Energy
Why Eastern Canada Needs to Support Western Provinces and Reject the Government’s Energy Policies
From EnergyNow.ca
By Catherine Swift
There are currently about 400 different laws, regulations, taxes and other measures in Canada that serve as greenhouse gas (GHG) reduction measures. No one has a clue which of them are effective or useless or how much they are damaging our economy and reducing Canadians’ standard of living needlessly.
Daily Caller
Trump Dresses Down The Davos Globalists
From the Daily Caller News Foundation
By David Blackmon
Organizers and attendees at this week’s annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, had to have been shocked at the new tone from the United States after four years of subservient obeisance from Joe Biden and his ineffective emissaries. In a wide-ranging speech via videoconference on Thursday, President Donald Trump essentially blew up the liberal world order consensus as it relates to the climate alarm agenda.
After putting the conference on notice that the United States would again become a sovereign nation with secure borders, Trump then turned to climate and energy policy. “I terminated the ridiculous and incredibly wasteful Green New Deal – I call it the Green New scam,” Trump began, “withdrew from the one-sided Paris climate Accord and ended the insane and costly electric vehicle mandate. We’re going to let people buy the car they want to buy.”
It was an opening salvo that flew directly in the face of remarks made earlier in the week by the likes of European Commission leader Ursula Von Der Leyen, John Kerry, Al Gore, UN Secretary General Antonio Guterres and many others. But Trump was far from done.
“I declared a national energy emergency to unlock the liquid gold under our feet and pave the way for rapid approvals of new energy infrastructure,” he informed the conference, adding, “The United States has the largest amount of oil and gas of any country on earth, and we’re going to use it.”
The message was crystal clear: The age of America conforming its energy and climate policies to fit the strictures of the liberal world order as formulated at international climate conferences organized by the WEF and the United Nations is over, at least for the next four years and possibly beyond that. It should be obvious to everyone by now that Trump intends to completely reverse the Biden Green New Deal agenda and implement policies designed to return the U.S. to the position of what he calls “energy dominance” achieved during Trump’s first presidency.
The net-zero fantasy goal has gone completely off the rails over the last two years as both the ESG and DEI philosophies fell into disrepute. The fading of those interrelated leftwing religions led major energy companies and the banking community alike to place heavier focus on mounting and financing major energy projects designed to enhance energy and national security.
Energy reality was already making a comeback before Trump emerged triumphant in the 2024 election. Despite these and other emerging realities, the WEF’s old guard came to Davos armed with the same old rhetoric.
Sec. Gen. Guterres, always eager to engage in laughable hyperbole, labeled the oil industry a “Frankenstein monster sparing nothing and no one” as it sows what he calls “climate chaos.”
Von Der Leyen’s bombast was no less absurd: “Heat waves across Asia. Floods from Brazil to Indonesia, from Africa to Europe, wildfires in Canada, Greece and California, hurricanes in the US and the Caribbean. Climate change is still on top of the global agenda,” she warned, sounding for all the world like Bill Murray and his fellow “Ghostbusters” in the famous “dogs and cats living together – mass hysteria!” scene from the 1984 film.
Kerry was somewhat more muted, likely due to the fact that he no longer holds any official role in representing U.S. interests. Gore essentially mailed it in, delivering virtually the same hyperbole-filled remarks he spewed to the 2024 conference.
But a pair of participants in a panel discussion held Wednesday were much more realistic.
Graham Allison, a professor at the Harvard Kennedy School, warned his audience not to underestimate the new president. “Trump has done something no person in the world has ever done before,” he said, adding, “A dead man, a dead politician has risen. This is the greatest comeback in political history of a politician.”
Longtime political columnist Walter Russel Mead added, “We need to also factor in not only who’s won, which is Trump, but who’s lost. Which is to say, us.”
He isn’t wrong, and the elitists who make up the liberal world order would do well to pay attention. Whether they like it or not, their world has changed.
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
Trump’s Wakeup Call to Canada – Oil & Gas is Critical to our Economy
From EnergyNow.Ca
By Jim Warren
On the bright side, at least President Donald Trump’s threat to impose 25% tariffs on Canadian oil and gas, might have alerted some Central Canadians to the critical importance of oil and gas to the national economy. Trump’s tariff pronouncements may also have forced the Laurentian Elite to rethink the wisdom of allowing anarchy to reign in our immigration system and border management.
Any nation hoping to be a serious player in the areas of international trade and diplomacy needs to meet several critical criteria. Without them a country can have difficulty marketing its goods and services to the world and in retaining meaningful economic and political sovereignty. One of the key criteria is for a country to have a good measure of control over its borders. But there are other elements critical to having effective sovereignty and independence. Having access to versatile, readily transportable energy commodities like oil and gas is one of those essentials. Accordingly, oil and gas are considered strategically important industries.
Lacking any of the major building blocks of strategic economic sovereignty, like the steel and aluminum industries and a thriving manufacturing sector, as well as highly developed transportation sector and the energy industries needed to support all the other sectors can leave a country vulnerable to domination by others. The vulnerabilities can lead to economic and political crises for a country during trade wars, international disputes leading to trade sanctions and embargoes, shooting wars and big natural disasters. A lack of strong trade and military alliances can make matters even worse.
It’s not like there wasn’t a mountain of evidence underlining the strategic importance of oil and gas in the last few years. How smart was it for Angela Merkel to allow Russia, a state run by a psychopath and his team of criminal oligarchs, to control a major portion of its energy supplies? The Ukraine gets it. After its war with Russia began, the Ukrainian government allowed Russian gas to be piped across its territory to Eastern Europe for nearly two years. This was because they realized messing with a commodity critical to bordering states such as Hungary, Slovakia and Romania was politically hazardous.
It is true that a country can still have a thriving economy even if it is missing one or two items from the basket of strategically important industries. Singapore, for example, needs to import fossil fuel but is still considered one of Southeast Asia’s economic tigers. But this is only possible because Singapore is so good at most everything else. It has several other economic engines that perform exceptionally well.
Looking back several decades reminds us that Japan risked entering a World War to obtain the petroleum they needed. To get it, the Japanese concluded they needed to conquer parts of Indonesia. (Similarly they wanted Southeast Asia for its rubber.) They knew these were actions the US wouldn’t tolerate, but they decided they had to do them anyway.
While we’re on the topic of World War II, it is instructive to recall Hitler fought it with one hand tied behind his back. Germany had no oil of its own and gasoline refined from coal and the oil available from their Romanian ally were never enough. That’s why the German’s placed such great hopes in capturing Russia’s Caspian oil fields in 1943. Similarly, Hitler invaded Norway to ensure access to Swedish iron ore—another strategic commodity Germany lacked.
Canada’s oil revenues along with the taxes and royalties collected from those revenues are derived almost entirely from the oil we export to the US. Our export revenues for 2022, following the worst of the covid years, were $123 billion. They accounted for 15.8% of all Canada’s exports and 6.6% of GDP. The following year saw exceptionally high oil prices globally. That year the value of oil Canada’s oil production hit $139 billion and accounted for 7.1% of GDP. Pull even half of those revenues out of the Canadian economy for very long and we’re in economic depression territory.
So, thanks for the wakeup call president Trump. The fact Trump has indicated he will postpone his final decision until February 1, is of some comfort. Danielle Smith has met with him at Mar-a-Lago to make the case against tariffs on Canadian crude. Smith is among the most knowledgeable and capable people there are when it comes to oil and gas production and trade. We couldn’t hope for a better advocate for the producing provinces. She’s certainly a cut above Justin Trudeau and anyone else in his cabinet. Let’s hope Smith she managed to convince Trump how imposing tariffs would harm the economies of both countries.
There is an obvious way to prevent being in this sort of situation in the future – diversify our export opportunities by building more pipelines to tidewater. In my last column I focused on the difficulties involved in getting a pipeline built to the Atlantic coast. The challenges identified focused on the barriers thrown up by Quebec’s politicians and environmentalists. Trump’s ongoing tariff pronouncements suggest it would be in Canada’s national strategic interest to use whatever legal measures are required to sweep those barriers aside in both Quebec and British Columbia to get new tidewater pipelines built.
There is plenty the federal government can do to override the demands of municipalities, special interest groups and provincial governments in support of high national purposes and in emergencies. Section 91 of the constitution gives parliament broad, albeit somewhat vague, powers to do what needs to be done “to make laws for the peace, order and good government of Canada” in all matters not exclusively the jurisdiction of the provinces. And, you would think that if the heavy hand of the Emergencies Act can be used to prevent horn honking and traffic snarls in Ottawa, it could be employed to prevent the environmentally sanctimonious from blocking projects critical to our economic and political sovereignty. Of course doing any of this will require voting the Liberals out of office.
Sorry premier Ford, retaliatory tariffs and export taxes can’t be the only tools employed; especially when they cause self-inflicted wounds. Unfortunately, until we have more export opportunities for oil and gas we may need to limit our counter attacks on Americans to misleading travel directions and poor restaurant service.
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The federal Liberal government’s approach to energy policy has created problematic regional divisions across Canada. It’s time for the East to reject these crass politics and show greater support for the West.
Two recent court decisions — one at the Supreme Court and another at the Federal Court — have ruled against the federal government with respect to the Impact Assessment Act (the “No More Pipelines Bill”) and the single-use plastics ban. The courts found these laws to be unconstitutional as the federal government had intruded on provincial jurisdiction, among some other considerations such as the absurdity of declaring plastics “toxic.”
Around the same time, Environment Minister Steven Guilbeault announced a punitive new emissions cap on the oil and gas industry at COP28, which was also attended by Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe. This was seemingly timed to embarrass Guilbeault’s provincial counterparts and the Canadian oil and gas executives in attendance.
Back in October, Prime Minister Justin Trudeau announced a three-year exemption for home heating oil from the carbon tax. As heating oil is only used extensively in the Atlantic provinces, this was clearly an attempt to win back sharply declining Liberal support in that region. After Liberals claimed the carbon tax must be applied everywhere — in every industry and every region — this move served as a complete refutation of everything the Liberals had said before. It completely undermined their rationale for the carbon tax.
Meanwhile, countries around the world such as the United Kingdom and much of the European Union have been abandoning or significantly watering down their “net-zero” plans. Auto manufacturers are backing off production of electric vehicles (EVs) as they are not selling and all the lofty goals of the climate-crisis crowd are being questioned, as it has become clear the impact of these policies is hugely damaging to the economy and our standard of living.
For the trillions of dollars spent around the globe to attain the elusive net-zero target, very little has been achieved other than negative impacts on average citizens. Meanwhile, an elite class of “green” activists and government officials travel around the world first-class on the taxpayers’ dime, spewing much carbon in the process.
There are currently about 400 different laws, regulations, taxes and other measures in Canada that serve as greenhouse gas (GHG) reduction measures. No one has a clue which of them are effective or useless or how much they are damaging our economy and reducing Canadians’ standard of living needlessly. This is because the Trudeau government never evaluates the effectiveness of its policies.
The Liberals first sold us the carbon tax as the only measure needed to reduce GHGs, arguing it was a market-based mechanism that would motivate consumers and businesses to make their own sensible decisions to reduce fossil fuel usage. We were also told by former environment minister Catherine McKenna the carbon tax would never exceed $50 a tonne, which we now know was just one of many Liberal bald-faced lies as the tax is slated to increase to at least $170/tonne by 2030.
Despite dishonest claims the carbon tax was the only measure needed, we have subsequently seen the so-called Clean Fuel Standard, the absurdly red-tape intensive Impact Assessment Act (which the Supreme Court has now overthrown), and Guilbeault’s recent emissions cap.
Interestingly, other parts of the economy emit similar amounts of GHGs as the oil and gas sector, but those industries are not subject to an emissions cap. Could it be because those industries are located in regions that tend to vote Liberal, unlike Alberta and Saskatchewan? Perish the thought!
Throughout all of the climate policy overkill, the provinces of Alberta and Saskatchewan have remained steadfast in opposing foolish federal government initiatives based on facts, science and constitutional law. All Canadians should know that Alberta in particular is a disproportionately significant contributor to the rest of Canada in many ways — equalization payments, contributions to programs such as CPP and Employment Insurance as well as personal and corporate taxation and royalty revenue from the oil and gas industry.
It was truly ironic that, in the context of the federal budget earlier this year, Finance Minister Chrystia Freeland boasted that government revenues had come in higher than forecast. Yet the key source for this excess revenue was the oil and gas sector the Liberals are working hard to kill.
Alberta and Saskatchewan have been doing yeoman’s work defending the jurisdictional rights of all provinces and opposing the costly and unproductive federal government policies. At the same time, their success is boosting the economy of the whole country.
While Trudeau plays his destructive and divisive regional games — putting in place policies that benefit some parts of Canada while punishing others — all in the name of Liberal votes, the whole of Canada should call his bluff and support the leadership role that is being taken by the Prairie provinces.
The next federal election would be an ideal time to demonstrate that support.
Catherine Swift is president of the Coalition of Concerned Manufacturers and Businesses of Canada