Energy
UN Secretary-General Ramps Up Tiresome Climate-Fright Rhetoric One More Time
From the Daily Caller News Foundation
In his unending quest to constantly heat up fright rhetoric about climate change, United Nations Secretary-General Antonio Guterres last week referred to oil companies as “the godfathers of climate chaos” and urged national governments to place bans on their ability to advertise their products.
Speaking at an event called World Climate Day, Guterres told attendees that “we are playing Russian roulette with our planet,” adding, “we need an exit ramp off this highway to hell.”
The latter bit of hyperbolic nonsense was a reference to a bit of fright rhetoric he unveiled during the COP27 conference held in Egypt in November 2022. In that speech, Guterres warned: “We are on a highway to climate hell with our foot on the accelerator.”
He also warned, outrageously, that: “We can sign a climate solidarity pact, or a collective suicide pact.”
The global media establishment threw a collective hissy fit in March when former President Donald Trump used the term “bloodbath” to describe the damage that Biden administration policies are doing to the U.S. auto industry. Imagine the pearl clutching that would take place at the same media outlets if the GOP presidential candidate used the term “collective suicide pact” to describe his opponent’s climate policies.
Talking heads at CNN and MSNBC might faint dead away on air.
But because Guterres is a key pusher of the preferred climate narrative, his bombastic rhetoric is fine. In his most recent salvo, the secretary general failed to include reference to his July 2023 claim that the hot weather last summer (who knew it is hot in New York in July?) meant that “the era of global warming has ended” and “the era of global boiling has arrived.” We should all be grateful for that omission.
Guterres’ latest bit of panic speech comes as world events indicate that the climate change narrative is failing. The just-completed elections for the European Union Parliament resulted in a rejection of Europe’s ruling class that was significant enough to convince Belgian Prime Minister Alexander de Croo to resign and French President Emmanuel Macron to dissolve France’s parliament and call for snap elections.
In the United States, poll after poll shows low support for the Biden energy and climate agenda, and Energy Secretary Jennifer Granholm is suddenly showing strong support for nuclear energy. Meanwhile, Biden’s vaunted offshore wind initiatives are faltering badly, and the U.S. electric-vehicle industry is also struggling.
In an op-ed in the Wall Street Journal entitled “The Climate Crisis Fades Out,” former Obama climate advisor and author Steven Koonin says one reason why the climate alarm rhetoric is failing to move voters lies in the reality that “the energy transition’s purported climate benefits are distant, vague and uncertain while the costs and disruption of rapid decarbonization are immediate and substantial. The world has many more urgent needs, including the provision of reliable and affordable energy to all.”
Noting that the preferred, rent-seeking “solutions” to climate change offered by the ruling class are not really solutions at all — a theme I’ve written about for several years now — Koonin posits that we should be happy that the “crisis” narrative is failing and fading as it goes through what he refers to as the “issues-attention cycle.”
As a result of this focus on these non-solutions, global emissions have continued to rise in this century. Fossil fuels still provide roughly 80% of primary energy now despite more than $12 trillion in renewable energy investments in just the past 9 years. Koonin points out that the “latest United Nations emissions report projects that emissions in 2030 will be almost twice as high as a level compatible with the [2015 Paris Agreement] aspiration.”
Koonin believes the public’s fading attention to the issue of climate alarmism “means that today’s ineffective, inefficient, and ill-considered climate-mitigation strategies will be abandoned, making room for a more thoughtful and informed approach to responsibly providing for the world’s energy needs.”
But seeking more thoughtful and informed approaches does not appear to be a high priority at the UN these days, so we can all sit back and wait to see how Guterres will attempt to ramp up his tiresome, counterproductive hyperbole next. Expecting anything more is a fool’s errand.
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.
Alberta
Alberta Premier Danielle Smith Discusses Moving Energy Forward at the Global Energy Show in Calgary
From Energy Now
At the energy conference in Calgary, Alberta Premier Danielle Smith pressed the case for building infrastructure to move provincial products to international markets, via a transportation and energy corridor to British Columbia.
“The anchor tenant for this corridor must be a 42-inch pipeline, moving one million incremental barrels of oil to those global markets. And we can’t stop there,” she told the audience.
The premier reiterated her support for new pipelines north to Grays Bay in Nunavut, east to Churchill, Man., and potentially a new version of Energy East.
The discussion comes as Prime Minister Mark Carney and his government are assembling a list of major projects of national interest to fast-track for approval.
Carney has also pledged to establish a major project review office that would issue decisions within two years, instead of five.
Alberta
Punishing Alberta Oil Production: The Divisive Effect of Policies For Carney’s “Decarbonized Oil”
From Energy Now
By Ron Wallace
The federal government has doubled down on its commitment to “responsibly produced oil and gas”. These terms are apparently carefully crafted to maintain federal policies for Net Zero. These policies include a Canadian emissions cap, tanker bans and a clean electricity mandate.
Following meetings in Saskatoon in early June between Prime Minister Mark Carney and Canadian provincial and territorial leaders, the federal government expressed renewed interest in the completion of new oil pipelines to reduce reliance on oil exports to the USA while providing better access to foreign markets. However Carney, while suggesting that there is “real potential” for such projects nonetheless qualified that support as being limited to projects that would “decarbonize” Canadian oil, apparently those that would employ carbon capture technologies. While the meeting did not result in a final list of potential projects, Alberta Premier Danielle Smith said that this approach would constitute a “grand bargain” whereby new pipelines to increase oil exports could help fund decarbonization efforts. But is that true and what are the implications for the Albertan and Canadian economies?
The federal government has doubled down on its commitment to “responsibly produced oil and gas”. These terms are apparently carefully crafted to maintain federal policies for Net Zero. These policies include a Canadian emissions cap, tanker bans and a clean electricity mandate. Many would consider that Canadians, especially Albertans, should be wary of these largely undefined announcements in which Ottawa proposes solely to determine projects that are “in the national interest.”
The federal government has tabled legislation designed to address these challenges with Bill C-5: An Act to enact the Free Trade and Labour Mobility Act and the Building Canada Act (the One Canadian Economy Act). Rather than replacing controversial, and challenged, legislation like the Impact Assessment Act, the Carney government proposes to add more legislation designed to accelerate and streamline regulatory approvals for energy and infrastructure projects. However, only those projects that Ottawa designates as being in the national interest would be approved. While clearer, shorter regulatory timelines and the restoration of the Major Projects Office are also proposed, Bill C-5 is to be superimposed over a crippling regulatory base.
It remains to be seen if this attempt will restore a much-diminished Canadian Can-Do spirit for economic development by encouraging much-needed, indeed essential interprovincial teamwork across shared jurisdictions. While the Act’s proposed single approval process could provide for expedited review timelines, a complex web of regulatory processes will remain in place requiring much enhanced interagency and interprovincial coordination. Given Canada’s much-diminished record for regulatory and policy clarity will this legislation be enough to persuade the corporate and international capital community to consider Canada as a prime investment destination?
As with all complex matters the devil always lurks in the details. Notably, these federal initiatives arrive at a time when the Carney government is facing ever-more pressing geopolitical, energy security and economic concerns. The Organization for Economic Co-operation and Development predicts that Canada’s economy will grow by a dismal one per cent in 2025 and 1.1 per cent in 2026 – this at a time when the global economy is predicted to grow by 2.9 per cent.
It should come as no surprise that Carney’s recent musing about the “real potential” for decarbonized oil pipelines have sparked debate. The undefined term “decarbonized”, is clearly aimed directly at western Canadian oil production as part of Ottawa’s broader strategy to achieve national emissions commitments using costly carbon capture and storage (CCS) projects whose economic viability at scale has been questioned. What might this mean for western Canadian oil producers?
The Alberta Oil sands presently account for about 58% of Canada’s total oil output. Data from December 2023 show Alberta producing a record 4.53 million barrels per day (MMb/d) as major oil export pipelines including Trans Mountain, Keystone and the Enbridge Mainline operate at high levels of capacity. Meanwhile, in 2023 eastern Canada imported on average about 490,000 barrels of crude oil per day (bpd) at a cost estimated at CAD $19.5 billion. These seaborne shipments to major refineries (like New Brunswick’s Irving Refinery in Saint John) rely on imported oil by tanker with crude oil deliveries to New Brunswick averaging around 263,000 barrels per day. In 2023 the estimated total cost to Canada for imported crude oil was $19.5 billion with oil imports arriving from the United States (72.4%), Nigeria (12.9%), and Saudi Arabia (10.7%). Since 1988, marine terminals along the St. Lawrence have seen imports of foreign oil valued at more than $228 billion while the Irving Oil refinery imported $136 billion from 1988 to 2020.
What are the policy and cost implication of Carney’s call for the “decarbonization” of western Canadian produced, oil? It implies that western Canadian “decarbonized” oil would have to be produced and transported to competitive world markets under a material regulatory and financial burden. Meanwhile, eastern Canadian refiners would be allowed to import oil from the USA and offshore jurisdictions free from any comparable regulatory burdens. This policy would penalize, and makes less competitive, Canadian producers while rewarding offshore sources. A federal regulatory requirement to decarbonize western Canadian crude oil production without imposing similar restrictions on imported oil would render the One Canadian Economy Act moot and create two market realities in Canada – one that favours imports and that discourages, or at very least threatens the competitiveness of, Canadian oil export production.
Ron Wallace is a former Member of the National Energy Board.
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