Dan McTeague
Ottawa’s intentional destruction of western wealth
From Canadians for Affordable Energy
Even if it fails to hit its emissions targets (which it will,) the economic consequences of enacting this plan are very serious. It would make Canada the only country in the world which willingly and purposefully stifles its single largest revenue stream.
At this point, everyone in Canada has heard about the Carbon Tax and had a chance to experience its negative effects. But less has been said about another harmful policy dreamed up by the Trudeau government — the Emissions Cap on the oil and gas sector. Just like the Carbon Tax, the Emissions Cap is part of Trudeau’s larger program to try and achieve “Net Zero” greenhouse gas (GHG) emissions by 2050, which will have no positive impact on the environment, but which will be ruinous to Canada’s natural resource sector and to the national economy.
In their 2021 platform, the Liberals made a commitment to “cap and cut emissions from the oil and gas sector” and proclaimed that that industry must reduce emissions “at a pace and scale needed to achieve net-zero by 2050.” As promised, in December 2023 the Trudeau government proposed an Emissions Cap to reduce GHG emissions in the oil and gas sector by 42 percent by 2030. Keep in mind Canada contributes only 1.5% of global emissions, so this plan, even if accomplished, would reduce global emissions by less than one half of one percent.
Even if it fails to hit its emissions targets (which it will,) the economic consequences of enacting this plan are very serious. It would make Canada the only country in the world which willingly and purposefully stifles its single largest revenue stream. After all, the oil and gas industry generates $45 billion per year in annual economic activity, and contributes $170 billion per year to the GDP.
But don’t take my word for it. According to a Deloitte report commissioned by the Government of Alberta, an Emissions Cap would lead to a 10% decrease in Alberta’s oil production and a 16% decrease in conventional natural gas production. Fossil fuel production would decrease in B.C., Saskatchewan, and Newfoundland as well. Other industries connected to the oil and gas sector such as the mining, refinery products, and utilities are also expected to be impacted and will experience a decrease in output in Alberta and the rest of Canada.
The report goes on to state that in 2040 “Alberta’s GDP is estimated to be lower by 4.5% and Canada’s GDP by 1.0% compared to the baseline.”
It notes that because it is assumed that “the Cap is a permanent measure, the shift in the output of the oil and gas sector and associated losses are permanent and accumulate over time. Cumulatively, over the 2030 to 2040 period, we estimate that real GDP in Alberta is $191 billion lower and real GDP in the Rest of Canada is $91 billion lower, compared to the baseline scenario ($2017 dollars).”
Of course, the environmentalists will crow that the oil and gas industry is dying anyway and the demand for oil and gas around the world is slowly decreasing, but this is simply not true.
Global demand for oil and gas is only growing and will continue to do so. According to the report, “Based on current policy and before the impact of the Cap, we expect: Oil production in Canada to increase by 27% by 2030 and 32% by 2040 from 2021 levels; and Gas production in Canada to increase by 10% by 2030 and 16% by 2040 from 2021 levels.”
And this isn’t the only study which projects negative outcomes from this policy. The Montreal Economic Institute (MEI) released a study which describes how the Trudeau government’s proposed Emissions Cap for the energy sector would “cost the Canadian economy between $44.8 billion and $79.3 billion a year” and would “cause substantial losses, without achieving any net reduction in global emission.”
You can read the study here.
Plus it is worth noting that this emissions cap will result in “substantial losses without achieving any net reduction in global emissions.”
Why? Because of the increase in global demands for oil and gas, we can either produce those resources here or get them from another country that has no environmental, much less labour standards, such as Russia, Venezuela, and Iran.
To add insult to injury for the oil and gas producing provinces, and as I’ve pointed out in the past, this cap on emissions would apply only to the oil and gas sector. This emissions cap would not apply to the concrete industry, the automotive industry, or the mining industry. And — surprise surprise — it certainly won’t apply to Montreal’s lucrative jet-building industry.
But take heed: this isn’t simply an Alberta issue. This is a Canadian issue and one that everyone in Canada should be concerned about.
The umbrella of Net Zero by 2050 is large and far reaching, and an emissions cap is simply one part of a multi-layered attack on our economy and way of life. Carbon taxes, layered on top of a Clean Fuel Standard, layered on top of pipeline blockages, layered on top of Bills C-48 and C-69, preventing oil from being shipped from other parts of the world — will run counter to our national interests, and endanger the Canadian way of life for generations to come.
If Canadians are now vehemently opposed to carbon taxes, as we suggested would be the case half a dozen years ago, wait for this unnecessary burden to befall them.
In the words made famous by the Canadian rock legend BTO, “You ain’t seen nothing yet!”
Dan McTeague is President of Canadians for Affordable Energy.
Dan McTeague
Mark Carney would be bad for Canada
Carney is a champion of ESG, and the founder and co-chair of the Glasgow Financial Alliance for Net Zero (GFANZ,) which seeks to harness the might of global finance to bring about a Net-Zero global economy
Whether Carney will actually throw his hat in the ring is hard to predict. He did announce that he will “be considering this decision closely with my family over the coming few days.” But his years-long flirtation with electoral politics suggests that Carney is politically ambitious. And in the tradition of the politically ambitious, he’s lining up his constituents. At this very moment he’s busy making calls, and promises, to Liberal MPs looking for their support. Over the next several days we will hear an unending stream of praise for Carney, that he’s a ‘breath of fresh air,’ that he’s ‘just what Canada needs,’ and on and on.
Well don’t you believe it. Because one thing is for certain — Canada does not need another uber-elite, WEF hobnobbing, Green Agenda-pushing leader at the helm of any political party.
Let’s not forget who Carney is.
The former Governor of the Banks of Canada and England, Carney currently runs the megafirm Brookfield, whose offices he recently moved from Canada to the U.S., and serves as the UN Special Envoy for Climate Leadership and Finance.
Rich, established, and part of the green elite: that is Mark Carney.
I warned about Carney during the Covid-19 pandemic in 2020 when he — along with climate activist and Trudeau-whisperer Gerald Butts — was pushing hard for what he called a ‘green recovery.’ At the time Carney was framing the economic and health crisis as an opportunity to ‘leapfrog’ into a new economy. Four years later and we have all experienced first hand the real meaning of this utopian green vision — soaring energy costs which have made it harder to heat our homes, gas up our cars and buy groceries.
Conservatives call him “Carbon Tax Carney,” a nickname which his apologists have started to say is unfair, since after years of championing the Carbon Tax, he has recently distanced himself from it.
Well, of course he has! Support for the Carbon Tax has cratered across the country, and Carney is just one of many long-time supporters jumping ship in the hope that their reputation — and their wider agenda — doesn’t get sucked down with it.
Carney has been, and continues to be, a carnival barker for interventionist policies and regulation to control carbon emissions. When it comes to action on the environment and the economy Carney is of the “just do what we smart people say” school. He constantly talks of an impending climate crisis, and supports his alarmist fellow travellers like climate doomster Greta Thunberg, whom he has praised for her “many positive contributions.”
Carney has persistently advocated for strict controls on corporate governance to direct support — that is, money — towards his favored fuels and technologies. In fact, his apparent “about face” on the Carbon Tax (he said it “served a purpose up until now”) came about in the context of his Senate testimony in favor of Bill S-243, the “Climate-Aligned Finance Act,” which seeks to make it nearly impossible for banks to invest in, or loan money to, oil and gas projects in Canada, and tries to force financial institutions to appoint board members ideologically opposed to hydrocarbon energy.
Carney is a champion of ESG, and the founder and co-chair of the Glasgow Financial Alliance for Net Zero (GFANZ,) which seeks to harness the might of global finance to bring about a Net-Zero global economy. After a lot of initial excitement and acclaim (at least from the Davos-brigade), GFANZ has had trouble coping with the difficult economic times which Carney’s preferred policies have contributed to bringing about, not to mention the potential for antitrust litigation from the U.S. Department of Justice, which seems increasingly likely. Some of the group’s biggest members — Morgan Stanley, Goldman Sachs, CitiGroup, Bank of America, and Wells Fargo — have dropped out of the alliance just in the past month.
That might mean that GFANZ is not long for this world, but even so it should remain as a black mark on Carney’s résumé. It demonstrates that his economic instincts, whichsome are praising, are always towards more control, by the likes of him, over how the rest of us live our lives. And its downfall likely foreshadows what a Prime Minister Carney would do to Canada’s economy.
On energy and the environment, Carney is Trudeau with Wall Street and central bank experience: a green ideologue, but a more sophisticated one.
Canadians are fed up with green ideologues, polished or otherwise. Their ideas undermine our economic well-being, by making energy a lot more expensive. Ultimately, a Liberal Party under Mark Carney’s leadership would represent more of the same green grifting policies we saw under Justin Trudeau.
Dan McTeague is President of Canadians for Affordable Energy.
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Dan McTeague
In 2025, we have much to look forward to so let’s celebrate now
By Dan McTeague
That light at the end of the tunnel we thought was an oncoming train? It might be the sun after all!
“Tis the season to be jolly,” says the song, and commonsense-loving Canadians would do well to follow that dictum this Christmas season.
To be sure, Justin Trudeau’s nine years in power have harmed our country and its people immeasurably. Trudeau has waged a multi-front war on both the production and consumption of hydrocarbon energy, the backbone of the Canadian economy.
The Trudeau government, devoted as it is to the damaging Net Zero ideology, instituted a Carbon Tax, appropriately set to increase every year on April Fool’s Day, of all days, so that Canadians would get progressively acclimated to paying more for energy every year. Like frogs in a slowly heating pot.
He was so devoted to this increase that he refused to postpone it during the dark early days of the COVID-19 pandemic when no one knew what was going on, unemployment was rising sharply, and the country was looking at a severe economic downturn. That’s ideology for you.
The Carbon Tax, compounded as it is by the less-known Clean Fuel Standard, which I’ve dubbed the Second Carbon Tax, has been an albatross around the neck of the Canadian economy, making it difficult for us to keep our heads above water. It has made it increasingly more expensive to heat our homes in a famously frigid climate, and to gas up our cars in a huge country where driving is a necessity.
Those are its obvious consequences, but somewhat less commented on has been its secondary effects on the price of goods and services. The Carbon Tax raises the cost of business at every step of our supply chain, from the farm to the grocery store, and that cost is ultimately passed onto the consumer.
And then there are the Electric Vehicle (EV) mandates, which will become an issue much sooner than you realize. The Trudeau government has mandated that by 2035, in just about a decade, every new car, SUV, or light truck sold in Canada must be an EV. This despite the fact that EVs are less reliable — once again, especially in the cold.
Charging EVs is extremely inconvenient, generally taking hours. And that’s if you can even find a charger — Natural Resources Canada estimates that we will need to build about 450,000 charging stations to meet the needs of the country, if Trudeau’s EV transition is going to work at all. Right now we have about 28,000.
They’re also expensive to produce, which is why the Trudeau government (along with their partners in crime, the Ford government in Ontario) have been heavily subsidizing their production. And they’re expensive to buy, which is why the government has been subsidizing their purchase. Which is to say, billions of taxpayer dollars are being shoveled into both ends of the EV dumpster fire!
And one of the most recent outrages perpetrated by this government has been the emission cap, which as I said in these pages a few months ago, “make Canada the only country in the world which willingly and purposefully stifles its single largest revenue stream.”
After all, a report commissioned by the Government of Alberta found that an Emissions Cap would lead to a 10% decrease in Alberta’s oil production and a 16% decrease in conventional natural gas production. The report estimates that “over the 2030 to 2040 period… real GDP in Alberta is $191 billion lower and real GDP in the Rest of Canada is $91 billion lower, compared to the baseline scenario.” Instead of growing, the economies of Alberta and Canada will have contracted by 2040, by 4.5% of GDP for the former and by 1.0% of GDP of the latter.
And if that is too abstract, it just means that working men and women, throughout our country, not just in our western provinces, will struggle to provide for their families, whether or not their professions have anything to do with oil and gas. That’s what a shrinking economy looks like.
Now, I could go on and on this way, touching on housing, crime, or rising unemployment, but a truly exhaustive list of Trudeaupian blunders might take us all the way to Easter. But I did open this article by counseling us all to rejoice, in the proper spirit of this season. And, despite this bleak picture, there is good reason to do so.
First off, rejoice because the results of Trudeau’s catastrophic governance have been noticed. Regular people have soured on his policies, particularly the supposedly “green” ones. Hammering away at the Carbon Tax has put Pierre Poilievre’s Conservatives in a pretty good position to win the federal election we’re set to have on or before (preferably before) October 20, 2025. At which point we can begin the process of doing a significant course correction and putting the past 9 years behind us.
That is easier said than done. It will take a lot of hard work on the part of the Conservatives to undo the ideological policies which have made our lives unaffordable, and there will be the temptation to go after the low hanging fruit by, say, canceling the Carbon Tax and leaving the rest of the rotten Net Zero superstructure in place.
That would be bad, and if they try anything along those lines, I will be the first to call them on it. Even so, they are unlikely to actively make things worse, which makes them better than the Trudeau Liberals.
But more importantly, we should rejoice because politics isn’t everything. That’s easy to forget when we’re throwing elbows on Twitter/X and elsewhere, but there’s more to life than this. With all of our problems, we’re still blessed to live in a beautiful, peaceful country with abundant natural resources and full of good people.
So my advice to you, dear reader, is to make it a point during these holidays to spend some time with family and catch up with some old friends, whatever their political persuasion.
You won’t regret it.
Dan McTeague is President of Canadians for Affordable Energy.
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