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Energy

Energy wise, how do you even describe 2024?

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16 minute read

From the Frontier Centre for Public Policy

By Terry Etam

There still remains a full court press in North America/western Europe among certain socioeconomic classes to “just stop oil” and the like. While we as an industry in many ways remain in our foxholes, and the opponents of hydrocarbons roam freely, looking to criminalize if at all possible any positive dialogue about the value of hydrocarbons.

Huh. Look at that. It’s been ten years since I started writing about energy. Not that that particular trivia interests anyone, why would it, however it is interesting to look back at the impetus for writing and how that has changed.

Ten years ago, as I worked in a communications department for an energy infrastructure business that did not like publicity of any kind whatsoever, it began to dawn on me how dangerous were the habits that formed thereof, and how far reaching the consequences. As but one example, anti-pipeline activists were all over Washington DC like ants on a mound, pressuring the government to kill the Keystone XL pipeline. They swarmed social media and a motivated army spread the gospel like wildfire, truth be damned.

The pipeline industry looked at the energy ignoramuses and kind of just sniggered, for they knew they were right – pipelines were and are the safest and most reliable form of liquid/gas transportation, forming a global industrial backbone we can’t even imagine living without – and there seemed a largely prevailing attitude in industry that these pipeline facts were so glaringly obvious that everyone would figure it out. I still hear the chortling: “Look at those lunatics, protesting pipelines without knowing they’re standing on one that’s been there for 40 years.”

Yeah, well, the lunatics did pretty well didn’t they… Keystone XL is a distant memory, the US Mountain Valley Pipeline is years late and twice over budget, and even TMX is only now limping into service at what, about 700 times over budget and equally late… I shudder to think what kind of back room deals were cut with extremists who promised TMX would never be built and yet now stand silent. If we had a conservative prime minister at the helm now trying to complete TMX, I would bet my ears that the going wouldn’t be as protest-lite as it is now.

Ten years ago, the impetus was to fill a void in public energy knowledge because there wasn’t much of an effective voice that was doing so. If there was, there was scant evidence of any success. So that was kind of fun, going for the low hanging fruit of explaining energy nuances to a public that cared about nothing except utility bills and what it cost to fill up the family beast.

But that excitement faded as the energy industry’s inability to articulate its value was overwhelmed by the likes of Greta Thunberg, a Swedish teen that was hoisted onto the shoulders of cagey mobs, and thrust into the public consciousness as some sort of Jesus-like figure. At that point, the battlefield was completely overrun, and the oil/gas industry seemed to head underground and wait for the storm to pass. What a mistake.

There still remains a full court press in North America/western Europe among certain socioeconomic classes to “just stop oil” and the like. While we as an industry in many ways remain in our foxholes, and the opponents of hydrocarbons roam freely, looking to criminalize if at all possible any positive dialogue about the value of hydrocarbons. But. The anti-fossil fuel people are so busy working on Orwellian regulations/policies/roadmaps that they haven’t looked over their shoulders at the storm clouds brewing, the ones that hydrocarbon producers always knew would arrive.

As seven out of eight billion people on earth strive to live like the west does, the inevitable is happening: global demand for energy, in all forms, is soaring, and absolutely no one wants to take a step backwards in terms of standard of living. The world wants to add a billion air conditioners, because those things are life-transforming (see: any modern glass-cube high rise residential/commercial building, modern hospitals/seniors centers, etc), and the comfy west wants to add an estimated $250 billion per year in data centers because we can and it looks fun.

We haven’t even begun to figure out how to rewire the world for an energy transition even if we used energy consumption from 20 years ago as the starting point; today, we can’t keep up using all our resources. Every year, we set new records for solar installations, wind installations, coal consumption, oil consumption… and new natural gas infrastructure is being built around the world backed by multi-decade contracts. The fight over nuclear continues in the oddly ridiculous way it now goes, with countries within the same jurisdiction (EU, for example) shutting down nuclear facilities (Germany) on safety or environmental (?) grounds while countries right beside them add new ones. In the US, the same craziness is happening within the country; places like New York shuttering nuclear facilities while other parts of the country develop new ones.

What makes energy commentary challenging these days is that we’ve become desensitized to such insanity, we are pickled in it, and treat it as just the regular public discourse. I mean really. Look at Germany’s self inflicted damage in shutting down its nuclear plants on the grounds of safety. How much safer are Germans if Belgium builds new ones next door?

We’ve become used to the blaring theme “electrify everything” when we can clearly see, if we choose to look, that electrifying anything at all is becoming more challenging, with grid operators all over the place issuing warnings about potential energy shortages/rolling blackouts or brownouts/falling grid reliability.

AI is coming. Like a freight train. No one is prepared for it. Anyone paying attention is sounding the alarm bells: Power consumption is going to go through the roof. And that is in addition to a world that continues to set new energy usage records relentlessly, a trend that seems unstoppable and huge even before AI.

The storm clouds are there, they are growing, and no one wants to look up.

And then we need to set this insanity against a truly mind-boggling global geopolitical framework that looks like something out of Monty Python.

China is an amazing object, like a parallax, that looks completely different depending on your vantage point. By that I mean: energy transition advocates, the ones that ‘just know’ that net-zero 2050 is inevitable and simply requires more ‘policy’, point to China as a green hero, installing more solar than any other country, at breakneck pace. At the same time, the opposite camp that ‘just knows’ that net-zero 2050 has no chance due to the sheer challenge point out that China is constructing new coal-fired power plants at a rate of two per week.

Both are right. So are the people that rejoice at how solar panels have become so much cheaper due to China’s manufacturing prowess, as are the people that point out the staggering environmental footprint of building all that stuff behind a somewhat opaque curtain.

The people that herald the rise of China’s EV adoption are right, but so are the people that fear China’s control of most of the critical mineral/metal supply/processing chain.

India is a rising behemoth. The EU still thinks it runs the world. The US’ leadership is a gym full of blindfolded shouting people running at full speed. Canada thinks it is the world’s conscience, to the extent it is still thinking at all, building foreign and local policy on the notion that Canadians are the global good guys, a selfless hero running around the globe’s stages eagerly saying politically correct things while back home the wheels are coming off. Watch us impale our economy on a stick just to show the world that no one can possibly be morally superior. Russia is a vodka-soaked-yet-clever power monger with some thousand-year-old chip on its shoulder and enough bullets to fill a million Ladas. The Middle East remains the Middle East, reliably distributing both petroleum products and anger to every corner of the world…

The world’s biggest economies are so far in debt that they don’t know what to do, and we must painfully watch central bankers craft new policies and plans under the faulty pretense that they do know what they’re doing. The US is adding a trillion dollars worth of debt every hundred days, and the gurus of monetary policy are watching the economy with the wisdom and effectiveness of a time-forgotten goat-herder buying a cell phone before he’s found out what electricity is.

The future is never certain. Obviously. There will be black swans, rare events that have major global seismic repercussions. Terrorists are pretty good at destabilizing the world with a flick of the wrist, doing more damage than a tsunami, but then there are tsunamis as well. And all sorts of human hijinks that can throw a spanner in the works quite easily because we are all one step away from snapping.

There will be new wars, apparently, the peace dividend nothing but a dead deer on the side of the road. Political polarization is so severe that at any given time some substantial percent of the population believes that if their political enemy gets elected that ‘the future of the nation is at stake’. In the US two very ancient people are leading these charges, and every single American I talk to says, in a burst of frustration, “How the hell did we get here, and why are those two the only choices?”

And all of us that pay attention to energy ask the very same questions about the energy world. We watch economic powerhouses like Germany and California screw themselves into the ground with remarkable efficiency. We can see these problems arising. We listen to grid operators that warn of coming instability instead of shouting them down or tossing them out and replacing them with people that toe the line.

The energy industry is, despite all the madness, making actual strides in reducing emissions, developing new types of energy, developing carbon sequestration options, working on hydrogen programs, integrating with all sorts of green technology. It’s tough slogging, because most attempts are met with chants of “greenwash, greenwash” by people that don’t want progress, they want fossil fuels dead and gone. As their vision of a solution, they throw soup on famous paintings. The world stands in awe, like watching a naked drunk lurch across a freeway, oblivious to his surroundings.

One good thing about the world of energy though, compared to the utter lunacy of the global political/geopolitical/sociological mess, is that we can see fairly clearly where energy is going. The crazed experiments, the building of castles to the sky, will slow to a pace that makes sense and is digestible. Global demand for oil, natural gas, and it looks like even coal will stay strong for several decades at least. Nuclear power will have a renaissance, and new technologies or battery breakthroughs will enter the scene at a rate that the world can handle. It won’t be pretty or linear or without strife, but that’s how it will be. People won’t live without cheap reliable energy.

So if you’re in the energy business, take heart – in the world of political theatre, reality is whatever you can get away with convincing the world that it is. In the world of energy, fuel is fuel, availability is availability, and we can at least count on the fact that despite all the handwringing and grandiose policy that reality can’t be evaded. It might be small comfort but at least it’s real.

Terry Etam is a columnist with the BOE Report, a leading energy industry newsletter based in Calgary.  He is the author of The End of Fossil Fuel Insanity.  You can watch his Policy on the Frontier session from May 5, 2022 here.

Business

Canada has an energy edge, why won’t Ottawa use it?

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Energy abundance, properly managed, isn’t just Canada’s strategic edge—it’s our ace in the hole while allies scramble to rearm their energy systems and competitors sprint ahead. We can keep sleepwalking through the annual ritual of self-imposed shackles, watching golden opportunities slip through our fingers, or we can finally show up as a serious player in the energy security game we’re already knee-deep in.

What the public doesn’t see behind all the climate summit fanfare is a carefully choreographed performance where capitals everywhere scramble to perfect their lines for the UN’s annual pageant. COP30 descends on Brazil in mid-November, and once again Ottawa looks primed to arrive clutching a stack of promises, desperately hoping that thunderous applause will somehow count as tangible progress in the real world.

Thanks to years of bureaucratic capture, our government keeps churning out the measures most fervently demanded by the climate lobby, and this ritual proceeds as if “net zero” were still a credible roadmap rather than a marketing slogan stretched so transparently thin it’s practically see-through. But out in the real world—away from the theatrical staging—the energy system keeps issuing updates of its own that no amount of wishful thinking can erase. The question this year cannot be what flashy new prohibition Ottawa can unveil on cue: are our leaders finally prepared to read the room? Away from the virtue-signalling theatre, countries are quietly adjusting to immovable realities: demand keeps climbing, reliability actually matters, and security trumps sermonizing—and we should be looking south to see what’s really working.

From 2005 to 2023, U.S. per-capita CO₂ emissions from energy plummeted by nearly a third. Not because of performative pledges or green grandstanding, but because coal quietly gave way to natural gas, with renewables filling in around the edges where they actually made sense. Pick almost any grid that made this pragmatic switch, and you’ll discover the same inconvenient pattern that climate absolutists prefer to ignore: fewer emissions and electricity you can actually count on when you flip the switch. Maryland serves as a clean example, where coal shrank from the backbone to a footnote as gas surged, helping keep the lights blazing when people needed them most.

Canada should pay very close attention to these uncomfortable truths. We benefit from hydro and nuclear in some regions, but what the green lobby doesn’t want to acknowledge is that our electricity demand is climbing relentlessly. Population growth alone would guarantee that outcome. Add the explosion in AI technology and it becomes utterly unavoidable, despite the silence from environmental groups. Even the cheerleaders of the new digital economy are brutally honest about this reality when pressed. The head of the world’s biggest AI chipmaker isn’t jesting when he bluntly tells the U.K. it will need gas turbines alongside nuclear and renewables to power its tech ambitions—inconvenient facts that shatter green fairy tales.

Another stubborn reality that doesn’t make it into climate summit speeches is that the International Energy Agency estimates oil and gas companies spend roughly half a trillion dollars every year just to keep output flat—a financial reality that exposes the “stranded assets” narrative as wishful thinking. Without this continual reinvestment, U.S. shale would crater within a single year. It’s rather difficult to describe that as a system drifting quietly into retirement, rather than an industrial backbone that still carries most of the load while activists pretend otherwise. If you’re Canada, that looks less like a looming problem than a golden opening that our competitors are already seizing.

Geopolitics is saying the same thing out loud, for those willing to listen beyond the climate activism echo chamber. J.P. Morgan bluntly calls this the “new energy security age,” and Europe is working frantically to end its dependence on Russian LNG—not for climate reasons, but for survival. Japan is expanding its LNG fleet, and Mexico is inking billion-dollar supply deals while climate campaigners aren’t looking. Strip away all the green branding and virtue-signalling, and you get a core calculation that energy security is nothing short of national security—and countries that get snookered by activist rhetoric into forgetting that harsh reality lose far more than bragging rights at international summits.

The Woodfibre LNG site is seen on Howe Sound in Squamish, B.C. THE CANADIAN PRESS/Darryl Dyck

Our allies have been leaning on us to quit sitting on the sidelines and deliver something concrete. And back home, even Ottawa’s mandarins are finally muttering what everyone else has known all along. For the next several years, at minimum, gas remains the most economical, rock-solid baseload option across vast stretches of the continent. Meeting that surging demand would deliver high-paying jobs, bulletproof alliances, and slash global emissions compared to the world burning more coal. Turning our backs on it means standing idle while rival producers rush to fill the void—all so we can pat ourselves on the back for warming the bench.

If this strikes you as abstract theorizing, cast your eyes toward California. A righteous crusade to shutter refineries didn’t magically eliminate the appetite for fuel—it simply exported the dirty work elsewhere, shipping out the jobs and the supply cushion that shields consumers from price shocks. The Golden State now scrambles like a panicked shopper whenever supply chains hiccup, because when push comes to shove, affordability draws the hard red line on what voters will tolerate. Meanwhile, the global landscape has shifted dramatically, with the United States now claiming the crown as top exporter of refined petroleum and LNG.

The lofty rhetoric of “climate solidarity” has quietly faded into something far more practical—nations ruthlessly pursuing their own interests. Even the most progressive speechwriters now pepper their drafts with buzzwords like ‘pragmatism’ and ‘realism.’ It represents nothing short of a grudging acknowledgment that wishful thinking won’t keep the lights on when the grid starts groaning.

British Columbia, meanwhile, sits perched atop the Montney—one of the continent’s most spectacular gas reservoirs—boasting the shortest shipping lanes to Asian markets. Indigenous nations are shrewdly securing equity stakes in LNG ventures while demanding genuine partnership—a blueprint that marries reconciliation with cold, hard prosperity. Those outbound cargoes are displacing coal-fired power overseas. If your genuine goal involves slashing real-world emissions, that achievement trumps a dozen flowery Ottawa press releases.

So no, the magic formula isn’t “all of the above,” but rather “the best of the above.” It demands deploying hydro, nuclear, and renewables where they deliver maximum punch, with natural gas serving as the indispensable bridge that keeps systems humming while breakthrough technologies mature. We must construct infrastructure that performs when sidewalks turn into skating rinks and when asphalt starts melting like butter.

We’ve also absorbed some hard-earned lessons about the political theatrics that spook serious capital. At COP28 in Dubai, then–environment minister Steven Guilbeault sported a baseball cap emblazoned with “emissions.” Emissions cap—catch the clever wordplay? The joke bombed spectacularly with investors. The policy proposal fared no better; its most vocal champion is reportedly eyeing the exit door, while nearly a hundred Canadian oil and gas CEOs have now fired off two blunt open letters to the new prime minister, spelling out precisely what the cap would accomplish: driving investors to pack their bags for friendlier jurisdictions. If your economic blueprint hinges on attracting capital, avoid crafting policies that essentially scream ‘beat it.’

World leaders at COP29 in Baku, Azerbaijan.

Energy abundance, properly managed, isn’t just Canada’s strategic edge—it’s our ace in the hole while allies scramble to rearm their energy systems and competitors sprint ahead. We can keep sleepwalking through the annual ritual of self-imposed shackles, watching golden opportunities slip through our fingers, or we can finally show up as a serious player in the energy security game we’re already knee-deep in.

What would that look like at COP30? It would sound nothing like the strangely self-defeating Canadian speeches of years past, which have been heavy on confessional hand-wringing, light on genuine intent, drowning in performative self-flagellation, and starved of actual competence. If Ottawa wants to prove it has finally woken up from its ideological slumber, it should ditch the tired theatre and roll out policies that actually unleash investment instead of strangling it: streamlined approvals with firm timelines that mean something; predictable fiscal treatment that doesn’t shift with every political breeze; a clear path for Indigenous equity in major projects; and an explicit commitment to “best of the above” power and fuels. Pair that with a forthright message to allies that cuts through the usual diplomatic fog: Canada intends to supply reliable, cleaner energy to the democracies that desperately need it.

It’s not capitulating to industry to stop pretending we can wish away reality. It’s the path that lets us grow the economy, slash global emissions faster than sanctimonious lectures ever will, and strengthen the alliances that keep free countries from getting steamrolled. If we want Canada to matter in this new energy security age instead of being relegated to the sidelines, we should start acting like we mean business. COP30 is the stage. Time to scrap the old script and write one that actually works.

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Energy

Prince Rupert as the Optimal Destination Port for an Alberta Crude Oil Pipeline –

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From Energy Now

Assessing the Strategic, Economic, and Environmental Advantages on British Columbia’s Northern Coast

With ongoing discussions about diversifying Alberta’s crude oil export routes, selecting the right destination port on British Columbia’s northern coast is critical. This analysis examines Prince Rupert as a prime candidate, highlighting why it stands out as the best choice for a new Alberta crude oil pipeline.


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Geographic and Logistical Advantages

Prince Rupert is Canada’s deepest natural harbour and is located approximately 1,500 kilometres closer to Asian markets than Vancouver. Its northern coastal position provides a shorter and more direct shipping route across the Pacific, reducing transit times and shipping costs. The port’s location also means ships can avoid the congested and environmentally sensitive waters of southern British Columbia, including the Salish Sea and Vancouver’s busy port.

Infrastructure and Expansion Capacity

Prince Rupert has a modern and rapidly expanding port infrastructure. The Port of Prince Rupert already handles bulk cargo, containers, and other exports, and it has significant capacity for further development. There is available land and established transportation corridors—including rail lines operated by CN Rail—that connect directly to Alberta, making it logistically feasible to construct a new pipeline and efficiently move crude oil to tidewater.

Economic Benefits

A pipeline terminating at Prince Rupert would open up Alberta’s crude oil to global markets, particularly in Asia, increasing market access and potentially securing better prices for Canadian oil producers. The economic spin-offs for both Alberta and northern British Columbia include job creation, increased tax revenue, and local business opportunities in construction, operations, and port services.

Environmental and Community Considerations

Shipping crude oil from Prince Rupert avoids some of the most ecologically sensitive regions along the southern coast. The port’s deep waters allow for safer navigation of large tankers, reducing the risk of groundings and spills. Additionally, the relatively low population density around Prince Rupert compared to southern ports minimizes the social impact and opposition that has historically challenged energy projects in more urbanized regions.

Strategic and Security Factors

The northern location of Prince Rupert is advantageous from a national security perspective. It is less vulnerable to geopolitical tensions and traffic bottlenecks that can affect southern ports. The port’s proximity to the open Pacific also reduces the time tankers spend in Canadian waters, limiting exposure to potential environmental incidents.

Prince Rupert’s strategic location, robust infrastructure, economic potential, and lower environmental and social risks make it the best choice for a new Alberta crude oil pipeline on British Columbia’s northern coast. Its selection would not only enhance Canada’s energy export capabilities but also support responsible economic development in Western Canada.

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