Economy
Wrapping Up Canadian Energy 2023 – Prosperity, Power Struggles, Pipelines, EV Promises and “Pie in the Sky” Politics
From EnergyNow Media
By Deidra Garyk
2023 was an optimistic year in the Canadian oil patch. The +15 walkway system in downtown Calgary has been buzzing with the energy of people hurrying to business meetings and networking events.
Some of those scurrying about were headed to talk multi-billion-dollar merger and acquisition (M&A) deals that the patch continued to experience throughout the year. Traditional oil companies also bought alternative energy and carbon tech companies. Carbon capture, utilization and storage (CCUS) was the investment decision of the year.
Oil and gas prices remained relatively high. Not great, but not in the toilet like the dark years of 2015 to 2021. That meant government coffers filled, easing some of the debt burden accumulated during COVID. Oil and gas companies, producers and the many service providers who support the production, were able to continue paying down debt and providing returns to patient shareholders.
Canadian majors Suncor, Cenovus, and Enbridge went through leadership changes at the top. I wish these men success and courage. They are going to need it to embolden pragmatism at all levels of government.
The Canadian federal government continues to be all-in on climate and green energy, seemingly to the exclusion of traditional, reliable energy sources. Although, since climate change has taken a backseat to affordability and energy security for the voting public – the only people politicians really care about – the Liberals have had to rebrand some programs to get buy-in.
One example is renaming the “Just Transition” the Sustainable Jobs Plan. Other than the name, not much has changed. There is still a push for unionized, non-oil and gas jobs.
The feds “invested” (their word, not mine) billions of dollars in EV battery plants, continuing to go all-in on 100 percent EV car sales in twelve years. Senior bureaucrats at Transport Canada even touted the nearness of EV heavy-duty commercial transportation and equipment. (Someone should tell them it will not work well in remote locations with no charging infrastructure.) Energy and Natural Resources Minister Jonathan Wilkinson lauded the day when agricultural equipment goes all electric, fantasizing about the economic boon that will bring. (Someone else should tell him it will not be experienced by farmers who have to spend their hard-earned dollars on equipment replacements.)
Joe Biden visited Ottawa in March. I happened to be there for a conference, so I got to experience the pomp and circumstance first-hand. I have never seen so much security, and I have travelled to places under military control and lived in a country that remains perpetually under the threat of foreign invasion.
Biden’s motorcade is a long, emissions-belching row of vehicles. I did not see any EVs. It includes two “Beasts” (one used as a decoy while the other transports the President), an ambulance, and several tricked-out SUVs. It is quite a spectacle.
As expected, topping the list of topics on the visit’s agenda, President Biden and Prime Minister Trudeau talked about energy and climate, as outlined in their joint statement.
Global sustainability reporting standards were released in June and come into effect January 1, 2024. Publicly traded companies are waiting for Canada to release jurisdiction-specific regulations to understand the magnitude of what will be required. In the Fall Economic Update, released November 22, the feds said rules will be put in place to extend mandatory climate reporting to private companies. That is a big hint at what all companies should expect, at a minimum.
You can listen to my podcast on the subject with energy analyst Dr. Tammy Nemeth here.
On the topic of climate, Bill S-243, An Act to enact the Climate-Aligned Finance Act and to make related amendments to other Acts passed second reading in the Senate in June. You may think this is just some boring Senate bill, but oil and gas boards and employees need to be aware of it.
The bill aims to restrict investment in hydrocarbons, forces companies to set climate commitments, and dictates who has to be part of a company’s board of directors. Worse, section 13(1) Appointment – restriction outlines who cannot be a board member – anyone who works in or owns shares in a fossil fuel company.
It goes as far as to include: “And whereas investment in energy efficiency, clean energy and clean technologies and the incentivization of innovation and behavioural change must replace investments in greenhouse-gas-emission-intensive activities for effective action against climate change.” It targets “fossil fuel activity” in the definition of “emissions-intensive activities”.
Alignment with climate commitments requires that companies:
- take into consideration vulnerable groups, communities and ecosystems, including the biodiversity of those ecosystems,
- make decisions based on equity and the best available science and
- do not promote, foster or exacerbate food insecurity or inequalities in society; and
- do not cause significant harm to social and environmental obligations recognized by Canada.
This bill should trouble any rational person, and it is not getting enough attention. It ramps up climate hysteria and enshrines it into all financial decision making. It is ideological to its core.
I encourage you to read the bill here.
Fortunately, two major, necessary egress projects – Coastal GasLink and Trans Mountain – are well underway before Bill S-243 can stop them. Coastal GasLink reached major milestones of 100 percent pipeline installation and mechanical completion, ahead of schedule. Unfortunately, the federally owned Trans Mountain pipeline has continued to experience delays and a cost increase to $30.9 billion. Although, it was about 80 percent complete in March and expected to be in service in the first quarter of 2024, the project has been delayed due to issues over the route and may not be completed until the end of 2024.
Canada’s summer wildfire season had environmental activists hot and bothered, blaming one thing, and one thing only – climate change!
Calgary hosted the 24th World Petroleum Congress and world energy leaders in September. The torch was passed on to Saudi Arabia to host next. Based on their booth, it will be an extravaganza that will undoubtedly proudly display their oil and gas development. Energy and Natural Resources Minister Jonathan Wilkinson dutifully kept to the Liberal’s script and was challenged to mention the words “oil” and “gas” during his speech at the World Petroleum Congress. This caused the ire of Alberta Premier Danielle Smith, who has had it with the feds’ attitude towards oil and gas.
She has now invoked the Alberta Sovereignty Act in an attempt to prevent the federal government from being able to enact the Clean Electricity Standard by 2035. She has taken a lot of heat for it, but Saskatchewan’s Premier Scott Moe did it first with the colloquially named Saskatchewan First Act. When adversarial Environment and Climate Change Canada Minister Steven Guilbeault threatened to criminalize the use of coal-fired power generation past 2030, Moe puffed out his chest and said, “come get me!”
For all the partisan naysayers attacking the Premiers, I recommend reading Electricity Canada’s response to the Clean Electricity Regulations. It is emotionless and objective, and it sides with the Premiers.
Good thing there is serious discussion about the electricity grid and reliability happening in the Edmonton Legislature because Alberta’s grid operator AESO has issued several warnings in the last year, on both hot and cold days. This has me impatiently waiting for the 2,700 megawatts of new natural gas-powered generation to come on in 2024.
November was all about the carbon tax fight. The feds doubled down on the importance of carbon taxes in the fight against global warming, but not in regions where their sitting MPs risk losing their seats (i.e. their jobs) in the next election. If you think it was not political, you are fooling yourself. They are still fighting over the applicability of a tax on farmers. As someone who eats, I would like it removed to keep the cost of food down.
Premier Moe will not charge Saskatchewan residents carbon tax on natural gas and electricity used to heat homes. This seems reasonable considering that it gets really, really, really cold in Saskatchewan for many days in the winter and reliable energy is a must.
In a hotter region of the world, Dubai, United Arab Emirates hosted COP28 in December. It is the twenty eighth UN climate conference, and yet we appear no closer to solving the thing they say is a crisis – rising emissions. The globe reached the height of emissions in 2023, even though coal use is down and renewable energy capacity and investment is up, up, up, according to the International Energy Agency.
As expected, Canada made various expensive pledges. Minister Guilbeault bounces to the podium for a photo op, drops a climate pledge or two, and the rest of us are left trying to figure out how to meet the commitment. The most contentious for Alberta and Saskatchewan was the oil and gas emissions cap that has been called a de facto production cap.
GEOPOLITICS
With energy security remaining a priority for citizens, nuclear is no longer a bad word. Countries and regions are expanding existing nuclear infrastructure and there is increasing public acceptance for small modular reactors. The false fear tactics used by the anti-nuclear activists have finally been shown for what they are – exaggerated and untrue.
The BRICS alliance expanded with the addition of six new members: Iran, Saudi Arabia, Egypt, Ethiopia, Argentina, and the United Arab Emirates.
Not only are the BRICS nations population and economic power players, they hold the keys to unlocking vast reserves of reliable energy. Total oil production from BRICS nations will be between 40-45 percent of global oil production, more than OPEC’s 35-40 percent. In addition, the members hold vast reserves of the minerals needed for any future energy transformation.
Forty other countries applied to join, demonstrating an interest in the group. Western leaders and NGOs would be wise to pay attention to the growing influence of the BRICS, even if they dislike some of the members.
BRICS is my geopolitical story of the year as it continues to disrupt global energy markets. In 2022, India increased purchases of discounted Russian oil by forty percent. This year, India purchased oil from the United Arab Emirates in rupees, their local currency. These are two examples of the shifts that are happening but are seemingly ignored by the West.
Overall, it appears that pragmatism and realism are influencing political energy decisions, and 2024 is expected to be another positive year for the Canadian oil patch.
All the best for the new year. May you enjoy peace and prosperity.
About Deidra Garyk
Deidra Garyk has been working in the Canadian energy industry for almost 20 years. She is currently the Manager, ESG & Sustainability at an oilfield service company. Prior to that, she worked in roles of varying seniority at exploration and production companies in joint venture contracts where she was responsible for working collaboratively with stakeholders to negotiate access to pipelines, compressors, plants, and batteries.
Outside of her professional commitments, Deidra is an energy advocate and thought leader who researches, writes, and speaks about energy policy and advocacy to promote balanced, honest, fact-based conversations.
From the Brownstone Institute
By
After the lockdowns of 2020 and the vaccine mandates of 2021, most Americans have heard about the idea of medical freedom and many have concerns about informed consent. One in four of our countrymen say they know someone who was seriously injured or killed by the Covid vaccines. The need for informed consent in medicine is apparent. But far fewer know anything about food freedom, or why it matters.
Medical freedom and food freedom are two sides of the same coin, and unless we fight to protect both, we will have neither.
Looking to the future in his 1951 book The Impact of Science on Society, the Nobel Prize-winning British mathematician, philosopher, and eugenicist Bertrand Russell forecast a future where the elites would use science as a means to control the population: “Diet, injections, and injunctions will combine, from a very early age, to produce the sort of character and the sort of beliefs that the authorities consider desirable, and any serious criticism of the powers that be will become psychologically impossible. Even if all are miserable, all will believe themselves happy, because the government will tell them that they are so.”
In The Scientific Outlook, Russell also wrote: “[In the future], [children’s] diet(s) will not be left to the caprices of parents, but will be such as the best biochemists recommend.”
While this likely sounded far-fetched to most of Russell’s contemporaries, his words capture our current era with alarming accuracy. In the past three years, millions of Americans saw their lives and livelihoods destroyed through injections and injunctions. Small businesses were decimated by the lockdowns. Legions of hard-working people faced ruin for demanding their right of informed consent – to evaluate the facts regarding any so-called medical treatment and to decide for themselves if they wanted it. They were fired for refusing the vaccine. They were killed with remdesivir. They died when doctors and bureaucrats denied them the truly safe and effective treatments they demanded, such as ivermectin.
Some of you are among the brave few who stood up in that moment and did what was right, to protect patients and vulnerable people at great cost to yourselves. I applaud you for this. You know first-hand what it means to have the boot of Injections and Injunctions on your face.
Now the third piece of the control grid Russell laid out must come into focus: diet. The battle to control you through what you eat is very real. It threatens to destroy what sovereignty we have left, and it is being perpetrated by the very same people who brought you “safe and effective injections” and “two weeks to slow the spread.”
The Covid lockdowns revealed the weakness of our overly centralized supply food chain on a global level. Government-mandated shutdowns disrupted food distribution hubs and shuttered meat processing plants, causing chaos, riots, and unrest worldwide as people scrambled to find food for their families. The situation deteriorated further when Russia invaded Ukraine, the breadbasket of Europe; numerous countries in Asia and Africa depended on Ukrainian grain for their sustenance. The decreased harvest drove up grain prices around the world, contributing to terrible food shortages for millions.
In 2023, 282 million people globally experienced high levels of acute hunger – an increase of 8.5 percent from 2022’s already elevated levels. In the United States, one in eight American households lacked adequate food in 2022, according to a report from the US Department of Agriculture.
You’d think this would be the time to support farmers around the world who are trying to feed the hungry masses, and to encourage local food systems that are resilient in the face of supply-chain disruption. Instead, in country after country, World Economic Forum-affiliated leaders are cracking down on independent farmers and forcing them to comply with draconian new rules in the name of combating climate change.
In Sri Lanka, the World Economic Forum-affiliated Prime Minister Ranil Wickremesinghe banned all chemical fertilizers in a bid to combat climate change, forcing farms to go organic overnight, something which any organic farmer will tell you is a recipe for disaster – making a change like this, even on a single farm, takes planning and time. Combined with an acute diesel shortage, this edict left farms unable to operate, leading to soaring food prices and famine. The situation became so dire that in 2022, hundreds of thousands of Sri Lankans rioted, invaded the presidential palace, and overthrew their government.
In Ireland, the agricultural sector has been ordered to cut carbon emissions by 25% in the next seven years. This requirement will drive many farms into bankruptcy and will force the culling of hundreds of thousands of cows.
In Canada, the goal is fertilizer reduction of 30%, including reductions in manure use on organic farms – the only viable alternative to chemical fertilizer. Farmers are ringing the alarm bells that this policy will devastate the food supply. Even though milk prices are hitting record levels, Canadian officials still force farmers to dump their milk if they produce more than an arbitrary quota. Dairy owners are banned from giving the milk away to neighbors or homeless shelters. In Ontario, farmers cannot sell their milk directly to consumers at all, but must sell it to a single government-approved body which then decides how it is distributed.
In the Netherlands, the government is requiring a 30% reduction in livestock and mandating cuts in nitrogen of up to 95% – nitrogen that is released from cow manure and, if used properly, is an earth-friendly fertilizer. The government also plans to seize and shut down up to 3,000 farms to meet climate objectives. Protests by Dutch farmers have been met with force, including the police firing live ammunition rounds at protesters.
Denmark, Belgium, and Germany are considering similar nitrogen reduction policies. Both the UK and US have already put schemes into place to pay farmers not to farm. In huge areas of the Midwest, large corporations are seizing prime farmland by eminent domain to install solar farms – installations that could instead be built in sunny, arid deserts where they would not disrupt the food supply.
All of this is happening at a time when we need more food and farms, not a reduction.
In the United States, there are many small, regenerative organic farms that raise pastured meats, dairy, and poultry on perennial pastures, without the use of chemical fertilizers, using animal manure to feed the grasses in a beautiful holistic cycle that is environmentally friendly and has starkly lower methane and carbon emissions compared to industrial farming. It reduces nitrogen runoff into rivers and streams and prevents erosion. If our government truly cared about climate change and human health, bureaucrats and scientists would be visiting these farms, begging to learn how to implement their methods to save the planet. Instead, these farmers are facing increased harassment and raids by armed agents seeking to shut down their operations.
You may have heard about Amos Miller, the Amish farmer from Lancaster, Pennsylvania who has been facing persecution from the CDC, FDA, and USDA for 7 years now for the unforgivable crime of providing raw milk and farm-processed, non-USDA inspected meats to customers who know what they are getting and want it exactly that way. We’ll get into why his customers want non-USDA-inspected meats later in this series. But for now, know that such raids are frequent and are threatening our ability to access local, healthy, environmentally friendly meats and dairy.
Since 2020 there has been a significant increase in the number of unexplained fires and other events damaging farms, barns, food warehouses, food pantries, and the food supply chain in general, prompting the FBI to warn that the food system is under threat from cyberattacks.
So why is this happening? Why is our food supply being disrupted, seemingly on purpose? And who is behind this global assault on our farmers?
From the Canadian Taxpayers Federation
Author: Franco Terrazzano
This tax costs Canadians big time at the gas pump, on home heating bills, on the farm and at the dinner table.
The Canadian Taxpayers Federation is calling on the federal government to scrap the carbon tax in light of newly released government data showing the tax will cost the Canadian economy about $25 billion in 2030.
“Once again, we see the government’s own data showing what hardworking Canadians already know: the carbon tax costs Canada big time,” said Franco Terrazzano, CTF Federal Director. “The carbon tax makes the necessities of life more expensive and it will cost our economy billions of dollars.
“Prime Minister Justin Trudeau must scrap his carbon tax now.”
The government of Canada released modelling showing the cost of the carbon tax on the Canadian economy Thursday.
“The country’s GDP is expected to be about $25 billion lower in 2030 due to carbon pricing than it would be otherwise,” reports the Globe and Mail.
Canada contributes about 1.5 per cent of global emissions.
Government data shows emissions are going up in Canada. In 2022, the latest year of data, emissions in Canada were 708 megatonnes of CO2, an increase of 9.3 megatonnes from 2021.
The federal carbon tax currently costs 17 cents per litre of gasoline, 21 cents per litre of diesel and 15 cents per cubic metre of natural gas.
The carbon tax adds about $13 to the cost of filling up a minivan, about $20 to the cost of filling up a pickup truck and about $200 to the cost of filling up a big rig truck with diesel.
Farmers are charged the carbon tax for heating their barns and drying grains with natural gas and propane. The carbon tax will cost Canadian farmers $1 billion by 2030, according to the Parliamentary Budget Officer.
“No matter how many times this government tries to put lipstick on the carbon tax pig, the reality is clear,” said Kris Sims, CTF Alberta Director. “This tax costs Canadians big time at the gas pump, on home heating bills, on the farm and at the dinner table. Trudeau should make life more affordable and improve the Canadian economy by scrapping his carbon tax.”
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