Connect with us
[the_ad id="89560"]

Alberta

Qatar, Norway and ‘The Trouble with Canada’

Published

7 minute read

From the Canadian Energy Centre Ltd 

By David Yager

Resource developers in Canada face unique geographical, jurisdictional, regulatory and political obstacles

That Germany has given up on Canada to supply liquefied natural gas (LNG) and instead signed a massive multi-year LNG purchase agreement with Qatar has left many angry and disappointed.  

Investment manager and perennial oil bull Eric Nuttall recently visited Qatar and Saudi Arabia and wrote an opinion piece for the Financial Post titled, “Canada could be as green and wealthy as Qatar and Saudi Arabia if government wakes up – Instead of vilifying the oil and gas sectors, Canada should champion them.” 

Nuttall described how Saudi Arabia and Qatar are investing their enormous energy wealth to make life better for their citizens. This includes decarbonizing future domestic energy supplies and making large investments in infrastructure.   

Nuttall concludes, “Why is it that Qatar, a country that embraced its LNG industry, has nearly three times the number of doctors per capita than Canada? We can do it all: increase our oil and natural gas production, at the highest environmental standards anywhere in the world, thereby allowing us to help meet the world’s needs while benefiting from its revenue and allowing for critical incremental investments in our national infrastructure…This could have been us.” 

The country most often mentioned that Albertans should emulate is Norway. 

Alberta’s Heritage Savings and Trust Fund has been stuck below $20 billion since it was created by Premier Peter Lougheed in 1976.  

Norway’s Sovereign Wealth Fund, which started 20 years later in 1996, now sits at US$1.2 trillion. 

How many times have you been told that if Alberta’s politicians weren’t so incompetent, our province would have a much larger nest egg after 47 years?  

After all, Canada and Alberta have gobs of natural gas and oil, just like Qatar and Norway. 

Regrettably, that’s all we have in common.  

That Qatar and Norway’s massive hydrocarbon assets are offshore is a massive advantage that producers in the Western Canada Sedimentary Basin will never enjoy. All pipelines are submerged. There are no surface access problems on private property, no municipal property taxes or surface rights payments, and there are no issues with First Nations regarding land claims, treaty rights and constitutional guarantees. 

Being on tidewater is a huge advantage when it comes to market access, greatly reducing operating and transportation costs. 

But it’s more complicated than that, and has been for a long time. In 1990, Olympic athlete and businessman William G. Gairdner wrote a book titled, “The Trouble with Canada – A Citizen Speaks Out.” It takes Gairdner 450 pages to explain how one of the most unique places in the world in terms of resource wealth and personal and economic opportunity was fading fast. 

That was 33 years ago. Nothing has improved. 

As I wrote in my own book about the early days of settlement and development, citizens expected little from their governments and got less. 

Today politics increasingly involves which party will give the most voters the most money.  

The book’s inside front cover reads how Gairdner was concerned that Canada was already “caught between two irreconcilable styles of government, a ‘top down’ collectivism and a ‘bottoms-up individualism;’ he shows how Canadian society has been corrupted by a dangerous love affair with the former.”  

Everything from the constitution to official bilingualism to public health care were identified as the symptoms of a country heading in the wrong direction. 

But Canadian “civil society” often regards these as accomplishments. 

The constitution enshrines a federal structure that ignores representation by population in the Senate thus leaving the underpopulated regions vulnerable to the political desires of central Canada. This prohibited Alberta’s closest access to tidewater for oil through Bill C48. 

Official bilingualism and French cultural protection has morphed into Quebec intentionally blocking Atlantic tidewater access for western Canadian oil and gas.  

In the same country! 

Another election will soon be fought in Alberta over sustaining a mediocre public health care system that continues to slide in international rankings of cost and accessibility. 

What’s remarkable about comparing Canada to Norway or Qatar for missed hydrocarbon export opportunities is how many are convinced that the Canadian way of doing things is equal, if not superior, to that of other countries. 

But neither Norway or Qatar have the geographical, jurisdictional, regulatory and political obstacles that impair resource development in Canada. 

Norway has over 1,000 years of history shared by a relatively homogenous population with similar views on many issues. Norway has a clear sense of its national identity. 

As a country, Canada has only 156 years in its current form and is comprised of Indigenous people and newcomers from all over the world who are still getting to know each other.  

In the endless pursuit of politeness, today’s Canada recognizes multiple nations within its borders.  

Norway and Qatar only have one. 

While relatively new as a country, Qatar is ruled by a “semi-constitutional” monarchy where the major decisions about economic development are made by a handful of people.  

Canada has three layers of elected governments – federal, provincial and municipal – that have turned jurisdictional disputes, excessive regulation, and transferring more of everything to the public sector into an industry.  

Regrettably, saying that Canada should be more like Norway or Qatar without understanding why it can’t be deflects attention away from our challenges and solutions. 

David Yager is an oilfield service executive, oil and gas writer, and energy policy analyst. He is author of  From Miracle to Menace – Alberta, A Carbon Story. 

 

Alberta

Calls for a new pipeline to the coast are only getting louder

Published on

From Resource Works

Alberta wants a new oil pipeline to Prince Rupert in British Columbia.

Calls on the federal government to fast-track new pipelines in Canada have grown. But there’s some confusion that needs to be cleared up about what Ottawa’s intentions are for any new oil and gas pipelines.

Prime Minister Carney appeared to open the door for them when he said, on June 2, that he sees opportunity for Canada to build a new pipeline to ship more oil to foreign markets, if it’s tied to billions of dollars in green investments to reduce the industry’s environmental footprint.

But then he confused that picture by declaring, on June 6, that new pipelines will be built only with “a consensus of all the provinces and the Indigenous people.” And he added: “If a province doesn’t want it, it’s impossible.”

And BC Premier David Eby made it clear on June 2 that BC doesn’t want a new oil pipeline, nor does it want Ottawa to cancel the related ban on oil tankers steaming through northwest BC waters. These also face opposition from some, but not all, First Nations in BC.

Eby’s energy minister, Adrian Dix, also gave thumbs-down to a new oil pipeline, but did say BC supports expanding the capacity of the existing Trans Mountain TMX oil pipeline, and the dredging of Burrard Inlet to allow bigger oil tankers to load Alberta oil from TMX at the port of Vancouver.

While the feds sort out what their position is on fast-tracking new pipelines, Alberta Premier Danielle Smith leaped on Carney’s talk of a new oil pipeline if it’s tied to lowering the carbon impact of the Alberta oilsands and their oil.

She saw “a grand bargain,” with, in her eyes, a new oil pipeline from Alberta to Prince Rupert, BC, producing $20 billion a year in revenue, some of which could then be used to develop and install carbon-capture mechanisms for the oil.

She noted that the Pathways Alliance, six of Canada’s largest oilsands producers, proposed in 2021 a carbon-capture network and pipeline that would transport captured CO₂ from some 20 oilsands facilities, by a new 400-km pipeline, to a hub in the Cold Lake area of Alberta for permanent underground storage.

Preliminary estimates of the cost of that project run up to $20 billion.

The calls for a new oil pipeline from Bruderheim, AB, to Prince Rupert recall the old Northern Gateway pipeline project that was proposed to run from Alberta to Kitimat, BC.

That was first proposed by Enbridge in 2008, and there were estimates that it would mean billions in government revenues and thousands of jobs.

In 2014, Conservative prime minister Stephen Harper approved Northern Gateway. But in 2015, the Federal Court of Appeal overruled the Harper government, ruling that it had “breached the honour of the Crown by failing to consult” with eight affected First Nations.

Then the Liberal government of Prime Minister Justin Trudeau, who succeeded Harper in 2015, effectively killed the project by instituting a ban on oil tanker traffic on BC’s north coast shortly after taking office.

Now Danielle Smith is working to present Carney with a proponent and route for a potential new crude pipeline from Alberta to Prince Rupert.

She said her government is in talks with Canada’s major pipeline companies in the hope that a private-sector proponent will take the lead on a pipeline to move a million barrels a day of crude to the BC coast.

She said she hopes Carney, who won a minority government in April, will make good on his pledge to speed permitting times for major infrastructure projects. Companies will not commit to building a pipeline, Smith said, without confidence in the federal government’s intent to bring about regulatory reform.

Smith also underlined her support for suggested new pipelines north to Grays Bay in Nunavut, east to Churchill, Manitoba, and potentially a new version of Energy East, a proposed, but shelved, oil pipeline to move oil from Alberta and Saskatchewan to refineries and a marine terminal in the Maritimes.

The Energy East oil pipeline was proposed in 2013 by TC Energy, to move Western Canadian crude to an export terminal at St. John, NB, and to refineries in eastern Canada. It was mothballed in 2017 over regulatory hurdles and political opposition in Quebec.

A separate proposal known as GNL Quebec to build a liquefied natural gas pipeline and export terminal in the Saguenay region was rejected by both federal and provincial authorities on environmental grounds. It would have diverted 19.4 per cent of Canadian gas exports to Europe, instead of going to the US.

Now Quebec’s environment minister Benoit Charette says his government would be prepared to take another look at both projects.

The Grays Bay idea is to include an oil pipeline in a corridor that would run from northern BC to Grays Bay in Nunavut. Prime Minister Carney has suggested there could be opportunities for such a pipeline that would carry “decarbonized” oil to new markets.

There have also been several proposals that Canada should build an oil pipeline, and/or a natural gas pipeline, to the port of Churchill. One is from a group of seven senior oil and gas executives who in 2017 suggested the Western Energy Corridor to Churchill.

Now a group of First Nations has proposed a terminal at Port Nelson, on Hudson Bay near Churchill, to ship LNG to Europe and potash to Brazil. And the Manitoba government is looking at the idea.

“There is absolutely a business case for sending our LNG directly to European markets rather than sending our natural gas down to the Gulf Coast and having them liquefy it and ship it over,” says Robyn Lore of project backer NeeStaNan. “It’s in Canada’s interest to do this.”

And, he adds: “The port and corridor will be 100 per cent Indigenous owned.”

Manitoba Premier Wab Kinew has suggested that the potential trade corridor to Hudson Bay could handle oil, LNG, hydrogen, and potash slurry. (One obvious drawback, though, winter ice limits the Hudson Bay shipping season to four months of the year, July to October.)

All this talk of new pipelines comes as Canada begins to look for new markets to reduce reliance on the US, following tariff measures from President Donald Trump.

Alberta Premier Smith says: “I think the world has changed dramatically since Donald Trump got elected in November. I think that’s changed the national conversation.”

And she says that if Carney wants a true nation-building project to fast-track, she can’t think of a better one than a new West Coast oil pipeline.

“I can’t imagine that there will be another project on the national list that will generate as much revenue, as much GDP, as many high paying jobs as a bitumen pipeline to the coast.”

Now we need to know what Mark Carney’s stance on pipelines really is: Is it fast-tracking them to reduce our reliance on the US? Or is it insisting that, for a pipeline, “If a province doesn’t want it, it’s impossible.”

Continue Reading

Alberta

Central Alberta MP resigns to give Conservative leader Pierre Poilievre a chance to regain a seat in Parliament

Published on

From LifeSiteNews

By Anthony Murdoch

Conservative MP Damien Kurek stepped aside in the Battle River-Crowfoot riding to allow Pierre Poilievre to enter a by-election in his native Alberta.

Conservative MP Damien Kurek officially resigned as an MP in the Alberta federal riding of Battle River-Crowfoot in a move that will allow Conservative Party of Canada leader Pierre Poilievre to run in a by-election in that riding to reclaim his seat in Parliament.

June 17 was Kurek’s last day as an MP after he notified the House Speaker of his resignation.

“I will continue to work with our incredible local team to do everything I can to remain the strong voice for you as I support Pierre in this process and then run again here in Battle River-Crowfoot in the next general election,” he said in a statement to media.

“Pierre Poilievre is a man of principle, character, and is the hardest working MP I have ever met,” he added. “His energy, passion, and drive will have a huge benefit in East Central Alberta.”

Kurek won his riding in the April 28 election, defeating the Liberals by 46,020 votes with 81.8 percent of the votes, a huge number.

Poilievre had lost his Ottawa seat to his Liberal rival, a seat that he held for decades, that many saw as putting his role as leader of the party in jeopardy. He stayed on as leader of the Conservative Party.

Poilievre is originally from Calgary, Alberta, so should he win the by-election, it would be a homecoming of sorts.

It is now up to Prime Minister of Canada Mark Carney to call a by-election in the riding.

Despite Kurek’s old seat being considered a “safe” seat, a group called the “Longest Ballot Committee” is looking to run hundreds of protest candidates against Poilievre in the by-election in the Alberta Battle River–Crowfoot riding, just like they did in his former Ottawa-area Carleton riding in April’s election.

Continue Reading

Trending

X