Ontario politicians are increasingly alarmed at the prospect of thousands of job losses in the coming months and fuel shortages in the province if Michigan succeeds in shutting down Enbridge Inc.’s Line 5 pipeline.
The mayor of Sarnia, a southern Ontario city that’s home to three refineries and multiple petrochemical plants, says the city faces potentially 5,000 job losses as Michigan Governor Gretchen Whitmer has served Enbridge with notice the state is cancelling a decades old easement allowing its Line 5 pipeline, which runs from Western Canada to Michigan and southern Ontario, to cross the Straits of Mackinac through the Great Lakes.
J.J. Ruest, the president and CEO of CN Rail, said in a statement Tuesday the railway has no choice but to temporarily shutter “significant” parts of its network because blockades by Indigenous protesters near Belleville, Ont., and New Hazelton, B.C., have made train movements in the rest of the country all but impossible.
“We are currently parking trains across our network, but due to limited available space for such, CN will have no choice but to temporarily discontinue service in key corridors unless the blockades come to an end,” Ruest said.
Ruest said the protests threaten industry across the country, including the transport of food and consumer items, grain, de-icing fluid at airports, construction materials, propane to Quebec and Atlantic Canada, and natural resources like lumber, aluminum and coal.
Anthony Furey: A judge warned us in 2013 that endless blockades were coming to Canada
So the courts have ruled that the protesters must leave. It’s the job of the police to enforce the law. But the police have instead made a choice to not enforce the law and are instead “monitoring the situation” and “maintaining a dialogue”. Meanwhile, the Ontario Solicitor General’s office, which is responsible for the OPP, shirked responsibility by simply telling Postmedia that “the Minister cannot direct police operations”.
This is far from the first time law enforcement in Ontario has failed to do their job. In fact, an Ontario Superior Court judge even issued a stark warning several years ago about what would happen if this contempt for court injunctions on the part of the police continues.
Scientists from the Massachusetts Institute of Technology have published a paper that details the mechanism of a battery device that can suck out the carbon dioxide from the air, store it, and then release it for sequestration or storage and subsequent sale: the oil and gas industry uses CO2 to improve well output.
The principle of the device is ingeniously simple: as the battery charges, it sucks in carbon dioxide. During discharge, the CO2 is released into the ground. The battery itself is made up of arrays of electrodes with gaps between the arrays so the gas can enter the device. Each electrode is coated with a carbon nanotube layer that enables an electrochemical reaction when carbon dioxide comes into contact with the surface of the electrodes. The guarantee for this contact is the fact the electrodes have a natural affinity for CO2, which means they attract the gas molecules when they enter the device.
Would the city of Windsor, Ont., home of Canada’s auto industry, give a third of a million dollars to anti-car lobbyist? Would Hamilton hire an anti-steel lobby?
The Canadian Taxpayers Federation revealed this shocking payment. But instead of expressing embarrassment, Mayor Naheed Nenshi admitted he knew all about it, and supported it.
Nenshi didn’t dispute that Pembina has nine lobbyists registered in Ottawa to attack the oil patch. But he claimed Pembina was also a “scientific think-tank” and it was for this expertise that the city paid them so richly. When asked by Sun Media if the city would ever pay the pro-free market Fraser Institute for advice, Nenshi was dismissive. “As soon as they hire scientists who actually know something,” he sniffed.
With the CN strike about to enter day three, the president of the Canadian Propane Association (CPA) says the province of Quebec is about to enter into a crisis situation, with Ontario not far behind.
Quebec heavily relies on the the railroad to bring its supply of propane — 83 per cent is transported via the rail line. In Canada, overall, 63 per cent of propane moves on the tracks, with the remainder transported by truck.
According to Nathalie St-Pierre, president and CEO of the CPA, by the end of the day on Wednesday, 80 per cent of Quebec’s propane reserve will be used up. […]
The supply shortfall is being caused by numerous factors — demand spikes from cold weather, farmers needing to dry grain, and a rail strike that has yet to be resolved.
St-Pierre can’t recall the last time an accumulation of factors have caused such a shortfall of the product.
Encana Corp., one of Canada’s oldest and largest energy companies, is moving its corporate headquarters from Calgary to the United States.
The company, which is also changing its name to Ovintiv Inc., said Thursday that having a U.S. address will expose it to increasingly larger pools of investment in U.S. index funds and passively managed accounts, as well as better align it with its U.S. peers.
Thank you. And now I can’t help but wonder if there might have been something more fulsome and from a minister or the PM if a similar sized aeronautics company in Quebec announced it was moving its HQ to the US https://t.co/H8hkSCiMup
I know that several of you have read an article or two about this video, but I don’t know how many of you actually have had the opportunity to watch the video itself? Here it is, if you wish to watch it? With all the $$ involved, you would think that Ms. Krause would have been sued to death for presenting this info and saying the things that she says in the video, if it were not factually correct?
If you watch until the end you will see just how much influence is happening even in our current election.
Saturday’s attack on a critical Saudi oil facility will almost certainly rock the world energy market in the short term, but it also carries disturbing long-term implications.
Ever since the dual 1970s oil crises, energy security officials have fretted about a deliberate strike on one of the critical choke points of energy production and transport. Sea lanes such as the Strait of Hormuz usually feature in such speculation. The facility in question at Abqaiq is perhaps more critical and vulnerable. The Wall Street Journal reported that five million barrels a day of output, or some 5% of world supply, would be taken offline as a result.
To illustrate the importance of Abqaiq in the oil market’s consciousness, an unsuccessful terrorist attack in 2006 using explosive-laden vehicles sent oil prices more than $2.00 a barrel higher. Saudi Arabia is known to spend billions of dollars annually protecting ports, pipelines and processing facilities, and it is the only major oil producer to maintain some spare output. Yet the nature of the attack, which used drones launched by Iranian-supported Houthi fighters from neighboring Yemen, shows that protecting such facilities may be far more difficult today.
There are countries that even today see their output ebb and flow as a result of militant activity, most notably Nigeria and Libya. Others, such as Venezuela, are in chronic decline due to political turmoil. Such news affects the oil price at the margin but is hardly shocking.
Deliberate attacks by actual military forces have been far rarer, with the exception of the 1980s “Tanker War” involving Iraq, Iran and the vessels of other regional producers such as Kuwait. When Saddam Hussein’s Iraqi forces invaded Kuwait in 1990, removing its production from the market and putting Saudi Arabia’s massive crude output under threat, prices more than doubled over two months.
Yet Saturday’s attack could be more significant than that. Technology from drones to cyberattacks are available to groups like the Houthis, possibly with support from Saudi Arabia’s regional rival Iran. That major energy producer, facing sanctions but still shipping some oil, has both a political and financial incentive to weaken Saudi Arabia. The fact that the actions ostensibly were taken by a nonstate actor, though, limits the response that the U.S. or Saudi Arabia can take. Attempting to further punish Iran is a double-edged sword, given that pinching its main source of revenue, also oil, would further inflame prices.
While the outage may not last long given redundancies in Saudi oil infrastructure, the attack may build in a premium to oil prices that has long been absent due to complacency. Indeed, traders may now need to factor in new risks that threaten to take not hundreds of thousands but millions of barrels off the market at a time. U.S. shale production may have upended the world energy market with nimble output, but the market’s reaction time is several months, not days or weeks, and nowhere near enough to replace several million barrels.
After the smoke clears and markets calm down, the technological sophistication and audacity of Saturday’s attack will linger over the energy market.
The things that happen when I’m busy working. More links at Drudge and photos here.
Honestly, it can’t be easy being the long-time head of Amnesty International Canada (AI), stuck in annoyingly free and peaceful Canada, having to work yourself up into high dudgeon to denounce a democratically-elected government peacefully standing up for its citizens.
On the other hand, your insistence that the burning human rights threat in Canada right now is – to use your description – the “establishment of an energy ‘war room’ devoted to defending the oil and gas industry in Alberta and a public inquiry into the foreign funding of groups who oppose or criticize energy developments in the province” can hardly pass unchallenged. Relentless misinformed attacks against our oil and gas industry have cost us thousands of jobs and hurt families from every region of our province. The cost in investment and jobs has been incalculable. Our government won the largest democratic mandate in Alberta history in part on a promise to stand up to those attacks. I will not apologize for keeping that promise.
Saskatchewan Premier Scott Moe will be on John Gormley Live. The show starts at 8:30 local time (10:30 Eastern) though not sure what time the interview is scheduled. (Update: first segment). You can listen live here.
“…founded in 1952 as the voice of the Canadian oil community. The magazine reports on the people and events of that community – both past and present – that have made the oilpatch in Canada what it is today.” Here’s a link should you wish to subscribe.
In the short time since he has been elected, there has been no shortage of voices saying that Kenney will not be able to get Alberta’s oil and gas to international markets because of the political realities in Vancouver and Montreal and Ottawa and Paris and the UN, etc.
But that’s the current ground, upon which not even the super progressive Rachel Notley could get a pipeline built. What Kenney will do, as he always does, is to shift the terrain.