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Energy

Nova Scotia and Feds kill offshore gas for good

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7 minute read

From the Frontier Centre for Public Policy

By Brian Zinchuk

Nova Scotia and the feds kill an offshore gas project, while their bills are paid by Alberta and Saskatchewan oil and gas

Well, isn’t that just peachy? Nova Scotia’s Progressive Conservative government teamed up with the federal Liberal government to put a bullet in the head of the province’s natural gas industry, whose body was apparently still twitching, despite having been thought dead since 2018.

On December 4, Tory Rushton, Nova Scotia Minister of Natural Resources and Renewables, and Jonathan Wilkinson, federal Minister of Energy and Natural Resources issued a joint statement overruling approval of the offshore regulator, Canada-Nova Scotia Offshore Petroleum Board.

The dollar figure, so far, wasn’t much, just $1.5 million work expenditure bid for the now dead exploration license. But if successful, the company in question, Inceptio Limited, could have maybe, just maybe, revived the offshore gas industry in Nova Scotia.

According to the regulator, there were two bids for eight parcels in the Sable Island area, only one of which was satisfactory. To be clear – the Canada-Nova Scotia Offshore Petroleum Board was apparently seeking bids for development. As in, they actually wanted companies to come and develop these natural gas resources.

But I’ll bet my reporter’s fedora someone realized it didn’t look good for Minister of Environment and Climate Change Steven Guilbeault speaking at COP28 in Dubai about how Canada would be eliminating venting and flaring, while his partner in crime Wilkinson had it in his power to kill off a new methane (natural gas) project in an area that had been purged of the demon gas industry.

No sir. That could not stand. Thus, the announcement killing the Nova Scotia exploration project on the same day as the announcement of the venting and flaring ban. (Saskatchewan calls that a “production cap by default”)

The message is clear to industry – no more new projects if the feds can stop them.

It was very clear in the joint ministerial statement that no more gas projects will be approved, so stop trying.

The ministers overrode the board, saying, “We recognize the expertise of the board and want to reiterate our confidence in the regulatory process that it undertook. However, we both agree that this decision must also account for broader policy considerations, including our shared commitments to advance clean energy and pursue economic opportunities in the clean energy sector, which are beyond the scope of the board’s regulatory purview. This decision will enable us to research and understand the interactions between the two industries as we transition to our clean energy future.

“Leveraging the experience of the Canada-Nova Scotia Offshore Petroleum Board as a world class regulator, Canada and Nova Scotia are actively pursuing the establishment of a joint regulatory regime for offshore renewable energy by amending the Atlantic Accord Acts to expand the board’s mandate so that it can regulate and enable the development of an offshore wind sector in Nova Scotia.

“This will ensure that Nova Scotians can seize the economic benefits associated with the energy transition, including the projected $1-trillion global market opportunity for offshore wind.”

In other words, there’s no future in oil or gas for you, so now you’re going to regulate offshore wind.

Never mind that just a little further down the coast, offshore wind projects are dying off. Never mind that offshore developers are in dire fiscal straits, with billions in losses. Expect the “Offshore Petroleum Board” to get a new name in the coming days.

And shame on the Conservative government of Nova Scotia for going along with this. While the governments of Saskatchewan and Alberta are standing their ground, reasserting control over natural resources, the Nova Scotia Conservatives went along with this travesty.

It’s pretty easy to do, if you don’t have to pay your own bills with your own resources. After all, Nova Scotia gets a huge chunk of its budget from the federal equalization program.

Here’s what Deputy Prime Minister and Minister of Finance Chrystia Freeland wrote to Saskatchewan Deputy Premier and Finance Minister Donna Harpauer in the most recent round of equalization payments:

“In accordance with the legislated formula under the Act and its regulations, your province does not qualify for an Equalization payment for 2023-24.”

Alberta, which has a massive oil and natural gas industry, was similarly stiffed.

And here’s what Freeland wrote to Nova Scotia Minister of Finance Allan MacMaster:

“In accordance with the legislated formula under the Act and its regulations, your province’s Equalization payment for 2023-24 will be $2,802.8 million.”

Alberta and Saskatchewan pay into equalization, largely with money from oil and gas, but Nova Scotia will continue to draw $2.8 billion from it, bit not develop their own natural gas resources.

Nova Scotia’s hospitals are still being paid for by natural gas, except that it’s Alberta and Saskatchewan’s gas, not their own.

Pretty peachy, indeed.

Brian Zinchuk is editor and owner of Pipeline Online, and occasional contributor to the Frontier Centre for Public Policy. He can be reached at [email protected].

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Energy

The Carney Government is Hijacking the Phase “Energy Superpower” to Advance Their Agenda

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From Energy Now

By Jim Warren

Lately, the spin doctors in the prime minister’s office (PMO) have been hijacking perfectly good words and altering their meaning in the service of the Liberal agenda.


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For budgetary purposes “operating expenses” have become “investments.”  Similarly, the term “energy superpower” no longer means what people typically think it means. Back in the day when the concept “energy superpower” was popularized, it was used to describe oil rich countries like Saudi Arabia, the other Gulf states and OPEC members.

Those countries are home to the oil sheiks—the leaders of OPEC who capitalized on their dominant position in global energy markets to affect the global oil supply and prices. They also used their control over oil as a source of leverage in the realm of geopolitics.

Wikipedia, the font of knowledge for lazy columnists, describes the traditional meaning of energy superpower as follows “…a country that supplies large amounts of energy resources (crude oilnatural gascoal, etc.) to a significant number of other countries – and therefore has the potential to influence world markets for political or economic gains. Energy superpower status might be exercised, for example, by significantly influencing the price on global markets or by withholding supplies.”

During the 2025 election campaign Mark Carney’s notion of what constitutes an energy superpower was aligned with the conventional definition.  A CTV news report the day after the federal election reminded viewers that on “April 8 at a campaign stop in Calgary, Carney pledged to position Canada as a ‘world energy superpower,’ calling for new [oil] pipelines, including one to Eastern Canada.”

By September of 2025, Carney and his Energy Minister Timothy Hodgson had obviously adopted a new definition. They still boast about making Canada an energy superpower but no longer referred to oil production and new export pipelines as things integral to that goal.

But wait, on Friday November 7 the prime minister told attendees at Canadian Club event in Toronto not to worry the long sought pipeline “was going to happen.”

Pardon me if I’m not convinced. Over the three months prior to Friday the Liberals had left us to assume becoming an energy superpower could happen without increasing oil production and exports.

We are still left with a riddle—what do the Carney Liberals actually mean when they promise Canadians we will achieve “energy superpower” status if crude oil, Canada’s single most valuable export commodity is no longer one of the key components of the strategy to get us there?

Actually, Canada was well on its way to achieving the status of a world class energy superpower until the Trudeau Liberals assumed office. Our budding superpower ambitions were foreclosed on by the Liberals’ growth killing BANANA* legislation which thwarted efforts to increase oil production and exports. The blue-eyed sheiks of Western Canada have been handcuffed and denounced as authors of the upcoming climate apocalypse.

(*BANANA – Build Absolutely Nothing Anywhere Near Anything)

The communications wizards in the PMO abandoned the traditional definition without actually telling anyone they were doing so. They have quietly adopted a fossil fuel-free version of what it means to be a supremely powerful purveyor of energy, but haven’t explained what that entails.

If they chose to be honest with Canadians they would say what they really mean is “green energy superpower.” But if they came clean, it would probably trigger a national unity crisis. Better to leave things loose until the budget has been approved.

Despite wishful thinking in Ottawa, Canada is a long way from winning the race for medals in the field of clean, green energy production. But, we’re so far behind the leaders that Mark Carney thinks he’s first.

Powering the dream of a net zero world will presumably rely heavily on the approximately 28 critical minerals and rare earths required for wind turbines, advanced electric motors and batteries. Canada makes it to the medals podium for just three of the 28. According to a 2024 report published by Our World in Data, Canada is in third place globally for uranium and aluminum production, and cobalt refining.

Australia, a Western-style capitalist democracy which punches close to our weight by many economic measures is far ahead of Canada when it comes to critical minerals production and proven reserves. China is in a class of its own—clearly the world leader in rare earth production and proven reserves, miles ahead of the rest of the world. When it comes to mining and refining of critical minerals Canada has a lot of catching up to do.

Canada is similarly a long way from superpower status when it comes to the manufacturing of polysilicon, the compound required to produce solar electricity, and wind turbines.

Canada does not have any commercial level producers of polysilicon. China has several firms that manufacture it, one of which GCL-Poly has a 22% share of the global market. Polysilicon is also produced by firms in the US, South Korea, Germany, Japan, Norway and Qatar. There once was a company in Canada which imported polysilicon from China which it then used to make solar panels. Apparently it has moved its operations to the US.

Globally, there are approximately 39 manufacturers of large, grid-scale wind turbines located in some 14 different countries. The world’s largest manufacturer, Vestas, is headquartered in Denmark. No large wind turbines are manufactured in Canada. Our role is limited to installation, operations and maintenance.

And, given recent events it is unlikely Canada is going to become a global superpower for the manufacturing of electric vehicles any time soon.

Canada is in third place globally for the production of hydroelectricity, although our 364.2 terawatt-hours (TWH) of electricity we generate pales in comparison with China’s 4,183.4 TWH of hydroelectric production. While the environmentally virtuous may find grounds for bragging rights with respect to our country’s hydro production, it means little in terms of leverage in a global market place. Sure Canadian producers sell electricity into the US power grid, but they are unable to sell it anywhere else. Ocean spanning transmission lines won’t work, too much power is lost when sending power long distances and selling electricity stored in batteries is not commercially viable—the batteries required are simply too big and insanely expensive.

For the foreseeable future the only way Canada can claim superpower status as a producer of clean energy is if the definition is radically changed. Apparently being identified as a clean green energy superpower can now mean that a country makes use of an impressive level of the stuff—the criteria required to be deemed an “impressive producer” is apparently one of those post-modern woke notions whereby each country is entitled to its own green energy truth.

This echoes the casual way social media mavens award superpower status to supposedly inspiring personal characteristics – my superpower is multi-tasking, or baking sourdough bread, or being an avid recycler. It makes about as much sense as claiming you are a hero because you held a guy’s mitts so he could dial 911 to report an accident.

It is sad, but true, that Canada was well on its way to energy superpower status prior to the federal Liberals coming to office in 2015. Crude oil was then and remains Canada’s single most valuable export product. We currently export approximately 4.2 million barrels per day which was worth 153 billion USD in 2024. Back in 2013 and early 2014 when world prices were good the oil industry was generating as much as three to four percent of Canada’s GDP.

Clearly Canada could be doing a whole lot better economically if the federal government got behind the oil industry and removed the barriers to growth in production and exports. Danielle Smith has been trying to alert the Canadian government and public to the reality that completion of a single million barrels per day oil pipeline from Alberta to Prince Rupert could contribute $20 to $30 billion in new revenues to Canada’s GDP, depending on world prices.

That would be a giant leap forward on the path to being a real energy superpower.

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Alberta

‘Weird and wonderful’ wells are boosting oil production in Alberta and Saskatchewan

Published on

From the Canadian Energy Centre

By Deborah Jaremko

Multilateral designs lift more energy with a smaller environmental footprint

A “weird and wonderful” drilling innovation in Alberta is helping producers tap more oil and gas at lower cost and with less environmental impact.

With names like fishbone, fan, comb-over and stingray, “multilateral” wells turn a single wellbore from the surface into multiple horizontal legs underground.

“They do look spectacular, and they are making quite a bit of money for small companies, so there’s a lot of interest from investors,” said Calin Dragoie, vice-president of geoscience with Calgary-based Chinook Consulting Services.

Dragoie, who has extensively studied the use of multilateral wells, said the technology takes horizontal drilling — which itself revolutionized oil and gas production — to the next level.

“It’s something that was not invented in Canada, but was perfected here. And it’s something that I think in the next few years will be exported as a technology to other parts of the world,” he said.

Dragoie’s research found that in 2015 less than 10 per cent of metres drilled in Western Canada came from multilateral wells. By last year, that share had climbed to nearly 60 per cent.  

Royalty incentives in Alberta have accelerated the trend, and Saskatchewan has introduced similar policy.

Multilaterals first emerged alongside horizontal drilling in the late 1990s and early 2000s, Dragoie said. But today’s multilaterals are longer, more complex and more productive.

The main play is in Alberta’s Marten Hills region, where producers are using multilaterals to produce shallow heavy oil.

Today’s average multilateral has about 7.5 horizontal legs from a single surface location, up from four or six just a few years ago, Dragoie said.

One record-setting well in Alberta drilled by Tamarack Valley Energy in 2023 features 11 legs stretching two miles each, for a total subsurface reach of 33 kilometres — the longest well in Canada.

By accessing large volumes of oil and gas from a single surface pad, multilaterals reduce land impact by a factor of five to ten compared to conventional wells, he said.

The designs save money by skipping casing strings and cement in each leg, and production is amplified as a result of increased reservoir contact.

Here are examples of multilateral well design. Images courtesy Chinook Consulting Services.

Parallel

Fishbone

Fan

Waffle

Stingray

Frankenwells

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