Connect with us
[the_ad id="89560"]

Business

A tale of two countries – Drill, Baby, Drill vs Cap, Baby, Cap

Published

10 minute read

From EnergyNow.ca

By Deidra Garyk

Analysis of the U.S. Election and the Canadian Oil and Gas Emissions Cap

Monday, November 4, the Canadian federal government announced the long-awaited draft emissions cap for the oil and gas industry.

The next day, the world’s largest economy held an election that resulted in a decisive victory for the position of 47th President of the USA.

With the GOP (Republicans) taking a commanding lead with 53 out of 100 possible Senate seats, and two more still to be confirmed, they have a majority that can help move along their plans for at least the next two years. Rumoured expectations are that they’ll take the House too, which will further solidify President-elect Trump’s mandate.

As part of Trump’s campaign platform, Agenda47, he promised “to bring Americans the lowest-cost energy and electricity on Earth.” The agenda pledged that “to keep pace with the world economy that depends on fossil fuels for more than 80% of its energy, President Trump will DRILL, BABY, DRILL.”

The platform also states that under his leadership, the US will once again leave the Paris Climate Accords, and he will oppose all Green New Deal policies that impact energy development. He also plans to roll back the Biden administration’s EV mandates and emissions targets, while advocating for low emissions nuclear energy.

It isn’t a guarantee that he will do anything that he says; however, if the past is any indication, we can expect Trump to follow through on his energy and climate promises.

Even though Canada and the USA are on a contiguous land mass, they could not be farther apart in energy and climate ideology.

On the northern side of the border, a day before, Canada’s green avengers of the Liberal cabinet congregated for a press conference to jubilantly announce their emissions cap, which has been studied and determined to be a defacto production cap. CAP, BABY, CAP!

Claims that the new rules go after pollution, not production, should be met with scepticism. If pollution is the problem, there would be blanket emissions caps on all heavy emitting industries and imported oil and gas would be subject to the same requirements, but it is not. I’m not sure how else to read it other than a willful slight with a sledgehammer against the Canadian oil and gas industry.

Especially since Natural Resources Minister Jonathan Wilkinson said that this is a backstop to ensure the Pathways Alliance does what they say they will. I wonder if the Pathways folks feel like they have a giant target on their backs… and fronts?

The hour-long press conference was a lesson in how to deceive with a straight face. Most of the Liberals’ claims have either been discredited or are unsubstantiated as to be meaningless.

Wilkinson, a Rhodes Scholar, calls this cap an “economic opportunity” because he believes that for Canadian oil and gas, climate change is a competitive issue, for both combusted and non-combusted products. Square that circle when no other country on the planet has an emissions cap on its oil and gas industry.

Nonetheless, the Liberals expect production to increase, which is counter to what they say out of the other side of their mouths – that oil and gas demand will peak this year, and we are not going to be using it much longer so we should just shut it all down.

Wilkinson excitedly announced the need for thousands and thousands of workers to build the decarbonization infrastructure of the new energy future. However, the Department of Environment’s  Cost-Benefit Analysis Summary contradicts this claim, citing thousands of job losses.

The Study also identifies that the costs from the plan will be borne by Canadians. The Conference Board of Canada expressed similar concerns, but they were dismissed by the politicians on stage.

Edmonton MP and Minister of Employment, Workforce Development, and Official Languages Randy Boissonnault, also known as “The Other Randy” for his ethical mis-steps, put on one of the best shows of the press conference. He speaks so convincingly that you almost believe him. Almost.

He claimed that when he was campaigning last election during the Covid pandemic, the number one topic at the doors was climate change. Edmontonians wanted to talk about climate change over the global pandemic that was disrupting their lives? Yeah, right.

The Other Randy praised Ministers Guilbeault and Wilkinson for working with industry on the regulations and promised that Canadian workers will be part of the consultation and final rules. Forgive me for being sceptical.

The Spiderman-like Steven Guilbeault, Minister of Environment and Climate Change, said that oil companies have seen record profits, going from $6.6 billion pre-pandemic to $66 billion post-pandemic, and the Liberals want that extra money used on projects they approve of, namely ones that are climate-related.

Guilbault believes this cap is necessary for prosperity and energy security, along with being good for workers and “for good union jobs”. It’s not often talked about, but within the feds’ climate plans is a push for unionizing jobs. It was top-of-mind for the Deputy Minister of Labour when I was part of a delegation to Ottawa last year. She was most interested in learning about how many oil and gas jobs are unionized and showed visible displeasure at finding out that most are not.

The press conference seemed to be more of a one-sided political bun fight, with a disproportionate amount of time spent talking smack about Pierre Poilievre, Premier Danielle Smith, and Premier Scott Moe. Perhaps demonstrating the Liberals’ trepidation about the future since the final regulations will come out late next year and go into effect January 1, 2026, when it’s likely they will be out of office.

With the climate zealots out of power, enforcement may be a challenge. What if companies don’t meet the arbitrary targets and deadlines imposed by the rules? What if companies don’t buy the required credits? A reporter asked, but Guilbeault didn’t give an answer in his response. I guess we will have to wait to see what changes are made to the Canadian Environmental Protection Act (CEPA), the enforcement regulations.

Wilkinson said climate change is a “collective action problem” that must be addressed as it is the “existential threat to the human race.” This gives you a sense of how they see things – there is a problem and government is the solution.

Meanwhile, energy policy is a “Day 1 priority” for Trump. As a businessperson, he understands that demand is growing, and limited regulations are the way to develop all forms of energy.

Even if industry can meet the emissions reduction targets – there are a variety of opinions on the proposed rules – it does not mean the regulations should be implemented. Canada’s real per capita GDP is 73 per cent of America’s, so as Canada goes hard on emissions reduction regulations, if investment moves south, that number is not going to improve. Don’t let them tell you otherwise.

Deidra Garyk is the Founder and President of Equipois:ability Advisory, a consulting firm specializing in sustainability solutions. Over 20 years in the Canadian energy sector, Deidra held key roles, where she focused on a broad range of initiatives, from sustainability reporting to fostering collaboration among industry stakeholders through her work in joint venture contracts.

Outside of her professional commitments, Deidra is an energy advocate and a recognized thought leader. She is passionate about promoting balanced, fact-based discussions on energy policy and sustainability. Through her research, writing, and public speaking, Deidra seeks to advance a more informed and pragmatic dialogue on the future of energy.

Business

Biden-Harris Admin Reportedly Backs Off On Major Emissions Initiative At UN Climate Summit

Published on

From the Daily Caller News Foundation 

By Nick Pope

The Biden-Harris administration is quietly backing away from a plan to use the ongoing U.N. climate conference to announce an international call for emissions reductions, according to Politico.

It is not clear whether it is because President-elect Donald Trump decisively won last week’s presidential election, but Biden-Harris officials reportedly intended to partner with several other countries in announcing “ambitious” carbon emissions reduction goals for 2035 before the announcement fell through, according to Politico, which cited a draft press release it obtained and several unnamed officials. Had it not fallen through, the announcement could have gone live as early as Monday, the first day of the conference — commonly referred to as COP29 — in Azerbaijan, a Caucasian petrostate with a questionable human rights record.

The aborted call to action would not have been legally binding, though it would have served as a signal to corporations to invest in emissions reduction initiatives and pave the way for other nations to get on board, according to Politico. The countries that would have been named in the announcement would have committed to slashing emissions across nearly every sector of their respective economies, and they would have taken aim at specific chemicals like carbon dioxide, methane and nitrous oxide.

The press release announcing the commitments “clearly won’t be published” at this point, one senior foreign diplomat told Politico, which granted the source anonymity to speak freely on the matter. Beyond Trump’s victory, other potential factors that may have interfered with the plan to roll out the 2035 targets include ambivalence from potential partners or bureaucratic logjam in the European Union, an American ally that typically collaborates on similar climate targets.

The U.S. circulated the idea of putting out a statement ahead of COP29 with “a lot of parties but never pushed for it to become something more,” a European official involved in climate negotiations told Politico.

Trump’s pending return to the White House is looming large at COP29, given the president-elect’s pledges to roll back green spending, regulations and initiatives and jack up fossil fuel production, according to CBS News. Moreover, Trump has also promised to withdraw again from the U.N.’s Paris Climate Accords, which he did in his first term before the Biden-Harris administration rejoined the deal.

The White House did not respond immediately to a request for comment.

Continue Reading

Business

Energy Giant Wins Appeal In Landmark Lawsuit Blaming Company For Climate Change

Published on

From the Daily Caller News Foundation 

By Owen Klinsky

Energy giant Shell won its appeal against a landmark 2021 legal ruling claiming the company was partially responsible for climate change and needed to cut carbon emissions.

The original decision handed down in 2021 ordered Shell to reduce its carbon emissions by 45% by the end of 2030, with anti-fracking group Friends of the Earth Netherlands bringing the claims. Now, a Dutch appellate court has thrown out the ruling, stating that climate science is not developed enough to impose specific emissions reduction requirements on private businesses like Shell.

“The court of appeal… takes as its point of departure that there is a broad consensus that, in order to limit global warming to 1.5°C, reduction pathways must be chosen in which CO2 emissions are reduced by a net 45% by the end of 2030 relative to at least 2019,” the Hague Court of Appeal wrote in its ruling. “The court cannot determine what specific reduction obligation applies to Shell.”

The Shell logo is displayed outside a petrol station in Plymouth on August 15, 2024 in Somerset, England. (Photo by Matt Cardy/Getty Images)

The court also noted Shell has already made efforts to lower emissions.

“To assume the impending violation of a legal obligation alleged by Milieudefensie [Friends of the Earth Netherlands] et al., the court would have to find that it is likely that Shell will not have reduced its scope 1 and 2 emissions by 45% by 2030, despite Shell’s concrete plans and the measures Shell has already taken to implement those plans,” the ruling stated. “Milieudefensie et al. have not provided sufficient arguments in support of that.”

The Hague’s decision comes as world leaders meet in Baku, Azerbaijan, for the United Nations’ COP29 climate summit this month, with the U.S. finalizing a levy on “excess” methane emissions from oil and gas producers Tuesday. A variety of world leaders, including President Joe Biden, French President Emmanuel Macron and Brazilian President Luiz Inácio Lula da Silva opted not to attend this year, while representatives from Afghanistan’s Taliban are slated to attend the climate confab for the first time ever.

Friends of the Earth Netherlands, Shell and the Hague Court of Appeals did not immediately respond to requests for comment.

Continue Reading

Trending

X