Energy
Fossil fuels not going away anytime soon
From the Fraser Institute
At a time of persistent cost of living pressures and mounting worldwide geopolitical tension, it’s not surprising that energy issues are in the spotlight in Canada and beyond.
Earlier this year, the Trudeau government decided to freeze its carbon tax for home heating fuels in Atlantic Canada in the face of ferocious opposition to further tax hikes from premiers, local communities and MPs in the region. Smart politicians understand that Canadians today are attuned as never before to energy prices, including fuel prices at the pump.
With policymakers in Canada and elsewhere also preoccupied with climate change, we are exposed to sharply conflicting narratives about the future of energy. In one corner are those who spy a rapid and epic shift away from the fossil fuels that still supply 80 per cent of the world’s energy. In the other corner are skeptics who doubt that the dominant place of fossil fuels in the energy system will soon disappear.
As the debate continues, the U.S. Energy Information Administration (EIA) is an important source of well-grounded information. It provides regular updates on trends in energy supply and demand, both in the United States and globally. EIA forecasts deserve attention given the agency’s solid track record of predicting energy market developments.
On crude oil prices, the EIA now believes the main U.S. benchmark price will hover between US$85 and $90 per barrel over 2024-25. That’s good news for Canada, as crude oil ranks as our number one export. In its May 2024 market update, the EIA observes that “the startup of the Trans Mountain pipeline expansion… will alleviate existing distribution bottlenecks and allow for a gradual increase in oil production.” While one would never know it from scanning federal government news releases, Canadian oil production and export volumes are set to climb over the rest of the decade. And Canada’s energy-based export earnings will also receive a sizable boost once shipments of liquified natural gas (LNG) commence from LNG projects nearing completion in British Columbia.
Meanwhile, the EIA sees global oil consumption increasing further, after dipping briefly during the pandemic, reaching 105 million barrels per day by 2026.
Globally, there’s little evidence that consumers are turning away from petroleum and other liquid fuels, contrary to the claims of some Canadian politicians and environmental groups. Amid endless chatter about energy transitions and governments allocating gargantuan sums to an expanding hodgepodge of programs to reduce greenhouse gas (GHG) emissions, the world collectively still depends on oil and other carbon-based fuels for the vast majority of its energy.
None of this is surprising. The “dense” energy provided by fossil fuels is greatly valued by consumers and remains difficult to replace with other primary energy sources. Fossil fuels have played a central role in economic development since the dawn of industrialization. That will not change anytime soon.
Which is why the EIA doesn’t expect much progress in reducing GHG emissions in the coming one or two decades. In its recent comprehensive forecast, it projects that “global energy-related… emissions will increase through 2050” under almost all of the policy scenarios it models.
How can that be, with all of the political attention being given to climate change in many countries? Because rising populations and incomes, particularly in China, India and other emerging economies, “will offset the effects of declining energy and carbon intensity on emissions.” And also because outside of the electricity sector, there simply aren’t enough reliable cost-effective non-fossil fuel energy sources to satisfy the world’s still growing need for energy.
Author:
Daily Caller
Trump Energy Policies will be executed by New York Rep. Lee Zeldin and North Dakota Gov. Doug Burgum
North Dakota Gov. Doug Burgum
From the Daily Caller News Foundation
Zeldin And Burgum Take On Daunting Roles In Second Trump Term
President-elect Donald Trump has set Washington, D.C. afire over the past week with a series of controversial picks for cabinet-level offices and other senior advisory positions. The Senate confirmation hearings for nominees like Robert F. Kennedy, Jr., Matt Gaetz, Pete Hegseth and Tulsi Gabbard are destined to be must-see TV, events Congress could use to help cut the federal deficit by airing in pay-per-view format.
But the nominees whose offices have the biggest impact on energy policy are likely to be among the least controversial announced so far. Those would be former New York Rep. Lee Zeldin to head up the Environmental Protection Agency (EPA) and North Dakota Gov. Doug Burgum to be secretary of the Department of the Interior (DOI). While many would assume the secretary of Energy would be the cabinet position to wield the most power to regulate energy companies, the reality is that these other two positions are far more impactful.
For the oil, gas and coal industries, no part of the federal government possesses greater authority to regulate their business than DOI, which oversees all leasing, mining, drilling and minerals production related to federal lands and waters. The U.S. government is the largest landowner in the country, owning large percentages of the lands in the intermountain West under which some of the biggest domestic reserves of these mineral resources exist. Specific regions of these western states are also prime locations for wind and solar development.
North Dakota is a state rich in mineral reserves and is one of several states in which federal lands are intermingled with state and private landholdings. As governor, Burgum has had to grapple with the same array of permitting, leasing and multiple-use issues he will now be assigned to oversee at DOI. One of his main tasks will be to reinvigorate a federal leasing program that has been held dormant in violation of an array of laws and regulations by current Interior Secretary Deb Haaland, a longtime anti-development activist.
At EPA, Zeldin will be faced with the daunting task of bending a massive bureaucracy that has been packed with direct hires from billionaire-funded climate-alarm groups to get with the Trump agenda. One of Zeldin’s immediate major tasks will be to find ways to streamline the agency’s permitting and approval processes.
The slowness of permitting and delegations of authority at the agency have become bottlenecks to progress in meeting some of the carbon reduction goals laid out in the Inflation Reduction Act (IRA), President Joe Biden’s signature piece of legislation. Barring an unlikely major rewrite or repeal of the IRA, those goals will remain among the priorities that Zeldin will find on his plate when he assumes office next year.
While the common perception of the Trump energy-and-climate agenda focuses on its “drill, baby, drill” aspects, it is key to remember that former President Trump did not abandon U.S. carbon reduction coals in his first term and has not pledged to do that in the second term to come. In fact, U.S. carbon emissions fell significantly across Trump’s previous four years in office.
Both Zeldin and Burgum will also make a high priority of reviewing the massive pile of new regulations put in place by the Biden administration, which total to more new pages published in the Federal Register than any other presidency, and then working to eliminate or modify many of them. This is a daunting task that could prove overwhelming given the inevitable obstruction and pushback by the career bureaucracy within these agencies and departments.
Given the way the Trump overall agenda seems to be shaping up, Zeldin and Burgum will be taking on these administrative tasks simultaneously with Trump’s goals of cutting staff and even moving entire agencies to locations outside of Washington, D.C. They will also have to be managed in conjunction with Trump’s so-called Department of Government Efficiency to be run by Elon Musk and Vivek Ramaswamy.
What it all portends is a period of upheaval and radical change not just at EPA and DOI, but across the entire federal structure. Given that the U.S. system of government was designed by the country’s founders to inhibit radical change, we are in for some interesting times indeed.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
Economy
COP 29 leaders demand over a $1 trillion a year in climate reparations from ‘wealthy’ nations. They don’t deserve a nickel.
COP 29 is calling for over $1 trillion in annual climate reparations
- A major theme of COP 29 is that the world should set a “New Collective Quantified Goal” wherein successful nations pay poor nations over $1 trillion a year to 1) make up for climate-related harm and 2) build them new “green energy” economies. In other words, climate reparations.¹
- What would $1 trillion a year in climate reparations mean for you and your family?Assuming the money was paid equally by households considered high income (>$50 per day), your household would have to pay more than $5,000 a year in climate reparations taxes!²
- Climate reparations are based on two false assumptions:1. Free, wealthy countries, through their fossil fuel use, have made the world worse for poor countries.
2. The poor world’s main problem is dealing with climate change, which wealth transfers will help them with.
But free, fossil-fueled countries have made life better for poor countries
- Free, wealthy countries, through their fossil fuel use, have not made the world worse for poor countries—they have made it far, far better.Observe what has happened to global life expectancies and income as fossil fuel use has risen. Life has gotten much better for everyone.³
- The wealthy world’s fossil fuel use has improved life worldwide because by using fossil fuel energy to be incredibly productive, we have 1) made all kinds of goods cheaper and 2) been able to engage in life-saving aid, particularly in the realms of food, medicine, and sanitation.
- Without the historic use of fossil fuels by the wealthy world, there would be no super-productive agriculture to feed 8 billion humans, no satellite-based weather warning systems, etc. Most of the individuals in poor countries would not even be alive today.
Free, fossil-fueled countries have made the poor safer from climate
- The wealthy world’s fossil fuel use has been particularly beneficial in the realm of climate.Over the last 100 years, the death rate from climate-related disasters plummeted by 98% globally.
A big reason is millions of lives saved from drought via fossil-fueled crop transport.⁴
- The “climate reparations” movement ignores the fact that the wealthy world’s fossil fuel use has made life better, including safer from climate, in the poor world.This allows it to pretend that the poor world’s main problem is dealing with rising CO2 levels.
The poor world’s problem is poverty, not rising CO2 levels
- The poor world’s main problem is not rising CO2 levels, it is poverty—which is caused by lack of freedom, including the crucial freedom to use fossil fuels.Poverty makes everything worse, including the world’s massive natural climate danger and any danger from more CO2.
- While it’s not true that the wealthy world has increased climate danger in the poor world—we have reduced it—it is true that the poor world is more endangered by climate than the wealthy world is.The solution is for the poor to get rich. Which requires freedom and fossil fuels.⁵
Escaping poverty requires freedom and fossil fuels
- Every nation that has risen out of poverty has done so via pro-freedom policies—specifically, economic freedom.
That’s how resource-poor places like Singapore and Taiwan became prosperous. Resource-rich places like Congo have struggled due to lack of economic freedom.
- Even China, which is unfree in many ways (including insufficient protections against pollution) dramatically increased its standard of living via economic freedom—particularly in the realm of industrial development where it is now in many ways much freer than the US and Europe.
- A crucial freedom involved in rising prosperity has been the freedom to use fossil fuels.Fossil fuels are a uniquely cost-effective source of energy, providing energy that’s low-cost, reliable, versatile, and scalable to billions of people in thousands of places.⁶
- Time and again nations have increased their prosperity, including their safety from climate, via economic freedom and fossil fuels.Observe the 7X increase in fossil fuel use in China and India over the past 4 decades, which enabled them to industrialize and prosper.⁷
- For the world’s poorest people to be more prosperous and safer from climate, they need more freedom and more fossil fuels.The “climate reparations” movement seeks to deny them both.
- The wealthy world should communicate to the poor world that economic freedom is the path to prosperity, and encourage the poor world to reform its cultural and political institutions to embrace economic freedom—including fossil fuel freedom.Our leaders are doing the opposite.
Climate reparations pay off dictators to take away fossil fuel freedom
- Instead of promoting economic freedom, including fossil fuel freedom, wealthy climate reparations advocates like Antonio Guterres are offering to entrench anti-freedom regimes by paying off their dictators and bureaucrats to eliminate fossil fuel freedom.This is disgusting.⁸
- The biggest victim of “climate reparations” will be the world’s poorest countries, whose dictators will be paid off to prevent the fossil fuel freedom that has allowed not just the US and Europe but also China and India to dramatically increase their prosperity.
- The biggest beneficiary of “climate reparations” will be China, which is already emitting more CO2 than the US and Europe combined. (Though less per capita.)While we flagellate and cripple ourselves, China will use fossil fuels in its quest to become the world’s superpower.⁹
- The second biggest beneficiary of “climate reparations” will be corrupt do-gooders who get to add anti-fossil-fuel strings to “reparations” dollars and dictate how it’s spent—which will surely include lots of dollars for unreliable solar panels and wind turbines made in China.
Leaders must reject reparations and champion fossil fuel freedom
- We need leaders in the US and Europe who proudly:1. Champion the free world’s use of fossil fuels as an enormous good for the world, including its climate safety.
2. Encourage the poor world to embrace economic freedom and fossil fuels.
Tell your Representative to do both.
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1 Scientific American – COP27 Summit Yields ‘Historic Win’ for Climate Reparations but Falls Short on Emissions Reductions
Phys.org – COP29 climate finance deal ‘must cover loss and damage,’ experts urge
COP29 official website – Fund for responding to Loss and Damage ready to accept contributions
2 Global population was about 8.02 billion in 2023.
About 7% of world population are considered high income, which translates into about 562 million individuals. Considering 3 people per average household in high income households, this translates into about 187 million households.
Pew Research – Are you in the global middle class? Find out with our income calculator
$1 trillion per annum paid by 187 million households means the average household would pay about $5,300 per year.
3 Maddison Database 2010 at the Groningen Growth and Development Centre, Faculty of Economics and Business at University of Groningen
4 UC San Diego – The Keeling Curve
For every million people on earth, annual deaths from climate-related causes (extreme temperature, drought, flood, storms, wildfires) declined 98%–from an average of 247 per year during the 1920s to 2.5 in per year during the 2010s.
Data on disaster deaths come from EM-DAT, CRED / UCLouvain, Brussels, Belgium – www.emdat.be (D. Guha-Sapir).
Population estimates for the 1920s from the Maddison Database 2010, the Groningen Growth and Development Centre, Faculty of Economics and Business at University of Groningen. For years not shown, population is assumed to have grown at a steady rate.
Population estimates for the 2010s come from World Bank Data.
5 UC San Diego – The Keeling Curve
Data on disaster deaths come from EM-DAT, CRED / UCLouvain, Brussels, Belgium – www.emdat.be (D. Guha-Sapir).
Population estimates come from World Bank Data.
6 Our World in Data – Energy Production and Consumption
7 BP – Statistical Review of World Energy
8 UN News – ‘Pay up or humanity will pay the price’, Guterres warns at COP29 climate summit
9 Our World in Data – Annual CO₂ emissions from fossil fuels, by world region
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