Tuesday , June 28 2022

Canada oil discount crisis, explained



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Prime Minister Justin Trudeau eventually described Alberta as a province in a crisis, as Albertian oil continued to trade at a record $ 45 a barrel discount.

Conservative Party leader Jason Kenney went so far as to call the federal state to declare Trans Mountain as "for the common benefit, using a special constitutional power, Section 92.10 of the Constitution." I call on the federal government to impose sanctions on BC because it stand in the way "

Virtually every center-right, center-left and center-left politician can agree, the crazy reduction that currently exists for Canadian oil is a matter of national importance.

This is due to the fact that the lack of Canadian oil channels drastically hampers the wealth of provinces like Alberta and, in turn, this reduced wealth reduces the total amount available for programs such as equalization transfers.

There is really no underestimation of colossal economic loss here.

According to Kenney, the lack of pipeline infrastructure and associated costs that come with them sucks close to $ 14 billion from the nation's annual tax pool.

Prime Minister NDP, Rachel Notley, said the price difference between Canadian and American crude costs the Canadian economy of $ 80 million a day.

To put this into perspective, the entire Canadian labor insurance program costs $ 21 billion a year.

Subsequent effects of Canada's oil reduction

Perhaps most astonishing, the cost of reducing oil in Canada is one that could be realistic for generations. According to an article in Bloomberg News, "Despite the strong focus on renewable sources – such as solar and wind power – global demand for fossil fuels as a source of energy is expected to increase until 2040 and beyond, accounting for about 80% The cold, winter countries, such as Canada, will continue to rely on consistent oil and gas supply to warm up their homes and industries. "

With so much on the line, it is almost amazing to see the nation so bitterly divided.

Unless it is not.

According to an Ipsos survey, 56% of respondents say they support the extension of the Alberta pipeline to the coast of BC, while 24% of the respondents oppose it. Twenty percent of Canadians are unsure whether or not to support it.

Even in the BC province, 55% of respondents in British Columbia support this, 37% of them being opposed.

For the most part, the opposition comes from two radically different places.

Oil sands have an impact on the Canadian environment

First of all, some indigenous groups are clearly upset that repeated governments have refused to do their jobs when the pipeline progresses properly.

This group won a major victory in the Federal Appeals Court, forcing the National Energy Board to re-examine its Kinder Morgan Canada project review. By a unanimous decision of a panel of judges, the court said that "the review of the proposal by the National Energy Committee was so flawed that the federal government could not rely on it as the basis for its decision to approve enlargement.

The fatal failure, the court said, was that it ruled out the impact of the project on shipping. This, in turn, meant that the Energy Council did not assess the potential impact of increased tank traffic on the whale population in the country of the endangered population. "

While this segment of the Canadian population shares incredibly important points, they are not the real reason for blocking and destabilizing the global development of pipeline infrastructure.

If the Trudeau government or the Harper government were to focus on an appropriate national review of the project, it would probably have been approved.

There is a much more dangerous group that deserves to be seriously considered, namely many rich interests of American business that have quickly entered and destabilized the Canadian political field.

According to an article by Danielle Smith, quoted by Vivan Krause, "Environmental groups – supported by the United States Tides Foundation, the Rockefeller Foundation and other well-funded US funds – met in 2008 to launch a strategy called Tarsands Campaign to remove oil from Alberta and prevent it from reaching international markets to bring international prices. "

"The most recent manifestation of the anti-Tarsian campaign was the green mix of the movement in the 2015 federal election in a coordinated effort to defeat the conservatives in 25 of the 29 targeted targets." He was up and praising LeadNow. "

In addition, US groups such as 350.org, funded by just four donors (each donating more than six figures), recently said they would take over Mount Trans.

This truly worrying plan is to ensure that Canadian oil can only sell to a single customer – the United States – which, in turn, is forcing a further reduction to the benefit of US consumers.

Perhaps the most hypocritical, these groups fund the radical section of Canada's green movement, actively assuring that all excess Canadian oil is transported by rail and truck, a much more dangerous way of transport.

There is no underestimation of the power of third-party intervention in Canadian political discourse.

At the beginning of 2008, Canada had the potential to develop a diversified network for crude oil transport and refining. The Trans Mountain project, the Northern Gateway portal and the Energy East project were all under development.

Canada has positioned itself in many ways as a moral and environmental leader in fossil fuels.

Briefly in 2018, and North Gateway is closed, Energy Easy is almost beaten to death, and Trans Mountain has reached a level of political toxicity that the Trudeau government buys to ensure that all faith in investment is not lost in the country.

This extreme change did not occur naturally and brings a really important question.

Who should be involved in discussions like this about one of Canada's most valuable natural resources?

There is room for dialogue when it comes to pipeline construction. There is certainly space for every Canadian citizen to express his opinion.

However, the continued involvement of foreign entities has doubted interference with Canadian affairs?

I think that for the most part, we can all agree that they have no place in question.

Interested in oil and other Canadian natural resources? Here are some articles manually selected from our publishers.

READ MORE: Only in Canada we would have paid $ 4.5 billion for something that could have been free

READ MORE: The leaked HIVE document shows how far your Trans Mountain opponents will go to the orchestra

READ MORE: The Minister has already met 22 troops in the review of Trans Mountain

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