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Alberta

Alberta Premier tells environmental heckler a battery-powered electrical grid is pure ‘fantasy’

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From LifeSiteNews

By Anthony Murdoch

‘There is no industrialized economy in the world operating that way,’ Danielle Smith said at the 2023 Alberta Climate Summit

Alberta Premier Danielle Smith tore a page off a heckler’s fantasy suggestion of a solar and wind battery-powered future after she stepped into the lion’s den to advocate for oil and gas at a conference hosted by a pro-climate change think tank.

On October 26, Smith spoke at the Pembina Institute’s “2023 Alberta Climate Summit” in a Fireside Chat, Premier Smith with Dave Kelly” to argue in favor of oil and gas and against proposals to phase out Alberta’s main energy industry.

While offering remarks in support of Alberta’s energy industry that includes fighting a federal government rule decreeing net-zero power emissions by 2035, Smith said trying to have the province go off natural gas for power generation by that year would be impossible after a heckler interrupted her.

Smith responded to the heckler by saying, “Do think I can get an equivalent amount of nuclear rolled out in 12 years? Do you think I could do that in an environment that we’ve never had nuclear before?”

“And what do I do when there’s no sun and there’s no wind?” she added.

At this point, the heckler shouted, “Batteries,” which irked Smith.

“Let’s talk about batteries, because I’ve talked to somebody and I want to I want to talk about batteries for a minute, because I know that everybody thinks that this economy is going to be operated on wind and solar and battery power and it cannot,” she said.

“There is no industrialized economy in the world operating that way because they need baseload. And I’ll tell you what I know about batteries because I talked to somebody who was thinking of investing in it on a 200-megawatt plant, $1 million to be able to get each megawatt stored. That’s $200 million for his plant alone. And he would get one hour of storage.”

Smith said that if one wants to have “12,000 megawatts of storage, that’s $12 billion for one hour of storage, $24 billion for two hours of storage, $36 billion for three hours of storage.”

Companies such as Tesla offer both home as well as commercial battery pack applications that are designed to store electricity from wind, solar or the grid. However, such packs are massively costly and come with their own negative environmental footprints.

The institute’s goals align with those of the federal government under Prime Minister Justin Trudeau, who has imposed a punitive carbon tax on all Canadians.

‘Fantasy thinking’ won’t keep the lights on in winter, Smith says

Replying to the heckler, Smith stressed how in Alberta, which gets most of its power via natural gas and coal generators, with some solar and wind, there are “long stretches in winter where we can go weeks without wind or solar.”

“That is the reason why we need legitimate real solutions that rely on baseload power rather than fantasy thinking,” she said. “And I’m not going to engage in fantasy thinking and see something is possible when I know that my principal job, I think we need to stop.”

Smith said her “principal job is to have a reliable energy grid” and added that is what she is “trying to do.”

Former Liberal MP turned gas price analyst Dan McTeague, who is against the carbon tax and the push to ban gas-powered cars in favor of electric vehicles, said Smith’s remarks were “beautiful.”

“Beautiful,” McTeague wrote on X (formerly Twitter).

“Climate extremism performs poorly when confronted with reality.”

Trudeau’s carbon tax scheme falling apart

Cracks have begun to form recently. Faced with dismal polling numbers, Trudeau announced he was pausing the collection of the carbon tax on home heating oil in Atlantic Canadian provinces for three years.

This caused a immediate reaction from Saskatchewan Premier Scott Moe, who said his province will stop collecting a federal carbon tax on natural gas used to heat homes come January 1, 2024, unless it gets the similar tax break that Atlantic Canadian provinces.

The Trudeau government’s current environmental goals – in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” – include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades.

The reduction and eventual elimination of the use of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF) – the globalist group behind the socialist “Great Reset” agenda – an organization in which Trudeau and some of his cabinet are involved.

The Trudeau government has also defied a recent Supreme Court ruling and will push ahead with its net-zero emission regulations.

Canada’s Supreme Court recently ruled that the federal government’s “no more pipelines” legislation is mostly unconstitutional after a long legal battle with the province of Alberta, where the Conservative government opposes the radical climate change agenda.

Alberta has repeatedly promised to place the interests of their people above the Trudeau government’s “unconstitutional” demands while consistently reminding the federal government that their infrastructures and economies depend upon oil, gas, and coal.

Alberta

Game changer: Trans Mountain pipeline expansion complete and starting to flow Canada’s oil to the world

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Workers complete the “golden weld” of the Trans Mountain pipeline expansion on April 11, 2024 in the Fraser Valley between Hope and Chilliwack, B.C. The project saw mechanical completion on April 30, 2024. Photo courtesy Trans Mountain Corporation

From the Canadian Energy Centre

By Will Gibson

‘We’re going to be moving into a market where buyers are going to be competing to buy Canadian oil’

It is a game changer for Canada that will have ripple effects around the world.  

The Trans Mountain pipeline expansion is now complete. And for the first time, global customers can access large volumes of Canadian oil, with the benefits flowing to Canada’s economy and Indigenous communities.  

“We’re going to be moving into a market where buyers are going to be competing to buy Canadian oil,” BMO Capital Markets director Randy Ollenberger said recently, adding this is expected to result in a better price for Canadian oil relative to other global benchmarks. 

The long-awaited expansion nearly triples capacity on the Trans Mountain system from Edmonton to the West Coast to approximately 890,000 barrels per day. Customers for the first shipments include refiners in China,  California and India, according to media reports.  

Shippers include all six members of the Pathways Alliance, a group of companies representing 95 per cent of oil sands production that together plan to reduce emissions from operations by 22 megatonnes by 2030 on the way to net zero by 2050.  

The first tanker shipment from Trans Mountain’s expanded Westridge Marine Terminal is expected later in May.

Photo courtesy Trans Mountain Corporation

 The new capacity on the Trans Mountain system comes as demand for Canadian oil from markets outside the United States is on the rise.  

According to the Canada Energy Regulator, exports to destinations beyond the U.S. have averaged a record 267,000 barrels per day so far this year, up from about 130,000 barrels per day in 2020 and 33,000 barrels per day in 2017. 

“Oil demand globally continues to go up,” said Phil Skolnick, New York-based oil market analyst with Eight Capital.  

“Both India and China are looking to add millions of barrels a day of refining capacity through 2030.” 

In India, refining demand will increase mainly for so-called medium and heavy oil like what is produced in Canada, he said. 

“That’s where TMX is the opportunity for Canada, because that’s the route to get to India.”  

Led by India and China, oil demand in the Asia-Pacific region is projected to increase from 36 million barrels per day in 2022 to 52 million barrels per day in 2050, according to the U.S. Energy Information Administration. 

More oil coming from Canada will shake up markets for similar world oil streams including from Russia, Ecuador, and Iraq, according to analysts with Rystad Energy and Argus Media. 

Expanded exports are expected to improve pricing for Canadian heavy oil, which “have been depressed for many years” in part due to pipeline shortages, according to TD Economics.  

Photo courtesy Trans Mountain Corporation

 In recent years, the price for oil benchmark Western Canadian Select (WCS) has hovered between $18-$20 lower than West Texas Intermediate (WTI) “to reflect these hurdles,” analyst Marc Ercolao wrote in March 

“That spread should narrow as a result of the Trans Mountain completion,” he wrote. 

“Looking forward, WCS prices could conservatively close the spread by $3–4/barrel later this year, which will incentivize production and support industry profitability.”  

Canada’s Parliamentary Budget Office has said that an increase of US$5 per barrel for Canadian heavy oil would add $6 billion to Canada’s economy over the course of one year. 

The Trans Mountain Expansion will leave a lasting economic legacy, according to an impact assessment conducted by Ernst & Young in March 2023.  

In addition to $4.9 billion in contracts with Indigenous businesses during construction, the project leaves behind more than $650 million in benefit agreements and $1.2 billion in skills training with Indigenous communities.   

Ernst & Young found that between 2024 and 2043, the expanded Trans Mountain system will pay $3.7 billion in wages, generate $9.2 billion in GDP, and pay $2.8 billion in government taxes. 

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Alberta

Alberta government should eliminate corporate welfare to generate benefits for Albertans

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From the Fraser Institute

By Spencer Gudewill and Tegan Hill

Last November, Premier Danielle Smith announced that her government will give up to $1.8 billion in subsidies to Dow Chemicals, which plans to expand a petrochemical project northeast of Edmonton. In other words, $1.8 billion in corporate welfare.

And this is just one example of corporate welfare paid for by Albertans.

According to a recent study published by the Fraser Institute, from 2007 to 2021, the latest year of available data, the Alberta government spent $31.0 billion (inflation-adjusted) on subsidies (a.k.a. corporate welfare) to select firms and businesses, purportedly to help Albertans. And this number excludes other forms of government handouts such as loan guarantees, direct investment and regulatory or tax privileges for particular firms and industries. So the total cost of corporate welfare in Alberta is likely much higher.

Why should Albertans care?

First off, there’s little evidence that corporate welfare generates widespread economic growth or jobs. In fact, evidence suggests the contrary—that subsidies result in a net loss to the economy by shifting resources to less productive sectors or locations (what economists call the “substitution effect”) and/or by keeping businesses alive that are otherwise economically unviable (i.e. “zombie companies”). This misallocation of resources leads to a less efficient, less productive and less prosperous Alberta.
And there are other costs to corporate welfare.

For example, between 2007 and 2019 (the latest year of pre-COVID data), every year on average the Alberta government spent 35 cents (out of every dollar of business income tax revenue it collected) on corporate welfare. Given that workers bear the burden of more than half of any business income tax indirectly through lower wages, if the government reduced business income taxes rather than spend money on corporate welfare, workers could benefit.

Moreover, Premier Smith failed in last month’s provincial budget to provide promised personal income tax relief and create a lower tax bracket for incomes below $60,000 to provide $760 in annual savings for Albertans (on average). But in 2019, after adjusting for inflation, the Alberta government spent $2.4 billion on corporate welfare—equivalent to $1,034 per tax filer. Clearly, instead of subsidizing select businesses, the Smith government could have kept its promise to lower personal income taxes.

Finally, there’s the Heritage Fund, which the Alberta government created almost 50 years ago to save a share of the province’s resource wealth for the future.

In her 2024 budget, Premier Smith earmarked $2.0 billion for the Heritage Fund this fiscal year—almost the exact amount spent on corporate welfare each year (on average) between 2007 and 2019. Put another way, the Alberta government could save twice as much in the Heritage Fund in 2024/25 if it ended corporate welfare, which would help Premier Smith keep her promise to build up the Heritage Fund to between $250 billion and $400 billion by 2050.

By eliminating corporate welfare, the Smith government can create fiscal room to reduce personal and business income taxes, or save more in the Heritage Fund. Any of these options will benefit Albertans far more than wasteful billion-dollar subsidies to favoured firms.

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