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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

By Deborah Jaremko

‘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. 

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Alberta

‘Coutts Two’ Verdict: Bail and Mischief

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Protesters demonstrating against COVID-19 mandates and restrictions gather as a truck convoy blocks the highway at the Canada-U.S. border crossing in Coutts, Alta., on Feb. 2, 2022. The Canadian Press/Jeff McIntosh

From the Frontier Centre for Public Policy

By Ray McGinnis

Imagine spending over two years behind bars, only to be told the evidence never supported the charges against you.

On Aug. 2, a Lethbridge jury found Chris Carbert and Tony Olienick not guilty of the most serious charge of conspiracy to commit murder of police officers. However, though they were declared innocent, the conspiracy charge was the basis for their being held in remand for at least 925 days. They were denied bail based on this charge.

The sentencing hearing for other charges against Carbert and Olienick is taking place this week.

Granting Bail Typical for Serious Offences

In Canada, when someone is charged with committing a crime, they’re released on bail. This includes those charged with murder. For example, in September 2021, 31-year-old Umar Zameer was released on bail after being charged with the first-degree murder of Toronto Police Constable Jeffrey Northrup.

A case of double murder in the city of Mission in B.C.’s Fraser Valley concerned the deaths of Lisa Dudley and her boyfriend Guthrie McKay. Tom Holden, accused of first-degree murder in the case, was released on bail.

Conditions for not Granting Bail

Why do we release people from custody after being charged with a crime? Why don’t we hold people indefinitely? It’s been a Canadian tradition that there’s a process in place to which we adhere. Does the person charged with a crime seem to present a risk of repeating an offence? Carbert and Olienick hadn’t previously committed the offence(s) they were charged with. They didn’t have any criminal records for any violence. So, the likelihood of repetition of offence didn’t apply.

Another reason for denying bail is flight risk. But the Crown agreed neither of these men posed a flight risk. If you’re not clear about the identity of the person you’ve arrested, you can hold them in custody. But the Crown and the RCMP were certain of the identity of these men.

How about denying bail for evidence protection? If let go, was it possible the Crown or RCMP would lose evidence, and they needed to keep Carbert and Olienick in remand? No.

Were Carbert or Olienick considered a danger to the public? No. They had no past history of committing violent crimes, so in the case of the Coutts Two this was not a reason to deny bail.

The Crown insisted the pair be denied bail because their release would undermine confidence in the judicial system. Due to the seriousness of the offences the pair were charged with, releasing them would put the legal system into disrepute. But this is a circular argument. In authoritarian countries, police may arrest citizens on serious charges they’re not guilty of and leave them in prison indefinitely.

Granting Bail Goes Back to Magna Carta

Since the Magna Carta was signed in 1215, western judicial institutions have allowed those charged with a crime to be presumed innocent until proven guilty. With that provision comes the right to bail and a speedy trial. When citizens are accused of a crime and left to rot in prison without having their day in court, their spirits can be broken and persuaded to agree to plead guilty even when they are innocent.

Unindicted Co-conspirators Never Interviewed

During the trial, the Crown repeatedly named a list of unindicted co-conspirators. Each had a licence to carry a weapon in public for years. None of them were ever searched. None of them were ever interviewed. None of the alleged co-conspirators received any communication from the RCMP, or other authorities, about their possible connection to a conspiracy to murder police officers. However, the list of names provided for some legal theatre in the court added to the ominous scale of the supposed conspiracy to murder police officers.

Intelligence

Former career police officer Vincent Gircys had standing in the Justice Mosley decision. The judge ruled in January 2024 that the government’s invocation of the Emergencies Act in February 2022 to end the convoy protests was unconstitutional.

After the Coutts Two verdict, Gircys was concerned about the intelligence. There was a disconnect between the conspiracy charge and the evidence the Crown brought to trial. Gircys stated, “It’s really important to find where that disconnect is. Because of faulty intelligence? False intelligence? Fabricated intelligence? The evidence that they (RCMP) do have would all be logged, gathered, and time-lined. And that goes to what evidence was not gathered? … How could that information have been laid in the first place? How could the Crown have proceeded with this case to begin with?”

The Coutts Two were found not guilty of conspiracy to commit murder. But by the time they are sentenced on the other charges this week, they will have spent at least 925 days in custody. What does this mean for innocent until proven guilty?

Ray McGinnis is a Senior Fellow with the Frontier Centre for Public Policy. His forthcoming book is “Unjustified: The Emergencies Act and the Inquiry that Got It Wrong.”

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Agriculture

P&H Group building $241-million flour milling facility in Red Deer County.

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P&H Milling Group has qualified for the Agri-Processing Investment Tax Credit program

Alberta’s food processing sector is the second-largest manufacturing industry in the province and the flour milling industry plays an important role within the sector, generating millions in annual economic impact and creating thousands of jobs. As Canada’s population continues to increase, demand for high-quality wheat flour products is expected to rise. With Alberta farmers growing about one-third of Canada’s wheat crops, the province is well-positioned to help meet this demand.

Alberta’s Agri-Processing Investment Tax Credit program is supporting this growing sector by helping to attract a new wheat flour milling business to Red Deer County. P&H Milling Group, a division of Parrish & Heimbecker, Limited, is constructing a $241-million facility in the hamlet of Springbrook to mill about 750 metric tonnes of wheat from western Canadian farmers into flour, every single day. The new facility will complement the company’s wheat and durum milling operation in Lethbridge.

“P&H Milling Group’s new flour mill project is proof our Agri-Processing Investment Tax Credit program is doing its job to attract large-scale investments in value-added agricultural manufacturing. With incentives like the ag tax credit, we’re providing the right conditions for processors to invest in Alberta, expand their business and help stimulate our economy.”

RJ Sigurdson, Minister of Agriculture and Irrigation

P&H Milling Group’s project is expected to create about 27 permanent and 200 temporary jobs. Byproducts from the milling process will be sold to the livestock feed industry across Canada to create products for cattle, poultry, swine, bison, goats and fish. The new facility will also have capacity to add two more flour mills as demand for product increases in the future.

“This new facility not only strengthens our position in the Canadian milling industry, but also boostsAlberta’s baking industry by supplying high-quality flour to a diverse range of customers. We are proud to contribute to the local economy and support the agricultural community by sourcing 230,000 metric tonnes of locally grown wheat each year.”

John Heimbecker, CEO, Parrish & Heimbecker, Limited

To be considered for the tax credit program, corporations must invest at least $10 million in a project to build or expand a value-added agri-processing facility in Alberta. The program offers a 12 per cent non-refundable tax credit based on eligible capital expenditures. Through this program, Alberta’s government has granted P&H Milling Group conditional approval for a tax credit estimated at $27.3 million.

“We are grateful P&H Milling Group chose to build here in Red Deer County. This partnership willbolster our local economy and showcase our prime centralized location in Alberta, an advantage that facilitates efficient operations and distribution.”

Jim Wood, mayor, Red Deer County

Quick facts

  • In 2023, Alberta’s food processing sector generated $24.3 billion in sales, making it the province’s second-largest manufacturing industry, behind petroleum and coal.
  • That same year, just over three million metric tonnes of milled wheat and more than 2.3 million metric tonnes of wheat flour was manufactured in Canada.
  • Alberta’s milled wheat and meslin flour exports increased from $8.6 million in 2019 to $19.8 million in 2023, a 130.2 per cent increase.
  • Demand for flour products rose in Alberta from 2019 to 2022, with retail sales increasing by 24 per cent during that period.
  • Alberta’s flour milling industry generated about $840.7 million in economic impact and created more than 2,200 jobs on average between 2018 and 2021.
  • Alberta farmers produced 9.3 million metric tonnes of wheat in 2023, representing 29.2 per cent of total Canadian production.

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