For 40 years politicians argued, companies stalled, and Canada kept selling most of its energy to one customer. Now Ottawa looks ready to stop waiting for the “free market” to save the day.. and start
Good commentary. I think the political climate (pun intended) is right for the Carny government to extract some concessions from the oil and gas industry on its carbon capture policy in order to finally get an new oil pipeline to the west coast built. I know a lot of people are against any more oil and gas development in Canada given global warming and climate issues, however the ill-advised war in Iran and the economic fallout from the resultant higher energy prices highlights that the world economy still needs oil and gas for the foreseeable future. So a new oil pipeline to the west coast will make Alberta happy (and put to rest the potential separatist movement) and the Government will secure the carbon capture concessions that should appease the climate activists. Seems to me that more, but cleaner, oil and gas production would be a win-win for Canada. After all, more people working and paying taxes, plus oil and gas companies also paying more tax is good for Canada.
My question is why not build the pipeline north to Churchill? It would take the traversing the Rockies out of the equation as well as the coastal tanker ban problem. The northern passage is opening up more all the time due to climate change. I might not have a clue what I am talking about but it seems possible. doesn’t it?
My understanding is Churchill sounds simpler on paper, but Arctic shipping, ice conditions, infrastructure, insurance costs, and distance create their own headaches.
This: "pocket lint." LOL Great description Fred!!! Well, I think the pipelines had to happen sooner or later. Sooner, rather than later, prevents the Traitor from just passing it over to her President of the orange ball, & isn't it cute that she wants to be called President bleeekkkk, if she succeeds in separation from Canada, then the USA owns Canadas freakin oil!!! Grrrrr Carney is an intelligent man, he will make sure Canada's stamp is on it, whether the separation takes place or not.
Absolutely 👍 most people can’t see the future …all they can see is today and their personal lives whether it be good or the struggle. Instead of looking at the investment which will improve everyone’s lives down the road.
Applies to my country, Australia, as well. Sadly, once we let the government start building again, which happened a few years ago here, it got totally politicised. We are currently building a multi billion $ train line that literally now goes nowhere (they just cancelled the second half - the bit that made it useful…), and the Snowy 2.0 hydro power project that was “shovel ready” and supposedly taking 2 years. That was 7 years ago, it's still years from completion and costing 20-30 TIMES AS MUCH as originally claimed. Unlike private enterprise, that would have walked away, the government just reaches into the taxpayer piggy bank. And then we can’t have nice things as there's “no money”.
Australia is doing a great jod at making roof top solar affordable.
Rooftop solar installation costs in Australia are significantly lower than in Canada, with Australia's national average at approximately $0.89 per watt compared to Canada's average of about $3.65 per watt.
We don’t. The cost of the panels is only some of the cost, that battery, inverter and installation probably make up a large part of the costs. Also our climate is pretty harsh, so it is possible that we need more robust panels that would of course cost more. It’s less the cold, and much more a problem of extremes. For example where I live in Alberta the temperature can rapidly and wildly change. I swing in temperature of 20 degrees is not uncommon. Example the temperature could be say -10c in the morning, but swing to 15c by afternoon. Also from summer to winter with temperatures that can be 40c in the summer to -40 in the winter. We often say, we only have two seasons, winter and construction.
We also have some pretty impressive hail storms that have been know to create golf ball sized hail stones every few years.
Probably the answer is found in the solar policy or lack of here on n Canada.
Ok the trans mountain pipeline cost 35 Billion to build and we have had big time inflation since then. A totally new line would be 50 Billion minimum. For $1.25 billion annual net revenue i'll buy gic's similar return no risk. To be investible returns 8%+ would be necessary. Only one way you can do that. Twin the Trans Mountain pipeline corridor at a cost of 20-25 billion and while your at it add a gas line to the corridor at the same time and get gas to BC ports for liquification. Then it becomes investible.
Crazy thing is that wind turbines and solar panel investments give double digit returns. With new iron air or other more efficient long term storage options coming on line, there are large swaths of arid and sunny scrub lands that would make a very large wind and solar industry in Alberta. I'd prefer the wealth fund take a piece of that action. There will be lots to choose from. Carney was asked about airports and the possibility of selling them of as infrastructure investments. These assets have well defined and recurring revenue streams that are reasonably projectable. Perfect for pension and wealth funds. The money printing press is already turned on.
Actually there are already gas pipelines for LNG getting built in BC. We just don’t talk about it because the Alberta government is only interested in an oil pipeline.
Otherwise they’d have to admit that pipelines are getting built and LNG capacity has and is still increasing as LNG projects that got a-lot of federal funding and support are being
completed.
Then we should ask ourselves how much federal money went into developing the oil sands, over the last 40 years, because it’s not a small number.
As I understand it all new pipelines will be privately funded or more correctly not funded by the Federal government. Alberta which profits directly from every barrel sold may be a player. The industry players that stand to gain should be players, they are making billions right now and wht wouldn't they want the gravy train to grow and continue. They will if the pipeline is approved and there are no restrictions to its completion. The line about years of red tape before a drop is thecshow stopper. Certainty of approval is the Federal job here. Get that done and private and provincial investment will follow.
Why wouldn’t private industry want to make more money is a good question and the answer is risk. Risks of construction cost overruns or delays and risks of changing market conditions.
Like say if something was happening (solar) that could over time lower the cost of energy and reduce the demand for fossil fuels. Reduced demand means lower prices long term, when we don’t have some idiotic war in the middle east.
Or an uncertain political climate (separation) really makes future profits uncertain and businesses hate uncertainty.
We should also be building Churchill port to export LNG to Europe, build refineries in Canada and use our own oil instead of shipping out and having to buy refined products from elsewhere….
Good commentary. I think the political climate (pun intended) is right for the Carny government to extract some concessions from the oil and gas industry on its carbon capture policy in order to finally get an new oil pipeline to the west coast built. I know a lot of people are against any more oil and gas development in Canada given global warming and climate issues, however the ill-advised war in Iran and the economic fallout from the resultant higher energy prices highlights that the world economy still needs oil and gas for the foreseeable future. So a new oil pipeline to the west coast will make Alberta happy (and put to rest the potential separatist movement) and the Government will secure the carbon capture concessions that should appease the climate activists. Seems to me that more, but cleaner, oil and gas production would be a win-win for Canada. After all, more people working and paying taxes, plus oil and gas companies also paying more tax is good for Canada.
Good take Kevin.
Feels like this only works if both sides get something...
market access for Alberta, cleaner production for Ottawa.
We may be heading toward a compromise nobody loves but everybody tolerates.
My question is why not build the pipeline north to Churchill? It would take the traversing the Rockies out of the equation as well as the coastal tanker ban problem. The northern passage is opening up more all the time due to climate change. I might not have a clue what I am talking about but it seems possible. doesn’t it?
“Fair question Shelagh...
and you’re definitely not the first to ask it.
My understanding is Churchill sounds simpler on paper, but Arctic shipping, ice conditions, infrastructure, insurance costs, and distance create their own headaches.
Still, worth asking as the North changes.
Love your refusing to build quote - describes NZ perfectly.
Thank you Gay.
Funny how countries on opposite sides of the world can end up telling the same story.
This: "pocket lint." LOL Great description Fred!!! Well, I think the pipelines had to happen sooner or later. Sooner, rather than later, prevents the Traitor from just passing it over to her President of the orange ball, & isn't it cute that she wants to be called President bleeekkkk, if she succeeds in separation from Canada, then the USA owns Canadas freakin oil!!! Grrrrr Carney is an intelligent man, he will make sure Canada's stamp is on it, whether the separation takes place or not.
😂 ‘Pocket lint’ seemed about right.
And yes... feels like Canada’s at one of those ‘better make a decision’ moments
instead of kicking the can another decade.
Absolutely 👍 most people can’t see the future …all they can see is today and their personal lives whether it be good or the struggle. Instead of looking at the investment which will improve everyone’s lives down the road.
I hear you Arla.
The hard part in democracies is convincing people to invest
in things that may not pay off until years later.
Applies to my country, Australia, as well. Sadly, once we let the government start building again, which happened a few years ago here, it got totally politicised. We are currently building a multi billion $ train line that literally now goes nowhere (they just cancelled the second half - the bit that made it useful…), and the Snowy 2.0 hydro power project that was “shovel ready” and supposedly taking 2 years. That was 7 years ago, it's still years from completion and costing 20-30 TIMES AS MUCH as originally claimed. Unlike private enterprise, that would have walked away, the government just reaches into the taxpayer piggy bank. And then we can’t have nice things as there's “no money”.
“Fair point... and honestly, that’s the risk side of the equation.
Governments can build nation-sized things…
but they can also turn them into bottomless pits if politics takes over.
The trick is building competently, not just building.”
Australia is doing a great jod at making roof top solar affordable.
Rooftop solar installation costs in Australia are significantly lower than in Canada, with Australia's national average at approximately $0.89 per watt compared to Canada's average of about $3.65 per watt.
Ooch! We don't have much in the way of tariffs on most Chinese goods - do you? And it's not cold here generally. Would that impact?
We don’t. The cost of the panels is only some of the cost, that battery, inverter and installation probably make up a large part of the costs. Also our climate is pretty harsh, so it is possible that we need more robust panels that would of course cost more. It’s less the cold, and much more a problem of extremes. For example where I live in Alberta the temperature can rapidly and wildly change. I swing in temperature of 20 degrees is not uncommon. Example the temperature could be say -10c in the morning, but swing to 15c by afternoon. Also from summer to winter with temperatures that can be 40c in the summer to -40 in the winter. We often say, we only have two seasons, winter and construction.
We also have some pretty impressive hail storms that have been know to create golf ball sized hail stones every few years.
Probably the answer is found in the solar policy or lack of here on n Canada.
Ok the trans mountain pipeline cost 35 Billion to build and we have had big time inflation since then. A totally new line would be 50 Billion minimum. For $1.25 billion annual net revenue i'll buy gic's similar return no risk. To be investible returns 8%+ would be necessary. Only one way you can do that. Twin the Trans Mountain pipeline corridor at a cost of 20-25 billion and while your at it add a gas line to the corridor at the same time and get gas to BC ports for liquification. Then it becomes investible.
Crazy thing is that wind turbines and solar panel investments give double digit returns. With new iron air or other more efficient long term storage options coming on line, there are large swaths of arid and sunny scrub lands that would make a very large wind and solar industry in Alberta. I'd prefer the wealth fund take a piece of that action. There will be lots to choose from. Carney was asked about airports and the possibility of selling them of as infrastructure investments. These assets have well defined and recurring revenue streams that are reasonably projectable. Perfect for pension and wealth funds. The money printing press is already turned on.
Good points Larry.
The economics matter more than slogans.
If public money is involved, Canadians should be asking one question...
what actually gives us the best long-term return?
Actually there are already gas pipelines for LNG getting built in BC. We just don’t talk about it because the Alberta government is only interested in an oil pipeline.
Otherwise they’d have to admit that pipelines are getting built and LNG capacity has and is still increasing as LNG projects that got a-lot of federal funding and support are being
completed.
Then we should ask ourselves how much federal money went into developing the oil sands, over the last 40 years, because it’s not a small number.
As I understand it all new pipelines will be privately funded or more correctly not funded by the Federal government. Alberta which profits directly from every barrel sold may be a player. The industry players that stand to gain should be players, they are making billions right now and wht wouldn't they want the gravy train to grow and continue. They will if the pipeline is approved and there are no restrictions to its completion. The line about years of red tape before a drop is thecshow stopper. Certainty of approval is the Federal job here. Get that done and private and provincial investment will follow.
Why wouldn’t private industry want to make more money is a good question and the answer is risk. Risks of construction cost overruns or delays and risks of changing market conditions.
Like say if something was happening (solar) that could over time lower the cost of energy and reduce the demand for fossil fuels. Reduced demand means lower prices long term, when we don’t have some idiotic war in the middle east.
Or an uncertain political climate (separation) really makes future profits uncertain and businesses hate uncertainty.
I LOVE IT! Winter and Construction. 😂👷❄️
We should also be building Churchill port to export LNG to Europe, build refineries in Canada and use our own oil instead of shipping out and having to buy refined products from elsewhere….