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Energy

Free Speech Was Curtailed In Canada. Did You Notice?

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19 minute read

From the Frontier Centre for Public Policy

By Brian Zinchuk

We’ve seen this before, of course… The Soviets under Lenin and Stalin, and Maoists in China made denunciation commonplace. Don’t like someone? Denounce them for anti-revolutionary speech and have them hauled off to the gulag for 10 years

In the waning days of June, the federal Liberal government, supported by the New Democratic Party, passed legislation to take away some of the rights to free speech in Canada.

Bill C-59 was an omnibus budget bill, which meant its passage was assured lest the government fall. And there are some amendments to the Competition Act within C-59 which are effectively a gag law for you, me, and everybody else.

Gag law

I honestly wasn’t aware of it until Minister of Justice and Attorney General Bronwyn Eyre held a press scrum at the Saskatchewan Oil and Gas Show on June 5 to talk about this. She called it a “gag law,” and it has become evident those were very fitting words.

The additions to the budget impact the Competition Act, for the purpose of eliminating “greenwashing.” The significant clauses state:

“A person engages in reviewable conduct who, for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means whatever …

“(b.1) Makes a representation to the public in the form of a statement, warranty or guarantee of a product’s benefits for protecting or restoring the environment or mitigating the environmental, social and ecological causes or effects of climate change that is not based on an adequate and proper test, the proof of which lies on the person making the representation;

“(b.2) Makes a representation to the public with respect to the benefits of a business or business activity for protecting or restoring the environment or mitigating the environmental and ecological causes or effects of climate change that is not based on adequate and proper substantiation in accordance with internationally recognized methodology, the proof of which lies on the person making the representation.”

The penalties for a corporation can be up to three per cent of global revenue.

Charlie Angus’ influence

The Bill was introduced last November, but these portions were amended since then. And you can see from a briefing submission from the environmental lobby, some of their suggestions were implemented.

It also seems to be an extension of Charlie Angus private members bill, which was banning the promotional petroleum in early February. I think that was a trial balloon. No one really thought anything would come of it, but the essence of that bill was already in Section 236 of C-59, with amendments made at the very end of the budgetary process.

This move seems to be a back-door implementation of NDP MP Charlie Angus’ private members bill, Bill C-372, which sought to shut down all oil and gas advertising. Angus’ press release said, “Passage of Bill C-372 will mean that no fossil fuel company will be able to advertise, promote their products, nor mislead the public about the health and environmental threats posed by the burning of fossil fuels, which the World Health Organization now says is the biggest global health threat of the 21st century.”

Isn’t that eerily similar to the clauses noted above?

Saskatchewan calls it a gag law

Eyre told reporters on June 5, “This is a gag law. It’s a federal gag law. It’s Charlie Angus’ fossil fuels advertising act in another form, and it is very serious. That’s what the letter expresses, our profound alarm at this rushed bill, Bill C-59, which is part of an omnibus budget bill. It was rushed, it was done without consultation with any of the provinces. And it could have a very profound effect, very sobering effect harmful effects on our economy, frankly, so very, very concerned about C-59.”

Premier Scott Moe posted on social media on July 2, “It’s a wonder why the federal government would want to put a gag order on Saskatchewan oil and gas companies when they are having great success with their emission reductions. In fact, our energy sectors greenhouse gas emissions last year were 67 per cent below levels reported in 2015. Our government will continue to fight against the Liberal-NDP Coalition Bill C-59 plan in order to protect Saskatchewan’s energy sector.”

Such a statement, made by a provincial premier, no less, could possibly be considered afoul of the law, if he had made these statements after June 20, 2025, when the law is implemented.

Did Moe quote “proper substantiation in accordance with internationally recognized methodology?” After all, according to the law of the land now, “the proof of which lies on the person making the representation.”

Jordan Peterson persecution

The implementation of this law is essentially modelled on the persecution (and I don’t use that term lightly) of Dr. Jordan Peterson.

As noted by the National Post, Dr. Peterson’s plight was that the “College of Psychologists of Ontario that ordered Jordan Peterson into a mandatory rehabilitation program for his politically incorrect tweets, which had nothing to do with his practice and involved none of his patients.”

Among the complaints made against him was the submission of the entire transcript of his appearance on the Joe Rogan Experience podcast! And an Ontario court backed up the College’s prosecution (persecution?) of him!

Bill C-59 conjures up a similar system. As energy advocate Deidra Garyk writes in Pipeline Online, “While focus has been on the muzzling of oil and gas supporters and companies, this bill is agnostic and, therefore, allows all industries to be targeted. Although, oil and gas is likely to be disproportionately aimed at and penalized since anyone can go onto the Bureau’s website and easily complete a complaint form. You do not have to be a victim to file a complaint, meaning a company can be accused of a victimless crime.”

Communist-style denunciation

We’ve seen this before, of course, long before Peterson’s problems. The Soviets under Lenin and Stalin, and Maoists in China made denunciation commonplace. Don’t like someone? Denounce them for anti-revolutionary speech and have them hauled off to the gulag for 10 years, but only if they don’t catch a bullet behind the ear, first.

Process is the punishment

While Canadians aren’t likely to catch a bullet, yet, this is a situation where the process is the punishment. It doesn’t matter if the complainants win. All they have to do is initiate the process, and you are in a world of hurt.

And trust me, they will be filing complaints. Expect groups like Ecojustice, Sierra Club, and Greenpeace to be lining them up as we speak. In December, several of them, including Ecojustice, submitted a briefing note “amending Bill C-59 to more effectively combat greenwashing.”

A few clicks online and bam! You’re tied up in litigation that’s from tens to hundreds of thousands of dollars.

And even if you win, you still lose, because you’ve paid all that money for the lawyers and the time and effort.

And in the meantime, while you’re in litigation, you’re not going to say a damn thing until it’s resolved. So, you have effectively been muted until the court process, which is never quick and efficient, is dealt with. Again, the process is the punishment.

Easier to say nothing, ever

Now, the solution for most people, and most companies, will realize is that it’s easier not to say anything at all, which effectively silences you. As Eyre said, this is a gag law.

And you know what really, really troubling?

Some of the largest companies in Canada, corporations with literally floors of lawyers among them, folded like a house of cards as soon as C-59 became law. The Pathways Alliance, made up of the six largest oilsands producers, promptly wiped their website clean. The Canadian Association of Petroleum Producers, on June 20, said it “has chosen to reduce the amount of information it makes available on its website and other digital platforms until the Competition Bureau has released further guidance on how these amendments will be implemented.”

So the gag has been thoroughly applied, already. Spines, and perhaps some other bodily parts, are notably absent.

And these are the organizations with by far the largest resources to fight this assault on free speech. Instead, they issued press releases. Big deal. That press release should have said they will fight this tooth and nail. Instead, They’ve already all but given up.

So what the hell am I supposed to do, working in my basement as a one man band? I have no financial resources to pay for any sort of legal fight.

How the hell am I supposed to fight this when the people who have all the resources in the world, in this country have said, “Oh, we’ll put up a press release saying, ‘We don’t like this, but we’re not going to do anything about it.’”

I’ll tell you what my defence is, should I, or my corporation, Pipeline Online Ltd., have a complaint issued under this legislation: Section 2(b) of the Canadian Charter of Rights and Freedoms. It states, “Everyone has the following fundamental freedoms: (b) freedom of thought, belief, opinion and expression, including freedom of the press and other media of communication.”

That includes the right to say whatever you want about “protecting or restoring the environment or mitigating the environmental, social and ecological causes or effects of climate change.”

And under Canadian law, corporations have rights, too.

ESG as the rope to hang you

And here’s another twist: in the last four years, environment, social and governance, or ESG statements or reports have went from non-existent to required if you expect any sort of institutional investment. No ESG report; no money, honey.

But these very reports, the ones making companies’ environmental cases, will now be rope with which the likes of Ecojustice and Greenpeace will hang them. Now if you publish an ESG statement, your critics can use that as evidence to prosecute you. So you’re damned if you do, and you’re damned if you don’t. If you don’t put out an ESG statement, maybe you’ll lose all your investors. And if you do publish it, well, maybe you’ll get prosecuted by this for saying the wonderful stuff that you have tried to do for the environment.

What if a journalist like me comes around and does a story on your company? Let’s give a real example. Several years ago, a drilling company which no longer exists called CanElson converted many of it rigs to operate on dual-fuel; diesel and compressed natural gas. And one of the reasons cited at the time when I wrote about it was the environmental benefits from lower emissions. But now, lawyers would almost certainly tell them everything they say would have to be couched with “proper substantiation in accordance with internationally recognized methodology.” In other words, mountains of fine print. But no press organization is going to publish all of that, and the company would have no control over what is published. So that company’s lawyer would, according to the new law, obviously advise their clients to say nothing, ever, to any media where it could be published, lest they open themselves up to prosecution under the Competition Act, as amended by Bill C-59.

Again, a gag law.

1984

This is really an implementation of George Orwell’s 1984, where groupthink has been legislated into law a couple week ago by the federal government. If you say anything against the current orthodoxy of anthropogenic climate change, or even if your efforts to support it are found insufficient, you are an apostate and can be prosecuted for it.

This is not hyperbole. This has really happened.

Your freedom of speech, today, is dramatically reduced from what it was on June 19.

And we allowed it to happen.

Authoritarian pattern

This reminds me of how the Russian Revolution evolved under the Soviets, as recorded by Aleksandr Solzhenitsyn’s The Gulag Archipelago. First they came for the Mensheviks, then the socialists. Then they came for the bourgeois business owners and clergy. Next were the engineers, which were called “wreckers,” as well as the intelligentsia. Then they came for the kulaks, which were farmers who had as few as three cows, leading to the Holodomor. Then they came for the military, in the great purge.

This is the route authoritarianism takes. Free speech is the first to go. What comes after that?

I’ve been talking to a number of people about this in recent weeks. Some have suggested working within the system as it now exists, under the new changes to the Competition Act. Some have suggested using the new rules to fight back, making complaints about the green lobby, instead.

That’s a fool’s errand. You’re co-opting the authoritarians’ plan. Just like the Jews who dutifully donned their yellow Stars of David. If we just do what they tell us to, work within their new rules, maybe they’ll leave us alone.

How did that work out?

I wore a uniform as a reservist officer in the Canadian Forces. I may have been the lowest form of reservist officer, but I still wore a uniform for seven years, and there’s no way in hell I am going to be gagged by my own federal government for being able to say what I’m going to say.

And the fact that CAPP and the Pathways Alliance folded on this like a cheap house of cards, is all the more troubling. They’ve just been handed the environmental equivalent of a yellow star, and they dutifully put it on.

Will you do the same?

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].

Business

Trump’s oil tariffs could spell deficits for Alberta government

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From the Fraser Institute

By Tegan Hill

After recently meeting with president-elect Donald Trump, Premier Danielle Smith warned that Trump’s tariffs could include oil. That’s just one more risk factor added to Alberta’s already precarious fiscal situation, which could mean red ink in the near future.

Trump has threatened a 25 per cent tariff on Canadian goods, which includes oil, and could come as early as January 20 when he’s sworn in as president. Such tariffs would likely widen the price differential between U.S. West Texas Intermediate (WTI) crude oil and Alberta’s Western Canadian select (WCS) heavy oil.

In other words, the average price difference between Canadian oil (WCS) and U.S. oil (WTI) could increase, reflecting a larger discount on Canadian oil. According to the Alberta government’s estimate, every $1 that WCS is sold at discount is a $600 million hit to the government’s budget.

To maintain its $4.6 billion projected budget surplus this fiscal year (2024/25), the Smith government is banking on oil prices (WTI) averaging US$74.00 per barrel in 2024/25. But every $1 decline in oil prices leads to a $630 million swing in Alberta’s bottom line. And WTI has dropped as low as US$67.00 per barrel in recent months.

Put simply, Trump’s proposed tariffs would flip Alberta’s budget surplus to a budget deficit, particularly if paired with lower oil prices.

While Smith has been aggressively trying to engage with lawmakers in the United States regarding the tariffs and the inclusion of oil, there’s not much she can do in the short-run to mitigate the effects if Trump’s tariff plan becomes a reality. But the Smith government can still help stabilize Alberta’s finances over the longer term. The key is spending restraint.

For decades, Alberta governments have increased spending when resource revenues were relatively high, as they are today, but do not commensurately reduce spending when resource revenues inevitably decline, which results in periods of persistent budget deficits and debt accumulation. And Albertans already pay approximately $650 each in provincial government debt interest each year.

To its credit, the Smith government has recognized the risk of financing ongoing spending with onetime windfalls in resource revenue and introduced a rule to limit increases in operating spending (e.g. spending on annual items such as government employee compensation) to the rate of population growth and inflation. Unfortunately, the government’s current plan for restraint is starting from a higher base level of spending (compared to its original plan) due to spending increases over the past two years.

Indeed, the government will spend a projected $1,603 more per Albertan (inflation-adjusted) this fiscal year than the Smith government originally planned in its 2022 mid-year budget update. And higher spending means the government has increased its reliance on volatile resource revenue—not reduced it. Put simply, Smith’s plan to grow spending below the rate of inflation and population growth isn’t enough to avoid budget deficits—more work must be done to rein in high spending.

Trump’s tariffs could help plunge Alberta back into deficit. To help stabilize provincial finances over the longer term, the Smith government should focus on what it can control—and that means reining in spending.

Tegan Hill

Tegan Hill

Director, Alberta Policy, Fraser Institute
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Alberta

Why U.S. tariffs on Canadian energy would cause damage on both sides of the border

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Marathon Petroleum’s Detroit refinery in the U.S. Midwest, the largest processing area for Canadian crude imports. Photo courtesy Marathon Petroleum

From the Canadian Energy Centre

By Deborah Jaremko

More than 450,000 kilometres of pipelines link Canada and the U.S. – enough to circle the Earth 11 times

As U.S. imports of Canadian oil barrel through another new all-time high, leaders on both sides of the border are warning of the threat to energy security should the incoming Trump administration apply tariffs on Canadian oil and gas.

“We would hope any future tariffs would exclude these critical feedstocks and refined products,” Chet Thompson, CEO of the American Fuel & Petrochemical Manufacturers (AFPM), told Politico’s E&E News.

AFPM’s members manufacture everything from gasoline to plastic, dominating a sector with nearly 500 operating refineries and petrochemical plants across the United States.

“American refiners depend on crude oil from Canada and Mexico to produce the affordable, reliable fuels consumers count on every day,” Thompson said.

The United States is now the world’s largest oil producer, but continues to require substantial imports – to the tune of more than six million barrels per day this January, according to the U.S. Energy Information Administration (EIA).

Nearly 70 per cent of that oil came from Canada.

Many U.S. refineries are set up to process “heavy” crude like what comes from Canada and not “light” crude like what basins in the United States produce.

“New tariffs on [Canadian] crude oil, natural gas, refined products, or critical input materials that cannot be sourced domestically…would directly undermine energy affordability and availability for consumers,” the American Petroleum Institute, the industry’s largest trade association, wrote in a recent letter to the United States Trade Representative.

More than 450,000 kilometres of oil and gas pipelines link Canada and the United States – enough to circle the Earth 11 times.

The scale of this vast, interconnected energy system does not exist anywhere else. It’s “a powerful card to play” in increasingly unstable times, researchers with S&P Global said last year.

Twenty-five years from now, the United States will import virtually exactly the same amount of oil as it does today (7.0 million barrels per day in 2050 compared to 6.98 million barrels per day in 2023), according to the EIA’s latest outlook.

“We are interdependent on energy. Americans cutting off Canadian energy would be like cutting off their own arm,” said Heather Exner-Pirot, a special advisor to the Business Council of Canada.

Trump’s threat to apply a 25 per cent tariff on imports from Canada, including energy, would likely “result in lower production in Canada and higher gasoline and energy costs to American consumers while threatening North American energy security,” Canadian Association of Petroleum Producers CEO Lisa Baiton said in a statement.

“We must do everything in our power to protect and preserve this energy partnership.”

Energy products are Canada’s single largest export to the United States, accounting for about a third of total Canadian exports to the U.S., energy analysts Rory Johnston and Joe Calnan noted in a November report for the Canadian Global Affairs Institute.

The impact of applying tariffs to Canadian oil would likely be spread across Canada and the United States, they wrote: higher pump prices for U.S. consumers, weaker business for U.S. refiners and reduced returns for Canadian producers.

“It is vitally important for Canada to underline that it is not just another trade partner, but rather an indispensable part of the economic and security apparatus of the United States,” Johnston and Calnan wrote.

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