oil

Thursday February 27, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday February 27, 2020

Jason Kenney’s tantrums do not flatter Alberta

Alberta Premier Jason Kenney is good at a lot of things. But when it comes to pointing the finger, he’s an absolute champion. Pointing the finger of blame at his predecessor Rachel Notley. At British Columbia for balking at his pipeline demands. At the rest of Canada (except Saskatchewan) for not sufficiently supporting Alberta’s oilpatch interests.

December 10, 2019

But when the federal government is the target, Kenney is a gold-medal Olympian finger pointer. Take this week’s Teck Frontier oil sands mine decision, for example. Announcing the company’s decision to not move forward with the project (even before the federal cabinet had approved or denied it), Teck CEO Don Lindsay said very clearly the reasons for shelving Frontier are a mix of low investor interest and environmental concerns. He pointedly did not blame the federal or any other government, although he made reference to Canada needing energy policy solutions that satisfy competing interests.

November 21, 2019

But to hear Kenney and his ministers talk, Teck holds Justin Trudeau personally responsible for the pullout. Kenney and friends certainly do. They say the Trudeau government’s lack of enthusiasm for new oil projects has created the national crisis we are now experiencing, and has also discouraged investors like Teck to the extent that they want nothing to do with investments like the $20 billion required for the mine north of Fort McMurray.

It is not hard to imagine that the sort of civil conflict now playing out across Canada over resource development would cause companies like Teck to be squeamish. But are political and societal volatility really enough to derail a project like this? To believe that, as Kenney seems to, would be beyond naive.

December 15, 2015

Lindsay wrote in his letter: “Global capital markets are changing rapidly, and investors and customers are increasingly looking for jurisdictions to have a framework in place that reconciles resource development and climate change.”

Speaking of money, Teck’s stock recently dropped more than 20 per cent in under a week. Like a lot of fossil-based resource companies, it is struggling, most recently with a weak fourth quarter. The simple fact is the global landscape is changing, and those “capital markets” are increasingly skittish about investments that rely on fossil fuels.

Lindsay has also said in the past that if the price of oil doesn’t increase significantly in the coming years, Teck would not be financially viable. There is no indication that will happen.

Bottom line: Teck was an iffy bet at best, and the uncertainty caused by deeply divided public opinion may have been the straw that broke the camel’s back.

April 11, 2018

But isn’t the Trudeau government responsible for the current lack of consensus over resource policy? It certainly shares some of the responsibility. But leave it to a partisan extremist like Kenney to say with a straight face there isn’t blame all around. So Alberta is only a victim here? Its reluctance to commit to enforceable emission caps isn’t part of the problem? Its refusal to support any sort of price on carbon, even though the majority of Canadians expressed support for just that in the last election? (Parties that support a price on carbon got more electoral support than ones that didn’t, especially Kenney’s ideological roommates the Conservatives.)

Alberta’s problems are real. But they cannot all be laid at the feet of the federal government. The rest of Canada wants a serious plan to address climate change. Kenney may not like that, but unless he can figure out a way to move Alberta someplace else — say, next door to Kentucky — he would be wise to become part of the solution instead of being a champion, foot-stamping finger pointer. (Hamilton Spectator editorial) 

 

Thursday February 6, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday February 6, 2020

One step forward, another one back: What the Trans Mountain ruling means for Trudeau

In sports, you win some and you lose some. In politics, it’s possible to win and lose at the same time.

Pipeline cartoons

Take, for example, yesterday’s Federal Court of Appeal ruling on the Trans Mountain pipeline expansion project.

The court ruled unanimously that the federal government had fulfilled its duty to consult meaningfully with a handful of First Nations opposed to the project, clearing a major hurdle in the drawn-out battle to build a second line to carry bitumen from Alberta’s oilsands to Burnaby on the B.C. coast.

The federal and Alberta governments immediately claimed victory, putting Prime Minister Justin Trudeau and Premier Jason Kenney on the same side for once.

“This project is in the public interest,” federal Natural Resources Minister Seamus O’Regan told reporters shortly after the decision was released.

“We also know that this is a project that can deliver significant economic benefit to Alberta, to Canadians across the country,” added Finance Minister Bill Morneau. “And more importantly, we are going to put that economic benefit back into the environment.”

Their sense of relief was palpable. Ottawa spent around $4.5 billion in 2018 to buy TMX — a last-ditch effort to ensure the pipeline would be built after its owner, Kinder Morgan, announced plans to step away.

That price, hefty as it is, doesn’t include construction costs or any overruns the project has incurred because of the various stop-work orders that have put construction well behind schedule.

But with the victory comes a major setback in relations with those Indigenous groups who continue to oppose the $7.4-billion project, and will no doubt seek to appeal the decision to the Supreme Court of Canada.

“Reconciliation stopped today,” said Rueben George, of the Tsleil-Waututh, his voice cracking with emotion.

The band was one of four Indigenous groups behind the court challenge. It argued that the second, court-ordered round of consultations also failed to respond adequately to their concerns about the impact the project would have on marine life.

“This government is incapable of making sound decisions for our future generations,” George said. “So we will — even for their children — we will take those steps to make sure Canada stays the way it is.” (CBC)

 

 

Friday November 15, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday November 15, 2019

As western tensions rise, BQ’s Blanchet says West shouldn’t look to him for help

October 3, 2019

As economic tensions rise in Western Canada over the slump in the oil sector, Bloc Québécois Leader Yves-François Blanchet is warning the region that it should expect no help from him — and saying that he still wants Quebec to be its own country.

Speaking after a meeting with Prime Minister Justin Trudeau in Ottawa Wednesday morning, Blanchet was asked about the push for independence in the West and whether he would consider setting a more collaborative example in Ottawa.

“I doubt it, because I still believe that Quebec will do better when it becomes a country,” he said. “So I’m not the one that will fight to have a nice, beautiful and united Canada.”

Trudeau’s meeting with Blanchet is the latest in a series of meetings between the PM and opposition leaders as the Liberal minority government prepares for a new session of Parliament.

Blanchet was also asked if he has any advice to offer those pushing for western independence.

December 13, 2018

“If they were attempting to create a green state in western Canada, I might be tempted to help them. If they are trying to create an oil state in Western Canada, they cannot expect any help from us,” he said.

Blanchet said he will continue to fight, through national and international channels, the idea of “obsessively” extracting oil.

Alberta Premier Jason Kenney shot back at Blanchet’s comments, saying Quebec should not reap the financial benefits of Alberta’s oil sector if Quebecers are so opposed to its existence.

“If you are so opposed to the energy that we produced in Alberta, then why are you so keen on taking the money generated by the oilfield workers in this province and across western Canada?” he said. “You cannot have your cake and eat it too. Pick a lane.”

October 22, 2019

Blanchet did not say much about Quebec separation during the campaign. He did say that, in Parliament, he would continue defending Quebec’s interests.

“We are people who are convinced that one day Quebec will take on the attributes of sovereignty,” Blanchet said on the final day of the campaign.

“But that’s not the mandate of this election. We’ve been saying it for five weeks.”

The Bloc surged during the campaign, going from 10 seats prior to the election to 32 afterward. (CBC) 

 

Saturday April 20, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday April 20, 2019

Justin Trudeau finally got some good news this week. Courtesy of Jason Kenney.

The election of the old Harperite and his band of right-wing friends of the oil industry has suddenly made it clearer than ever the divide over the future direction of the country.

October 16, 2015

It’s clear where Kenney and the majority of Albertans who voted for him stand. Forget climate change and the catastrophe facing the planet. Albertans’ choice is a pipeline in every garden and a couple of pickup trucks in every driveway.

We now know that the NDP’s victory in 2015 was a fluke. Rachel Notley was an able politician but her attempt at a balanced approach to the issue of how a province hooked on carbon could make a reasonable effort at reducing the damage caused by its coal-fired power plants and GHG-producing oil sands was never going to win over voters long-term.

Like Philippe Couillard, who bravely and successfully tackled Quebec’s fiscal deficit and was rewarded for his efforts by being tossed out of office, Rachel Notley learned that voters don’t want politicians to take hard choices. They want to hear nonsense from their leaders, provided it doesn’t cost them a cent.

May 15, 2018

It’s the same idiocy that got Doug Ford elected. Remember him promising how easy it would be to balance the Ontario budget by simply getting rid of inefficiencies and cutting spending on “pencils and foolscap.”

I know Alberta is going through a tough time but that’s what happens when you live in a commodity-dependent economy. Prices go up and they go down, and you’re particularly vulnerable when prices sink and you’re a high cost producer.

Yet when times are good, Albertans convince themselves they’re rich because they’re so smart. And when boom inevitably turns to bust, they’re suddenly surprised. Who would have thought oil prices couldn’t tank? And of course, Justin Trudeau, not the world market, is responsible for oil prices.

All of this is made worse by Albertans approach to government finances. Alberta has made its own bed, deciding it wasn’t going to be Norway, which forces its citizens to pay their own way through taxes and squirrels away its petroleum windfalls for a rainy day. Instead, Alberta has modelled itself on a Mideastern petro-state. (Continued: iPolitics) 

 

Saturday March 2, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday March 2, 2019

SNC-Lavalin and Preferential Treatment

Just when it seems that the scandal currently plaguing the federal government could not get much worse, the federal government may have another trick up its sleeve.

March 1, 2019

First, some background. The federal government’s procurement website states that “in 2015, we introduced a regime to ensure the government does business only with ethical suppliers….”

Federal procurement policies include an Integrity Regime to “help foster ethical business practices, ensure due process and uphold the public trust. It is transparent and rigorous and is consistent with best practices in Canada and abroad.”

As if attempts to secure a deferred prosecution agreement (DPA) for SNC-Lavalin weren’t enough, it has been reported that the government now wants to change the Ineligibility and Suspension Policy under the Integrity Regime.

February 23, 2019

That policy sets out the circumstances in which a criminal conviction will result in an organization becoming ineligible to bid on federal contracts. The list of offences that result in ineligibility include bribery, lobbying offences, fraud, false or deceptive statements, and money laundering. The ineligibility period is five or 10 years, depending on the crime.

The proposed changes would give the government more flexibility to decide whether a ban should apply, and if so, for how long.

The federal government is determined to ensure that SCN Lavalin remains eligible to bid on federal government contracts.

The stated reason is to protect jobs. Quebec jobs, to be specific.

The unstated reason may be to protect votes in Quebec.

Why the steely determination to protect this company?

February 18, 2016

Even considering possible political motives, it still seems to defy logic.

After all, it is possible that a corporation’s unsavory conduct may contribute to its growth and stifle competition. Would it be so successful without it?

If SNC-Lavalin goes under, surely someone else will fill the void, and employees will find work elsewhere. Albeit, this may not all happen before election day.

It is perhaps finally obvious to the federal government that it will be difficult to invite SNC-Lavalin to enter a DPA.

So instead, it plans to change the criteria for awarding federal contracts.

This could prove problematic. And possibly rather expensive. (Continued: Kelowna Capital News)  

Reference made to this cartoon on CBC Radio One show “The Current”, Tuesday March 4, 2019 by Jason Markusoff, Alberta correspondent for Maclean’s magazine. 7:35minute mark.