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Trudeau gov’t ‘green’ heat pump scheme to cost nearly quadruple initial estimate

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From LifeSiteNews

By Anthony Murdoch

The scheme to try and incentivize Canadians to switch to less reliable heat pumps is expected to cost taxpayers $2.7 billion, up from the original $750 million estimate.

An ideologically charged Canadian federal government “green” program to try and get homeowners to switch their reliable heating oil furnaces for less reliable electric heat pumps via a large grant has been blasted by a taxpayer advocacy group as yet more government waste after it was revealed the program is set to cost nearly four times as much as originally thought.  

According to Blacklock’s Reporter, a recent federal Legislative Costing Note from the Parliamentary Budget Office released last Thursday showed that estimated costs for a federal government program to give households $15,000 grants to switch to new heat pumps have gone from $750 million to $2.7 billion.  

“The Budget Office estimates there are up to 244,000 households nationwide that could be eligible for program funding,” stated the Legislative Costing Note, which added that if all eligible households access the program, “we estimate the program could have a maximum potential cost of $2.7 billion.” 

According to notes from the Enhancements To The Oil To Heat Pump Affordability Program, the program uptake was “projected by extrapolating historical participation trends in the program.” 

The original scheme was to allow $10,000 to eligible homeowners to convert from their oil-fired furnaces to an electric heat pump. The cabinet of Prime Minister Justin Trudeau last October expanded the grants to $15,000 along with a $250 “one-time bonus payment.”  

As it stands now, the grants apply to residents in the provinces of Nova Scotia, Prince Edward Island and Newfoundland and Labrador.

According to The Budget Office, “approximately 10,000 households” to date have officially qualified for electric heat pump grants. 

In October of last year, amid dismal polling numbers that showed his government would be defeated in a landslide by the Conservative Party come the next election, Trudeau announced he was pausing the collection of the carbon tax on home heating oil in Atlantic Canadian provinces for three years.  

However, Trudeau refused to offer carbon tax relief to other provinces, such as Alberta and Saskatchewan, for natural gas. This led to Saskatchewan Premier Scott Moe announcing his government would defy the Trudeau government, and stop collecting the federal carbon tax on natural gas in this province, as of Jan 1, 2024.  

Taxpayer watchdog: ‘None’ of this is ‘free money’  

Franco Terrazzano, Federal Director of the Canadian Taxpayers Federation, told LifeSiteNews that “none” of the money going to the heat pump scheme is “free” and the Trudeau government instead should just scrap the carbon tax. 

“Why does it feel like this government can’t keep anything on budget? Is there any wonder why this government is more than $1 trillion in debt?” said Terrazzano.  

“None of this is free money.” 

Terrazzano noted that if a person is getting a grant from the government, “all of that money will have to be paid back through higher taxes.”  

“If the government wanted to make all areas of life more affordable, the government should leave more money in people’s pockets and cut taxes,” he told LifeSiteNews.  

“Trudeau should completely scrap his carbon tax.” 

Terrazzano added at the “very least,” Trudeau should “extend the same relief he provided to Atlantic Canadians and take the carbon tax off everyone’s home heating bill.” 

Heat pumps do not work well in very cold weather unlike a natural gas or oil-fired furnaces, a fact which was even admitted by a former environment minister for the province of British Columbia, Barry Penner.  

The Trudeau government is trying to force net-zero regulations on all Canadian provinces, notably on electricity generation, as early as 2035. His government has also refused to extend a carbon tax exemption on heating fuels to all provinces, allowing only Atlantic provinces, this benefit.    

Canada has the third largest oil and gas reserves in the world, with most of it in Alberta.  However, since taking office in 2015, Trudeau has continued to push his radical environmental agenda similar to the agendas being pushed the WEF’s “Great Reset” and the United Nations’ “Sustainable Development Goals.”   

LifeSiteNews has earlier reported on how Trudeau’s carbon tax is costing Canadians hundreds of dollars annually, as government rebates it gives out are not enough to compensate for high fuel costs.   

One of the reasons the carbon tax break was applied to Eastern provinces, might have something to do with the fact that there are 24 Liberal MPs up for re-election in Atlantic Canada.  

A recent cold snap showed Canadian lives depend on carbon-based fuels to survive winter.  

A little over a week ago, an extreme cold snap sent temperatures plummeting to nearly minus 50 degrees Celsius (58 degrees Fahrenheit) in much of Western Canada. It was so cold that the province of Alberta’s power grid almost collapsed due to a failure of wind and solar power. Natural gas and coal are abundant in Canada, notably in Alberta. 

In response to the situation, the neighboring province of Saskatchewan, which was also facing the same cold snap, announced it would be providing Alberta with electricity, made from coal and natural gas, to stabilize the grid.

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Alberta

‘Existing oil sands projects deliver some of the lowest-breakeven oil in North America’

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From the Canadian Energy Centre 

By Will Gibson

Alberta oil sands projects poised to grow on lower costs, strong reserves

As geopolitical uncertainty ripples through global energy markets, a new report says Alberta’s oil sands sector is positioned to grow thanks to its lower costs.

Enverus Intelligence Research’s annual Oil Sands Play Fundamentals forecasts producers will boost output by 400,000 barrels per day (bbls/d) by the end of this decade through expansions of current operations.

“Existing oil sands projects deliver some of the lowest-breakeven oil in North America at WTI prices lower than $50 U.S. dollars,” said Trevor Rix, a director with the Calgary-based research firm, a subsidiary of Enverus which is headquartered in Texas with operations in Europe and Asia.

Alberta’s oil sands currently produce about 3.4 million bbls/d. Individual companies have disclosed combined proven reserves of about 30 billion barrels, or more than 20 years of current production.

A recent sector-wide reserves analysis by McDaniel & Associates found the oil sands holds about 167 billion barrels of reserves, compared to about 20 billion barrels in Texas.

While trade tensions and sustained oil price declines may marginally slow oil sands growth in the short term, most projects have already had significant capital invested and can withstand some volatility.

Cenovus Energy’s Christina Lake oil sands project. Photo courtesy Cenovus Energy

“While it takes a large amount of out-of-pocket capital to start an oil sands operation, they are very cost effective after that initial investment,” said veteran S&P Global analyst Kevin Birn.

“Optimization,” where companies tweak existing operations for more efficient output, has dominated oil sands growth for the past eight years, he said. These efforts have also resulted in lower cost structures.

“That’s largely shielded the oil sands from some of the inflationary costs we’ve seen in other upstream production,” Birn said.

Added pipeline capacity through expansion of the Trans Mountain system and Enbridge’s Mainline have added an incentive to expand production, Rix said.

The increased production will also spur growth in regions of western Canada, including the Montney and Duvernay, which Enverus analysts previously highlighted as increasingly crucial to meet rising worldwide energy demand.

“Increased oil sands production will see demand increase for condensate, which is used as diluent to ship bitumen by pipeline, which has positive implications for growth in drilling in liquids-rich regions such as the Montney and Duvernay,” Rix said.

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Alberta

It’s On! Alberta Challenging Liberals Unconstitutional and Destructive Net-Zero Legislation

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“If Ottawa had it’s way Albertans would be left to freeze in the dark”

The ineffective federal net-zero electricity regulations will not reduce emissions or benefit Albertans but will increase costs and lead to supply shortages.

The risk of power outages during a hot summer or the depths of harsh winter cold snaps, are not unrealistic outcomes if these regulations are implemented. According to the Alberta Electric System Operator’s analysis, the regulations in question would make Alberta’s electricity system more than 100 times less reliable than the province’s supply adequacy standard. Albertans expect their electricity to remain affordable and reliable, but implementation of these regulations could increase costs by a staggering 35 per cent.

Canada’s constitution is clear. Provinces have exclusive jurisdiction over the development, conservation and management of sites and facilities in the province for the generation and production of electrical energy. That is why Alberta’s government is referring the constitutionality of the federal government’s recent net-zero electricity regulations to the Court of Appeal of Alberta.

“The federal government refused to work collaboratively or listen to Canadians while developing these regulations. The results are ineffective, unachievable and irresponsible, and place Albertans’ livelihoods – and more importantly, lives – at significant risk. Our government will not accept unconstitutional net-zero regulations that leave Albertans vulnerable to blackouts in the middle of summer and winter when they need electricity the most.”

Danielle Smith, Premier

“The introduction of the Clean Electricity Regulations in Alberta by the federal government is another example of dangerous federal overreach. These regulations will create unpredictable power outages in the months when Albertans need reliable energy the most. They will also cause power prices to soar in Alberta, which will hit our vulnerable the hardest.”

Mickey Amery, Minister of Justice and Attorney General

Finalized in December 2024, the federal electricity regulations impose strict carbon limits on fossil fuel power, in an attempt to force a net-zero grid, an unachievable target given current technology and infrastructure. The reliance on unproven technologies makes it almost impossible to operate natural gas plants without costly upgrades, threatening investment, grid reliability, and Alberta’s energy security.

“Ottawa’s electricity regulations will leave Albertans in the dark. They aren’t about reducing emissions – they are unconstitutional, ideological activist policies based on standards that can’t be met and technology that doesn’t exist. It will drive away investment and punish businesses, provinces and families for using natural gas for reliable, dispatchable power. We will not put families at risk from safety and affordability impacts – rationing power during the coldest days of the year – and we will continue to stand up for Albertans.”

Rebecca Schulz, Minister of Environment and Protected Areas

“Albertans depend on electricity to provide for their families, power their businesses and pursue their dreams. The federal government’s Clean Electricity Regulations threaten both the affordability and reliability of our power grid, and we will not stand by as these regulations put the well-being of Albertans at risk.”

Nathan Neudorf, Minister of Affordability and Utilities

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