,725 miles. They can reach the top of the Earth’s atmosphere and “remain just beyond the range of air and missile defense systems until they are ready to strike, and by then it’s too late to react,” according to Army statements in a March 2023 Congressional Research Service report.

In December, the U.S. Army’s Rapid Capabilities and Critical Technologies Office, in collaboration with the U.S. Navy Strategic Systems Programs, completed a successful end-to-end flight test of a conventional hypersonic missile from Cape Canaveral Space Force Station, Florida.

“Hypersonic weapons will complicate adversaries’ decision calculus, strengthening deterrence,” said Patrick Mason, senior official performing the duties of the Assistant Secretary of the Army for Acquisition, Logistics and Technology. “Their speed, accuracy and versatility are befitting its new popular name, Dark Eagle.”

Army officials repeatedly delayed tests of the Dark Eagle system after failures in 2021 and 2022, according to the CRS report.

The U.S. Army’s Rapid Capabilities and Critical Technologies Office and the U.S. Navy Strategic Systems Programs partnered to get land and sea variants of a hypersonic weapon system.

The use of a common hypersonic missile and joint test opportunities allow the services to pursue a more aggressive timeline for delivery and to realize cost savings, according to the Pentagon.

A Congressional Budget Office study from January 2023, buying 300 Intermediate-Range Hypersonic Boost-Glide Missiles, which are similar to the LRHW, was estimated to cost $41 million per missile in 2023 dollars.

But that’s just an estimate. Since the 2023 CBO cost estimate, the Pentagon has said little about the per missile cost of the LRHW.

With the Army planning to field LRHWs to units by the end of FY2025 – if the Army’s new leadership team concurs – an actual per missile cost should be available for policymakers,” according to the CRS note. “With an established per missile cost, the Army should also be able to provide Congress with details about the total LRHW stockpile it intends to procure and how long it will take to ‘grow’ the LRHW stockpile.”

The prime contractors on the project are Lockheed Martin, Dynetics Inc. and Dynetics Technical Solutions, according to the CBO report.

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2025 Federal Election

Canada is squandering the greatest oil opportunity on Earth

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Canada has 3X US oil reserves but less than 40% the production. Why? Anti-oil politicians like Mark Carney who say they’re protecting Earth’s coldest country from global warming.

  • Canada has 170 billion barrels of proven oil reserves—by far the largest of any free country. And its producers can profit at $44 oil, vs. >$57 for US shale.
  • Canadian oil production is also continuing to get cheaper. Oil sands operating costs have dropped 19% over the past five years, and the industry—which is still fine-tuning how to coax oil-like bitumen out of oil sands—has substantial room for further cost reductions.
  • In addition to its massive proven oil reserves, Canada also has massive unexplored oil resources. Canada’s Northwest Territories may contain up to 37% of Canada’s total oil reserves, much of it light crude, which is even cheaper to extract and transport than bitumen from oil sands.

Canada is squandering this opportunity, with < 40% of US production and much slower growth

  • Given Canada’s massive oil reserves and lower production costs, Canadian oil should have been growing far faster than US oil—on a path to producing even more oil than the US does.

    Instead, Canada is totally squandering its oil opportunity, with less than 40% of US production and slower growth since 2010.

The lost opportunity is costing Canadians 100s of billions of dollars a year—and undermining global security

  • In 2023, oil sands directly contributed C$38 billion to GDP—while total economic impact was 100s of billions of dollars. It could have been far, far greater.
  • Canada’s oil underproduction is undermining both Canadian prosperity and global security. E.g., Europe’s dependence on Russian oil triggered an energy crisis after Russia invaded Ukraine. By doubling its oil production, Canada could make oil dictators weaker, the free world stronger—and Canada more powerful.

The cause: False climate ideas have led Canada to senselessly strangle its oil industry

Canada is squandering its oil opportunity by preventing its abundant oil from being transported to world markets

  • With 3X US oil reserves but 1/8 the people, Canada can produce far more oil than it can use. So it needs a lot of transportation. Yet it wages war on pipelines, which are the cheapest, fastest, safest way to transport oil.
  • In 2016, the Canadian government rejected the Northern Gateway pipeline from Alberta to B.C. after nearly a decade of review, citing insufficient Indigenous consultation. The pipeline would have carried 535K barrels of oil per day to Asia-Pacific markets, generating ~C$300B in GDP over 30 years.
  • To make matters worse, several years after the cancellation of the Northern Gateway pipeline, Canadian Parliament passed Bill C-48 (the Oil Tanker Moratorium Act), banning large oil tankers from calling at northern B.C. ports and effectively shutting the door on any future pipeline to that region.
  • In 2017, TC Energy canceled their Energy East pipeline project after the Canadian government demanded they calculate all of its indirect GHG emissions. The pipeline would have carried 1.1M barrels per day of Albertan and Saskatchewan oil to Eastern Canada, generating ~C$55B in GDP over 20 years.
  • The Trans Mountain Expansion (TMX), operational in 2024, is Canada’s only new major pipeline in over a decade. Proposed in 2012, it barely survived years of political hurdles, progressing only after the federal government bought it in 2018. By completion, its costs had ballooned from the projected C$7.4B to C$34B.
  • The main government-created obstacle for pipelines in Canada is the onerous federal “environmental review” process called the Impact Assessment Act (IAA), and before that, its precursor, the Canadian Environmental Assessment Act (CEAA).
  • Under the Impact Assessment Act, the Canadian government can effectively veto a pipeline project by deeming it not in the “public interest,” as determined by factors including “sustainability,” alignment with climate goals, and impacts on Indigenous groups—but not economic benefits (!)
    • Before the Impact Assessment Act was instituted in 2019, pipelines faced similarly onerous environmental reviews under its precursor, the Canadian Environmental Assessment Act (CEAA). Under CEAA, government could veto projects it judged to cause “significant adverse environmental effects,” a vague and open-ended criteria.
    • Even if a pipeline project isn’t formally rejected by the Canadian government, the environmental review process can stretch on for years—often causing projects to collapse from escalating costs or investors withdrawing amid uncertainty. This is exactly what happened with the Energy East pipeline in 2017.
  • If Canada built ample transportation, it would have the potential to produce even more oil than the US does and sell it around the world. Instead, its production is < 40% of the US’s, and 97% of its exports are to the US—at below-market prices.

Canada is also strangling oil investment, production, and refining

  • Canada isn’t just strangling oil transport, it’s sabotaging oil at every stage—from Mark Carney’s proposed emissions cap to “Clean Fuel Regulations” to EV mandates to drilling bans to refinery restrictions.
  • Investment in Canadian oil plunged over 50% (C$76B to C$35B) between 2014-2023—with investors pointing to regulatory uncertainty, inconsistencies, and compliance costs as major barriers to investments.
  • A further looming threat to oil investment is the proposed cap on oil and gas sector GHG emissions. If implemented, as promised by Mark Carney’s government, this proposal will require the oil industry to reduce its GHG emissions to 35% of the 2019 level, which would significantly discourage investment and production.
  • The Clean Fuel Regulations (CFRs), which mandate that Canadian fossil fuel producers reduce the emissions from fuels to 15% lower than 2016 levels by 2030, harms Canadian oil production by significantly increasing the cost of production and thus decreasing the domestic demand for gasoline and diesel.
  • Canada’s EV mandate, which requires that 20% of vehicles sold in 2026, at least 60% of vehicles sold in 2030, and all new vehicles sold in 2035 are electric, harms Canadian oil production by greatly reducing the demand for gasoline and diesel.
  • Canada’s consumer carbon tax, which until earlier this month imposed a fee of C$80 per ton of CO2, harmed Canadian oil production by raising gasoline prices by 17.6 cents per litre, thereby decreasing demand. Though this tax has been repealed, gasoline and diesel remain subject to the industrial carbon tax.
  • In addition to measures that heavily disincentivize oil production, the federal government also directly limits production through moratoria on oil development on Canada’s Pacific and Arctic coasts, blocking access to hundreds of billions of barrels of oil.
  • On top of Canada’s oil underinvestment and underproduction, Canadian oil refining has stagnated, with Canada’s refineries able to process less than half of the oil it produces and only one new refinery built since the 1980s.

The leading stranglers of Canadian oil, such as Trudeau and Carney, say they are protecting Canada and the world from a climate crisis

  • The root cause of Canada’s squandered oil opportunity is leaders’ belief that world’s coldest country must stop global warming at all costs.

    That’s why they advocate pursuing “net zero” by 2050—which necessarily means destroying Canada’s domestic oil industry.

  • Canada has embraced climate catastrophism for over 3 decades now. For example, it was one of the original signatories of the UN Framework Convention on Climate Change (UNFCCC) in 1992. The UNFCCC has been the driving force behind “net zero” policies.
  • Justin Trudeau took Canadian anti-oil policy to a new level, making the destruction of Canada’s oil opportunity a central focus: “We need to phase [oil sands] out,” he said in 2017, “We need to manage the transition off of our dependence on fossil fuels.”
  • While Trudeau’s opposition to Canadian oil and therefore its economy is well-known, most Canadians do not know that Mark Carney is a far more committed opponent of Canadian oil than Justin Trudeau ever was. Indeed, Carney is one of the world’s leading “net zero” advocates.
  • The last several decades of Mark Carney’s career have been focused on pressuring countries like Canada to adopt “net zero” policies that have proved ruinous. He did this as the head of the Bank of Canada and the Bank of England, and as the UN Special Envoy for Climate Action.
  • Mark Carney’s past statements on climate include:

    “investing for a net-zero world must go mainstream” (2019)

    “those that fail to adapt [to net-zero] will cease to exist”​ (2019)

    “build a financial system in which every decision takes climate change into account” (2021)

  • Myth: Mark Carney used to be for carbon taxes but has changed his mind, as shown by his elimination of Canada’s carbon tax.

    Truth: Carney is still for carbon taxes—because he is still for the net-zero agenda that requires taxing CO2 along with all other means to eliminate fossil fuels.

But while climate change is real, it is not a crisis—thanks to increasing resilience—nor is it addressed by unilateral Canadian sacrifice

  • Far from facing a catastrophic climate crisis, Canada and the world are safer than ever from climate.

    The global rate of climate disaster-related deaths has fallen 98% in the last 100 years—thanks to increasing climate resilience from reliable, affordable energy, including oil.

  • Myth: Even if climate-related disaster deaths are down, climate-related damages are way up, pointing to a bankrupting climate future.

    Truth: Even though there are many incentives for climate damages to go up—preferences for riskier areas, government bailouts—GDP-adjusted damages are flat.

  • Sacrificing Canadian oil won’t make the coldest country in an increasingly climate-resilient world safer from global warming—since countries like China and India will never follow suit. What it will do is leave Canada far poorer, weaker, and more endangered from lack of energy.

The solution: Unleashing responsible oil development will make Canada rich, resilient, and secure

The rational path forward on climate is to embrace prosperity, which drives resilience and energy innovation

  • Canada is safer than ever from climate, and other countries won’t cut emissions until it’s truly cost-effective to do so. The path forward is to embrace prosperity.
  • The more prosperous Canada is, the more it can make itself more and more resilient to all manner of climate dangers. And the more prosperous Canada is, the more it can innovate new forms of energy that have the long-term prospect of outcompeting fossil fuels.

The number one path to Canadian prosperity is unleashing responsible development in the oil industry and other energy industries

  • Canada must finally seize its enormous oil opportunity, unleashing investment, production, refining, and transport from irrational restrictions. Only then can Canada can deliver oil to eager markets worldwide.
  • Canada should renounce its pledge to achieve “net zero by 2050” by repealing the Net-Zero Emissions Accountability Act where it is enshrined and withdrawing from the Paris Agreement. This will massively increase investor certainty about the future viability of the oil industry.
  • Canada should reject the proposed GHG emissions cap for the oil industry. Canadian provinces that have their own carbon taxes and emission credit trading schemes should eliminate them too. This will improve investor expectations about the oil industry’s future viability.
  • Canada should repeal the Impact Assessment Act (IAA) and replace it with a framework that minimizes the cost and duration of reviews and enshrines clear and narrow criteria for rejecting projects. This will help build more oil pipelines and reduce investor uncertainty about environmental regulations.
  • Canada should revise the Canadian Energy Regulator Act (CERA) by limiting the certification review of the covered oil pipeline projects to the question of whether there is sufficient proven demand for the oil they are planning to transport. This will expedite pipeline approval.
  • Canada should repeal the Oil Tanker Moratorium Act (Bill C-48), which bans large oil tankers off the northern and central coast of British Columbia. This will open the door to building pipelines to B.C. that can transfer oil to crucial Asian markets.
  • Canada should repeal the Clean Fuel Regulations (CFR) and the EV mandate. This will boost investor confidence in oil by increasing both current and anticipated domestic demand for oil-derived fuels.
  • Canada should repeal the federal moratoria on offshore oil drilling on the Pacific Coast and in the Canadian Arctic. This will unlock up to hundreds of billions of barrels of Canadian oil.
  • To stop squandering the world’s greatest energy opportunity, Canada must start electing leaders who value Canadian energy, and stop electing leaders with a proven track record of destroying it.

Daniil Gorbatenko, Steffen Henne, and Michelle Hung contributed to this piece.

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