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Energy

Stop The Cap On Oil And Gas

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5 minute read

From Project Confederation

With the United Nations’s 28th Climate Change Conference in Dubai generating headlines, we all knew it was only a matter of time before Canada’s radical eco-activist Environment Minister did something stupid.

And here it is, from Steven Guilbeault himself:

“The Government of Canada’s plan to cap and reduce emissions from Canada’s largest emitting sector is ambitious, but practical. It considers the global demand for oil and gas — and the importance of the sector in Canada’s economy — and sets a limit that is strict, but achievable.”

That’s right, folks – the Oil and Gas emissions/production cap is finally upon us.

We launched a campaign last year, around this same time, warning that this was coming.

Now, we know just how bad it actually is.


If you already agree that we should Stop The Cap On Oil And Gas,
click here to sign the petition, but if you want more details, read on!


The framework that’s being proposed by the federal government would cap emissions at 35% – 38% below 2019 levels.

How exactly would this be done?

What will it cost?

No one knows.

The federal government just says that they’ll release the details via regulation sometime next year.

Alberta Premier Danielle Smith is livid, issuing a statement:

“[The announcement is an] intentional attack by the federal government on the economy of Alberta and the financial well-being of millions of Albertans and Canadians.”

“Justin Trudeau and his eco-extremist Minister of the Environment and Climate Change, Steven Guilbeault, are risking hundreds of billions of investments in Alberta’s and Canada’s economy.”

Saskatchewan Premier Scott Moe echoed Smith:

“[The cap] will have serious economic impacts on Canadians and limit our sustainable Canadian energy products from providing heat and electricity to the world.”

“Saskatchewan will protect our constitutional right to build our economy in accordance with the priorities of Saskatchewan families and businesses.”

The federal government has been in legal hot water lately over constitutional overreaches – with the Supreme Court deeming the Impact Assessment Act unconstitutional in October and the Federal Court ruling the plastics ban unconstitutional in November.

Ottawa has consistently ignored provincial jurisdiction on a wide range of issues, and their inability to stay in their constitutional lane has been a major source of tension with the provinces.

This emissions cap is just the latest example, as natural resource development is guaranteed to be the sole jurisdiction of the provinces in the Constitution of Canada.

As such, the emissions cap is clearly unconstitutional – but even if it wasn’t, it would be a terrible policy anyway.

First, it’s an admission by the government that the carbon tax – their signature climate change policy – is not working.

The entire purpose of the tax was to be a “market mechanism” to reduce emissions, and yet now they’re admitting that they need even more regulations to reduce emissions.

This cap is a direct and deliberate attack on western Canada’s oil and gas industry.

Remember – the cap will not apply to any industry other than oil and gas.

Ontario’s automotive industry, Quebec’s cement industry, and other high-emitting industries in other parts of Canada are not having their emissions capped.

The cap also excludes refineries – even though that is part of the oil and gas industry – because many of Canada’s refineries happen to be in regions of the country that mostly vote Liberal.

If the federal government were actually concerned about the environment, they would implement policies designed to reduce emissions across all industries and all regions of Canada.

Instead, the hypocritical and political nature of Ottawa’s climate agenda reveals their true intentions and undermines the credibility of their entire plan.

That’s why we’re renewing our campaign calling on the federal government to back off, respect the Constitution, and stop infringing on provincial jurisdiction.

If you agree, please sign our petition to Stop The Cap On Oil And Gas:

Josh Andrus
Executive Director
Project Confederation

2025 Federal Election

MORE OF THE SAME: Mark Carney Admits He Will Not Repeal the Liberal’s Bill C-69 – The ‘No Pipelines’ Bill

Published on

From EnergyNow.Ca

Mark Carney on Tuesday explicitly stated the Liberals will not repeal their controversial Bill C-69, legislation that prevents new pipelines being built.

Carney has been campaigning on boosting the economy and the “need to act forcefully” against President Donald Trump and his tariffs by harvesting Canada’s wealth of natural resources — until it all fell flat around him when he admitted he actually had no intention to build pipelines at all.

When a reporter asked Carney how he plans to maintain Bill C-69 while simultaneously building infrastructure in Canada, Carney replied, “we do not plan to repeal Bill C-69.”

“What we have said, formally at a First Ministers meeting, is that we will move for projects of national interest, to remove duplication in terms of environmental assessments and other approvals, and we will follow the principle of ‘one project, one approval,’ to move forward from that.”

“What’s essential is to work at this time of crisis, to come together as a nation, all levels of government, to focus on those projects that are going to make material differences to our country, to Canadian workers, to our future.”

“The federal government is looking to lead with that, by saying we will accept provincial environmental assessments, for example clean energy projects or conventional energy projects, there’s many others that could be there.”

“We will always ensure these projects move forward in partnership with First Nations.”

Tory leader Pierre Poilievre was quick to respond to Carney’s admission that he has no intention to build new pipelines. “This Liberal law blocked BILLIONS of dollars of investment in oil & gas projects, pipelines, LNG plants, mines, and so much more — all of which would create powerful paychecks for our people,” wrote Poilievre on X.

“A fourth Liberal term will block even more and keep us reliant on the US,” he wrote, urging people to vote Conservative.

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Alberta

Energy sector will fuel Alberta economy and Canada’s exports for many years to come

Published on

From the Fraser Institute

By Jock Finlayson

By any measure, Alberta is an energy powerhouse—within Canada, but also on a global scale. In 2023, it produced 85 per cent of Canada’s oil and three-fifths of the country’s natural gas. Most of Canada’s oil reserves are in Alberta, along with a majority of natural gas reserves. Alberta is the beating heart of the Canadian energy economy. And energy, in turn, accounts for one-quarter of Canada’s international exports.

Consider some key facts about the province’s energy landscape, as noted in the Alberta Energy Regulator’s (AER) 2023 annual report. Oil and natural gas production continued to rise (on a volume basis) in 2023, on the heels of steady increases over the preceding half decade. However, the dollar value of Alberta’s oil and gas production fell in 2023, as the surging prices recorded in 2022 following Russia’s invasion of Ukraine retreated. Capital spending in the province’s energy sector reached $30 billion in 2023, making it the leading driver of private-sector investment. And completion of the Trans Mountain pipeline expansion project has opened new offshore export avenues for Canada’s oil industry and should boost Alberta’s energy production and exports going forward.

In a world striving to address climate change, Alberta’s hydrocarbon-heavy energy sector faces challenges. At some point, the world may start to consume less oil and, later, less natural gas (in absolute terms). But such “peak” consumption hasn’t arrived yet, nor does it appear imminent. While the demand for certain refined petroleum products is trending down in some advanced economies, particularly in Europe, we should take a broader global perspective when assessing energy demand and supply trends.

Looking at the worldwide picture, Goldman Sachs’ 2024 global energy forecast predicts that “oil usage will increase through 2034” thanks to strong demand in emerging markets and growing production of petrochemicals that depend on oil as the principal feedstock. Global demand for natural gas (including LNG) will also continue to increase, particularly since natural gas is the least carbon-intensive fossil fuel and more of it is being traded in the form of liquefied natural gas (LNG).

Against this backdrop, there are reasons to be optimistic about the prospects for Alberta’s energy sector, particularly if the federal government dials back some of the economically destructive energy and climate policies adopted by the last government. According to the AER’s “base case” forecast, overall energy output will expand over the next 10 years. Oilsands output is projected to grow modestly; natural gas production will also rise, in part due to greater demand for Alberta’s upstream gas from LNG operators in British Columbia.

The AER’s forecast also points to a positive trajectory for capital spending across the province’s energy sector. The agency sees annual investment rising from almost $30 billion to $40 billion by 2033. Most of this takes place in the oil and gas industry, but “emerging” energy resources and projects aimed at climate mitigation are expected to represent a bigger slice of energy-related capital spending going forward.

Like many other oil and gas producing jurisdictions, Alberta must navigate the bumpy journey to a lower-carbon future. But the world is set to remain dependent on fossil fuels for decades to come. This suggests the energy sector will continue to underpin not only the Alberta economy but also Canada’s export portfolio for the foreseeable future.

Jock Finlayson

Senior Fellow, Fraser Institute
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