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Biden chose Venezuela over Canada for oil

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From the MacDonald Laurier Institute

By Brian Lee Crowley

Biden is welcoming oil from one of Latin America’s most odious regimes. It’s a big win for Nicolás Maduro, but a bad deal for America and Canada

The United States needs more heavy oil for a whole series of reasons. President Joe Biden could have chosen to have that oil come from a close friend and ally, environmentally-conscious Canada, or from one of the world’s nastiest regimes, Nicolas Maduro’s Venezuela, which doesn’t give a toss about the environment. Which did he choose?

Venezuela, of course.

In exchange for modest concessions on electoral reform, the Biden administration just lifted sanctions on Venezuela, allowing them to export hundreds of thousands of barrels a day of vital heavy oil to the United States. The shale oil revolution has not and cannot change the fact that the US produces virtually no heavy oil, yet many of this country’s refineries, especially on the Gulf Coast, were set up to refine that kind of oil. Most of their heavy oil is from Canada, which is why that country is far and away the largest exporter of oil to America— more than twice as much as Saudi Arabia, Mexico, Russia, and Colombia combined. If America is now a net exporter of oil, it can thank Canada.

The war in Ukraine caused unpopular price hikes at the gas pump. In response, the Biden administration has drawn down the Strategic Petroleum Reserve (SPR). That drawdown focused on medium and heavy crudes. OPEC responded with supply cuts aimed at throttling the supply of these strategically important crudes.

The drawdown of the SPR is reaching its limits but the risk of higher gas prices in an election year is rising. To OPEC and Ukraine, we must now add the heightened risk of conflict spreading in the Middle East.

In this context, recall that one of the very first acts President Biden took on reaching office was to cancel the permit for the Keystone XL (KXL) pipeline, a permit issued by his predecessor. Keystone XL was intended to provide 830,000 barrels a day of Canadian heavy crude to those Gulf Coast refineries. Pipe was already being laid.

Had President Biden allowed KXL to proceed, the supply of heavy oil to the US industry would have been secure, risky drawdowns of the SPR unnecessary and America would have been much less vulnerable to global supply disruptions and OPEC’s manipulations.

Instead, the President colluded with a campaign to vilify oil from Alberta’s oilsands as “dirty oil.” Yes, producing Canada’s heavy oil emits greenhouse gases. But then all heavy oil is GHG intensive, and Venezuela is the highest emitting in the world.

The Canadian oil & gas sector has invested heavily and successfully in emissions reductions. The industry has a $75 billion plan to decarbonize and achieve net zero by 2050, focused on carbon capture and storage and small modular nuclear reactors.

Venezuela has done nada in terms of real improvement in the environmental footprint of its heavy oil production. What it does have is a regime that is world-leading in terms of its human rights abuses and the damage it has inflicted on a once-prosperous economy. Every dollar America spends on Venezuelan oil will prop up one of the most violent and repressive regimes in the Americas, where Amnesty International says in 2022:

The security forces responded with excessive force and other repressive measures to protests…to demand economic and social rights, including the right to water. Impunity for ongoing extrajudicial executions by the security forces persisted. Intelligence services and other security forces, with the acquiescence of the judicial system, continued to arbitrarily detain, torture, and otherwise ill-treat those perceived to be opponents of the government of Nicolás Maduro.

A recent UN Fact Finding Mission to Venezuela talked about the “unremitting human rights crisis” and patterns of crimes against humanity in that country. Nearly 8 million Venezuelans are estimated to have fled the economic and humanitarian crisis there.

Meanwhile, Canada, while not perfect, has robust human rights protections and high environmental standards. It is also a magnet for immigrants (including tens of thousands of Venezuelans), having one of the highest shares of its population born elsewhere in any country in the world.

In 2021 President Biden was happy to offend one of America’s closest allies by blocking KXL because it was inconsistent “with my administration’s economic and climate imperatives.”  Three short years later, behind the fig leaf of Venezuelan electoral reform, he is welcoming much more environmentally damaging oil from one of Latin America’s most odious regimes, all to try and keep the price down at the pump. That’s a big win for Nicolás Maduro, but a bad deal for America and Canada.

Brian Lee Crowley is the Managing Director of the Center for North American Prosperity and Security (www.cnaps.org).

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Canadian Energy Centre

Trans Mountain completion shows victory of good faith Indigenous consultation

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Photo courtesy Trans Mountain Corporation

From the Canadian Energy Centre

By Joseph Quesnel

‘Now that the Trans Mountain expansion is finally completed, it will provide trans-generational benefits to First Nations involved’

While many are celebrating the completion of the Trans Mountain pipeline expansion project for its benefit of delivering better prices for Canadian energy to international markets, it’s important to reflect on how the project demonstrates successful economic reconciliation with Indigenous communities.

It’s easy to forget how we got here.

The history of Trans Mountain has been fraught with obstacles and delays that could have killed the project, but it survived. This stands in contrast to other pipelines such as Energy East and Keystone XL.

Starting in 2012, proponent Kinder Morgan Canada engaged in consultation with multiple parties – including many First Nation and Métis communities – on potential project impacts.

According to Trans Mountain, there have been 73,000 points of contact with Indigenous communities throughout Alberta and British Columbia as the expansion was developed and constructed. The new federal government owners of the pipeline committed to ongoing consultation during early construction and operations phase.

Beyond formal Indigenous engagement, the project proponent conducted numerous environmental and engineering field studies. These included studies drawing on deep Indigenous input, such as traditional ecological knowledge studies, traditional land use studies, and traditional marine land use studies.

At each stage of consultation, the proponent had to take into consideration this input, and if necessary – which occurred regularly – adjust the pipeline route or change an approach.

With such a large undertaking, Kinder Morgan and later Trans Mountain Corporation as a government entity had to maintain relationships with many Indigenous parties and make sure they got it right.

Trans Mountain participates in a cultural ceremony with the Shxw’ōwhámél First Nation near Hope, B.C. Photograph courtesy Trans Mountain

It was the opposite of the superficial “checklist” form of consultation that companies had long been criticized for.

While most of the First Nation and Métis communities engaged in good faith with Kinder Morgan, and later the federal government, and wanted to maximize environmental protections and ensure they got the best deal for their communities, environmentalist opponents wanted to kill the project outright from the start.

After the government took over the incomplete expansion in 2018, green activists were transparent about using cost overruns as a tactic to scuttle and defeat the project. They tried to make Trans Mountain ground zero for their anti-energy divestment crusade, targeting investors.

It is an amazing testament to importance of Trans Mountain that it survived this bad faith onslaught.

In true eco-colonialist fashion, the non-Indigenous activist community did not care that the consultation process for Trans Mountain project was achieving economic reconciliation in front of their eyes. They were “fair weather friends” who supported Indigenous communities only when they opposed energy projects.

They missed the broad support for the Trans Mountain expansion. As of March 2023, the project had signed agreements with 81 Indigenous communities along the proposed route worth $657 million, and the project has created over $4.8 billion in contracts with Indigenous businesses.

Most importantly, Trans Mountain saw the maturing of Indigenous capital as Indigenous coalitions came together to seek equity stakes in the pipeline. Project Reconciliation, the Alberta-based Iron Coalition and B.C.’s Western Indigenous Pipeline Group all presented detailed proposals to assume ownership.

Although these equity proposals have not yet resulted in a sale agreement, they involved taking that important first step. Trans Mountain showed what was possible for Indigenous ownership, and now with more growth and perhaps legislative help from provincial and federal governments, an Indigenous consortium will be eventually successful when the government looks to sell the project.

If an Indigenous partner ultimately acquires an equity stake in Trans Mountain, observers close to the negotiations are convinced it will be a sizeable stake, well beyond 10 per cent. It will be a transformative venture for many First Nations involved.

Now that the Trans Mountain expansion is finally completed, it will provide trans-generational benefits to First Nations involved, including lasting work for Indigenous companies. It will also demonstrate the victory of good faith Indigenous consultation over bad faith opposition.

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Economy

Biden signs suicidal ‘No Coal’ pact, while rest of world builds 1,000 new plants

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From Heartland Daily News

By  James Taylor James Taylor

The Biden administration has just signed an economic suicide pact that would require the United States and six other Western democracies to shut down its coal power plants by 2035, while China, India and the rest of the world currently have more than 1,000 new coal power plants in the planning or construction phase. The no-coal pact allows all nations but the Suicidal Seven to continue using as much affordable coal power as they like.

Climate activists often point to China as a climate role model, noting that China manufactures more wind and solar power equipment than any other nation. China, however, isn’t stupid enough to use much of that equipment. Realizing that conventional energy – and especially coal power – is more affordable and reliable than wind and solar power, China manufactures wind and solar equipment, sells the equipment to America and Western Europe, and then powers its own economy primarily with coal power.

In America, government intervention has already caused the shutdown of many coal power plants and the construction of expensive wind and solar projects. In more than half the states, renewable power mandates require a certain percentage of electricity in the state to come from wind or solar. Federal laws and regulations punish coal power at nearly every step of coal mining and utilization. Massive subsidies for wind and solar allow wind and solar providers to charge substantially reduced prices for their product at taxpayers’ expense.

Even with government tipping the scale so heavily in favor of wind and solar power, the so-called green transition is coming with an enormous price tag. According to the U.S. Energy Information Administration, there was a 21 percent increase in wind and solar power since Joe Biden took office in January 2021 through the end of 2023. At the same time, electricity prices also rose by 21 percent. Prior to Biden taking office, the long-term electricity price trend was an increase of approximately 1 percent per year. The green transition has increased the pace of electricity price inflation by 700 percent. And that doesn’t account for all the wind and solar subsidies that are hidden in our tax bills.

There is little reason to believe we are on the verge of a climate crisis. A good resource documenting this good news is ClimateRealism.com. Yet, even if a climate crisis were imminent, unilateral coal disarmament is a foolish way for America to approach carbon dioxide emissions.

Since 2000, the United States has reduced its carbon dioxide emissions more than any other country in the world. U.S. emissions are down 21 percent, while the rest of the world has increased its emissions by 47 percent. Clearly, America “showing leadership” reducing carbon dioxide emissions is leading to nothing other than the rest of the world free license to jack up their own emissions. Even if the United States and the rest of the Suicidal Seven could somehow eliminate all of their emissions, it would have little impact on the global trend.

Ultimately, Biden’s pact to eliminate American coal use will further ramp up inflation. After all, energy is an important cost component in almost every product bought and sold in the economy. In addition to the inflation impact, Biden’s pact will force American businesses into a major competitive disadvantage versus businesses in China, India, and the rest of the world, which will be paying substantially lower energy costs than American businesses.

Under Biden’s plan, we will end up sinking vast economic resources into eliminating coal power and as much carbon dioxide as possible from the American economy. Even then, we will still be looking at global emissions continuing to rise. At that point, Biden’s plan is for America to assume the lion’s share of global “climate reparations” and financial bribes to induce China, India, and the rest of the world to reduce their carbon dioxide emissions. After sabotaging our own economy with higher energy prices, we will literally borrow money from China in order to then bribe China to reduce its carbon dioxide emissions.

It would be hard to think of a crazier domestic energy policy.

James Taylor ([email protected]) is president of The Heartland Institute.

Originally published by The Center Square. Republished with permission.

For more on the U.S. electric power system, click here.

For more on coal, click here.

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