Tag Archives: Energy East

Roundup: A new tariff threat?

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Surprising nobody except the most credulous, Donald Trump’s “thirty-day reprieve” has ended early with the announcement that he’s launching steel and aluminium tariffs today—allegedly—and that includes on Canada. Maybe. We’ll see. But he insists he’s serious about annexing Canada (while his national security advisor, being too cute by half, insists there are no plans to “invade” Canada, which is not what Trump has threatened). When asked about the comments in Paris, Justin Trudeau didn’t say anything, but senior officials (correctly) said they are waiting to see something in writing first, because they know that Trump says a lot of things.

Of course, since the start of the tariff threats, we have a bunch of people talking about west-east pipelines again, which has yet again led to a bunch of media outlets credulously retyping complete mythology about what happened with the pipeline in the first place, and taking Poilievre’s word for what happened, even though he’s once again bullshitting.

And of course, we’re also repeating the complete nonsense about the Liberals trying to “kill” the energy sector over the past nine years. But given that oil and gas production are at record levels, and royalties are churning out, it really doesn’t look like they succeeded (never mind that they bought a pipeline to ensure its competition, championed Keystone XL, and got a major LNG project on the west coast over the finish line). Yeah, they were really trying to kill the industry by doing all that. Can we have some adults in the conversation, please?

Ukraine Dispatch

Ukraine downed 67 out of 139 Russian drones overnight Friday, and 70 out of 151 drones overnight Saturday. Further drone attacks overnight Sunday started a fire in Kyiv and damaged houses in Sumy.

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Roundup: Enduring mythologies around cancelled energy projects

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The continued predations by Trump are giving people amnesia about energy projects in this country, and mythologies about what actually happened with projects are taking hold. Energy East is a good example, and people continue to believe fact-free versions of history, or that these projects are somehow still just waiting for approval and that enough political willpower is all that’s needed to get them signed off. But they don’t exist any longer, and the reasons they didn’t move ahead are more complex than the comforting lies they like to tell themselves. As usual, Andrew Leach brought the receipts.

Pierre Poilievre then decided to weigh in, because he’s a trustworthy authority on the history of energy investments in this country, particularly in the Harper era. Oh, wait—this is Poilievre, and everything he says is a lie.

There are so many projects that got approved under the Harper years that never went ahead even during Harper’s majority parliament, but they are happy to blame Trudeau, because it’s a pathology. The 2014 oil crash did permanent damage to the industry, and the recognition of a carbon-constrained future has not helped either. And as much as they like to bemoan “government regulation” on these projects, their attempt at massive de-regulation in the Harper era merely led to a succession of lawsuits and uncertainty, which is what proper regulations seek to avoid. It’s too bad that they refuse to understand that particular lesson.

Ukraine Dispatch

Russia launched a drone and missile strike against Zaporizhzhia overnight Wednesday, killing one and wounding at least 31, leaving tens of thousands without heat or power. Ukraine is drafting new recruitment reforms to attract 18- to -25-year-olds currently exempt from mobilisation orders. NATO’s Secretary General says that he wants the US to keep sending arms to Ukraine, and that he’s sure that Europe will pay for them if necessary.

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Roundup: Poilievre’s revisionist history on energy exports

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Pierre Poilievre held a media availability in Vancouver yesterday to promise that he would undo the changes to the capital gains taxes, spinning some bullshit provided to him by Jack Mintz about how this kills tens of thousands of jobs, when in reality it only provides a loophole for self-incorporated wealthy individuals to pay less tax—a fact that the Liberals were too incompetent to properly communicate. But this wasn’t the biggest whopper of the event. When asked by the media about where he stands on potential export taxes on oil exports as retaliation from Trump, Poilievre claimed that the Liberals blocked pipelines and LNG terminals, forcing Canadians to export more to the US, which gives Trump more leverage. Absolutely nothing about his is true. None of it. And with receipts, here’s Andrew Leach.

There’s more. In fact, another whole thread here about the history of Northern Gateway that Poilievre has memory-holed in order to create a false version of history to blame Trudeau rather than note the lack of action under the Harper government. (First tweet below)

And then Danielle Smith tried to start chiming in about an Alberta-first “Team Canada” approach grounded entirely in fantasy.

And just because…

Ukraine Dispatch

Ukraine downed 34 out of 55 Russian drones overnight Thursday, but debris damaged energy infrastructure in Poltava region. There was a further drone attack on Kyiv as UK prime minister Keir Starmer was visiting. Ukrainian forces have begun using remote-controlled ground assault vehicles. Ukraine attacked a major Russian gunpowder factory in the Tambov region.

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Roundup: It’s all coming back to me now

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As Jason Kenney continues his bellicose demands for a revival of the Energy East project, it seems that his arguments have a certain familiar ring to them. Wait for it…

Anyone who has paid any attention to the Energy East demands for the past few years will note that there is a definite NEP 2.0 sensibility to them – especially the notion that in the name of “energy security,” we should repurpose this pipeline/build a new segment to the port of Saint John, where there is a single refinery that can handle limited amounts of heavy crude, and that the Irvings should either be forced to accept said Alberta heavy crude at a cost of an additional $10/barrel than they can currently import cheaper, lighter crude from abroad that their current refinery can handle, and that consumers in Atlantic Canada should be made to pay more for their gasoline for the privilege of it coming from Alberta – because I’m not sure that Alberta is going to accept the $10/barrel discount on their crude when they already are suffering from low global oil prices that have made many new oilsands projects economically unviable. Never mind the similarities of this scheme to the original NEP, for which Alberta has created a grand myth about the Great Satan Trudeau (even though the resulting closures in the industry had more to do with the collapse in global oil prices and global recession that happened at the same time) – the cognitive dissonance will not hold.

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Roundup: The Energy East distraction

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After wide reporting that Jason Kenney’s poll numbers have been tanking and that he’s currently tied with the provincial NDP, it was predetermined that Kenney was going to have to start coming up with something new to blame the federal government about in order to whip his voter base into a new round of irrational anger. He also, apparently needed to provide some cover to his friend Erin O’Toole after O’Toole’s meeting with the Quebec premier, and so Kenney’s distraction of choice was going to be Energy East, and blaming the federal government for its demise. Of course, that’s not true at all, and energy economist Andrew Leach has the receipts.

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Roundup: Giving Legault the farm

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Erin O’Toole paid a visit to Quebec premier François Legault yesterday, and immediately promised to give away the farm to Legault if he were to become prime minister – capitulating on Bill 21 and letting Legault expand it (in spite of the Conservatives insisting that they are all about religious freedom), signing over the language rights of federal industries in the province, and promising more provincial transfers with no strings attached, all in the name of “provincial autonomy.” At the same time, O’Toole danced around the question of pipelines, which Legault opposes and O’Toole is in favour of shoving down the throat of a province in spite of his talk of “autonomy,” so his record of policy incoherence continues unabated. (As an aside, it seems to me that giving Quebec everything it demands wouldn’t actually win O’Toole Bloc votes, but rather empower the Bloc to say that they were so effective that they got everything the demanded).

This exchange with Legault made some waves in Alberta, where the visions of Energy East continue to evade reality. So while Rachel Notley tries to score points against O’Toole, and her UCP opponents try to score their own points, here’s energy economist Andrew Leach calling out both sides on how wrong they are.

On the subject of Alberta’s oil patch, here is Leach laying out why the province over its past six premiers have engaged in a $26.4 billion boondoggle around building a refinery in the province and assuming all of the risk from their private sector partner, and will almost certainly wind up losing a hell of a lot of taxpayers’ money in the process. For everyone who insists that the province doesn’t subsidize the oil and gas sector, this is proof enough that such a claim is false, and it should enrage everyone in the province that their trust has been betrayed in such a way.

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Roundup: Concern trolling and dual citizenship

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It was a quieter day on the campaign, and Justin Trudeau remained in Montreal to just hold a media availability rather than make any new announcements, and he reiterated the point from the debate on Wednesday that if his government would look to improve the medical assistance in dying legislation per the Quebec court decision. He also again defended using two campaign planes by pointing to the use of carbon offsets (never mind that this is a clear case of concern trolling by those who don’t actually care about climate change).

Andrew Scheer was in Kingsclear, New Brunswick, to promise an expansion of the volunteer firefighters tax credit (or “volunteer heroes,” as their press release stated because it was apparently written by a nine-year-old). He also finally stopped dancing around the abortion question to state – again – that he is personally “pro-life” but wouldn’t re-open the debate. Shortly thereafter, the story broke that Scheer holds dual-citizenship with the US, and within an hour stated that he had already started the process of revocation, but it remains exceedingly curious given that Scheer personally questioned Michëlle Jean’s dual-citizenship before she became Governor General, and the Conservative attacks on Stéphane Dion and Thomas Mulcair about their own dual-citizenships. Scheer also stated that he had never been asked about it which was why he never talked about it, which is unconvincing at best.

Jagmeet Singh headed to Toronto to hold another media availability to reiterate his same platform proposals.

And just to put another giant bomb in the election, a potential strike by school support workers could shutter schools in major school districts in Ontario by Monday, which could send the Ford government scrambling, and further cause blowback against Scheer as the lines between federal and provincial governments continue to blur.

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Roundup: It’s TMX Day

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Today is the day that the government will make their decision on the Trans Mountain Expansion, and it should not be a surprise to say that they are almost certainly going to approve it, having spent $4.5 billion on the existing pipeline to “de-risk” the project, and far more in political capital at the cost of some of their BC, Indigenous, and environmental base while trying to insist that this is necessary for the transition to a cleaner economy. Of course, if they could communicate their way out of a wet paper bag, it might help them to make that case, but they seem incapable of it. The real question is going to be what kinds of changes to the route will be made in order to accommodate Indigenous groups, or other conditions to be mandated as part of it.

There will be much talk about the “pipeline crunch” that the TMX will hope to address, which has to do with added oilsands production and not enough ways to get it to market, given ongoing delays on the American side of both Enbridge Line 3 and Keystone XL – projects which have been approved in Canada, and the Line 3 construction has been ongoing on the Canadian side. But as much as TMX will help, we also need to remember that the projected growth capacity is limited, which is another reason why Energy East doesn’t make economic sense. The concern that the sector needs all kinds of new pipelines isn’t actually borne out in the data (as Andrew Leach has pointed out repeatedly, including here).

On a related note, the government has rejected most of the Senate amendments to Bill C-48, on the tanker ban, but did agree to the five-year legislative review period, but as much as industry groups are demanding that this bill and Bill C-69 be killed, it’s not going to happen.

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QP: Jerry Dias says hello

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Wednesday, caucus day, and the benches were full as all of the leaders were present for the day. Andrew Scheer led off in French, accusing Justin Trudeau of being the best thing that could have happened to Donald Trump, and called the New NAFTA a “historic humiliation.” Trudeau reminded him that the Conservatives first demanded capitulation, then praised the deal, and now they were all over the map. Scheer suggested, in English, that the steel and aluminium tariff deal contained a hidden quota, and Trudeau reiterated that the Conservatives had no consistent position. Scheer insisted that any better would have been the one that Trudeau got, and Trudeau reminded him that they couldn’t get other trade deals like CETA done while he did. Scheer then pivoted to the question of Unifor’s presence on the media bailout advisory committee, and Trudeau reminded him that the panel needed to hear not only from media owners but also the employees, while the Conservatives have a history of attacking labour. Scheer tried to carry on, and he rambled about spending limits, when Trudeau brought up the Conservatives’ changes to the Elections Act. Jagmeet Singh was up next for the NDP, and he demanded that the federal government join BC’s lawsuit against drug companies for the opioid crisis, and Trudeau took up a script to list actions the government has been taking. Singh tried again in French, and got the French version of the same script. Singh then demanded the government join US Democrats to fix the New NAFTA, and Trudeau took up a new script to read that the NDP criticised the deal in the House of Commons but privately praised it. Singh changed to English to accuse Trudeau of using misleading quotes, and Trudeau read some more quotes in response.

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QP: Organized labour versus the media

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While Justin Trudeau was present today, Andrew Scheer was not, for whatever reason. Lisa Raitt led off and she concern trolled about Unifor being on the advisory panel to name the panel that would determine the media tax credit, to which Justin Trudeau stated that they wanted views from employers and employees, and they wanted to save the media rather than Scheer, who wanted to destroy the CBC. Raitt railed that Trudeau was undermining the credibility of journalists, to which Trudeau reminded her of the job of media, which was why both employers and employees needed to be part of the panel, before accusing the Conservatives of hating organised labour. Raitt took exception to that characterisation, and demanded to know why he didn’t do better with this file, and Trudeau reminded her of the anti-union legislation her government passed before repeating his lines about hearing from employers and employees on the panel. Alain Rayes took over in French and he repeated the demand to remove Unifor from the panel, to which Trudeau repeated his lines in French. When Rayes listed Quebec journalists “uncomfortable” with this bailout, Trudeau repeated that the Conservatives hate unions. Jagmeet Singh was up next for the NDP, and he railed about public service spending levels versus corporate funding, to which Trudeau wondered why the NDP voted against the Canada Child Benefit, which has lifted tens of thousands out of poverty. Singh tried again in French, and Trudeau listed measure they took like raising taxes on the wealthy and lowering them on the Middle Class™. Singh then demanded to pressure the American government to change the New NAFTA per the American Democrats’ demands, and Trudeau stated that they got a good deal and quoted Unifor President Jerry Dias’ praise for the deal — which led to peals of laughter from the Conservatives. Singh tried again in English, and Trudeau repeated the praise, adding in Alexandre Boulerice’s closed-door praise of the deal.

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