SIMSA 2024: Oil and gas is a “cornerstone of our financial prosperity,” says CAPP CEO Lisa Baiton.
To rectify Canada’s sinking economic status, we need to fix our energy regulatory framework to be timely, predictable and simpler. Along the way, we need to include Indigenous people and their investments.
Those were the messages by Lisa Baiton, president and CEO of the Canadian Association of Petroleum Producers, in her keynote address to the 10th annual Saskatchewan Industrial and Mining Suppliers Association (SIMSA) Energy Forum.
Cheap energy has transformed the world and lifted millions out of poverty. It’s literally the golden goose and we Canadians are lucky to have quite a bit of it. The problem is governments can’t seem to understand this issue and constantly want to change the regulatory landscape. Even, ostensibly pro capitalist Alberta has had periodic royalty reviews and don’t get me started on the odious federal government. All we need is a hands off approach and revenues from income taxes would pour in, as companies begin to do more, and hire more. Even much maligned coal is a great resource. We are surrounded by riches that are being bludgeoned by crazy regulations.
But, but, but … Brian says we need EXPENSIVE not cheap oil to fuel the pocketbooks of his constituent oil patch workers. He abhors Trump’s motto to “drill, baby, drill”. He probably doesn’t like his “ mean Tweets” either …
Not necessarily expensive, but certainly not damned near free. At $35-40 a barrel, the industry is starving to the point of bankruptcy if it lasts too long. The provinces take in next to no oil revenue, and can’t pay for hospitals and roads. There was a time, not too long ago, that oil revenues alone paid for every doctor, nurse, hospital bed, old folks home and lab test in Saskatchewan south of Lumsden. That includes for everyone in Regina, Moose Jaw, Weyburn, Estevan, Swift Current, etc. I’ve done the math on it. Oil revenue is massive when it comes to Saskatchewan, and much more so in Alberta. When that money evaporates, what are your suggestions for a revenue source?
The average price of gasoline in CA is $4.67/gal. … and in my little town it’s well over $5.00/gal.
https://gasprices.aaa.com/?state=CA
That … is NOT cheap, plentiful energy. Hence ALL economic activity is down. There is a HIGH fuel surcharge cost for every materials delivery … plus … the cost of fabricated building materials (synthetic siding for example) have literally doubled in 4-years. Anything that takes ENERGY to produce has skyrocketed in price. I’m pouring 13 yards of concrete this Sat. and concrete costs $220/yd .., PLUS … $150/truck delivery charge … and I will need 2 trucks. 1 truck plus a smidgeon. Still … +$300.00 just for delivery.
These high energy costs are NOT sustainable by the general public. Just “rich” Californians like me can afford to pay $3,200 in concrete alone to pour a walkway at the side of my house … and the concrete finishers cost another $2,000.00.
High Energy prices are crippling our economy. Do I want oil drillers to go out of business from bankruptcy? Of course not. But they’re in danger of going bankrupt from inflationary crippling of the economy
US$75/bbl is not high. For most of 2008-2014, the price was around US$100 per barrel. So how did you survive then?
Brian … IMHO $100/bbl oil in 2008 was the match that lit the fire of the junk mortgage meltdown. Everyone was riding high… buying properties, fixing and flipping them … until suddenly gasoline hit $5.00/gal. And the marketplace couldn’t take it. All economic activity came crashing to a halt. People couldn’t pay their electric bills, or their commute costs … let alone their FAKE mortgage payment.
Also IMHO … $100/bbl oil pricing and $5.00/gal. gasoline was the oil industry PROBING for just how much they could get away with charging the consumer. And sadly, there is no “free marketplace” in the oil industry. We are all as dependent on the cost of gasoline as we are on the cost of public utilities … and there are too few GIANT oil corporations for there to be true price competition. I’m a free market guy … but I suspect the oil industry is acting like a monopoly. Setting the price they see fit, with no checks or balances except deep recessions.
Along the way, we need to include Indigenous people and their investments
No, we don’t.
The clouds of DEI are ever present now. We’re hobbled.
We are royally ph**ked! There fixed it for you.
Indigenous “investments” are taxpayer funds and royalties paid to indians by mining/oil companies for doing nothing!!
Fckn A.
Let them get a job, start businesses and invest their own hard-earned money. Win-win for all, except the Indian Grift Industry and coward-progressives.
“…we need to fix our energy regulatory framework to be timely, predictable and simpler. ”
Stated simply, Justatwit and his gang of goons must go.
The biggest problem is the limit on CO2 emissions by the Federal government. It prevents you from expanding the oil & gas industry and also keeps all heavy industry (e.g. steel production) out of the country, remaining in places where they have no limits (i.e. China, Indonesia, Philippines, India) on CO2 and pollution in general.
Want to build a new steel plant or smelter in Canada? You will need lots of renewal energy and carbon sequestration technology, plus a $200 million water plant. Or you could just buy cheap Chinese steel (made using cheap coal energy) and not worry about it. When I read about Chinese groups accused of election interference I can see some strategy hiding and it would require some pocket lining – otherwise why would you let this happen?