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Maduro faces off with US over Venezuela rival’s power claim
CARACAS, Venezuela — Venezuelans headed into uncharted political waters Thursday, with the young leader of a newly united and combative opposition claiming to hold the presidency and socialist President Nicolas Maduro digging in for a fight with the Trump administration.
Violence flared again Wednesday during big anti-government demonstrations across Venezuela, and at least seven protesters were reported killed in the escalating confrontation with Maduro, who has been increasingly accused of undemocratic
Juan Guaido, the new leader of the opposition-controlled National Assembly, turned up the heat by declaring himself interim president before a mass of demonstrators in Caracas. He said it is the only way to end the Maduro “dictatorship” in Venezuela, which has seen millions flee in recent years to escape sky-high inflation and food shortages.
“We know that this will have consequences,” Guaido shouted to the cheering crowd, then slipped away to an unknown location amid speculation that he would soon be arrested.
In a united and seemingly
But Russia, China, Iran, Syria and Turkey have voiced their backing for Maduro’s government.
President Donald Trump promised to use the “full weight” of U.S. economic and diplomatic power to push for the restoration of Venezuela’s democracy. “The people of Venezuela have courageously spoken out against Maduro and his regime and demanded freedom and the rule of law,” he said in a statement.
Maduro fired back by breaking diplomatic relations with the U.S., the biggest trading partner for the oil-exporting country, and ordering American diplomats to get out of the country within 72 hours. Washington said it would ignore the order.
The socialist leader, who so far has been backed by the military, as well as the government-packed courts and a constituent assembly, recalled the long history of heavy-handed U.S. interventions in Latin America during the Cold War as he asked his allies for support.
“Don’t trust the gringos,” he thundered to a crowd of red-shirted supporters gathered at the presidential palace. “They don’t have friends or loyalties. They only have interests, guts and the ambition to take Venezuela’s oil, gas and gold.”
China’s Foreign Ministry called on the United States to stay out of the crisis, while Russia’s deputy foreign minister warned the U.S. against any military intervention in Venezuela.
Some Russian officials reacted with anger to the opposition protests. Alexei Pushkov, chairman of the information committee at the Russian Federation Council, called Guaido’s declaration “an attempted coup” backed by the U.S.
Russia has been propping up Maduro with arms deliveries and loans. Maduro visited Moscow in December, seeking Russia’s political and financial support. Over the last decade, China has given Venezuela $65 billion in loans, cash and investment. Venezuela owes more than $20 billion.
On Thursday, attention will shift to Washington, where diplomats at the Organization of American States will hold an emergency meeting on the Venezuelan situation. The debate promises to be charged, and the National Assembly’s newly picked diplomatic envoy will be lobbying to take Venezuela’s seat from Maduro’s ambassador.
Meanwhile, many Venezuelans will be looking for Guaido to re-emerge and provide guidance on the opposition’s next steps. The armed forces’ top command, which has so far remained silent, is also expected to issue a statement, although nobody expects the general’s loyalties to Maduro to have shifted.
The price of oil slipped for the third time in four days Wednesday, an indication that international energy markets are not overly concerned yet that the situation in Venezuela — America’s third top oil supplier and owner of Houston-based Citgo — will disrupt global crude supplies.
Tensions began ramping up earlier this month as Maduro took the oath of office for a second six-year term won in an election last May that many in the region contend was not free or fair because his strongest opponents were barred from running.
The 35-year-old Guaido, a virtually unknown lawmaker at the start of the year, has reignited the hopes of Venezuela’s often beleaguered opposition by taking a rebellious tack amid Venezuela’s crushing economic crisis.
He escalated his campaign Wednesday by declaring that the constitution gives him, as president of the congress, the authority to take over as interim president and form a transitional government until he calls new elections.
Raising his right hand in unison with tens of thousands of supporters, he took a symbolic oath to assume executive powers: “Today, January 23, 2019, I swear to formally assume the powers of the national executive as president in charge of Venezuela.”
The assault on Maduro’s rule came after large crowds gathered in Caracas waving flags and chanting “Get out, Maduro!” in what was the biggest demonstration since a wave of unrest that left more than 120 dead in 2017.
There were no signs that security forces heeded Guaido’s call to join the anti-Maduro movement and go easy on demonstrators. Hours after most demonstrators went home, violence broke out in Altamira, an upscale zone of Caracas and an opposition stronghold, when National Guardsmen descended on hundreds of youths, some of them with their faces covered, lingering around a plaza. Popping tear gas canisters sent hundreds running and hordes of protesters riding two and three on motorcycles fleeing in panic.
Blocks away, a small group knocked a pair of guardsmen riding tandem off their motorcycle, pelting them with coconuts as they sped down a wide avenue. Some in the group struck the two guardsmen with their hands while others ran off with their gear and set their motorcycle on fire.
Meanwhile, four demonstrators were killed by gunfire in the western city of Barinas as security forces were dispersing a crowd. Three others were killed amid unrest in the border city of San Cristobal.
Amid the showdown, all eyes are on the military, the traditional arbiter of political disputes in Venezuela — and to which Guaido has been targeting his message.
On Monday, a few dozen national guardsmen seized a stockpile of assault rifles in a pre-dawn uprising that was quickly quelled, although residents in a nearby slum showed support for the mutineers by burning cars and stoning security forces. Disturbances flared up that night in other working-class
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Associated Press journalists around the world contributed to this report.
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Joshua Goodman on Twitter: https://twitter.com/APjoshgoodman
Joshua Goodman, The Associated Press
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Mortgaging Canada’s energy future — the hidden costs of the Carney-Smith pipeline deal

Much of the commentary on the Carney-Smith pipeline Memorandum of Understanding (MOU) has focused on the question of whether or not the proposed pipeline will ever get built.
That’s an important topic, and one that deserves to be examined — whether, as John Robson, of the indispensable Climate Discussion Nexus, predicted, “opposition from the government of British Columbia and aboriginal groups, and the skittishness of the oil industry about investing in a major project in Canada, will kill [the pipeline] dead.”
But I’m going to ask a different question: Would it even be worth building this pipeline on the terms Ottawa is forcing on Alberta? If you squint, the MOU might look like a victory on paper. Ottawa suspends the oil and gas emissions cap, proposes an exemption from the West Coast tanker ban, and lays the groundwork for the construction of one (though only one) million barrels per day pipeline to tidewater.
But in return, Alberta must agree to jack its industrial carbon tax up from $95 to $130 per tonne at a minimum, while committing to tens of billions in carbon capture, utilization, and storage (CCUS) spending, including the $16.5 billion Pathways Alliance megaproject.
Here’s the part none of the project’s boosters seem to want to mention: those concessions will make the production of Canadian hydrocarbon energy significantly more expensive.
As economist Jack Mintz has explained, the industrial carbon tax hike alone adds more than $5 USD per barrel of Canadian crude to marginal production costs — the costs that matter when companies decide whether to invest in new production. Layer on the CCUS requirements and you get another $1.20–$3 per barrel for mining projects and $3.60–$4.80 for steam-assisted operations.
While roughly 62% of the capital cost of carbon capture is to be covered by taxpayers — another problem with the agreement, I might add — the remainder is covered by the industry, and thus, eventually, consumers.
Total damage: somewhere between $6.40 and $10 US per barrel. Perhaps more.
“Ultimately,” the Fraser Institute explains, “this will widen the competitiveness gap between Alberta and many other jurisdictions, such as the United States,” that don’t hamstring their energy producers in this way. Producers in Texas and Oklahoma, not to mention Saudi Arabia, Venezuela, or Russia, aren’t paying a dime in equivalent carbon taxes or mandatory CCUS bills. They’re not so masochistic.
American refiners won’t pay a “low-carbon premium” for Canadian crude. They’ll just buy cheaper oil or ramp up their own production.
In short, a shiny new pipe is worthless if the extra cost makes barrels of our oil so expensive that no one will want them.
And that doesn’t even touch on the problem for the domestic market, where the higher production cost will be passed onto Canadian consumers in the form of higher gas and diesel prices, home heating costs, and an elevated cost of everyday goods, like groceries.
Either way, Canadians lose.
So, concludes Mintz, “The big problem for a new oil pipeline isn’t getting BC or First Nation acceptance. Rather, it’s smothering the industry’s competitiveness by layering on carbon pricing and decarbonization costs that most competing countries don’t charge.” Meanwhile, lurking underneath this whole discussion is the MOU’s ultimate Achilles’ heel: net-zero.
The MOU proudly declares that “Canada and Alberta remain committed to achieving Net-Zero greenhouse gas emissions by 2050.” As Vaclav Smil documented in a recent study of Net-Zero, global fossil-fuel use has risen 55% since the 1997 Kyoto agreement, despite trillions spent on subsidies and regulations. Fossil fuels still supply 82% of the world’s energy.
With these numbers in mind, the idea that Canada can unilaterally decarbonize its largest export industry in 25 years is delusional.
This deal doesn’t secure Canada’s energy future. It mortgages it. We are trading market access for self-inflicted costs that will shrink production, scare off capital, and cut into the profitability of any potential pipeline. Affordable energy, good jobs, and national prosperity shouldn’t require surrendering to net-zero fantasy.If Ottawa were serious about making Canada an energy superpower, it would scrap the anti-resource laws outright, kill the carbon taxes, and let our world-class oil and gas compete on merit. Instead, we’ve been handed a backroom MOU which, for the cost of one pipeline — if that! — guarantees higher costs today and smothers the industry that is the backbone of the Canadian economy.
This MOU isn’t salvation. It’s a prescription for Canadian decline.
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Cost of bureaucracy balloons 80 per cent in 10 years: Public Accounts
The cost of the bureaucracy increased by $6 billion last year, according to newly released numbers in Public Accounts disclosures. The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to immediately shrink the bureaucracy.
“The Public Accounts show the cost of the federal bureaucracy is out of control,” said Franco Terrazzano, CTF Federal Director. “Tinkering around the edges won’t cut it, Carney needs to take urgent action to shrink the bloated federal bureaucracy.”
The federal bureaucracy cost taxpayers $71.4 billion in 2024-25, according to the Public Accounts. The cost of the federal bureaucracy increased by $6 billion, or more than nine per cent, over the last year.
The federal bureaucracy cost taxpayers $39.6 billion in 2015-16, according to the Public Accounts. That means the cost of the federal bureaucracy increased 80 per cent over the last 10 years. The government added 99,000 extra bureaucrats between 2015-16 and 2024-25.
Half of Canadians say federal services have gotten worse since 2016, despite the massive increase in the federal bureaucracy, according to a Leger poll.
Not only has the size of the bureaucracy increased, the cost of consultants, contractors and outsourcing has increased as well. The government spent $23.1 billion on “professional and special services” last year, according to the Public Accounts. That’s an 11 per cent increase over the previous year. The government’s spending on professional and special services more than doubled since 2015-16.
“Taxpayers should not be paying way more for in-house government bureaucrats and way more for outside help,” Terrazzano said. “Mere promises to find minor savings in the federal bureaucracy won’t fix Canada’s finances.
“Taxpayers need Carney to take urgent action and significantly cut the number of bureaucrats now.”
Table: Cost of bureaucracy and professional and special services, Public Accounts
| Year | Bureaucracy | Professional and special services |
|
$71,369,677,000 |
$23,145,218,000 |
|
|
$65,326,643,000 |
$20,771,477,000 |
|
|
$56,467,851,000 |
$18,591,373,000 |
|
|
$60,676,243,000 |
$17,511,078,000 |
|
|
$52,984,272,000 |
$14,720,455,000 |
|
|
$46,349,166,000 |
$13,334,341,000 |
|
|
$46,131,628,000 |
$12,940,395,000 |
|
|
$45,262,821,000 |
$12,950,619,000 |
|
|
$38,909,594,000 |
$11,910,257,000 |
|
|
$39,616,656,000 |
$11,082,974,000 |
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