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Navigating New Political Currents: How the U.S. Election Could Impact Canadian Energy – Resource Works

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8 minute read

From EnergyNow.ca

By Resource Works
More News and Views From Resource Works Here

As Stewart Muir, CEO of Resource Works, attends the annual Pacific North West Economic Region (PNWER) conference in Whistler this week, the unexpected news that President Joe Biden won’t be on the November 5 presidential ballot sent shockwaves through the policy and trade discussions.

For policy wonks like those I’m gathered with in Whistler this week, could there be a better gift than the conundrums unleashed over the past week onto the U.S. political landscape?

The rise of Donald Trump and the potential presidential candidacy of Kamala Harris conjure up a staggering range of possibilities. When it comes to trade, international relations, and the future of the foundational natural resource sectors that unify the ten sub-national jurisdictions making up PNWER, this is what everyone is going to be talking about..

With Trump securing the Republican nomination last week, Canadian energy producers were left pondering what his potential return to the White House might mean for their industry. Like a wildcatter drilling an exploratory well, Trump’s energy policies promise both gushers of opportunity and dry holes of risk for our oil and gas sector.

On the upside, his pledge to unleash American energy production could boost overall demand and prices, indirectly benefiting Canadian exporters. His promised regulatory reforms may also grease the wheels for new pipelines and LNG terminals, easing the flow of our energy products southward. It’s enough to make an Albertan oilman shed a tear of joy into his Stampede pancakes.

But before we break out the champagne (or perhaps a nice Canadian ice wine), consider the potential downsides. Trump’s “America First” trade policies and tariff threats loom like storm clouds on the horizon for Canadian exporters. His vow to gut environmental regulations faster than you can say “EPA” could leave Canadian producers at a competitive disadvantage, burdened by our quaint commitment to responsible production practices.

Yet in this potential regulatory race to the bottom, I spy an opportunity as golden as the fields of Saskatchewan canola. By doubling down on our world-class environmental and safety standards, Canadian energy could position itself as the responsible choice in global markets.

Picture it: “Canadian crude – now with 50% less guilt!” We could be the Tesla of fossil fuels, if you will.
Of course, there’s a risk in tooting our own sustainability horn too loudly. Trump isn’t known for his fondness of perceived criticism, and antagonizing him could lead to retaliatory tariffs faster than you can say “covfefe.” We’ll need to navigate this terrain as carefully as a pipeline through the Rockies.

On the other hand, if Kamala Harris, Biden’s preferred successor, retakes the White House, the landscape will look markedly different. Harris is likely to continue the Biden administration’s focus on climate action and clean energy. This could mean stronger support for renewables, potentially benefiting Canadian sectors involved in green technology and clean energy exports. However, stricter environmental regulations and a push for rapid decarbonization might challenge traditional oil and gas industries.

A Harris administration might prioritize cross-border collaboration on climate initiatives, providing opportunities for joint projects in carbon capture and storage (CCS), hydrogen development, and renewable energy. This could foster closer ties and create a more integrated North American energy market focused on sustainability.

Bloomberg reports that while Harris wouldn’t be likely to make major shifts to the direction Biden charted on climate change, her opposition to offshore drilling and fracking suggests her signature move as president could be bringing fierce oil industry antagonism to the White House. As California attorney general, she brought lawsuits against energy companies, prosecuted a pipeline company over an oil leak and investigated Exxon Mobil Corp. for misleading the public about climate change.

Yet, such a focus on environmental standards could also mean increased scrutiny and regulatory hurdles for Canadian energy projects seeking to enter the U.S. market. Canadian producers will need to balance compliance with high environmental standards while remaining competitive.

In either scenario, navigating the U.S. political landscape will require strategic adaptability from Canadian energy producers. Trump’s potential return could mean deregulation and a push for fossil fuel dominance, while a Harris presidency could emphasize clean energy and environmental collaboration.

And for anyone lamenting the potential Trump threat to renewables growth, remember the number one test for The Donald: “Can I make money off it?” From Texas to Alberta, solar is a huge growth opportunity in the “and more” rather than the “and/or” category of energy opportunities that are creating investor profits. There’s no reason for him to fire opportunities like those.

Speaking of careful navigation, let’s ponder the electric vehicle conundrum. If Trump follows through on scrapping EV mandates, Canada may find itself stuck between a Chevy Bolt and a hard place. Do we follow suit and risk our climate goals, or forge ahead solo and risk becoming an automotive island? It’s enough to make one long for the simpler days of the horse and buggy.

But fear not, dear reader. For in the potential pairing of a Trump presidency and a Pierre Poilievre prime ministership, I see a silver lining as shiny as a freshly polished oil rig. Their aligned views on energy could usher in a new era of continental cooperation, turning the 49th parallel into a veritable pipeline of mutual prosperity. If current trends of market-driven decarbonization continue, this would actually be positive for the climate (and yes, I can already hear the chorus of those saying such a thing is impossible).

In the end, navigating the Trump energy landscape will require all the nimbleness of a Fort McMurray worker on an icy road. But with a dash of ingenuity, a sprinkle of diplomacy, and perhaps a generous helping of maple syrup to sweeten the deal, Canadian energy producers may yet find themselves not just surviving, but thriving in the turbulent waters of a potential Trump 2.0 era.

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Agriculture

Canadian pandemic bill wants to regulate meat production, develop contract tracing

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From LifeSiteNews

By Anthony Murdoch

Included in Bill C-293 are provisions to ‘regulate commercial activities that can contribute to pandemic risk, including industrial animal agriculture,’ produce ‘alternative proteins,’ and ‘enable contact tracing of persons.’

A “pandemic prevention and preparedness” bill introduced by a backbencher MP of Justin Trudeau’s Liberal Party would give sweeping powers to “prevent” as well as “prepare” for a future pandemic, including regulating Canadian agriculture.  

Bill C-293, or “An Act respecting pandemic prevention and preparedness,” is now in its second reading in the Senate. The bill would amend the Department of Health Act to allow the minister of health to appoint a “National pandemic prevention and preparedness coordinator from among the officials of the Public Health Agency of Canada to coordinate the activities under the Pandemic Prevention and Preparedness Act.”

Bill C-293 was introduced to the House of Commons in the summer of 2022 by Liberal MP Nathaniel Erskine-Smith. The House later passed the bill in June of 2024 with support from the Liberals and NDP (New Democratic Party), with the Conservatives and Bloc Quebecois opposing it.  

A close look at this bill shows that, if it becomes law, it would allow the government via officials of the Public Health Agency of Canada, after consulting the Minister of Agriculture and Agri-Food and of Industry and provincial governments, to “regulate commercial activities that can contribute to pandemic risk, including industrial animal agriculture.” 

Text from the bill also states that the government would be able to “promote commercial activities that can help reduce pandemic risk,” which includes the “production of alternative proteins, and phase out commercial activities that disproportionately contribute to pandemic risk, including activities that involve high-risk species.”  

It is not clear when Bill C-293 will proceed to the third reading in the Senate. When it was in the House, it took over a year for it to go from the second to the third reading. Should an early election be called this year, or the bill not get to its third reading before the fall of October of 2025, the bill will die.  

As reported by LifeSiteNews, the Trudeau government has funded companies that produce food made from bugs. The Great Reset of Klaus Schwab and his World Economic Forum (WEF) has as part of its agenda the promotion of “alternative” proteins such as insects to replace or minimize the consumption of beef, pork, and other meats that they say have high “carbon” footprints. 

Trudeau’s current environmental goals are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” and include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades, as well as curbing red meat and dairy consumption.

Bill would give the government powers to ‘enable contact tracing’  

Bill C-293 would allow the government to mandate industry help it in procuring products relevant to “pandemic preparedness, including vaccines, testing equipment and personal protective equipment, and the measures that the Minister of Industry intends to take to address any supply chain gaps identified.” 

The bill will also “take into account the recommendations made by the advisory committee following its review of the response to the coronavirus disease 2019 (COVID-19) pandemic in Canada.” 

The federal government, and most provincial governments, during COVID, pushed and enacted contact tracing to monitor the general population. Any Canadians who traveled out of the country had to also use the government’s much maligned and scandal-ridden ArriveCAN travel app, which had a contact tracing feature.  

Also during COVID, the Trudeau government took a heavy-handed approach when it came to enacting laws or rules under the guise of “health.” For example, in October 2021 Trudeau announced unprecedented COVID-19 jab mandates for all federal workers and those in the transportation sector. He also announced that the unvaccinated would no longer be able to travel by air, boat, or train, both domestically and internationally. 

This policy resulted in thousands losing their jobs or being placed on leave for non-compliance. It also trapped “unvaccinated” Canadians in the country.  

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Canadian Energy Centre

Proposed emissions cap threatens critical Canada-U.S. energy trade

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From the Canadian Energy Centre

By Deborah Jaremko

The vast majority of Canadian oil exports to the United States are processed in Midwest states. Above, the Cushing Terminal near Cushing, Oklahoma is Enbridge’s largest tank farm and the most significant trading hub for North American crude.

Canada and the United States share something that doesn’t exist anywhere else. A vast, interconnected energy network that today produces more oil and gas than any other region – including the Middle East, according to analysis by S&P Global.

It’s a blanket of energy security researchers called “a powerful card to play” in increasingly unstable times.

But, according to two leaders in governance and energy policy, that relationship is at risk.

Analysis has shown that the federal proposal to cap emissions in Canada’s oil and gas sector would result in reduced production. That likely means less energy available to Canada’s largest customer, the United States.

Jamie Tronnes, executive director of the Center for North American Prosperity and Security, is a former Canadian political staffer born in northern Alberta now living in Washington, D.C.

Jamie Tronnes

Heather Exner-Pirot is a prominent energy policy analyst and senior fellow with the Ottawa-based Macdonald-Laurier Institute.

Heather Exner-Pirot

Here’s what they shared with CEC.

CEC: The U.S. is one of the world’s largest oil and gas producers. Why does it need imports from Canada?

HEP: It’s because all oil is not the same. The United States developed its refinery industry before the shale revolution, when they were importing heavier crudes. Canada has that heavier crude. They are now exporting some of their sweet light oil and importing Canadian crude because that’s what their refinery mix requires.

What’s interesting is that we have never exported more Canadian crude to the United States than we are right now. Even as they have become the world’s largest oil producer, they’ve never needed Canadian oil more than today.

They also import a ton of natural gas from us. They have become the world’s biggest gas producer and the world’s biggest gas exporter, but part of that, and having their LNG capacity being able to so quickly surpass Qatar and Australia, is because some of the production is being backfilled by Canada.

CEC: Will the incoming new administration (either Democrat or Republican) impact the Canada-U.S. energy relationship?

JT: I don’t see a big change happening in such a way as it did when the Biden administration came in with the axing of the Keystone XL pipeline. Now that Russia has invaded Ukraine, the global energy market has changed radically.

On the Republican side, Trump often repeats the phrase “drill, baby drill.” The issue is that the U.S. is already drilling about as much as demand allows.

I don’t think a Harris government would move quickly to limit oil and gas production without having a strategic alternative in place. It simply would make her look very weak, and she has explicitly said that she would not ban fracking.

In the post-COVID world, I believe that the Democrat side of the aisle is coming to the view that it was a geopolitical mistake in terms of securing North American energy dominance to cut the Keystone XL pipeline.

The reality is that being able to export refined Canadian feedstock is key to keeping the U.S. as an energy superpower.

The U.S. government continues to offer and subsidize tax credits for investment in carbon capture technology. Even though Trump has said that he would end all of those carbon capture credits and subsidies, it still would not stop the U.S. from importing Canadian oil and gas.

That’s only going to grow as things like AI continue to create more demand for energy. A huge amount of the United States electrical energy grid is powered still by natural gas, and that’s going to take decades to change.

CEC: Would a reduction in Canadian production from the federal government’s proposed oil and gas emissions cap impact the United States?

HEP: Yes, and we should be raising the alarm bells. The federal government has said it is a cap on emissions, not a cap on production, but all the analysis that Alberta and the oil and gas sector have done is that it will create somewhere between 1 million and 2 million barrels of production being shut in.

Well, 95 per cent of our exports are to the United States. If we are shutting in 1 million barrels or 2 million barrels, that all comes out of their end just when their shale oil is expected to plateau and decline.

A cap would also tap down natural gas production and LNG capacity. If you’re Japan or South Korea and you’re looking to secure 20 years of supply, the cap creates a lot of uncertainty with that Canadian supply. There’s zero uncertainty with Qatar’s supply. If you’re Japanese, these are not pleasant conversations. This is not giving you confidence. And if you don’t have confidence in LNG, you’re going to burn coal.

In a perfect world, Canada would supply LNG to Asia, the United States would supply it to Europe, and we’d be a pretty energy-independent Western alliance.

I wish we would be honest that we need a different way to reduce emissions that does not take away from production, because that capacity is a big part of what we offer our allies right now.

JT: It threatens the security of North America in a big way because the energy dominance of the United States is tied to Canada. Especially with what’s going on in Russia and other countries, it behooves us as Canadians and me as an American to remember that security is not freely granted.

We have to make sure that we are thinking more holistically when we think of things like emissions cap legislation that’s going to have knock-on effects and may even increase emissions. If you’re trying to replace that feedstock, it’s got to come from somewhere.

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