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Trans Mountain Pipeline proving to be a generational opportunity

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From Energy Now

Trans Mountain Pipeline System a Strategic Canadian Asset

On May 1, 2024, we began commercial operations of the expanded Trans Mountain pipeline. Building a system that increased capacity from approximately 300,000 to 890,000 barrels per day (bpd) is proving to be one of the most strategic investments Canada has ever made. It has allowed us to diversify Canada’s customers for our oil, which has increased revenues and provided Canada with trading options in the face of tariffs from our biggest trading partner, the United States.
While energy is targeted for a lower tariff of 10 per cent (at time of writing), we expect utilization of the Trans Mountain pipeline to grow as Canadian producers look to access markets without a tariff. When the expansion project was first proposed it had three main goals — to give more capacity for responsibly produced Canadian crude oil to grow and meet the energy needs of the world, to give Canadian oil access to global markets on the Pacific Rim, and to increase the value of Canadian oil through this market diversification. I am happy to share that we are achieving these goals.
On the first goal, crude oil production increased in 2024 as producers had greater capacity to ship, and this production is set to grow further in 2025. According to industry analysts, total crude oil production in Canada reached 5.3 million bpd in December 2023. It hit 5.4 million bpd in December 2024 and is expected to reach 5.6 million bpd by December 2025.
Since May 1, Trans Mountain has sent roughly half of the shipments from our marine terminal to countries other than the United States on the Pacific Rim, and half have gone to refineries on the west coast of the United States. In a recently released independent report by Alberta Central, economist Charles St-Arnaud highlights, “non-U.S. oil exports more than doubled in the second half of 2024.”
This increased access to international markets is what drives the third goal, allowing Canada to get a better price for our product. In the past, Canada had to sell crude oil into a single market, often at a steep discount or differential to the benchmark price. This has been a substantial transfer of wealth from Canada to another country.
With the startup of the expanded system, the discount on Canadian crude oil has improved. The price differential between Western Canada Select (WCS) and West Texas Intermediate (WTI) narrowed by about $10 in Q4 2024 versus Q4 2023. Analysts estimate this price uplift increased oil revenues by $10 billion since we began shipping oil through the expanded system.
We are in month 10 of commercial operations and are now identifying and investigating growth opportunities that would improve the throughput efficiency and increase the capacity of the expanded system, ideally in the next four to five years under the current regulatory regime. Execution of any project requires extensive collaboration and engagement with our business partners, governments, Indigenous peoples, community groups and other affected stakeholders. It also requires multiple levels of approvals by provincial and federal regulators.
While we see beneficial growth opportunities, before Trans Mountain or any other energy system can consider significant expansions or investments in Canada, our nation needs to find more efficiencies in effective engagement and our regulatory process. Given our evolving global energy landscape, increasing Canada’s ability to reach new markets to supply Canadian energy to other nations is becoming increasingly important.
Canada has a long history of being a stable provider of responsibly produced energy to the United States and, hopefully, this relationship will soon return to how it was before Feb. 1. However, we now have the opportunity to deliver our products to other nations on the Pacific Rim.
As stated before a committee of Parliament in 2024, the fiscal legacy of the Trans Mountain pipeline system for the Government of Canada will be achieved by being a disciplined seller. When the time is right, Canada can return the company to the private sector and receive full value for its investment. That is the goal of our entire team. That investment is proving to be the generational opportunity the federal government predicted it could be when it purchased the company. Canada’s leadership demonstrated the foresight to see this through and stepped up at a critical time to do what was good for the country.Trans Mountain is delivering what was promised, and as it turns out, just in time.

Mark Maki is chief executive of Trans Mountain.

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Kennedy to cut 10,000 HHS employees to reduce ‘bureaucratic sprawl’

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From The Center Square

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The changes are expected to reduce the agency’s headcount from 82,000 to 62,000 full-time employees.

Robert F. Kennedy Jr. announced a significant restructuring of the U.S. Department of Health and Human Services on Thursday in a move to streamline the huge federal agency and cut costs.

Kennedy plans to trim about 10,000 employees from the agency’s workforce in addition to employees who left as part of a Deferred Resignation Program, similar to a buy out, earlier this year. The move is expected to save about $1.8 billion.

Kennedy said the restructuring won’t affect the agency’s critical services. When combined with HHS’ other efforts, including early retirement, the changes are expected to reduce the agency’s headcount from 82,000 to 62,000 full-time employees. The restructuring will also align the department with Kennedy’s goals for a healthier U.S. population.

“We aren’t just reducing bureaucratic sprawl. We are realigning the organization with its core mission and our new priorities in reversing the chronic disease epidemic,” Kennedy said. “This Department will do more – a lot more – at a lower cost to the taxpayer.”

Kennedy also said the restructuring of the department’s 28 divisions will get rid of redundant units, consolidating them into “15 new divisions, including a new Administration for a Healthy America, or AHA, and will centralize core functions such as Human Resources, Information Technology, Procurement, External Affairs, and Policy.” Regional offices will be reduced from 10 to 5.

The overhaul will implement the new “HHS priority of ending America’s epidemic of chronic illness by focusing on safe, wholesome food, clean water, and the elimination of environmental toxins. These priorities will be reflected in the reorganization of HHS.”

Kennedy also said the restructuring would improve taxpayers’ experience with HHS by making the agency more responsive and efficient. He also said the changes would ensure that Medicare, Medicaid, and other essential health services remain intact.

The Administration for a Healthy America will combine multiple agencies – the Office of the Assistant Secretary for Health, Health Resources and Services Administration, Substance Abuse and Mental Health Services Administration, Agency for Toxic Substances and Disease Registry, and National Institute for Occupational Safety and Health — into a single, unified entity, Kennedy said.

The Centers for Disease Control and Prevention will get the Administration for Strategic Preparedness and Response, which is responsible for national disaster and public health emergency response.

“Over time, bureaucracies like HHS become wasteful and inefficient even when most of their staff are dedicated and competent civil servants,” Kennedy said. “This overhaul will be a win-win for taxpayers and for those that HHS serves.”

Among the cuts: The U.S. Food and Drug Administration will shed about 3,500 full-time employees. Officials said the reduction won’t affect drug, medical device, or food reviewers, nor will it impact inspectors. The CDC will drop about 2,400 employees. The National Institutes of Health will cut about 1,200 employees. The Centers for Medicare & Medicaid Services will cut about 300 employees. The reorganization won’t affect Medicare and Medicaid services, officials said.

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Feds Spent Roughly $1 Billion To Conduct Survey That Could’ve Been Done For $10,000, Musk Says

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From the Daily Caller News Foundation

By Hailey Gomez

The Department of Government Efficiency’s (DOGE’s) Elon Musk said Thursday on Fox News that the group found the federal government spent almost $1 billion on a survey that could’ve only cost thousands.

Following President Donald Trump entering office in January, his administration pushed for Musk and DOGE to comb through the government’s spending and identify potential cuts to save taxpayer dollars. On “Special Report with Bret Baier,” the Fox News host sat with Musk and his DOGE team and asked the billionaire what has been the most “astonishing thing” he’s witnessed so far in this process.

“The sheer amount of waste and fraud in the government,” Musk said. “It is astonishing. It’s mind-blowing. We routinely encounter waste of a billion dollars or more, casually.”

“For example, like the simple survey that was literally [a] 10 questions survey. You could do it with SurveyMonkey, [which] would cost about $10,000. The government was being charged almost a billion dollars for that,” Musk added.

WATCH:

Baier could be seen interrupting Musk as he sounded astonished, later asking, “For just a survey?”

Musk responded and said the survey was essentially pointless as it had no “feedback loop.”

“A billion dollars for a simple online survey — ‘Do you like the National Park?,’ and then there appeared to be no feedback loop for what would be done with that survey,” Musk said. “So the survey would just go into nothing. It was insane.”

In February, Democrats’ opposition to Musk’s and DOGE’s place in the Trump administration began to ramp up after the billionaire announced during an X discussion that he and the president had agreed to upend the U.S. Agency for International Development (USAID). Musk warned the agency was wasting billions of taxpayer dollars.

Some of the programs funded through USAID had not only attempted to advance a radical leftist agenda worldwide, but some had a high risk of landing in the Taliban’s hands and also aiding an organization linked to the Wuhan Institute of Virology.

Baier told Musk how he and DOGE technically had 130 days as a “special government employee,” asking if he believes he will be able to complete his task in the time frame allotted.

“I think we will have accomplished most of the work required to reduce the deficit by a trillion dollars within that time frame,” Musk said.

“We are cutting the waste and fraud in real time. So every day like that passes, our goal is to reduce the waste and fraud by $4 billion a day, every day, seven days a week. So far we are succeeding,” Musk added.

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