Energy
From Sippy Cups to Solar Panels: Why a Blanket Ban on Plastics Misses the Mark

From EnergyNow.ca
By Canada Powered by Women
Repeated attempts by the federal government to implement a sweeping ban on plastics don’t consider the crucial role plastics play in the lives of Canadians and energy transformation.
Plastic is in many products we need every day, including medical equipment, headphones, car seats, menstrual products and computers. For mothers enjoying summer with their kids — don’t forget sippy cups, running shoes and diapers (to name a few).
In Canada, as many as 70,000 plastic products are made every day. They are essential, whether we’re working, having fun or simply trying to go about our daily lives.
The chemistry and plastics sector is also the third largest manufacturing sector in Canada, employing more than 190,000 people and shipping more than $108 billion in products in 2022.
So, this fall when the Appeals Court revisits the federal government’s move that labelled many plastics as “toxic”, engaged women from across the country are going to be watching.
They’re watching because the use of plastic touches many areas of their personal lives and interests.
Plastic is a critical component in the energy transformation (which we know engaged women care a lot about) and it’s intricately connected to the development and deployment of renewable energy technologies. These are important considerations for our country’s broader energy policy and sustainability goals, and engaged women are paying attention because they’re not convinced Canada has energy policies that positively affect prosperity.
Engaged women in Canada have also told us they want a balanced approach on the environment, energy and economic prosperity. As a result, their understanding of policies is deepening, and they are focusing on long-term prosperity and affordability while striving for a well-rounded strategy when it comes to policymaking.
So how did we get here with the plastics issue, and what happens next?
The single-use plastic ban that started it all
In 2019, the federal government announced it would seek to ban single-use plastic items such as straws, cutlery, take out containers, stir sticks and plastic bags to reduce plastic waste.
The ban came into effect in 2022 after the federal government added all plastic manufactured items (PMIs) to a toxic substance list (a key step in allowing it to ban these items).
Waste management is a provincial responsibility, but the federal government is able to regulate substances for environmental protection if they are listed as toxic under the Canadian Environmental Protection Act.
In 2023, a federal court reviewed the legislation after complaints surfaced saying Ottawa failed to demonstrate enough scientific evidence to justify the sweeping regulations.
The court agreed, ruling that the federal government exceeded its authority by listing all PMIs as toxic, calling the move “unreasonable and unconstitutional”.
The federal government appealed the decision, and on June 25-26 this year, the Federal Appeals Court heard arguments for and against listing all PMIs as toxic.
A decision on the appeal is expected this fall, and the outcome of the ruling has many concerned about what future bans and other restrictive regulations and policies will mean for everyday Canadians.
How plastics restrictions could hurt Canadians
Christa Seaman, vice-president of the plastics division with the Chemistry Industry Association of Canada, says further restrictions on using plastic will have serious ramifications.
“If we start to take away plastic packaging that’s keeping our food safe, for example, you’ll actually see increased cost to consumers because food is going to spoil before it gets to market or shipping is going to be more expensive because the packaging for the products are going to weigh more,” says Seaman.
Seaman also highlights restrictions on plastics could limit the availability of certain products that rely on plastic packaging or components, and Canadians may have reduced access to the variety of inexpensive goods we use today.
Plastics play a big role in low-carbon technology development
There are sustainable ways to keep plastics out of the environment and in the economy, Seaman says, particularly because of the key role they’re already playing in the proliferation of green technologies.
For example, batteries in electric vehicles (EVs) are heavier than in vehicles with internal combustion engines so plastics are being used to manufacture EVs.
“Plastics, being lightweight and durable, are key to keeping the weight of the vehicle down,” she says. “We have less wear and tear on our roads and we’re actually able to increase the driving range per charge, without compromising safety at all.”
Plastics also make renewable energy sources like wind and solar possible, Seaman says. They are a key component in solar panels, and blades of wind turbines are made with fibreglass and other plastic composite materials.
Rather than an outright ban on plastics, we’d be better off exploring how a circular economy — one that includes the appropriate use, reuse and recycling of plastics — can keep plastic waste out of the environment and create a more sustainable future.
Some provinces and territories have also initiated an important shift in responsibility by making producers of plastic products responsible for funding their collection and recycling, Seaman says.
“Provinces are setting the guidelines on achieving certain benchmarks and targets for recyclability, which will go back to how the products are designed,” she says. “The cheaper and easier it is to recycle, the less they’re going to have to spend on the recycling system in the end.”
Seaman says the industry goal is to focus on reduction first by making packaging smaller or thinner. Then the focus turns to reusing plastics, and once those options are exhausted the goal is to recycle.
What we need from policymakers
Listing all plastics as toxic, and then implementing bans around their use, is heavy-handed and misguided.
Seaman says a collaborative approach between policymakers and producers is what’s needed now, and policy should reflect what’s best for the public, the environment and the economy.
“We need all solutions to be on the table: your compostable, your biodegradable, your advanced recycling, your mechanical recycling.”
Seaman says the focus should be placed on outcome-based regulations and science.
“Let’s talk about the outcomes we’re all trying to achieve, because nobody wants to see plastics in the environment, in the waterways or in landfill. Let’s look at what targets need to be and find a way to get there together.”
Alberta
The beauty of economic corridors: Inside Alberta’s work to link products with new markets

From the Canadian Energy Centre
Q&A with Devin Dreeshen, Minister of Transport and Economic Corridors
CEC: How have recent developments impacted Alberta’s ability to expand trade routes and access new markets for energy and natural resources?
Dreeshen: With the U.S. trade dispute going on right now, it’s great to see that other provinces and the federal government are taking an interest in our east, west and northern trade routes, something that we in Alberta have been advocating for a long time.
We signed agreements with Saskatchewan and Manitoba to have an economic corridor to stretch across the prairies, as well as a recent agreement with the Northwest Territories to go north. With the leadership of Premier Danielle Smith, she’s been working on a BC, prairie and three northern territories economic corridor agreement with pretty much the entire western and northern block of Canada.
There has been a tremendous amount of work trying to get Alberta products to market and to make sure we can build big projects in Canada again.
CEC: Which infrastructure projects, whether pipeline, rail or port expansions, do you see as the most viable for improving Alberta’s global market access?
Dreeshen: We look at everything. Obviously, pipelines are the safest way to transport oil and gas, but also rail is part of the mix of getting over four million barrels per day to markets around the world.
The beauty of economic corridors is that it’s a swath of land that can have any type of utility in it, whether it be a roadway, railway, pipeline or a utility line. When you have all the environmental permits that are approved in a timely manner, and you have that designated swath of land, it politically de-risks any type of project.
CEC: A key focus of your ministry has been expanding trade corridors, including an agreement with Saskatchewan and Manitoba to explore access to Hudson’s Bay. Is there any interest from industry in developing this corridor further?
Dreeshen: There’s been lots of talk [about] Hudson Bay, a trade corridor with rail and port access. We’ve seen some improvements to go to Churchill, but also an interest in the Nelson River.
We’re starting to see more confidence in the private sector and industry wanting to build these projects. It’s great that governments can get together and work on a common goal to build things here in Canada.
CEC: What is your vision for Alberta’s future as a leader in global trade, and how do economic corridors fit into that strategy?
Dreeshen: Premier Smith has talked about C-69 being repealed by the federal government [and] the reversal of the West Coast tanker ban, which targets Alberta energy going west out of the Pacific.
There’s a lot of work that needs to be done on the federal side. Alberta has been doing a lot of the heavy lifting when it comes to economic corridors.
We’ve asked the federal government if they could develop an economic corridor agency. We want to make sure that the federal government can come to the table, work with provinces [and] work with First Nations across this country to make sure that we can see these projects being built again here in Canada.
Energy
Why are Western Canadian oil prices so strong?

By Rory Johnston for Inside Policy
While Canadian crude markets are as optimistic as they’ve been in months regarding US tariffs, the industry is still far from safe.
Western Canadian heavy crude oil prices are remarkably strong at the moment, providing a welcome uplift to the Canadian economy at a time of acute macroeconomic uncertainty. The price of Western Canadian Select (WCS) crude recently traded at less than $10/bbl (barrel) under US Benchmark West Texas Intermediate (WTI): a remarkably narrow differential (i.e., “discount”) for the Canadian barrel, which more commonly sits around $13/bbl but has at moments of crisis blown out to as much as $50/bbl.
Stronger prices mean greater profits for Canadian oil producers and, in turn, both higher royalty and income tax revenues for Canadian governments as well as more secure employment for the tens of thousands of Canadians employed across the industry. For example, a $1/bbl move in the WCS-WTI differential drives an estimated $740 million swing in Alberta government budget revenues.
Why are Canadian oil prices so strong today? It’s due to the perfect storm of three distinct yet beneficial conditions:
- Newly sufficient pipeline capacity following last summer’s start-up of the Trans Mountain Expansion pipeline, which eliminated – albeit temporarily – the effect of egress constraint-driven discounting of Western Canadian crude;
- Globally, the bolstered value of heavy crudes relative to lighter grades – driven by production cuts, shipping activity, sanctions, and other market forces – has benefited the fundamental backdrop against which Canadian heavy crude is priced; and
- The near elimination of tariff-related discounting as threat of US tariffs has diminished, after weighing on the WCS differential to the tune of $4–$5/bbl between late-January through early March.
We break down each of these factors below.
A quick primer: differentials, decomposed
Before we dive in, let’s quickly review how Canadian crude pricing works. WCS crude is Canada’s primary export grade and is virtually always priced at a discount to WTI, the US benchmark for oil prices, for two structural reasons outlined below. More accurately referred to as the differential (in theory, the price difference could go both ways), this price difference is a fact of life for Canadian crude producers and sits between $11–$15/bbl in “normal” times. Over the past decade, WCS has only sported a sub-$10/bbl differential less than 10 per cent of the time and most such instances reflected unique market conditions, like the Alberta government’s late-2018 production curtailment and the depths of COVID in early 2020.
The structurally lower value of WCS relative to WTI is driven by two main structural factors: quality and geography.
First and very simply, WCS is extremely heavy oil – diluted bitumen, to be specific – in contrast to WTI, which is a light crude oil blend. Furthermore, WCS has a high sulphur content (“sour,” in industry parlance) compared to the virtually sulphur-free WTI (“sweet”). WCS crude requires specialized equipment to be effectively processed into larger shares of higher-value transportation fuels like diesel as well as the remove the sulphur, which is environmentally damaging (see: acid rain)l; so, WCS is “discounted” to reflect the cost of that additional refining effort. Quality-related discounting typically amounts to $5-$8/bbl and can be seen in its pure form in the price of a barrel of WCS is Houston, Texas, where it enjoys easy market access.
Second, Western Canadian oil reserves are landlocked and an immense distance from most major refining centers. Unlike most global oil producers that get their crude to market via tanker, virtually all Canadian crude gets to end markets via pipeline. So, this higher cost of transportation away from where the crude is produced (aka “egress”) represents the second “discount” borne by the relative price of Canadian crude, required to keep it competitive with alternative feedstocks. Transportation-related discounting typically amounts to $7-$10/bbl and can be seen in the difference between the price of a barrel of WCS in the main hub of Hardisty, Alberta and the same barrel in Houston, Texas.
Moreover, transportation-related discounting is worse when pipeline capacity is insufficient, which has so frequently been the case over the past decade and a half. When there isn’t enough pipeline space to go around, barrels are forced to use more expensive alternatives like rail and that adds at least another $5/bbl to the required industry-wide pricing discounting – because prices are always set at the margin, or in other words by the weakest barrel. In especially acute egress scarcity, the geographic-driven portion of the differential can blow out, as we saw in late-2018 when the differential rose to more than $50/bbl before the Alberta government forcibly curtailed provincial production to reduce that overhang.
Additionally, the election of US President Donald Trump – and, specifically, the threat of US tariffs on Canadian exports – has introduced a third factor in the differential calculation. Over the past few months, shifts in the WCS differential have also been reflecting the market’s combined handicapping of (i) the probability of tariffs hitting Canadian crude and (ii) the rough share of the tariff burden borne by Canadian exporters.
All three of these factors – global quality, egress availability, and market anticipation of tariff US risk – have shifted decisively and strongly in favour of WCS over the recent weeks and months.
More pipelines, fewer problems
The first reason that Canadian oil prices are remarkably strong at the moment is sufficient pipeline capacity. The perennial bugbear of Western Canadian oil producers, pipeline capacity is, quite unusually, sufficient thanks to last summer’s start-up of the Trans Mountain Expansion Project (TMX). TMX is the largest single addition to Western Canadian egress capacity in more than a decade and, since TMX entered service last summer, the transportation-related differential has remained low and stable, eliminating the largest and most common drag on Canadian crude pricing.
Without TMX, the Western Canadian oil industry would be suffering an all too familiar and increasingly acute egress crisis. Acute egress shortages would have dwarfed the threat of US tariffs and pushing differentials, in stark contrast to today, far wider – the spectre of provincial production curtailment would not have been out of the question. And it is also important to note that this pipeline sufficiency is inherently temporary. Current pipeline sufficiency will likely only last another year or two at most and then Western Canadian egress will require additional expansions to avoid the resurrecting of egress-scarcity-driven differential blowouts.
Heavy is the crude that wears the crown
The second reason that Canadian oil prices are remarkably strong now is the unusually strong global market for heavy crude. Heavy crude grades (e.g., Iraqi Basra Heavy and Mexican Maya), medium crude grades (e.g., Dubai and Mars), and high sulphur fuel oil (used in global shipping) have all seen their value rise relative to Brent and WTI benchmarks, which both reflect lighter, sweet grades of crude.
For WCS, the differential has narrowed from more than $10/bbl at the end of 2023 to around $2.8/bbl under WTI. The bolstered value of heavy crudes relative to lighter grades is being driven by a host of factors including ongoing OPEC+ production cuts (much of which came in the form of heavier crude grades), strong shipping activity, and tighter sanctions against traditional suppliers of heavy shipping fuel like Russia and more recently Venezuela.
What tariff threat?
Finally, the most acute and volatile reason that Canadian oil prices are remarkably strong at the moment is the near elimination of US tariff-related discounting. The US imports more than half of its total foreign oil purchases from Canada and Canadian crude has long enjoyed tariff-free access to the US market. Tariff-related pricing pressure began in earnest in late-2024 as Canadian crude markets tried to build in an ever-evolving handicapping of that tariff risk following Trump’s initial tariff threats. Tariff-related discounting grew stronger from mid-January through February with the excess geographic WCS differential rising to nearly $5/bbl (see chart above and read “Canadian Crude Drops Tariff Discount” for more on the logic of this measure).
After a months-long rollercoaster of “will he/won’t he” uncertainty around the imposition of US tariffs on Canadian crude imports, USMCA-compliant exemptions and broader US official chatter regarding potential outright Canadian crude exemptions have allowed markets to reduce the (roughly) implied probability to effectively zero. This factor alone narrowed the headline WCS differential in Hardisty, Aberta, by $3–$4/bbl over the past month.
Conclusion
Canadian oil prices are so strong today because just about everything that can be going right is going right. WCS differentials are benefitting from a perfect storm of (i) unusually sufficient pipeline capacity, (ii) exceptionally strong global heavy crude markets, and (iii) a near elimination of US tariff-related discounting. Together, these factors are lifting the relative value of Canadian crude oil exports, and this is a boon for Canadian oil industry profits, provincial royalty income, income tax receipts, and employment in the sector.
Looking ahead, WCS differentials may narrow by another dollar or two as this beneficial momentum persists. However, the balance of risk is now tilted towards a reversal (i.e., widening) of differentials over the coming year as OPEC+ begins to ease production cuts and Western Canadian production continues to grow without the hope of any new near-term pipeline additions. While Canadian crude markets are as optimistic as they’ve been in months regarding US tariffs, the industry is still far from safe – given the volatility of policy coming out of the White House, there is still a chance that this near-erasure of tariff risk from Canadian crude pricing may have come too far, too fast.
If and as tariff concerns fall away, egress sufficiency (i.e., pipeline capacity) will resume its place as king of the differential determinants. At the current rates of Western Canadian production growth, Canada is set to again overrun egress capacity – after the relief provided by the start-up of TMX – over the next year or two at most. While Canada may have dodged a near-term bullet to crude exports destined for the US, this situation serves to only emphasize the continued challenges associated with current pipeline infrastructure. It would be prudent for Canadian politicians to begin shifting their current concerns towards the structural, and entirely predictable, threat of renewed egress insufficiently coming down the pipe.
About the author
Rory Johnston is a leading voice on oil market analysis, advising institutional investors, global policy makers, and corporate decision makers. His views are regularly quoted in major international media. Prior to founding Commodity Context, Johnston led commodity economics research at Scotiabank where he set the bank’s energy and metals price forecasts, advised the bank’s executives and clients, and sat on the bank’s senior credit committee for commodity-exposed sectors.
-
2025 Federal Election2 days ago
Poilievre To Create ‘Canada First’ National Energy Corridor
-
2025 Federal Election2 days ago
Joe Tay Says He Contacted RCMP for Protection, Demands Carney Fire MP Over “Bounty” Remark
-
2025 Federal Election2 days ago
Hong Kong-Canadian Groups Demand PM Carney Drop Liberal Candidate Over “Bounty” Remark Supporting CCP Repression
-
Daily Caller1 day ago
Biden Administration Was Secretly More Involved In Ukraine Than It Let On, Investigation Reveals
-
2025 Federal Election1 day ago
London-Based Human Rights Group Urges RCMP to Investigate Liberal MP for Possible Counselling of Kidnapping
-
2025 Federal Election1 day ago
Poilievre, Conservatives receive election endorsement from large Canadian trade union
-
Business1 day ago
Biden’s Greenhouse Gas ‘Greendoggle’ Slush Fund Is Unraveling
-
Business1 day ago
Trump says ‘nicer,’ ‘kinder’ tariffs will generate federal revenue