Connect with us
[the_ad id="89560"]

Energy

U.S. halt on LNG exports presents new opportunity for Canada

Published

5 minute read

From the Fraser Institute

By Julio Mejía and Elmira Aliakbari

The Biden administration recently paused the approval of permits for liquefied natural gas (LNG) exports, which will force U.S. allies to explore alternative sources of LNG, opening the door for Canada. In fact, if Canadian policymakers remove certain regulatory hurdles, they can help position Canada as a leading global provider of clean and reliable natural gas while also helping create jobs and prosperity in British Columbia, Alberta and beyond.

Following Putin’s invasion of Ukraine, President Biden committed to supplying steady LNG to the European Union, aiming to reduce reliance on Russian gas. By 2023, the United States had become the world’s top LNG exporter, with several European countries importing more than half of America’s LNG exports. However, President Biden also pledged to transition the U.S. away from fossil fuels so he’s paused LNG exports to appease his environmentalist constituency ahead of the upcoming U.S. presidential election.

But this pause comes at a crucial time for European countries grappling with energy shortages and rising prices. Last year, energy-intensive industries in Europe scaled back or halted production amid soaring energy prices, and Germany, Europe’s largest economy, narrowly avoided a recession caused by energy supply shortages. To keep the lights on, European countries have been forced to revert to coal-fired power plants, an energy source that contributes more CO2 emissions than natural gas.

Following the U.S. decision, European and Asian countries (including China) are exploring alternative LNG suppliers, again creating a potential void that Canada could fill. Japan and Germany have already turned to Canada.

Canada’s vast natural resources hold the potential to make a significant positive impact on global energy security, reliability, and emissions reduction by reducing reliance on coal. Despite possessing “the most prolific and lower-cost North American gas resources,” as emphasized by McKinsey’s recent report, development in Canada has encountered challenges largely due to government regulatory barriers. Presently, Canada lacks any operational LNG export terminals, unlike the U.S., which has 27 such facilities. The LNG Canada development in B.C. is slated to become Canada’s first operational facility, expected to begin exporting by 2025.

The absence of LNG export infrastructure in Canada has led domestic natural gas producers to depend on U.S. LNG facilities for exporting. However, with the recent halt on approving new LNG projects south of the border, there’s an urgent need for Canada to establish its own infrastructure if we’re going to seize this opportunity to be a global LNG supplier.

Forecasts indicate steady and growing global demand for LNG. McKinsey’s recent report anticipates an annual increase in global LNG demand of 1.5 per cent to 3 per cent to 2035. And according to the latest report by the International Energy Agency (IEA), limited new LNG production means supply will remain tight.

Despite promising opportunities, various government initiatives including CleanBC (the B.C. government’s plan to reduce greenhouse gas emissions,) the Trudeau government’s emissions caps on the oil and gas sector, and federal Bill C-69 (which added more red tape and complexity to the assessment process for major energy projects) have created uncertainty and deterred, if not outright prohibited, investment in the sector.

Canada has an opportunity to provide clean and reliable natural gas to our allies, help improve the world’s energy security and reduce global greenhouse gas emissions. The federal and provincial governments must remove regulatory barriers to allow for the needed infrastructure and investment in the LNG sector, which will also provide jobs and prosperity here at home.

Alberta

New children’s book demonstrates how the everyday world is connected to natural resources

Published on

From the Canadian Energy Centre

‘Today’s youth have the opportunity to lead us into the future with innovative solutions for environmental challenges’

After a 24-year career in oil sands land reclamation, author Tanya Richens is sharing her knowledge with young minds.

Her new book, From the Earth to Us: Discovering the Origins of Everyday Things, explores the relationship between natural resources and the things we use in everyday life, from computers and water bottles to batteries and solar panels.

“There is a gap in society’s understanding of where things come from. We are a society driven by consumerism and immediate gratification. We order something online, and it arrives on our doorstep the next day. We don’t stop to think about where it really came from or how it was made,” Richens says.

“There’s an ever-increasing societal position that mining is bad, and oil is even worse… But there’s a simple hypocrisy in those beliefs, since so many things in our lives are made from the raw materials that come from mining and oil and natural gas,” she says.

The book, illustrated by reclamation artist Shannon Carla King, follows young Hennessy Rose and her Cavalier King Charles Spaniel Riley on a trip to a children’s summer camp.

Hennessy’s mom is a guest speaker on the origin of everyday items and the relationship between humans and the earth. Through detailed explanations of items surrounding her, Hennessy’s mom teaches the kids how rocks, minerals, oil and gas from the earth are used to power and aid our lives, creating items such as building supplies, food and hair products, camping and sports equipment, and cell phones.

Author Tanya Richens poses with her two books for children about natural resources. Photo for Canadian Energy Centre

“I thought a simple and fun book explaining the raw materials needed to make everyday items would be valuable for all ages,” Richens says.

“When people feel personally connected to natural resources, they are more likely to promote sustainable practices. Today’s youth will have the opportunity to lead us into the future with innovative solutions for environmental challenges.”

Richens‘ career began with Alberta Environment, where she was a coordinator of reclamation approvals in the oil sands. She oversaw technical reviews of oil sands reclamation applications, communicated with statement of concern filers, coordinated public hearings and provided support for legislative changes.

She moved from government to Suncor Energy, ensuring the company’s compliance on reclamation projects and led initiatives to obtain reclamation certificates. She now works as an independent consultant.

Drawing on her wealth of experience in the field, Richens’ first book, Adventures in Land Reclamation: Exploring Jobs for a Greener Future, seeks to excite kids aged 9-12 years about jobs related to the environment and land reclamation.

Hoping to get From the Earth to Us into the hands of teachers, Richens is heading to the Edmonton Teachers Convention in late February. She says the book supports multiple learning outcomes in Alberta’s new science curriculum for grades 3, 4, 5 and 6.

“Ultimately, I’d like people to understand and acknowledge their individual part in the need for mining and oil and natural gas development. Until the naivety and hypocrisy in the world is addressed, I’m not sure that real environmental change is possible.”

Richens’ books can be purchased on her website at tcrenvironmental.com.

Continue Reading

Energy

Federal Government Suddenly Reverses on Critical Minerals – Over Three Years Too Late – MP Greg McLean

Published on

From Energy Now

By Calgary MP Greg McLean

Government in Full Reverse

Canada-U.S. Trade Relations is obviously the most pressing issue facing Canadians today.

It’s important to remember how we arrived at this point, but also to question the sincerity of the Liberal Ministers and leadership contenders who are now posing solutions, such as:

  • We need to diversify our resource trade
  • We need to build pipelines and infrastructure to get our exports to tidewater
  • We need to streamline our regulatory burden that stands in the way of development
  • We need to halt the escalating carbon tax
  • We need to reverse the capital gains tax increase

The Liberals are turning themselves inside out on the policy choices they have made over nine years, and put Canada in a precarious economic position vis-à-vis our trade position.

If you believe what they are saying now, these Liberal Ministers and leadership contenders are saying that Canada needs EXACTLY THE OPPOSITE of what they have delivered over these past nine years.

I can’t comment on whether these NEW Liberal policy positions completely lack sincerity, or whether they are the result of a ‘deathbed conversion’, but nine years of moving in the exact opposite direction to their new words has led Canada to where it is today – and that is nine lost years for Canadians, our prosperity, and our role in a complex world.

Below is another example of a specific morphing of a Liberal policy – to the one I helped put forth – 3 ½ years ago – regarding Canada’s policy on critical minerals.


Minister Late to Critical Mineral Strategy

Here’s a gem of wisdom from December’s Fall Economic Statement:

Canada will work with the United States and other likeminded partners to address the impacts of non-market policies and practices that unduly distort critical mineral prices.  This includes ensuring that market participants recognize the value of critical minerals produced responsibly, with due regard for high environmental standards and labour practices.

Then, on January 16th, the following from Canada’s Natural Resource Minister, Jonathan Wilkinson:

During a panel discussion in Washington on Wednesday, Natural Resources Minister Jonathan Wilkinson proposed that enforcing a floor on metals prices could be “one of the centerpieces of the conversations we would then be having at the G7” summit later this year.

Western nations have long warned that China’s dominance in everything from nickel to lithium has let the country’s producers flood the market with supply, thereby keeping prices artificially low for competitors. Wilkinson has touted price floors as a way to combat that market control.

What a great idea!

Here’s the relevant excerpt from June, 2021, from a dissenting report on the Natural Resources Committee, when I served as my party’s critic, in contrast to the government’s critical minerals approach at that time:

Recommendation 4: Coordinate with our allies to establish a dedicated supply stock of critical minerals, possibly through a physical storage and floor pricing mechanism for visibility and pricing purposes.

Excerpt: Canada is too small of a market to undertake this effort on its own, but it can play a key role with its longstanding leadership as the mining jurisdiction of choice in the world. Canada’s pre-eminent role as a financing jurisdiction for international mining is well understood. Although we are at the early stages of losing this historical leadership to Australia, acting quickly to solidify Canada’s leadership will be a strong signal. Australia and Europe have already established critical mineral strategies to offset the dominance of the market that China has exerted. At the very least, Canada’s coordination needs to include the United States, and probably Mexico (through CUSMA), as the ongoing funding of a critical mineral supply may require backstopping developments with a price amelioration mechanism. In essence, a floor price to ensure the protection of critical mineral developments from manipulating price volatility – and which has held back developments, or caused the insolvency of several of these developments, due to non-transparent world market pricing mechanisms. … Establishing a steady supply of these critical minerals will lead to more value-added opportunities, in conjunction with our trade partners.

FULL REPORT

Conservative Dissenting Recommendations

My question to the Minister:  ‘What took you so long?’

This approach was presented three and a half years ago – and the Government chose to ignore it then.  

No surprise now, perhaps, as we’ve seen this Minister flip-flop on so many of the nonsense policies he’s put forth or acquiesced in at Cabinet:

  • The Clean Electricity Regulations (still opaque)
  • Canada’ role in shipping hydrocarbons to the world
  • Building energy infrastructure

To say nothing of the various Cabinet decisions he has been a part of that have led to Canada’s current weak negotiating position with our allies.  We effectively have not had a Minister of Natural Resources under his tenure.

Nothing topped it off more succinctly than his speech at the World Petroleum Show, held in Calgary in September 2023, when his remarks on behalf of the Government of Canada left industry participants around the world questioning whether the Minister was ‘tone-deaf’ or if, in fact, he knew anything about natural resources.

It seems his move to the position I promoted – three and a half years ago – shows that he’s finally listening and learning (or un-learning his previous narratives, perhaps)– but it’s quite late in the day.  Time and our future have been wasted.

Continue Reading

Trending

X