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Economy

Natural gas key to withstanding winter and Ottawa’s assault

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From the Fraser Institute

By Kenneth P. Green

Mother Nature has reminded everyone that the stakes in the battle to preserve and expand Alberta’s natural gas power production are very high—basically, life or death.

Last week’s polar vortex drove temperatures into record negative territory across western Canada. Nighttime temperatures in Alberta, for example, reached -51 degrees Celsius at Keg River. Without sufficient power for running the heat on high, these are killing temperatures. Demand for electricity in Alberta soared, pushing the power grid toward potential need for rolling blackouts. Only voluntary cutbacks in electricity use by Albertans allowed the system to avoid curtailment.

What did the grid look like last week?

On Jan. 13, according to one report, natural gas generated 80.5 per cent of power on Alberta’s grid followed by coal (7.9 per cent), biomass (2.9 per cent), hydropower (2.5 per cent), solar power (1.3 per cent) and wind (0.99 per cent). But wind and solar’s low combined output was not the major cause of Alberta’s energy crunch last week—two of Alberta’s natural gas power plants were down for maintenance and not generating what they otherwise would have.

And yet, while gas and coal combined produced nearly 90 per cent of Alberta’s life-saving electricity, these fuels remain in the crosshairs of Ottawa and the Trudeau government’s proposal that greenhouse gas (GHG) emissions from electricity production in Canada must decline to “net zero” by 2035.

In the battle over the Trudeau government’s plan, Alberta Premier Danielle Smith argues that Ottawa intends to shut down natural-gas power generation, and because alternatives such as wind and solar power are unaffordable, Alberta will be unable to generate sufficient electricity for Albertans. Meanwhile, federal Environment Minister Steven Guilbeault denies that Ottawa wants to end fossil fuel use and argues that his government’s proposed regulations already allow for natural gas power production, so long as GHG emissions are “mitigated” via carbon capture and storage. Even unmitigated natural gas power would be allowed in emergency situations, according to Guilbeault, who recently accused Premier Smith of “trying to tear Canada down.”

Guilbeault’s argument, however, rests on what he likely knows is a false hope—that carbon capture and storage technology will evolve and be deployed at sufficient speed and capacity to allow Alberta to attain the net-zero emission target by 2035. This is highly unlikely. Carbon capture and storage has many critics including the International Energy Agency (IEA), which recently published a report suggesting that carbon capture and storage is inadequate for capturing carbon dioxide at the scale necessary to reach net-zero emissions by 2035 or beyond. Fatih Birol, executive director of the IEA, threw cold water on the idea, saying the oil and gas industry must help the “world meet its energy needs and climate goals—which means letting go of the illusion that implausibly large amounts of carbon capture are the solution.”

The potential peril of power outages during a polar vortex shows the importance of ensuring that Alberta has a reliable dispatchable electrical generation capacity able to meet even extreme demand. Wind and solar power, favoured under the Trudeau government’s proposed clean electricity regulations, can’t supply that. Premier Smith is right to bank on natural gas generation for Alberta’s future, and she should stand fast. As remaining coal power plants are closed, natural gas will be the foundation of Alberta’s energy stability and it must be defended.

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Economy

Trump declares national energy emergency

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From The Center Square

By 

President Donald Trump signed an executive order Monday night declaring a national energy emergency.

Trump announced the order earlier in the day during his Inauguration Speech.

“We will drill baby drill,” Trump said. “We will bring prices down, fill our strategic reserves up again right to the top, and export American energy all over the world. We will be a rich nation again and it is that liquid gold under our feet that will help to do it.”

The order states that high energy prices are an “active threat to the American people.”

“The policies of the previous administration have driven our Nation into a national emergency, where a precariously inadequate and intermittent energy supply, and an increasingly unreliable grid, require swift and decisive action,” the order said. “In light of these findings, I hereby declare a national emergency.”

To solve high prices and remedy the “numerous problems” with America’s energy infrastructure, the order stated that the delivery of energy infrastructure must be “expedited” and the nation’s energy supply facilitated “to the fullest extent possible.”

This was one of many executive orders the president signed on his first day in office.

In another order signed Monday night, Trump declared it was time to unleash American energy.

“In recent years, burdensome and ideologically motivated regulations have impeded the development of these resources, limited the generation of reliable and affordable electricity, reduced job creation, and inflicted high energy costs upon our citizens,” the order said. “It is thus in the national interest to unleash America’s affordable and reliable energy and natural resources.”

All this will be done through encouraging energy exploration, the elimination the electric vehicle mandates, and safeguarding “the American people’s freedom to choose from a variety of goods and appliances.”

The order promises these measures will “restore American prosperity,” “establish our position as the leading producer,” and “protect the United States’s economic and national security and military preparedness.”

In an earlier signing of executive orders in front of a crowd of supporters at the Capital One Arena, Trump signed an executive order withdrawing the United States from the Paris Climate Accords.

Elyse Apel is an apprentice reporter with The Center Square, covering Georgia and North Carolina. She is a 2024 graduate of Hillsdale College.

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Alberta

Trump delays implementation 25% tariffs: Premier Smith response

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Alberta Premier Danielle Smith issued the following statement, welcoming the U.S. tariff reprieve and calling for strategic action:

“Alberta is pleased to see that today President Donald Trump has decided to refrain from imposing tariffs on Canadian goods at this time as they study the issue further.

“We appreciate the implied acknowledgement that this is a complex and delicate issue with serious implications for American and Canadian workers, businesses and consumers given the integration of our markets, along with our critical energy and security partnership.

“Avoiding tariffs will save hundreds of thousands of Canadian and American jobs across every sector. As an example, declining to impose U.S. tariffs on Canadian energy preserves the viability of dozens of U.S. refineries and facilities that upgrade Alberta crude, and the jobs of tens of thousands of Americans employed at them.

“Despite the promising news today, the threat of U.S. tariffs is still very real. As a country, we need to immediately take the following steps to preserve and strengthen our economic and security partnership with the United States, and to avoid the future imposition of tariffs:

  1. Focus on diplomacy and refrain from further talk of retaliatory measures, including export tariffs or cutting off energy to the U.S. Having spoken with the President, as well as dozens of governors, senators, members of congress and allies of the incoming administration, I am convinced that the path to a positive resolution with our U.S. allies is strong and consistent diplomacy and working in good faith towards shared priorities. The worst possible response to today’s news would be the federal government or premiers declaring “victory” or escalating tensions with unnecessary threats against the United States.
  2. Negotiate ways to increase what Canadians and Americans buy from one another. As an example, the United States should look at purchasing more oil, timber and agricultural products from Canada, while Canada should look at purchasing more American gas turbines, military equipment and the computer hardware needed to build our growing AI data centre sector. Finding ways to increase trade in both directions is critical to achieving a win-win for both countries.
  3. Double down on border security. Within the next month, all border provinces should either by themselves, or in partnership with the federal government, deploy the necessary resources to secure our shared border from illegal drugs and migration.
  4. Announce a major acceleration of Canada’s 2 per cent of GDP NATO target. This is clearly a shared priority that benefits both of our nations. There is no excuse for further delay.
  5. Crack down on immigration streams and loopholes that are known to permit individuals hostile to Canada and the United States to enter our country, and restore immigration levels and rules to those under former Prime Minister Stephen Harper.
  6. Immediately repeal all federal anti-energy policies (production cap, Clean Electricity Regulations, Impact Assessment Act [Bill C-69]) and fast track Northern Gateway and Energy East projects pre-approvals.”
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