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Energy

The sudden, newfound support for LNG projects in Canada is truly remarkable.

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From Resource Works 

The sudden, newfound support for LNG projects in Canada is truly remarkable.

What’s all this? Green-leaning governments, federal and provincial, suddenly speaking in favour of liquefied natural gas (LNG) and other resource development?

It began with British Columbia Premier David Eby telling Bloomberg News that he’s optimistic that LNG Canada’s LNG-for-export plant at Kitimat, BC can be expanded in a way that satisfies its investors but without supercharging the province’s emissions.

This came as LNG Canada was reported continuing to look into possible Phase Two expansion. Such expansion would double the plant’s output of LNG to 14 million tonnes a year.

Industry reports say LNG Canada has been discussing with prime contractors their potential availability down the road. A key, though, is whether and how B.C. can provide enough electrical power.

The LNG Canada plant now is going through a pre-production testing program, and has finished welding on its first “train” (production line). LNG Canada is expected to go into full operation in mid-2025. And Malaysia’s Petronas (a 25% partner) has added three new LNG carriers to its fleet, to gear up for LNG Canada’s launch.

The Eby story noted that he has also thrown his support behind other projects — including hydrogen production and an electric-vehicle battery recycling plant — to create jobs and keep B.C.’s economy growing at a challenging time.

Then came Ottawa’s minister of innovation, science and industry, François-Philippe Champagne, who visited the Haisla Nation in B.C. to support its Cedar LNG project with partner Pembina Pipeline Corp.

Champagne declared: “This is the kind of project we want to see, where there are all the elements supporting attracting investments in British Columbia.”

His government news release said: “This project presents an exciting opportunity for Canada, as it is expected to commercialize one of the lowest-carbon-intensity liquified natural gas (LNG) facilities in the world and represents the largest Indigenous-majority-owned infrastructure project in Canada.”

Champagne went on to tell The Terrace Standard that “We are in active conversations with Pembina and Haisla First Nations. We are saying today that we will support the project, but discussions are still ongoing.’

There had already been reports that Export Development Canada is set to lend Cedar LNG $400-$500 million.

And then came federal minister Jonathan Wilkinson, announcing to the national Energy and Mines Ministers’ Conference in Calgary that Ottawa “will get clean growth projects built faster” by streamlining regulatory processes and moving to “make good approvals faster.”
Wilkinson has long talked, too, of streamlining and speeding up approval processes for resource projects in general, especially for mining for critical minerals. “(We’re) looking at how do we optimise the regulatory and permanent processes so you can take what is a 12- to 15-year process and bring it down to maybe five.”

The Canada Energy Regulator now is inviting input on its plans to improve the efficiency and predictability of project reviews.

All this as Deloitte Canada consultants reported that “the natural gas sector is poised for significant growth, driven by ongoing LNG projects and rising demand for gas-fired electricity generation in Canada.”

And energy giant BP said that under its two new energy ‘scenarios’, world demand for LNG in 2030 grows by 30-40% above 2022 levels, then increases by more than 25% over the subsequent 20 years.

Wilkinson earned pats on the back from some provincial ministers at the Calgary conference, but Alberta’s minister of energy and minerals, Brian Jean, aired concerns over how Ottawa’s new “greenwashing” law would impact the oil and gas sector.

Under it, companies (and individuals) must prove the truth of their public statements on climate benefits of their products or programs, or face potential millions in fines. But the ground rules for this legislation have not yet been announced.

(Jean was not alone. Other critics included CEO Karen Ogen of the First Nations LNG Alliance, who said the new law “could be used as one more tool to discourage resource companies that might seek Indigenous partnerships, and to obstruct Indigenous investment in energy projects, and frustrate Indigenous benefits from resource projects.”)

Wilkinson replied that the Competition Bureau needs to provide information so people understand how the rules apply and what is actionable.

“I think once that is done, this will be, perhaps, a bit of a different conversation. I would expect that the guidance will be something like folks simply have to have a good faith basis to believe what they’re saying. And assuming that is true, I think the sector probably will calm down.”

No pats on the back for Ottawa, though, from the mining industry or the oil-and-gas sector.

Aiming to combat China’s efforts to corner the market in critical minerals, Canada is making it harder for foreign firms to take over big Canadian mining companies. Major mining shares quickly dropped in value.

And Heather Exner-Pirot of the Macdonald-Laurier Institute and special advisor to the Business Council of Canada, says: “We produced less critical minerals last year than we did in 2019. We’re producing less copper, less nickel, less platinum, less cobalt, all these things. And the investment has not picked up; in real dollars it’s almost half of what it was in 2013 . . . and the regulatory system is still a huge barrier to that development.”

On top of that, the petroleum sector has long protested that federal moves to limit oil and gas emissions will, in practice, limit production.

While governments signalled support for LNG, supporters of natural-resource development quickly sent clear messages to governments of all levels.

Calgary-based Canada Action, for one, reminded governments that the oil and gas sector is projected to generate more than in $1.1 trillion in revenue to governments from 2000 through 2032.  And that the oil and gas sector supports nearly 500,000 direct and indirect jobs across the country.

Then the industry-supporting Fraser Institute pointed out that business investment in Canada’s extractive sector (mining, quarrying, and oil and gas) has declined substantially since 2014.

“In fact, adjusted for inflation, business investment in the oil and gas sector has declined 52.1 per cent since 2014, falling from $46.6 billion in 2014 to $22.3 billion in 2022. In percentage terms the decline in non-conventional oil extraction was even larger at 71.2 percent, falling from $37.3 billion in 2014 to $10.7 billion in 2022. . . .

“One of the major challenges facing Canadian prosperity are regulatory barriers, particularly in the oil and gas sector.”

Over to government, then, to reduce those barriers.

Following the recent positive moves listed above from two levels of government, there’s an obvious question: Would there happen to be federal and provincial elections in the offing?

Yes: B.C. will hold its next general election on or before October 19. And the feds go to the polls for an election on or before October 20.

Stand by for more promises.

Energy

Liberals Twisted Themselves Into Pretzels Over Their Own Pipeline MOU

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From Energy Now

By Margareta Dovgal

Playing politics with pipelines is a time-honored Canadian tradition. Recent events in the House of Commons offered a delightful twist on the genre.


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The Conservatives introduced a motion quoting the Liberals’ own pipeline promises laid out in the Memorandum of Understanding (MOU) with Alberta, nearly verbatim. The Liberals, true to form, killed it 196–139 with enthusiastic help from the NDP, Bloc, and Greens.

We all knew how this would end. Opposition motions like this never pass; no government, especially not one led by Mark Carney, is going to let the opposition dictate the agenda. There’s not much use feigning outrage that the Liberals voted it down. The more entertaining angle has been watching closely as Liberal MPs twist themselves into pretzels explaining why they had to vote “no” on a motion that cheers on a project they claim to support in principle.

Liberal MP Corey Hogan dismissed the motion as “game-playing” designed to “poke at people”.

And he’s absolutely right to call it a “trap” for the Liberals. But traps only work when you walk into them.

Indigenous Services Minister Mandy Gull-Masty deemed the motion an “immature waste of parliamentary time” and “clearly an insult towards Indigenous Peoples” because it didn’t include every clause of the original agreement. Energy Minister Tim Hodgson decried it as a “cynical ploy to divide us” that “cherry-picked” the MOU.

Yet the prize for the most tortured metaphor goes to the prime minister himself. Defending his vote against his own pipeline promise, Carney lectured the House that “you have to eat the entire meal, not just the appetizer.”

It’s a clever line, and it also reveals the problem. The “meal” Carney is serving is stuffed with conditions. Environmental targets or meaningful engagement with Indigenous communities aren’t unrealistic asks. A crippling industrial carbon price as a precondition might be though.

But the prime minister has already said the quiet part out loud.

​Speaking in the House a few weeks ago, Carney admitted that the agreement creates “necessary conditions, but not sufficient conditions,” before explicitly stating: “We believe the government of British Columbia has to agree.”

​There is the poison pill. Handing a de facto veto to a provincial government that has spent years fighting oil infrastructure is neither constitutionally required nor politically likely. Elevating B.C.’s “agreement” to a condition, which is something the MOU text itself carefully avoids doing, means that Carney has made his own “meal” effectively inedible.

Hodgson’s repeated emphasis that the Liberal caucus supports “the entire MOU, the entire MOU” only reinforces this theory.

This entire episode forces us to ask whether the MOU is a real plan to build a pipeline, or just a national unity play designed to cool down the separatist temperature in Alberta. My sense is that Ottawa knew they had to throw a bone to Premier Danielle Smith because the threat of the sovereignty movement is gaining real traction. But you can’t just create the pretense of negotiation to buy time.

With the MOU getting Smith boo’ed at her own party’s convention by the separatists, it’s debatable whether that bone was even an effective one to throw.

There is a way. The federal government has the jurisdiction. If they really wanted to, they could just do it, provided the duty to consult with and accommodate Indigenous peoples was satisfied. Keep in mind: no reasonable interpretation equates Section 35 of the Charter to a veto.

Instead, the MOU is baked with so many conditions that the Liberals have effectively laid the groundwork for how they’re going to fail.

With overly-hedged, rather cryptic messaging, Liberals have themselves given considerable weight to a cynical theory, that the MOU is a stalling tactic, not a foundation to get more Canadian oil to the markets it’s needed in. Maybe Hodgson is telling the truth, and caucus is unified because the radicals are satisfied that “the entire MOU” ensures that a new oil pipeline will never reach tidewater through BC.

So, hats off to the legislative affairs strategists in the Conservative caucus. The real test of Carney’s political power continues: can he force a caucus that prefers fantasy economics into a mold of economic literacy to deliver on the vision Canadians signed off on? Or will he be hamstrung trying to appease the radicals from within?


Margareta Dovgal is managing director of Resource Works Society.

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Daily Caller

Paris Climate Deal Now Decade-Old Disaster

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From the Daily Caller News Foundation

By Steve Milloy

The Paris Climate Accord was adopted 10 years ago this week. It’s been a decade of disaster that President Donald Trump is rightly trying again to end.

The stated purpose of the agreement was for countries to voluntarily cut emissions to avoid the average global temperature exceeding the (guessed at) pre-industrial temperature by 3.6°F (2°C) and preferably 2.7°F (1.5°C).

Since December 2015, the world spent an estimated $10 trillion trying to achieve the Paris goals. What has been accomplished? Instead of reducing global emissions, they have increased about 12 percent. While the increase in emissions is actually a good thing for the environment and humanity, spending $10 trillion in a failed effort to cut emissions just underscores the agreement’s waste, fraud and abuse.

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But wasting $10 trillion is only the tip of the iceberg.

The effort to cut emissions was largely based on forcing industrial countries to replace their tried-and-true fossil fuel-based energy systems with not-ready-for-prime-time wind, solar and battery-based systems. This forced transition has driven up energy costs and made energy systems less reliable. The result of that has been economy-crippling deindustrialization in former powerhouses of Germany and Britain.

And it gets worse.

European nations imagined they could reduce their carbon footprint by outsourcing their coal and natural gas needs to Russia. That outsourcing enriched Russia and made the European economy dependent on Russia for energy. That vulnerability, in turn, and a weak President Joe Biden encouraged Vladimir Putin to invade Ukraine.

The result of that has been more than one million killed and wounded, the mass destruction of Ukraine worth more than $500 billion so far and the inestimable cost of global destabilization. Europe will have to spend hundreds of billions more on defense, and U.S. taxpayers have been forced to spend hundreds of billions on arms for Ukraine. Putin has even raised the specter of using nuclear weapons.

President Barack Obama unconstitutionally tried to impose the Paris agreement on the U.S. as an Executive agreement rather than a treaty ratified by the U.S. Senate. Although Trump terminated the Executive agreement during his first administration, President Joe Biden rejoined the agreement soon after taking office, pledging to double Obama’s emissions cuts pledge to 50 percent below 2005 levels by 2030.

Biden’s emissions pledge was an impetus for the 2022 Inflation Reduction Act that allocated $1.2 trillion in spending for what Trump labeled as the Green New Scam. Although Trump’s One Big Beautiful Bill Act reduced that spending by about $500 billion and he is trying to reduce it further through Executive action, much of that money was used in an effort to buy the 2024 election for Democrats. The rest has been and will be used to wreck our electricity grid with dangerous, national security-compromising wind, solar and battery equipment from Communists China.

Then there’s this. At the Paris climate conference in 2015, U.S. Secretary of State John Kerry stated quite clearly that emissions cuts by the U.S. and other industrial countries were meaningless and would accomplish nothing since the developing world’s emissions would be increasing.

Finally, there is the climate realism aspect to all this. After the Paris agreement was signed and despite the increase in emissions, the average global temperature declined during the years from 2016 to 2022, per NOAA data.

The super El Nino experienced during 2023-2024 caused a temporary temperature spike. La Nina conditions have now returned the average global temperature to below the 2015-2016 level, per NASA satellite data. The overarching point is that any “global warming” that occurred over the past 40 years is actually associated with the natural El Nino-La Nina cycle, not emissions.

The Paris agreement has been all pain and no gain. Moreover, there was never any need for the agreement in the first place. A big thanks to President Trump for pulling us out again.

Steve Milloy is a biostatistician and lawyer. He posts on X at @JunkScience.

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