Oil and gas.
Energy
Energy & the Environment
The three letter curse words.
Many are calling for the end of oil and gas while promoting the slogan “Build Back Better”.
The slogan which originated from the 2015 Sendai Framework for Disaster Risk Reduction in response to Great East Japan Earthquake and Tsunami, has now morphed into the slogan for all things green and socially just.
The Liberal Party of Canada’s website outlines their plan for “Protecting our Environment and Moving Our Economy Forward” as follows:
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Fighting and Preparing for Climate Change
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Making Communities Cleaner, More Efficient, and More Affordable
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Protecting Canada’s Natural Legacy
The document lays out a commitment to achieve net-zero emissions by 2050, plant two billion trees in ten years, provide interest-free loans for retrofits, build vehicle charging stations, set up a camping travel bursary and ban single-use plastics.
So what is the problem with the Liberals environmental plan? Simple. It lacks depth, neglects financial implications and worst of all, its not rooted in reality.
Net-Zero Emissions by 2050
Making a commitment to hit this target through “legally binding” targets ignores the reality that we live in.
The Parliamentary Budget Office has indicated that emissions-reductions cannot be met unless the carbon tax is drastically increased.
While it may be possible to tax the country into a state of zero emissions, this would significantly cripple the economy, destroy jobs and ruin lives. This is not acceptable.
What should the government do?
Up to the mid-late 1800s, wood was the primary source of energy for developed nations.
What changed from that point to now? Innovation.
Government needs to remove red tape, repeal poor policy, end harmful taxation and allow the free market to pursue new technologies.
How can we be sure that this will work?
The free market is driven to create returns for shareholders. If there is an opportunity to create profits through new technology, free markets will find a way to capitalize.
In order to truly implement policies that improve our environment, we need to look beyond our borders and bring leading Canadian technologies to foreign countries.
Canada is a significant coal exporter. Coal, when burned, is a much higher polluter than other non-renewable resources such as natural gas and hydrogen. The government should work with foreign countries to promote the use of natural gas as a substitute.
Retrofit Buildings
Plans to provide free energy audits, interest-free retrofit loans and grants for zero-emissions homes are the main talking points of the Liberal retrofit plan.
First off, nothing supplied by the government is free. All government expenses are bankrolled by taxpayers.
In the midst of reduced or eliminated incomes due to the pandemic, the likelihood of home-owners or landlords being willing to take on debt to retrofit homes or office buildings is going to be limited for the foreseeable future.
Similarly, the costs associated with building a zero-emission home will not be offset with a $5,000 grant as proposed in the Liberal plan.
What should the government do?
Canada is already home to stringent building regulations. Regulations that carry significant costs.
In order to encourage further “green” building, the market needs access to more affordable products.
The government could accomplish this through the reduction of red tape, and the promotion of trade deals that allow for foreign firms to bring their goods and technology to Canada.
Competition and innovation ultimately drive down consumer costs and will always be more effective and efficient than government subsidies.
Charging Stations
Recently, the federal government announced that it will “invest” $295 million to help Ford Canada upgrade its Oakville assembly plant to begin making electric vehicles.
With the increased manufacturing of electric cars, comes a requirement for charging stations.
According to a 2015 US Department of Energy study, costs for single port Level 1 stations range from $300-$4,500. For DC fast charging stations, $14,000-$91,000.
Level 1 stations add 6 miles of range per hour @ 1.9kW. DC fast charging stations add 90 miles per 20 minutes @ 90kW.
Before taxpayer funds are thrown at green projects, a complete analysis of the life-cycle costs should be a requirement. This will ensure that emissions are truly lower and that taxpayers are receiving economic value for their tax dollars.
What should the government do?
Government subsidies that prop up an industry or product are inevitably harmful to consumers. These subsidies hide costs that the free market would ultimately choose not to absorb.
Instead, government should encourage vehicle manufacturers to produce more fuel efficient vehicles, regardless of the fuel system used to power the vehicle.
This could be done through the existing Scientific Research & Experimental Development Tax Incentive Program. The specific objective of the project should be to offset the costs of wages paid to research and development staff who are engaged in this direct work.
Beyond the direct goal of improving vehicle emissions, this program would create more opportunities for high-paying jobs within the tech sector which would further help to diversify the Canadian economy.
Trees and Camping Travel Bursary
The tree planting program involves two billion trees, ten years, 3,500 seasonal jobs and an overall $3 billion effort to deploy natural climate solutions.
If there is a job that meets pandemic guidelines, planting trees in the great outdoors qualifies.
The camping bursary was to provide a $2,000 grant to help families go camping in Canada’s national parks. No grants have been provided to date.
Additionally, the Learn to Camp program was to be expanded so that every Canadian child could learn how to camp by the time they reached grade eight.
What should the government do?
The WE scandal resulted in a missed opportunity to create job opportunities for post-secondary students. This can be remedied by expanding the Canada Summer Jobs program in advance of the 2021 tree planting season.
If there is little or no interest in the tree planting program for 2021, it should be abandoned entirely. Instead, government should support private sector companies who are consistently engaging in tree planting projects and other environmental reclamation projects.
Boutique tax credits and other one-off government programs typically result in creating winners and losers. As such, the camping bursary program should be cancelled.
Instead, and in conjunction with a full tax code review, the government could find efficiencies within the tax system that would translate into real results for Canadians.
Single-Use Plastics Ban
A recent announcement to ban single-use plastics, regulations to be finalized in late 2021, seeks to fulfill a long running Liberal election promise.
The ban will remove plastic grocery bags, straws, stir sticks, six pack rings, cutlery and takeout containers.
At a time where the hospitality industry is reeling from the impacts of the pandemic, this will be another difficult adjustment for this industry.
Smaller Alberta plastic manufactures have expressed concern with the new policy. Although single-use plastics account for a small portion of the plastics market, the costs associated with re-tooling a manufacturing facility can be quite high.
What should the government do?
Instead of virtue-signalling, the government should focus on addressing the issue of plastic recycling. The slogan of reduce, reuse and recycle can be traced back to the 1970s. Why hasn’t it caught on as hoped? Simply put, there is no money in plastic recycling.
Government should focus resources instead to projects that find viable solutions for plastic recycling. One such project is the development of plastic-bitumen composite roads.
Adding carbon capture technology to the plastic processing and bitumen mixing process would allow for road materials to be produced in an environmentally conscious manner.
Plastic-bitumen composite roads could result in better quality roadways as they are less water absorbent. Due to the temperature swings in Canada, this could save significant amounts of money otherwise spent on maintenance.
Final Thoughts
Canadians across the country have a strong desire to protect and preserve our environment for our children and future generations.
Environmental policies need to be more than exercises in virtue-signalling.
Government needs to understand the climate that we live in, the size of our country and the economic implications of the decisions being made.
Government subsidies are unacceptable. Subsidies result in expensive infrastructure projects and bloated consumer costs. If we need a reminder of this we only have to look at the recent failing of the Ontario green energy initiative.
Government should focus on reducing red tape, encouraging competition and providing targeted tax credits. Policy that focus on tax credits require free market enterprises to undergo the leg work to get new technology to a state where it can be capitalized on. This allows the free market to determine what is viable and how to achieve capitalization in the most efficient manner.
Lastly, we need capitalize on revenues from our oil and gas sector in order to further technological advances. Passing legislation to end emissions, create a zero-plastic waste economy or any other lofty agenda neglects the real world implications of these decisions. These policies do not take into consideration the resources required to accomplish these goals. Additionally, many families are being left behind as a result of these policy decisions.
We can protect our environment through innovation. In making policy decisions, government must not take better care of the environment than the residents who call it home.
https://www.jaredpilon.com/
Alberta
COWBOY UP! Pierre Poilievre Promises to Fight for Oil and Gas, a Stronger Military and the Interests of Western Canada
Fr0m Energy Now
As Calgarians take a break from the incessant news of tariff threat deadlines and global economic challenges to celebrate the annual Stampede, Conservative party leader Pierre Poilievre gave them even more to celebrate.
Poilievre returned to Calgary, his hometown, to outline his plan to amplify the legitimate demands of Western Canada and not only fight for oil and gas, but also fight for the interests of farmers, for low taxes, for decentralization, a stronger military and a smaller federal government.
Speaking at the annual Conservative party BBQ at Heritage Park in Calgary (a place Poilievre often visited on school trips growing up), he was reminded of the challenges his family experienced during the years when Trudeau senior was Prime Minister and the disastrous effect of his economic policies.
“I was born in ’79,” Poilievre said. “and only a few years later, Pierre Elliott Trudeau would attack our province with the National Energy Program. There are still a few that remember it. At the same time, he hammered the entire country with money printing deficits that gave us the worst inflation and interest rates in our history. Our family actually lost our home, and we had to scrimp and save and get help from extended family in order to get our little place in Shaughnessy, which my mother still lives in.”
This very personal story resonated with many in the crowd who are now experiencing an affordability crisis that leaves families struggling and young adults unable to afford their first house or condo. Poilievre said that the experience was a powerful motivator for his entry into politics. He wasted no time in proposing a solution – build alliances with other provinces with mutual interests, and he emphasized the importance of advocating for provincial needs.
“Let’s build an alliance with British Columbians who want to ship liquefied natural gas out of the Pacific Coast to Asia, and with Saskatchewanians, Newfoundlanders and Labradorians who want to develop their oil and gas and aren’t interested in having anyone in Ottawa cap how much they can produce. Let’s build alliances with Manitobans who want to ship oil in the port of Churchill… with Quebec and other provinces that want to decentralize our country and get Ottawa out of our business so that provinces and people can make their own decisions.”
Poilievre heavily criticized the federal government’s spending and policies of the last decade, including the increase in government costs, and he highlighted the negative impact of those policies on economic stability and warned of the dangers of high inflation and debt. He advocated strongly for a free-market economy, advocating for less government intervention, where businesses compete to impress customers rather than impress politicians. He also addressed the decade-long practice of blocking and then subsidizing certain industries. Poilievre referred to a famous quote from Ronald Reagan as the modus operandi of the current federal regime.
“The Government’s view of the economy could be summed up in a few short phrases. If anything moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
The practice of blocking and then subsidizing is merely a ploy to grab power, according to Poilievre, making industry far too reliant on government control.
“By blocking you from doing something and then making you ask the government to help you do it, it makes you reliant. It puts them at the center of all power, and that is their mission…a full government takeover of our economy. There’s a core difference between an economy controlled by the government and one controlled by the free market. Businesses have to clamour to please politicians and bureaucrats. In a free market (which we favour), businesses clamour to impress customers. The idea is to put people in charge of their economic lives by letting them have free exchange of work for wages, product for payment and investment for interest.”
Poilievre also said he plans to oppose any ban on gas-powered vehicles, saying, “You should be in the driver’s seat and have the freedom to decide.” This is in reference to the Trudeau-era plan to ban the sale of gas-powered cars by 2035, which the Carney government has said they have no intention to change, even though automakers are indicating that the targets cannot be met. He also intends to oppose the Industrial Carbon tax, Bill C-69 the Impact Assessment Act, Bill C-48 the Oil tanker ban, the proposed emissions cap which will cap energy production, as well as the single-use plastics ban and Bill C-11, also known as the Online Streaming Act and the proposed “Online Harms Act,” also known as Bill C-63. Poilievre closed with rallying thoughts that had a distinctive Western flavour.
“Fighting for these values is never easy. Change, as we’ve seen, is not easy. Nothing worth doing is easy… Making Alberta was hard. Making Canada, the country we love, was even harder. But we don’t back down, and we don’t run away. When things get hard, we dust ourselves off, we get back in the saddle, and we gallop forward to the fight.”
Cowboy up, Mr. Poilievre.
Maureen McCall is an energy professional who writes on issues affecting the energy industry.
Alberta
Alberta and Ontario sign agreements to drive oil and gas pipelines, energy corridors, and repeal investment blocking federal policies
Alberta-Ontario MOUs fuel more pipelines and trade
Alberta Premier Danielle Smith and Ontario Premier Doug Ford have signed two memorandums of understanding (MOUs) during Premier Ford’s visit to the Calgary Stampede, outlining their commitment to strengthen interprovincial trade, drive major infrastructure development, and grow Canada’s global competitiveness by building new pipelines, rail lines and other energy and trade infrastructure.
The two provinces agree on the need for the federal government to address the underlying conditions that have harmed the energy industry in Canada. This includes significantly amending or repealing the Impact Assessment Act, as well as repealing the Oil Tanker Moratorium Act, Clean Electricity Regulations, the Oil and Gas Sector Greenhouse Gas Emissions Cap, and all other federal initiatives that discriminately impact the energy sector, as well as sectors such as mining and manufacturing. Taking action will ensure Alberta and Ontario can attract the investment and project partners needed to get shovels in the ground, grow industries and create jobs.
The first MOU focuses on developing strategic trade corridors and energy infrastructure to connect Alberta and Ontario’s oil, gas and critical minerals to global markets. This includes support for new oil and gas pipeline projects, enhanced rail and port infrastructure at sites in James Bay and southern Ontario, as well as end-to-end supply chain development for refining and processing of Alberta’s energy exports. The two provinces will also collaborate on nuclear energy development to help meet growing electricity demands while ensuring reliable and affordable power.
The second MOU outlines Alberta’s commitment to explore prioritizing made-in-Canada vehicle purchases for its government fleet. It also includes a joint commitment to reduce barriers and improve the interprovincial trade of liquor products.
“Alberta and Ontario are joining forces to get shovels in the ground and resources to market. These MOUs are about building pipelines and boosting trade that connects Canadian energy and products to the world, while advocating for the right conditions to get it done. Government must get out of the way, partner with industry and support the projects this country needs to grow. I look forward to working with Premier Doug Ford to unleash the full potential of our economy and build the future that people across Alberta and across the country have been waiting far too long for.”
“In the face of President Trump’s tariffs and ongoing economic uncertainty, Canadians need to work together to build the infrastructure that will diversify our trading partners and end our dependence on the United States. By building pipelines, rail lines and the energy and trade infrastructure that connects our country, we will build a more competitive, more resilient and more self-reliant economy and country. Together, we are building the infrastructure we need to protect Canada, our workers, businesses and communities. Let’s build Canada.”
These agreements build on Alberta and Ontario’s shared commitment to free enterprise, economic growth and nation-building. The provinces will continue engaging with Indigenous partners, industry and other governments to move key projects forward.
“Never before has it been more important for Canada to unite on developing energy infrastructure. Alberta’s oil, natural gas, and know-how will allow Canada to be an energy superpower and that will make all Canadians more prosperous. To do so, we need to continue these important energy infrastructure discussions and have more agreements like this one with Ontario.”
“These MOUs with Ontario build on the work Alberta has already done with Saskatchewan, Manitoba, Northwest Territories and the Port of Prince Rupert. We’re proving that by working together, we can get pipelines built, open new rail and port routes, and break down the barriers that hold back opportunities in Canada.”
“Canada’s economy has an opportunity to become stronger thanks to leadership and steps taken by provincial governments like Alberta and Ontario. Removing interprovincial trade barriers, increasing labour mobility and attracting investment are absolutely crucial to Canada’s future economic prosperity.”
Together, Alberta and Ontario are demonstrating the shared benefits and opportunities that result from collaborative partnerships, and what it takes to keep Canada competitive in a changing world.
Quick facts
- Steering committees with Alberta and Ontario government officials will be struck to facilitate work and cooperation under the agreements.
- Alberta and Ontario will work collaboratively to launch a preliminary joint feasibility study in 2025 to help move private sector led investments in rail, pipeline(s) and port(s) projects forward.
- These latest agreements follow an earlier MOU Premiers Danielle Smith and Doug Ford signed on June 1, 2025, to open up trade between the provinces and advance shared priorities within the Canadian federation.
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