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Energy

GOP governors announce plan to ‘unleash American energy’

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Louisiana Gov. Jeff Landry

From The Center Square

“The reason that inflation is out of control is because of the federal government. If the federal government took its foot off of the neck of American energy, we could absolutely lower the cost of everyday goods.”

Republican governors on Monday announced a plan to “unleash American energy.” They also called on President Joe Biden to protect U.S. energy security after they say his administration has taken more than 200 actions against the oil and natural gas industry.

The governors unveiled their plan in front of a the PBF Energy Chalmette Refinery on the banks of the Mississippi River in St. Bernard Parish, Louisiana, led by Louisiana Gov. Jeff Landry.

“American energy has done more than any other industry to lift more people out of poverty globally than any other industry that I’ve known of,” Landry said.

He said governors know the needs of Americans more than anyone else.

“What we hear from our constituents is that inflation is eating into the pockets of Americans. One of the greatest drivers of that inflation is energy,” Landry said. “The reason that inflation is out of control is because of the federal government. If the federal government took its foot off of the neck of American energy, we could absolutely lower the cost of everyday goods.”

The Louisiana governor listed actions the president took “attacking the industry” from his first day in office, including pausing new oil and gas leases, cancelling the Keystone XL pipeline, prioritizing foreign energy over domestic energy, and releasing agency “rules and regulations at a neck-breaking speed,” that hurt Americans’ pocket books and prioritize “government regulations over free market solutions.”

Joining Landry were governors Mike Dunleavy of Alaska, Brian Kemp of Georgia, Chris Sununu of New Hampshire, Doug Burgum of North Dakota, Kevin Stitt of Oklahoma, and Glenn Youngkin of Virginia.

“Americans are paying 40% more every time they fill up their gas tanks and Republican governors believe one of the best ways to help Americans with all these rising costs is to support an ‘all-of-the-above’ approach to American energy production,” Stitt said, similar to those being implemented in Republican-led states.

“Oklahoma has some of the most affordable reliable energy in the entire country,” he said, because of its “all-of-the-above approach.” Oklahoma is the 6th-largest producer of crude oil and natural gas, the third-largest producer of wind-generated electricity, has among the lowest electricity prices for commercial and industrial consumers, and reduced its electricity generation carbon intensity by 61% over the last two decades, he said.

Stitt cited examples of the president’s “regulatory war on American energy,” including another new EPA emission rule over which 25 attorneys general sued.

“When you’re a governor, you’re working for everybody,” Burgum said, including Republicans, independents and Democrats. “Right now, we’ve got so many Americans that are struggling to put gas in their tank and food on the table.” The governors are “fighting for every American who’s having to pay more than they should,” he said, because of Biden administration policies under the guise of “a big lie that says, ‘if we do all this it’s going to be good for the environment.’”

The U.S. is producing roughly 13 million barrels of oil a day but could be producing “15, 16, 18, 20 million barrels a day,” he said. “That would be not just energy independence, that would be energy dominance. We’d be selling that to our allies instead of our allies having to buy from our enemies,” which is what happened, he said.

The governors are part of a 21-governor coalition who called on the president to pursue “an all-of-the-above energy approach that will promote homegrown energy” instead of pursuing policies that benefit China.

Their solutions include ending regulatory overreach that restricts domestic energy production, including reversing policies on the Dakota Access and Keystone XL pipelines; increasing onshore and offshore lease sales for all forms of energy production, including in the National Petroleum Reserve in Alaska; expediting approval of federal drilling permits; removing the pause on LNG exports; reversing EPA rules; working with Congress to enact comprehensive permitting reform, among others.

Energy

Is Canada the next nuclear superpower?

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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’.”

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Alberta

REPORT: Alberta municipalities hit with $37 million carbon tax tab in 2023

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Grande Prairie. Getty Images photo

From the Canadian Energy Centre

By Laura Mitchell

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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