Stories

What Now for Canadian Energy?

Paul Bunner
December 1, 2015
C2C Journal editor Paul Bunner opens the 2015 Winter Edition with a preview of its timely theme – energy and the environment. As the massive global climate change summit opens in Paris, Canada’s energy-fuelled economy is in dire straits. Oil and gas prices are down, taxes and regulations are up, job losses are mounting, and investment is fleeing to jurisdictions where it is actually possible to get pipelines and other energy infrastructure built. Former Prime Minister Stephen Harper’s dream of making Canada an “energy superpower” has stalled, and his successors are trying to keep the oil flowing by putting a generous coat of green lipstick on our energy pig. Let us pray that it gets the global warmists off our case.
Stories

What Now for Canadian Energy?

Paul Bunner
December 1, 2015
C2C Journal editor Paul Bunner opens the 2015 Winter Edition with a preview of its timely theme – energy and the environment. As the massive global climate change summit opens in Paris, Canada’s energy-fuelled economy is in dire straits. Oil and gas prices are down, taxes and regulations are up, job losses are mounting, and investment is fleeing to jurisdictions where it is actually possible to get pipelines and other energy infrastructure built. Former Prime Minister Stephen Harper’s dream of making Canada an “energy superpower” has stalled, and his successors are trying to keep the oil flowing by putting a generous coat of green lipstick on our energy pig. Let us pray that it gets the global warmists off our case.
Share on Facebook
Share on Twitter

 

Alberta’s NDP government released its much anticipated Climate Leadership Plan on a Sunday afternoon when the Edmonton Eskimos were playing the Calgary Stampeders in the CFL western final. It looked like an attempt to bury the story, but it probably wasn’t. Premier Rachel Notley had to get the Plan out before heading to Prime Minister Justin Trudeau’s first First Ministers’ Conference in Ottawa the following day. Besides, Albertans would have noticed the announcement of an economy-wide carbon tax and a death sentence for the province’s coal power industry even if Notley had rolled it out on Christmas eve during an epic snowstorm.

The Eskimos whupped the Stampeders pretty good, but it was nothing compared to the thumping Calgarians took in the Climate Plan. Already bruised from the year long slump in oil prices, the corporate and personal tax increases in the NDP’s first budget, the crash in capital spending plans by oil patch majors, tens of thousands of job losses, and this year’s defeat of Calgary-based Conservative federal and provincial governments, long-swaggering Calgarians must now feel like Canada’s biggest losers.

It will be tempting for Edmontonians and other Canadians chronically afflicted with Calgary envy, and, in some quarters, Calgary loathing, to celebrate Cowtown’s comeuppance. But that would be dumb, especially for Edmontonians, who will also pay an average of several hundred dollars a year in carbon taxes on everything under Notley’s plan. It would also be dumb for Canadians in every other province and territory who have benefitted for decades from the jobs and wealth generated across the country by Alberta’s dynamic carbon-rich economy, and whose governments currently subsidize their social programs with about $20 billion a year in net tax and equalization transfers Ottawa siphons from the flow of Alberta oil.

It is perfectly natural for humans who live off handouts to redirect some of their self-loathing at their benefactors, but in nature, most parasitic organisms take care not to kill their hosts. Alberta’s energy sector has been the milch cow of confederation for decades, and but for a few occasions when Ottawa squeezed its teats too hard, it has been content to share its bounty and contribute to their general growth and prosperity of the country, while growing ever stronger and richer itself.

This may be about to end.

For now, in a grotesque distortion of facts and reality, Alberta has become public enemy number one, at home and abroad, in the fight against climate change. To James Hansen, one of the world’s chief prosecutors of climate criminals, the oil sands are a “carbon bomb” that will destroy the planet. No less than President Barack Obama, leader of the most powerful country on earth, has slammed the door on “dirty oil” from Alberta. It doesn’t matter that the province produces a milli-fraction of the world’s greenhouse gases; every fiction has its villain, and Alberta is the Salem witch of our current Gaia fantasy.

In defiance of this long, slow process of stigmatization of the Alberta energy industry, the now-departed and thoroughly demonized Conservative Prime Minister Stephen Harper set out a decade ago to persuade his country and the world that Canada would be an “energy superpower”. His evident strategy was that the best defence is a good offense, and he gave offence to everyone who stood in his way, including the “no brainer” in the White House and the “radical foreign special interest groups” who plugged our pipelines with rhetoric and red tape.

Overall, Canada’s energy sector grew under Harper, most prolifically in the oilsands. But no major pipelines got built, big plans for west coast LNG exports went nowhere, the coal industry flatlined, the defamations worsened and, by the end of his time, the prices of almost all energy commodities were in the tank.

Canadians threw Harper out for many reasons, just as Albertans angrily dumped their provincial government for innumerable real and imagined sins last spring, but you have to think that in both cases, part of their voters’ calculation was that these Conservative guys were responsible for the mess in the energy industry.

So, with the superpower stalled, Albertan and Canadian voters have chosen a very different approach to energy and environmental policy. New carbon taxes, shuttered coal power plants, subsidized renewables, cap and trade schemes and much more are all coming or have arrived at a jurisdiction near you. Prime Minister Trudeau is leading a huge Canadian delegation to the monster Paris climate summit where, it is hoped, they will make some progress in healing Canada’s wounded brand and buying the social licence we need to continue competing in the global energy market.

It is a pivotal moment for not only Canada’s oil resource industry, but for our entire economy. And it is the theme of the Winter 2015 Edition of C2C Journal. Over the next few weeks we will publish 10 stories and essays about what happened to the energy sector during the Harper decade, what our new governments are signing us up for in Paris, and what the future holds for Canada in this tumultuous period of the Age of Oil.

~

Paul Bunner is the editor of C2C Journal.

Love C2C Journal? Here's how you can help us grow.

More for you

Take This Algorithm and Shove It: Gen Z Wrestles with Digital Privacy

Generation Z should know better than anyone the risk that technology poses to personal privacy. They are after all the first generation to grow up entirely in the digital age. Jessica Nwaefidoh knows from personal experience how vulnerable your most intimate information can be. With companies anxious to profit from everyone’s personal data, politicians happy to play along for their own selfish reasons and most people willing to sacrifice their own privacy for convenience, amusement or just to get by, Nwaefidoh argues that it’s time to fight back. The right to be left alone, she finds, requires constant vigilance – and she offers some practical tactics to reclaim that right.

Future Tense: Why Gen Z is Right to Feel Betrayed

Older generations often roll their eyes when young people seek to blame them for their woes. But if Canada’s Gen Zers feel betrayed by the Boomers, they are right to do so, argues Gwyn Morgan. Years of irresponsible fiscal and regulatory policies have hamstrung the Canadian economy and left younger generations facing a bleak future of stagnant wages, rising taxes and shrinking opportunities. A former business leader who created more than his share of jobs and prosperity during his long corporate career, Morgan casts a worried eye over the next generation – and offers sympathy for the situation they’re inheriting.

Unfriendly Skies: Why Canada Needs Real Airline Competition

Ireland’s Ryanair will fly you from London to Geneva for $49. Flying from Calgary to Vancouver – a shorter trip – likely will set you back four times as much. Canadians suffer some of the highest-priced, least-convenient and most unpleasant airline service in the world, and mainly for one reason: forestalled competition. In fact, creating barriers to prevent any meaningful competition has been the main goal of Canadian airline policy since the formation of Trans-Canada Air Lines in 1937. Simon Michell explains how this sorry situation came to be and reveals how opening up our skies – as so many other countries have already done – would make things much better for us all.

More from this author

Good News From C2C Journal

C2C Journal is pleased to announce that thanks to the loyal and generous support of our readers, contributors and donors, the Journal is immediately increasing volume and frequency of original stories and essays, expanding staff, unveiling a redesigned website, and launching a sustained social media marketing push on multi-media platforms. Editor Paul Bunner has the details.

One step forward, two steps back for freedom

When he wasn’t kayaking on or swimming in the North Saskatchewan River near his home in Edmonton, C2C Journal editor Paul Bunner spent some of his summer fighting two battles for little freedoms in his local community. He won one and lost one. Although he’s a veteran political activist at the federal and provincial level, Bunner contends that the lifeblood of democracy must be nurtured at the foundations of society if it is to flourish at the top.

The Last Front Page

The rapidly shrinking newspaper business raises all kinds of questions. What will we wrap fish guts in? How will we light backyard fires? And where will we get reasonably accurate and important stories about what’s going on in our community, our country, and the world? The internet? Where global editor-bots decide what’s news? Where politicians can lie with impunity? Where fake news outsells real news? The short answer is yes. The longer and more encouraging answer is in the Spring edition of C2C Journal, which launches today with editor Paul Bunner’s lead editorial and career newspaperman Paul Stanway’s lament for the ink-stained wretches of yesterday’s news.