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Energy & the Environment

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Energy & the Environment
Oil and gas.
 
The three letter curse words.
 
Many are calling for the end of oil and gas while promoting the slogan “Build Back Better”.
 
The slogan which originated from the 2015 Sendai Framework for Disaster Risk Reduction in response to Great East Japan Earthquake and Tsunami, has now morphed into the slogan for all things green and socially just.
Liberal Environment Policy
The Liberal Party of Canada’s website outlines their plan for “Protecting our Environment and Moving Our Economy Forward” as follows:
 
  1. Fighting and Preparing for Climate Change
  2. Making Communities Cleaner, More Efficient, and More Affordable
  3. Protecting Canada’s Natural Legacy
 
The document lays out a commitment to achieve net-zero emissions by 2050, plant two billion trees in ten years, provide interest-free loans for retrofits, build vehicle charging stations, set up a camping travel bursary and ban single-use plastics.
 
So what is the problem with the Liberals environmental plan? Simple. It lacks depth, neglects financial implications and worst of all, its not rooted in reality.
Zero Emissions
Net-Zero Emissions by 2050
 
Making a commitment to hit this target through “legally binding” targets ignores the reality that we live in.
 
The Parliamentary Budget Office has indicated that emissions-reductions cannot be met unless the carbon tax is drastically increased.
 
While it may be possible to tax the country into a state of zero emissions, this would significantly cripple the economy, destroy jobs and ruin lives. This is not acceptable.
 
What should the government do?
 
Up to the mid-late 1800s, wood was the primary source of energy for developed nations.
 
What changed from that point to now? Innovation.
 
Government needs to remove red tape, repeal poor policy, end harmful taxation and allow the free market to pursue new technologies.
 
How can we be sure that this will work?
 
The free market is driven to create returns for shareholders. If there is an opportunity to create profits through new technology, free markets will find a way to capitalize.
 
In order to truly implement policies that improve our environment, we need to look beyond our borders and bring leading Canadian technologies to foreign countries.
 
Canada is a significant coal exporter. Coal, when burned, is a much higher polluter than other non-renewable resources such as natural gas and hydrogen. The government should work with foreign countries to promote the use of natural gas as a substitute.
Retrofit
Retrofit Buildings
 
Plans to provide free energy audits, interest-free retrofit loans and grants for zero-emissions homes are the main talking points of the Liberal retrofit plan.
 
First off, nothing supplied by the government is free. All government expenses are bankrolled by taxpayers.
 
In the midst of reduced or eliminated incomes due to the pandemic, the likelihood of home-owners or landlords being willing to take on debt to retrofit homes or office buildings is going to be limited for the foreseeable future.
 
Similarly, the costs associated with building a zero-emission home will not be offset with a $5,000 grant as proposed in the Liberal plan.
 
What should the government do?
 
Canada is already home to stringent building regulations. Regulations that carry significant costs.
 
In order to encourage further “green” building, the market needs access to more affordable products.
 
The government could accomplish this through the reduction of red tape, and the promotion of trade deals that allow for foreign firms to bring their goods and technology to Canada.
 
Competition and innovation ultimately drive down consumer costs and will always be more effective and efficient than government subsidies.
Charing stations
Charging Stations
 
Recently, the federal government announced that it will “invest” $295 million to help Ford Canada upgrade its Oakville assembly plant to begin making electric vehicles.
 
With the increased manufacturing of electric cars, comes a requirement for charging stations.
 
According to a 2015 US Department of Energy study, costs for single port Level 1 stations range from $300-$4,500. For DC fast charging stations, $14,000-$91,000.
 
Level 1 stations add 6 miles of range per hour @ 1.9kW. DC fast charging stations add 90 miles per 20 minutes @ 90kW.
 
Before taxpayer funds are thrown at green projects, a complete analysis of the life-cycle costs should be a requirement. This will ensure that emissions are truly lower and that taxpayers are receiving economic value for their tax dollars.
 
What should the government do?
 
Government subsidies that prop up an industry or product are inevitably harmful to consumers. These subsidies hide costs that the free market would ultimately choose not to absorb.
 
Instead, government should encourage vehicle manufacturers to produce more fuel efficient vehicles, regardless of the fuel system used to power the vehicle.
 
This could be done through the existing Scientific Research & Experimental Development Tax Incentive Program. The specific objective of the project should be to offset the costs of wages paid to research and development staff who are engaged in this direct work.
 
Beyond the direct goal of improving vehicle emissions, this program would create more opportunities for high-paying jobs within the tech sector which would further help to diversify the Canadian economy.
Camping
Trees and Camping Travel Bursary
 
The tree planting program involves two billion trees, ten years, 3,500 seasonal jobs and an overall $3 billion effort to deploy natural climate solutions.
 
If there is a job that meets pandemic guidelines, planting trees in the great outdoors qualifies.
 
The camping bursary was to provide a $2,000 grant to help families go camping in Canada’s national parks. No grants have been provided to date.
 
Additionally, the Learn to Camp program was to be expanded so that every Canadian child could learn how to camp by the time they reached grade eight.
 
What should the government do?
 
The WE scandal resulted in a missed opportunity to create job opportunities for post-secondary students. This can be remedied by expanding the Canada Summer Jobs program in advance of the 2021 tree planting season.
 
If there is little or no interest in the tree planting program for 2021, it should be abandoned entirely. Instead, government should support private sector companies who are consistently engaging in tree planting projects and other environmental reclamation projects.
 
Boutique tax credits and other one-off government programs typically result in creating winners and losers. As such, the camping bursary program should be cancelled.
 
Instead, and in conjunction with a full tax code review, the government could find efficiencies within the tax system that would translate into real results for Canadians.
Plastic
Single-Use Plastics Ban
 
A recent announcement to ban single-use plastics, regulations to be finalized in late 2021, seeks to fulfill a long running Liberal election promise.
 
The ban will remove plastic grocery bags, straws, stir sticks, six pack rings, cutlery and takeout containers.
 
At a time where the hospitality industry is reeling from the impacts of the pandemic, this will be another difficult adjustment for this industry.
 
Smaller Alberta plastic manufactures have expressed concern with the new policy. Although single-use plastics account for a small portion of the plastics market, the costs associated with re-tooling a manufacturing facility can be quite high.
 
What should the government do?
 
Instead of virtue-signalling, the government should focus on addressing the issue of plastic recycling. The slogan of reduce, reuse and recycle can be traced back to the 1970s. Why hasn’t it caught on as hoped? Simply put, there is no money in plastic recycling.
 
Government should focus resources instead to projects that find viable solutions for plastic recycling. One such project is the development of plastic-bitumen composite roads.
 
Adding carbon capture technology to the plastic processing and bitumen mixing process would allow for road materials to be produced in an environmentally conscious manner.
 
Plastic-bitumen composite roads could result in better quality roadways as they are less water absorbent. Due to the temperature swings in Canada, this could save significant amounts of money otherwise spent on maintenance.
Final Thoughts
Final Thoughts
 
Canadians across the country have a strong desire to protect and preserve our environment for our children and future generations.
 
Environmental policies need to be more than exercises in virtue-signalling.
 
Government needs to understand the climate that we live in, the size of our country and the economic implications of the decisions being made.
 
Government subsidies are unacceptable. Subsidies result in expensive infrastructure projects and bloated consumer costs. If we need a reminder of this we only have to look at the recent failing of the Ontario green energy initiative.
 
Government should focus on reducing red tape, encouraging competition and providing targeted tax credits. Policy that focus on tax credits require free market enterprises to undergo the leg work to get new technology to a state where it can be capitalized on. This allows the free market to determine what is viable and how to achieve capitalization in the most efficient manner.
 
Lastly, we need capitalize on revenues from our oil and gas sector in order to further technological advances. Passing legislation to end emissions, create a zero-plastic waste economy or any other lofty agenda neglects the real world implications of these decisions. These policies do not take into consideration the resources required to accomplish these goals. Additionally, many families are being left behind as a result of these policy decisions.
 
We can protect our environment through innovation. In making policy decisions, government must not take better care of the environment than the residents who call it home.
https://www.jaredpilon.com/

I have recently made the decision to seek nomination as a candidate in the federal electoral district of Red Deer - Mountain View. As a Chartered Professional Accountant (CPA), I directly see the negative impacts of government policy on business owners and most notably, their families. This has never been more evident than in 2020. Through a common sense focus and a passion for bringing people together on common ground, I will work to help bring prosperity to the riding of Red Deer – Mountain View and Canada. I am hoping to be able to share my election campaign with your viewers/readers. Feel free to touch base with me at the email listed below or at jaredpilon.com. Thanks.

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Opinion / 3 years ago

Leave our Kids Alone

Federal Election 2021 / 3 years ago

Vote Splitting

Alberta

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

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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.

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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.

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