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Energy

When Vancouver reverses ban on natural gas appliances, it’s time to talk about energy choices

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7 minute read

From EnergyNow.ca

By Stewart Muir of Resource Works

More News and Views From Resource Works Here

 

The Practicality of Energy Choice in Vancouver

Vancouver’s decision to reverse the ban on natural gas appliances in new homes should serve as the beginning of a necessary conversation about energy system choices

In a city like Vancouver, where the mountains meet the sea and the urban skyline reflects both our history and our aspirations, policy decisions are often a reflection of our values. Yet, sometimes, even the best intentions can lead us down a perilous path. The recent decision by the City of Vancouver to restore freedom of choice for heating water and space in our homes, reversing an earlier ban on natural gas, is a move I support.

Housing affordability was a major deciding factor, but to me this turn of events – one the nation is watching – also marks a step away from a simplistic and potentially regressive approach to climate action, one that could have stymied our efforts to decarbonize in a meaningful way.

Let me be clear: climate change is real, and the need to reduce emissions is urgent. However, the original gas ban, while well-intentioned, was not the answer. Banning natural gas from our homes might have seemed like a bold move, but it ignored the nuances of our energy system and the challenges we face in transitioning to a low-carbon future.

The gas ban was a decision that felt good for those deeply concerned about climate action; a personal stand against fossil fuels. But feelings alone do not build resilient energy systems, nor do they account for the complex interplay of technologies and fuels that will be necessary to achieve our climate goals. Natural gas, particularly when blended with renewable gases like hydrogen, can and should play a role in our energy future. The idea of banning it outright was akin to throwing the baby out with the bathwater.

Consider this: hydrogen, a zero-emissions fuel, is already the focus of enormous national and international investment. Canada is positioning itself as a leader in hydrogen production and technology, recognizing its potential to decarbonize sectors that are otherwise difficult to electrify. Banning natural gas infrastructure would have made it difficult, if not impossible, to integrate hydrogen into our energy mix when the technology matures.

Similarly, renewable natural gas, produced from organic waste, relies on the very distribution networks that a gas ban would have dismantled. The infrastructure for delivering gas to our homes is not a relic of the past but a vital component of our future energy system, one that could deliver clean, low-carbon fuels to millions of Canadians.

Let’s not forget the practical realities of energy demand. Suppose gas was revoked as an option for homes in Canada; the energy required to replace it would necessitate the entirety of our current solar and wind capacity several times over. This is not hyperbole—it’s a fact. And it doesn’t even account for the intermittency of these renewable sources, which means they cannot be relied upon to meet demand at all times.

In British Columbia, we’re already seeing the strain on our electricity system. We’ve become net importers of electricity, a situation that underscores the limits of our current infrastructure. As demand continues to rise—for electric vehicles, air conditioning, and the energy-hungry applications of artificial intelligence—our grid is buckling under the pressure. Tens of billions of dollars in upgrades are required, and these projects will take years to complete. Meanwhile, our neighboring provinces and states are facing similar challenges, leading to a regional energy crunch.

This diagram of Canada’s energy system provides, under close examination, a sober realization of how things work:

 

There is a lot to take in here, showing as it does the sources of all the energy in Canadian life (on the left) and how they flow into particular uses (right).

In grey shading on the right, the box labelled “Rejected Energy” represents energy that goes to waste. It is a staggering five times the amount of all types of energy used in our homes. I can understand that this area of high potential is hard to create excitement about. Nonetheless, it is a real source of ongoing progress, represented by ever more efficient ways of using fuels and upgrading equipment, and we aren’t talking about it.

Energy experts understand that banning a single type of energy without considering the broader system is not just imprudent; it’s dangerous. It could lead to shortages, higher costs, and ultimately, a failure to achieve our climate goals. Yet, I also recognize the appeal of actions that seem to offer immediate, tangible results. There’s a strong emotional pull in taking control of what happens in our own homes, in feeling like we’re doing our part.

This is why I’m calling for more energy education and diverse conversations that are constructive, respectful, and grounded in reality. We need to move beyond the tired narrative of “faceless corporations” versus the environment. The truth is, the people in both policy and industry are striving for the same outcome: a world with lower emissions and better outcomes for all.

The City of Vancouver’s decision to reverse the gas ban is a wise one, but it should be just the beginning. I urge the city to initiate a robust process of energy education, one that equips residents with the knowledge they need to make informed decisions about their energy use. And as a resident of this city, I am more than willing to take part in this vital conversation.

Our future depends on it.

Stewart Muir is the Founder and CEO of Resource Works.

Business

Premiers fight to lower gas taxes as Trudeau hikes pump costs

Published on

From the Canadian Taxpayers Federation

By Jay Goldberg 

Thirty-nine hundred dollars – that’s how much the typical two-car Ontario family is spending on gas taxes at the pump this year.

You read that right. That’s not the overall fuel bill. That’s just taxes.

Prime Minister Justin Trudeau keeps increasing your gas bill, while Premier Doug Ford is lowering it.

Ford’s latest gas tax cut extension is music to taxpayers’ ears. Ford’s 6.4 cent per litre gas tax cut, temporarily introduced in July 2022, is here to stay until at least next June.

Because of the cut, a two-car family has saved more than $1,000 so far. And that’s welcome news for Ontario taxpayers, because Trudeau is planning yet another carbon tax hike next April.

Trudeau has raised the overall tax burden at the pumps every April for the past five years. Next spring, he plans to raise gas taxes by another three cents per litre, bringing the overall gas tax burden for Ontarians to almost 60 cents per litre.

While Trudeau keeps hiking costs for taxpayers at the pumps, premiers of all stripes have been stepping up to the plate to blunt the impact of his punitive carbon tax.

Obviously, Ford has stepped up to the plate and has lowered gas taxes. But he’s not alone.

In Manitoba, NDP Premier Wab Kinew fully suspended the province’s 14 cent per litre gas tax for a year. And in Newfoundland, Liberal Premier Andrew Furey cut the gas tax by 8.05 cents per litre for nearly two-and-a-half years.

It’s a tale of two approaches: the Trudeau government keeps making life more expensive at the pumps, while premiers of all stripes are fighting to get costs down.

Families still have to get to work, get the kids to school and make it to hockey practice. And they can’t afford increasingly high gas taxes. Common sense premiers seem to get it, while Ottawa has its head in the clouds.

When Ford announced his gas tax cut extension, he took aim at the Liberal carbon tax mandated by the Trudeau government in Ottawa.

Ford noted the carbon tax is set to rise to 20.9 cents per litre next April, “bumping up the cost of everything once again and it’s absolutely ridiculous.”

“Our government will always fight against it,” Ford said.

But there’s some good news for taxpayers: reprieve may be on the horizon.

Federal Conservative leader Pierre Poilievre’s promises to axe the carbon tax as soon as he takes office.

With a federal election scheduled for next fall, the federal carbon tax’s days may very well be numbered.

Scrapping the carbon tax would make a huge difference in the lives of everyday Canadians.

Right now, the carbon tax costs 17.6 cents per litre. For a family filling up two cars once a week, that’s nearly $24 a week in carbon taxes at the pump.

Scrapping the carbon tax could save families more than $1,200 a year at the pumps. Plus, there would be savings on the cost of home heating, food, and virtually everything else.

While the Trudeau government likes to argue that the carbon tax rebates make up for all these additional costs, the Parliamentary Budget Officer says it’s not so.

The PBO has shown that the typical Ontario family will lose nearly $400 this year due to the carbon tax, even after the rebates.

That’s why premiers like Ford, Kinew and Furey have stepped up to the plate.

Canadians pay far too much at the pumps in taxes. While Trudeau hikes the carbon tax year after year, provincial leaders like Ford are keeping costs down and delivering meaningful relief for struggling families.

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Economy

Gas prices plummet in BC thanks to TMX pipeline expansion

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From Resource Works

By more than doubling capacity and cutting down the costs, the benefits of the TMX expansion are keeping more money in consumer pockets. 

Just months after the Trans Mountain Expansion (TMX) project was completed last year, Canadians, especially British Columbians, are experiencing the benefits promised by this once-maligned but invaluable piece of infrastructure. As prices fall when people gas up their cars, the effects are evident for all to see.

This drop in gasoline prices is a welcome new reality for consumers across B.C. and a long-overdue relief given the painful inflation of the past few years.

TMX has helped broaden Canadian oil’s access to world markets like never before, improve supply chains, and boost regional fuel supplies—all of which are helping keep money in the pockets of the middle class.

When TMX was approaching the finish line after the new year, it was praised for promising to ease long-standing capacity issues and help eliminate less efficient, pricier methods of shipping oil. By mid-May, TMX was completed and in full swing, with early data suggesting that gas prices in Vancouver were slackening compared to other cities in Canada.

Kent Fellows, an assistant professor of Economics and the Director of Graduate Programs for the School of Public Policy at the University of Calgary, noted that wholesale prices in Vancouver fell by roughly 28 cents per litre compared to the typically lower prices in Edmonton, thanks to the expanded capacity of TMX. Consequently, the actual price at the gas pump in the Lower Mainland fell too, providing relief to a part of Canada that traditionally suffers from high fuel costs.

In large part due to limited pipeline capacity, Vancouver’s gas prices have been higher than the rest of the country. From at least 2008 to this year, TMX’s capacity was unable to accommodate demand, leading to the generational issue of “apportionment,” which meant rationing pipeline space to manage excess demand.

Under the apportionment regime, customers received less fuel than they requested, which increased costs. With the expansion of TMX now complete, the pipeline’s capacity has more than doubled from 350,000 barrels per day to 890,000, effectively neutralizing the apportionment problem for now.

Since May, TMX has operated at 80 percent capacity, with no apportionment affecting customers or consumers.

Before the TMX expansion was completed, a litre of gas in Vancouver cost 45 cents more than a litre in Edmonton. By August, it was just 17 cents—a remarkable drop that underscores why it’s crucial to expand B.C.’s capacity to move energy sources like oil without the need for costly alternatives, allowing consumers to enjoy savings at the pump.

More than doubling TMX’s capacity has rapidly reshaped B.C.’s energy landscape. Despite tensions in the Middle East, per-litre gas prices in Vancouver have fallen from about $2.30 per litre to $1.54 this month. Even when there was a slight disruption in October, the price only rose to about $1.80, far below its earlier peaks.

As Kent Fellows noted, the only real change during this entire timeline has been the completion of the TMX expansion, and the benefits extend far beyond the province’s shores.

With TMX moving over 500,000 barrels more per day than it did previously, Canadian oil is now far more plentiful on the international market. Tankers routinely depart Burrard Inlet loaded with oil bound for destinations in South Korea and Japan.

In this uncertain world, where oil markets remain volatile, TMX serves as a stabilizing force for both Canada and the world. People in B.C. can rest easier with TMX acting as a barrier against sharp shifts in supply and demand.

For critics who argue that the $31 billion invested in the project is short-sighted, the benefits for everyday people are becoming increasingly evident in a province where families have endured high gas prices for years.

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