Wrapping Up Canadian Energy 2023 – Prosperity, Power Struggles, Pipelines, EV Promises and “Pie in the Sky” Politics

From EnergyNow Media

2023 was an optimistic year in the Canadian oil patch. The +15 walkway system in downtown Calgary has been buzzing with the energy of people hurrying to business meetings and networking events.

Some of those scurrying about were headed to talk multi-billion-dollar merger and acquisition (M&A) deals that the patch continued to experience throughout the year. Traditional oil companies also bought alternative energy and carbon tech companies. Carbon capture, utilization and storage (CCUS) was the investment decision of the year.

Oil and gas prices remained relatively high. Not great, but not in the toilet like the dark years of 2015 to 2021. That meant government coffers filled, easing some of the debt burden accumulated during COVID. Oil and gas companies, producers and the many service providers who support the production, were able to continue paying down debt and providing returns to patient shareholders.

Canadian majors Suncor, Cenovus, and Enbridge went through leadership changes at the top. I wish these men success and courage. They are going to need it to embolden pragmatism at all levels of government.

The Canadian federal government continues to be all-in on climate and green energy, seemingly to the exclusion of traditional, reliable energy sources. Although, since climate change has taken a backseat to affordability and energy security for the voting public – the only people politicians really care about – the Liberals have had to rebrand some programs to get buy-in.

One example is renaming the “Just Transition” the Sustainable Jobs Plan. Other than the name, not much has changed. There is still a push for unionized, non-oil and gas jobs.

The feds “invested” (their word, not mine) billions of dollars in EV battery plants, continuing to go all-in on 100 percent EV car sales in twelve years. Senior bureaucrats at Transport Canada even touted the nearness of EV heavy-duty commercial transportation and equipment. (Someone should tell them it will not work well in remote locations with no charging infrastructure.) Energy and Natural Resources Minister Jonathan Wilkinson lauded the day when agricultural equipment goes all electric, fantasizing about the economic boon that will bring. (Someone else should tell him it will not be experienced by farmers who have to spend their hard-earned dollars on equipment replacements.)

Joe Biden visited Ottawa in March. I happened to be there for a conference, so I got to experience the pomp and circumstance first-hand. I have never seen so much security, and I have travelled to places under military control and lived in a country that remains perpetually under the threat of foreign invasion.

Biden’s motorcade is a long, emissions-belching row of vehicles. I did not see any EVs. It includes two “Beasts” (one used as a decoy while the other transports the President), an ambulance, and several tricked-out SUVs. It is quite a spectacle.

As expected, topping the list of topics on the visit’s agenda, President Biden and Prime Minister Trudeau talked about energy and climate, as outlined in their joint statement.

Global sustainability reporting standards were released in June and come into effect January 1, 2024. Publicly traded companies are waiting for Canada to release jurisdiction-specific regulations to understand the magnitude of what will be required. In the Fall Economic Update, released November 22, the feds said rules will be put in place to extend mandatory climate reporting to private companies. That is a big hint at what all companies should expect, at a minimum.

You can listen to my podcast on the subject with energy analyst Dr. Tammy Nemeth here.

On the topic of climate, Bill S-243, An Act to enact the Climate-Aligned Finance Act and to make related amendments to other Acts passed second reading in the Senate in June. You may think this is just some boring Senate bill, but oil and gas boards and employees need to be aware of it.

The bill aims to restrict investment in hydrocarbons, forces companies to set climate commitments, and dictates who has to be part of a company’s board of directors. Worse, section 13(1) Appointment – restriction outlines who cannot be a board member – anyone who works in or owns shares in a fossil fuel company.

It goes as far as to include: “And whereas investment in energy efficiency, clean energy and clean technologies and the incentivization of innovation and behavioural change must replace investments in greenhouse-gas-emission-intensive activities for effective action against climate change.” It targets “fossil fuel activity” in the definition of “emissions-intensive activities”.

Alignment with climate commitments requires that companies:

take into consideration vulnerable groups, communities and ecosystems, including the biodiversity of those ecosystems,
make decisions based on equity and the best available science and
do not promote, foster or exacerbate food insecurity or inequalities in society; and
do not cause significant harm to social and environmental obligations recognized by Canada.

This bill should trouble any rational person, and it is not getting enough attention. It ramps up climate hysteria and enshrines it into all financial decision making. It is ideological to its core.

I encourage you to read the bill here.

Fortunately, two major, necessary egress projects – Coastal GasLink and Trans Mountain – are well underway before Bill S-243 can stop them. Coastal GasLink reached major milestones of 100 percent pipeline installation and mechanical completion, ahead of schedule. Unfortunately, the federally owned Trans Mountain pipeline has continued to experience delays and a cost increase to $30.9 billion. Although, it was about 80 percent complete in March and expected to be in service in the first quarter of 2024, the project has been delayed due to issues over the route and may not be completed until the end of 2024.

Canada’s summer wildfire season had environmental activists hot and bothered, blaming one thing, and one thing only – climate change!

Calgary hosted the 24^th World Petroleum Congress and world energy leaders in September. The torch was passed on to Saudi Arabia to host next. Based on their booth, it will be an extravaganza that will undoubtedly proudly display their oil and gas development. Energy and Natural Resources Minister Jonathan Wilkinson dutifully kept to the Liberal’s script and was challenged to mention the words “oil” and “gas” during his speech at the World Petroleum Congress. This caused the ire of Alberta Premier Danielle Smith, who has had it with the feds’ attitude towards oil and gas.

She has now invoked the Alberta Sovereignty Act in an attempt to prevent the federal government from being able to enact the Clean Electricity Standard by 2035. She has taken a lot of heat for it, but Saskatchewan’s Premier Scott Moe did it first with the colloquially named Saskatchewan First Act. When adversarial Environment and Climate Change Canada Minister Steven Guilbeault threatened to criminalize the use of coal-fired power generation past 2030, Moe puffed out his chest and said, “come get me!”

For all the partisan naysayers attacking the Premiers, I recommend reading Electricity Canada’s response to the Clean Electricity Regulations. It is emotionless and objective, and it sides with the Premiers.

Good thing there is serious discussion about the electricity grid and reliability happening in the Edmonton Legislature because Alberta’s grid operator AESO has issued several warnings in the last year, on both hot and cold days. This has me impatiently waiting for the 2,700 megawatts of new natural gas-powered generation to come on in 2024.

November was all about the carbon tax fight. The feds doubled down on the importance of carbon taxes in the fight against global warming, but not in regions where their sitting MPs risk losing their seats (i.e. their jobs) in the next election. If you think it was not political, you are fooling yourself. They are still fighting over the applicability of a tax on farmers. As someone who eats, I would like it removed to keep the cost of food down.

Premier Moe will not charge Saskatchewan residents carbon tax on natural gas and electricity used to heat homes. This seems reasonable considering that it gets really, really, really cold in Saskatchewan for many days in the winter and reliable energy is a must.

In a hotter region of the world, Dubai, United Arab Emirates hosted COP28 in December. It is the twenty eighth UN climate conference, and yet we appear no closer to solving the thing they say is a crisis – rising emissions. The globe reached the height of emissions in 2023, even though coal use is down and renewable energy capacity and investment is up, up, up, according to the International Energy Agency.

As expected, Canada made various expensive pledges. Minister Guilbeault bounces to the podium for a photo op, drops a climate pledge or two, and the rest of us are left trying to figure out how to meet the commitment. The most contentious for Alberta and Saskatchewan was the oil and gas emissions cap that has been called a de facto production cap.

GEOPOLITICS

With energy security remaining a priority for citizens, nuclear is no longer a bad word. Countries and regions are expanding existing nuclear infrastructure and there is increasing public acceptance for small modular reactors. The false fear tactics used by the anti-nuclear activists have finally been shown for what they are – exaggerated and untrue.

The BRICS alliance expanded with the addition of six new members: Iran, Saudi Arabia, Egypt, Ethiopia, Argentina, and the United Arab Emirates.

Not only are the BRICS nations population and economic power players, they hold the keys to unlocking vast reserves of reliable energy. Total oil production from BRICS nations will be between 40-45 percent of global oil production, more than OPEC’s 35-40 percent. In addition, the members hold vast reserves of the minerals needed for any future energy transformation.

Forty other countries applied to join, demonstrating an interest in the group. Western leaders and NGOs would be wise to pay attention to the growing influence of the BRICS, even if they dislike some of the members.

BRICS is my geopolitical story of the year as it continues to disrupt global energy markets. In 2022, India increased purchases of discounted Russian oil by forty percent. This year, India purchased oil from the United Arab Emirates in rupees, their local currency. These are two examples of the shifts that are happening but are seemingly ignored by the West.

Overall, it appears that pragmatism and realism are influencing political energy decisions, and 2024 is expected to be another positive year for the Canadian oil patch.

All the best for the new year. May you enjoy peace and prosperity.

About Deidra Garyk

Deidra Garyk has been working in the Canadian energy industry for almost 20 years. She is currently the Manager, ESG & Sustainability at an oilfield service company. Prior to that, she worked in roles of varying seniority at exploration and production companies in joint venture contracts where she was responsible for working collaboratively with stakeholders to negotiate access to pipelines, compressors, plants, and batteries.

Outside of her professional commitments, Deidra is an energy advocate and thought leader who researches, writes, and speaks about energy policy and advocacy to promote balanced, honest, fact-based conversations.

Related Topics:#CanadianEnergy2023 #deidragaryk #EnergyNowMedia #SustainableJobsPlan

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Affordable housing out of reach everywhere in Canada

Published on December 8, 2025

Todayville

From the Fraser Institute

By Steven Globerman, Joel Emes and Austin Thompson

According to our new study, in 2023 (the latest year of comparable data), typical homes on the market were unaffordable for families earning the local median income in every major Canadian city

The dream of homeownership is alive, but not well. Nearly nine in ten young Canadians (aged 18-29) aspire to own a home—but share a similar worry about the current state of housing in Canada.

Of course, those worries are justified. According to our new study, in 2023 (the latest year of comparable data), typical homes on the market were unaffordable for families earning the local median income in every major Canadian city. It’s not just Vancouver and Toronto—housing affordability has eroded nationwide.

Aspiring homeowners face two distinct challenges—saving enough for a downpayment and keeping up with mortgage payments. Both have become harder in recent years.

For example, in 2014, across 36 of Canada’s largest cities, a 20 per cent downpayment for a typical home—detached house, townhouse, condo—cost the equivalent of 14.1 months (on average) of after-tax income for families earning the median income. By 2023, that figure had grown to 22.0 months—a 56 per cent increase. During the same period for those same families, a mortgage payment for a typical home increased (as a share of after-tax incomes) from 29.9 per cent to 56.6 per cent.

No major city has been spared. Between 2014 and 2023, the price of a typical home rose faster than the growth of median after-tax family income in 32 out of 36 of Canada’s largest cities. And in all 36 cities, the monthly mortgage payment on a typical home grew (again, as a share of median after-tax family income), reflecting rising house prices and higher mortgage rates.

While the housing affordability crisis is national in scope, the challenge differs between cities.

In 2023, a median-income-earning family in Fredericton, the most affordable large city for homeownership in Canada, had save the equivalent of 10.6 months of after-tax income ($56,240) for a 20 per cent downpayment on a typical home—and the monthly mortgage payment ($1,445) required 27.2 per cent of that family’s after-tax income. Meanwhile, a median-income-earning family in Vancouver, Canada’s least affordable city, had to spend the equivalent of 43.7 months of after-tax income ($235,520) for a 20 per cent downpayment on a typical home with a monthly mortgage ($6,052) that required 112.3 per cent of its after-tax income—a financial impossibility unless the family could rely on support from family or friends.

The financial barriers to homeownership are clearly greater in Vancouver. But, crucially, neither city is truly “affordable.” In Fredericton and Vancouver, as in every other major Canadian city, buying a typical home with the median income produces a debt burden beyond what’s advisable. Recent house price declines in cities such as Vancouver and Toronto have provided some relief, but homeownership remains far beyond the reach of many families—and a sharp slowdown in homebuilding threatens to limit further gains in affordability.

For families priced out of homeownership, renting doesn’t offer much relief, as rent affordability has also declined in nearly every city. In 2014, rental rates for the median-priced rental unit required 19.8 per cent of median after-tax family income, on average across major cities. By 2023, that figure had risen to 23.5 per cent. And in the least affordable cities for renters, Toronto and Vancouver, a median-priced rental required more than 30 per cent of median after-tax family income. That’s a heavy burden for Canada’s renters who typically earn less than homeowners. It’s also an added financial barrier to homeownership— many Canadian families rent for years before buying their first home, and higher rents make it harder to save for a downpayment.

In light of these realities, Canadians should ask—why have house prices and rental rates outpaced income growth?

Poor public policy has played a key role. Local regulations, lengthy municipal approval processes, and costly taxes and fees all combine to hinder housing development. And the federal government allowed a historic surge in immigration that greatly outpaced new home construction. It’s simple supply and demand—when more people chase a limited (and restricted) supply of homes, prices rise. Meanwhile, after-tax incomes aren’t keeping pace, as government policies that discourage investment and economic growth also discourage wage growth.

Canadians still want to own homes, but a decade of deteriorating affordability has made that a distant prospect for many families. Reversing the trend will require accelerated homebuilding, better-paced immigration and policies that grow wages while limiting tax bills for Canadians—changes governments routinely promise but rarely deliver.

Steven Globerman

Senior Fellow and Addington Chair in Measurement, Fraser Institute

Joel Emes

Senior Economist, Fraser Institute

Austin Thompson

Senior Policy Analyst, Fraser Institute

Banks

To increase competition in Canadian banking, mandate and mindset of bank regulators must change

Published on December 7, 2025

Todayville

From the Fraser Institute

By Lawrence L. Schembri and Andrew Spence

Canada’s weak productivity performance is directly related to the lack of competition across many concentrated industries. The high cost of financial services is a key contributor to our lagging living standards because services, such as payments, are essential input to the rest of our economy.

It’s well known that Canada’s banks are expensive and the services that they provide are outdated, especially compared to the banking systems of the United Kingdom and Australia that have better balanced the objectives of stability, competition and efficiency.

Canada’s banks are increasingly being called out by senior federal officials for not embracing new technology that would lower costs and improve productivity and living standards. Peter Rutledge, the Superintendent of Financial Institutions and senior officials at the Bank of Canada, notably Senior Deputy Governor Carolyn Rogers and Deputy Governor Nicolas Vincent, have called for measures to increase competition in the banking system to promote innovation, efficiency and lower prices for financial services.

The recent federal budget proposed several new measures to increase competition in the Canadian banking sector, which are long overdue. As a marker of how uncompetitive the market for financial services has become, the budget proposed direct interventions to reduce and even eliminate some bank service fees. In addition, the budget outlined a requirement to improve price and fee transparency for many transactions so consumers can make informed choices.

In an effort to reduce barriers to new entrants and to growth by smaller banks, the budget also proposed to ease the requirement that small banks include more public ownership in their capital structure.

At long last, the federal government signalled a commitment to (finally) introduce open banking by enacting the long-delayed Consumer Driven Banking Act. Open banking gives consumers full control over who they want to provide them with their financial services needs efficiently and safely. Consumers can then move beyond banks, utilizing technology to access cheaper and more efficient alternative financial service providers.

Open banking has been up and running in many countries around the world to great success. Canada lags far behind the U.K., Australia and Brazil where the presence of open banking has introduced lower prices, better service quality and faster transactions. It has also brought financing to small and medium-sized business who are often shut out of bank lending.

Realizing open banking and its gains requires a new payment mechanism called real time rail. This payment system delivers low-cost and immediate access to nonbank as well as bank financial service providers. Real time rail has been in the works in Canada for over a decade, but progress has been glacial and lags far behind the world’s leaders.

Despite the budget’s welcome backing for open banking, Canada should address the legislative mandates of its most important regulators, requiring them to weigh equally the twin objectives of financial system stability as well as competition and efficiency.

To better balance these objectives, Canada needs to reform its institutional framework to enhance the resilience of the overall banking system so it can absorb an individual bank failure at acceptable cost. This would encourage bank regulators to move away from a rigid “fear of failure” cultural mindset that suppresses competition and efficiency and has held back innovation and progress.

Canada should also reduce the compliance burden imposed on banks by the many and varied regulators to reduce barriers to entry and expansion by domestic and foreign banks. These agencies, including the Office of the Superintendent of Financial Institutions, Financial Consumer Agency of Canada, Financial Transactions and Reports Analysis Centre of Canada, the Canada Deposit Insurance Corporation plus several others, act in largely uncoordinated manner and their duplicative effort greatly increases compliance and reporting costs. While Canada’s large banks are able, because of their market power, to pass those costs through to their customers via higher prices and fees, they also benefit because the heavy compliance burden represents a significant barrier to entry that shelters them from competition.

More fundamental reforms are needed, beyond the measures included in the federal budget, to strengthen the institutional framework and change the regulatory mindset. Such reforms would meaningfully increase competition, efficiency and innovation in the Canadian banking system, simultaneously improving the quality and lowering the cost of financial services, and thus raising productivity and the living standards of Canadians.