Alberta
NATO reps say U.S., Canada oil and gas critical for energy security
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Outside NATO headquarters ahead of a flag-raising ceremony for Sweden’s accession to NATO, in Brussels on February 27, 2024. Getty Images photo
From the Canadian Energy Centre
‘The traditional energy system will not disappear in a day’
Canada and the United States now produce more oil and gas than anywhere else on Earth, including the Middle East, according to a new report by S&P Global.
This blanket of energy security extends beyond borders and is “a powerful card to play” in increasingly unstable times, researchers wrote.
They found that without oil and gas produced in the U.S. and Canada – which has more than doubled since 2008 – North America, Europe and the rest of the world would have been “notably more vulnerable” following Russia’s invasion of Ukraine in 2022.
The ‘massive social impact’ of energy insecurity
Energy insecurity is all too familiar for Lithuanian Juljius Grubliauskas, who works for the North Atlantic Treaty Alliance (NATO).
Growing up, he was on hand when the Soviet Union weaponized energy in an attempt to topple Lithuania’s fledgling independence.
“I remember clearly from my childhood in 1990 when the Russians cut off energy supplies to try to break the resolve of the Lithuanians, [and] that affected the daily lives of every citizen,” Grubliauskas told a recent webinar hosted by the Toronto-based Institute for Peace and Diplomacy.
“Having a lack of energy has a massive social impact and massive cascading effects like prices immediately jumping, massive inflation and such,” he said.
“Today obviously many things have changed and the energy landscape looks much different, but the principle that energy is closely linked to national security and the independence of nations to make their decisions still remains true.”
North America’s role in NATO energy supply
Formed following the second world war, NATO represents 31 nations in Europe and North America in shared collective defense where an attack on one is seen as an attack on all.
NATO is finalizing a strategic plan for its energy future as the world seeks to reduce emissions, focusing primarily on secure access for military forces, Grubliauskas said.
Oil and gas from North America play a critical role, said Brussels-based NATO energy security policy expert Can Ögütcü.
“We need to be sure that we’re going to have security of supply of production in the U.S. and in Canada,” he said.
“We have last one import supplier, the Russians, [and] we are in the transition to perhaps also lose another big supplier, the Middle East Gulf countries, as maritime routes become more and more insecure.”
Critical North American energy integration
While Canadian oil and gas exports currently go almost exclusively to the U.S., once they enter the integrated pipeline system, they can become so-called “re-exports” from U.S. Gulf Coast to overseas markets.
At the end last year, the U.S. imported more oil from Canada than ever before, according to the U.S. Energy Information.
At the same time, America exported a record 11.5 million barrels per day of oil and petroleum products, and a record 709 billion cubic feet of natural gas.
“North American energy integration, things like the Enbridge Line 3 pipeline and the Keystone pipeline are absolutely crucial pieces of infrastructure, not just for the energy security of North America but also increasingly for the energy security of NATO allies,” said Joseph Calnan, energy security analyst with the Canadian Global Affairs Institute.
“The traditional energy system will not disappear in a day. Climate change of course makes it imperative that we do reduce our emissions globally but the role of Canada in the short term and medium term, I believe, is to firm up this traditional energy system.
“While Canada has a major role to play in future energy technologies, the current energy technologies are in my opinion, the priority.”
Canada can do more
Canada has not done enough to improve world energy security, said Heather Exner-Pirot, a senior fellow with the Macdonald-Laurier Institute.
“In the wake of Russia’s invasion, Canada has not stepped up and there is risk on all sides from depending too much on OPEC, or Qatar or Russia, but also too much on the United States,” she said, referencing the U.S. decision to pause approvals of new liquefied natural gas (LNG) export projects.
“We can do much more shipping on the East Coast. There are projects that were in the pipeline that have been rejected by the federal government and by provincial governments that could be going to Europe. Obviously on the West Coast is more promising.”
Major projects slated to start up soon like the Trans Mountain expansion and LNG Canada terminal will grow global access to Canadian oil and gas, primarily in the Indo Pacific region, Calnan noted.
“I think we’ll see that Canada has a much larger role to play in the total global market, which will have a stepwise influence on the situation in Europe,” he said.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
Alberta
Premier Smith and Health Mininster LaGrange react to AHS allegations
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Alberta Premier Danielle Smith and Health Minister Adriana LaGrange respond to allegations of political interference in the issuing of health-care contracts.
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