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Stop The Cap On Oil And Gas

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From Project Confederation

With the United Nations’s 28th Climate Change Conference in Dubai generating headlines, we all knew it was only a matter of time before Canada’s radical eco-activist Environment Minister did something stupid.

And here it is, from Steven Guilbeault himself:

“The Government of Canada’s plan to cap and reduce emissions from Canada’s largest emitting sector is ambitious, but practical. It considers the global demand for oil and gas — and the importance of the sector in Canada’s economy — and sets a limit that is strict, but achievable.”

That’s right, folks – the Oil and Gas emissions/production cap is finally upon us.

We launched a campaign last year, around this same time, warning that this was coming.

Now, we know just how bad it actually is.


If you already agree that we should Stop The Cap On Oil And Gas,
click here to sign the petition, but if you want more details, read on!


The framework that’s being proposed by the federal government would cap emissions at 35% – 38% below 2019 levels.

How exactly would this be done?

What will it cost?

No one knows.

The federal government just says that they’ll release the details via regulation sometime next year.

Alberta Premier Danielle Smith is livid, issuing a statement:

“[The announcement is an] intentional attack by the federal government on the economy of Alberta and the financial well-being of millions of Albertans and Canadians.”

“Justin Trudeau and his eco-extremist Minister of the Environment and Climate Change, Steven Guilbeault, are risking hundreds of billions of investments in Alberta’s and Canada’s economy.”

Saskatchewan Premier Scott Moe echoed Smith:

“[The cap] will have serious economic impacts on Canadians and limit our sustainable Canadian energy products from providing heat and electricity to the world.”

“Saskatchewan will protect our constitutional right to build our economy in accordance with the priorities of Saskatchewan families and businesses.”

The federal government has been in legal hot water lately over constitutional overreaches – with the Supreme Court deeming the Impact Assessment Act unconstitutional in October and the Federal Court ruling the plastics ban unconstitutional in November.

Ottawa has consistently ignored provincial jurisdiction on a wide range of issues, and their inability to stay in their constitutional lane has been a major source of tension with the provinces.

This emissions cap is just the latest example, as natural resource development is guaranteed to be the sole jurisdiction of the provinces in the Constitution of Canada.

As such, the emissions cap is clearly unconstitutional – but even if it wasn’t, it would be a terrible policy anyway.

First, it’s an admission by the government that the carbon tax – their signature climate change policy – is not working.

The entire purpose of the tax was to be a “market mechanism” to reduce emissions, and yet now they’re admitting that they need even more regulations to reduce emissions.

This cap is a direct and deliberate attack on western Canada’s oil and gas industry.

Remember – the cap will not apply to any industry other than oil and gas.

Ontario’s automotive industry, Quebec’s cement industry, and other high-emitting industries in other parts of Canada are not having their emissions capped.

The cap also excludes refineries – even though that is part of the oil and gas industry – because many of Canada’s refineries happen to be in regions of the country that mostly vote Liberal.

If the federal government were actually concerned about the environment, they would implement policies designed to reduce emissions across all industries and all regions of Canada.

Instead, the hypocritical and political nature of Ottawa’s climate agenda reveals their true intentions and undermines the credibility of their entire plan.

That’s why we’re renewing our campaign calling on the federal government to back off, respect the Constitution, and stop infringing on provincial jurisdiction.

If you agree, please sign our petition to Stop The Cap On Oil And Gas:

Josh Andrus
Executive Director
Project Confederation

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Canadian Energy Centre

Nine major insights from Shell’s latest global LNG outlook

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A worker at Shell’s Hazira LNG import terminal, about 250 kilometers from Mumbai, India. Photo courtesy Shell

From the Canadian Energy Centre

By Deborah Jaremko

Led by growing demand in China and the need for energy security, LNG is playing an increasingly important role in global gas supply

Global energy giant Shell has released its latest outlook for world liquefied natural gas (LNG) supply and demand through 2040. Here are nine key insights about what to expect in the future.

1. LNG is playing an increasingly important role in global gas supply. Total world LNG demand is set to continue growing beyond 2040.

2. Global LNG trade reached 404 million tonnes in 2023, an increase of 7 million tonnes compared to 2022. Over the last five years, LNG demand grew by 45 million tonnes, or 13 per cent.

3. In 2040, the world is expected to consume up to 685 million tonnes of LNG, an increase of nearly 70 per cent compared to 2023.

4. The United States became the world’s largest LNG exporter in 2023, shipping 86 million tonnes, followed by Australia, Qatar, Russia and Malaysia.

5. By 2030, North America will supply about 30 per cent of global LNG demand, led by natural gas from major basins including the Appalachia (Marcellus) play in the eastern United States and the Montney play in Alberta and British Columbia. But the global gas market is increasingly exposed to U.S. risks like the Biden administration’s pause on new LNG approvals.

6. China is likely to dominate LNG demand growth as the country’s industries seek to cut carbon emissions by switching from coal to gas. With China’s coal-based steel sector accounting for more emissions than the total emissions of the UK, Germany and Turkey combined, gas has an essential role to play in tackling one of the world’s biggest sources of carbon emissions and local air pollution. China’s gas demand is expected to rise by more than 50 per cent by 2040.

7. Natural gas, delivered as LNG, provides flexibility to balance intermittent solar and wind power generation. In countries with high levels of renewables in their power generation mix, gas provides short-term flexibility and long-term security of supply. Gas provides grid stability, enabling a higher share of renewables in power grids.

8. LNG continues to play a vital role in European energy security, with European nations importing more than 120 million tonnes in 2023, assisted by new regasification facilities. Europe will continue to rely on LNG to support its energy mix through 2030, even as total European natural gas demand is expected to decline by about 25 per cent.

9. South Asia and Southeast Asia are emerging as major LNG import regions, with Vietnam, and the Philippines starting to import LNG to backfill domestic gas declines. From less than 10 million tonnes in 2020, LNG imports to Thailand, Bangladesh, Vietnam and the Philippines are expected to rise to about 40 million tonnes in 2030 and more than 60 million tonnes in 2040. 

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Alberta

Low emissions, Indigenous-owned Cascade Power Project to boost Alberta electrical grid reliability

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The Cascade Power Project. Photo courtesy Kinetcor

From the Canadian Energy Centre

By Will Gibson

New 900-megawatt natural gas-fired facility to supply more than eight per cent of Alberta’s power needs

Alberta’s electrical grid is about to get a boost in reliability from a major new natural gas-fired power plant owned in part by Indigenous communities.  

Next month operations are scheduled to start at the Cascade Power Project, which will have enough capacity to supply more than eight per cent of Alberta’s energy needs.  

It’s good news in a province where just over one month ago an emergency alert suddenly blared on cell phones and other electronic devices warning residents to immediately reduce electricity use to avoid outages.  

“Living in an energy-rich province, we sometimes take electricity for granted,” says Chana Martineau, CEO of the Alberta Indigenous Opportunities Corporation (AIOC) and member of the Frog Lake First Nation.  

“Given much of the province was dealing with -40C weather at the time, that alert was a vivid reminder of the importance of having a reliable electrical grid.” 

Cascade Power was the first project to receive funding through the AIOC, the provincial corporation established in 2020 to provide loan guarantees for Indigenous groups seeking partnerships in major development projects. 

So far, the AIOC has underwritten more than $500 million in support. This year it has $3 billion  available, up from $2 billion in 2023.  

In August 2020 it provided a $93 million loan guarantee to the Indigenous Communities Consortium — comprised of the Alexis Nakota Sioux NationEnoch Cree NationKehewin Cree NationOChiese First NationPaul First Nation, and Whitefish (Goodfish) Lake First Nation — to become equity owners. 

The 900-megawatt, $1.5-billion facility is scheduled to come online in March. 

“It’s personally gratifying for me to see how we moved from having Indigenous communities being seen as obstacles to partners in a generation,” says Martineau. 

The added capacity brought by Cascade is welcomed by the Alberta Electrical System Operator (AESO), which is responsible for the provinces electrical grid. =

“The AESO welcomes all new forms of generation into the Alberta marketplace, including renewables, thermal, storage, and others,” said Diane Kossman, a spokeswoman for the agency.  

“It is imperative that Alberta continue to have sufficient dispatchable generation to serve load during peak demand periods when other forms of generation are not able to contribute in a meaningful way.” 

The Cascade project also provides environmental benefits. It is a so-called “combined cycle” power facility, meaning it uses both a gas turbine and a steam turbine simultaneously to produce up to 50 per cent more electricity from the same amount of fuel than a traditional facility.  

Once complete, Cascade is expected to be the largest and most efficient combined cycle power plant in Alberta, producing 62 per cent less CO2 than a coal-fired power plant and 30 per cent less CO2 than a typical coal-to-gas conversion.  

“This project really is aligned with the goals of Indigenous communities on environmental performance,” says Martineau. 

The partnership behind the power plant includes Axium InfrastructureDIF Capital Partners  and Kineticor Resource Corp. along with the Indigenous Communities Consortium. 

The nations invested through a partnership with OPTrust, one of Canada’s largest pension funds.  

“Innovation is not just what we invest in, but it is also how we invest,” said James Davis, OPTrust’s chief investment officer. 

“The participation of six First Nations in the Cascade Power Project is a prime example of what is possible when investors, the government and local communities work together.” 

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